Kincora Copper Ltd (CVE:KCC) says a review of its Bronze Fox copper-gold project in Mongolia has supported a large scale porphyry target.
New drill targets were also recommended by the work completed by Mining Associates Ltd.
Kincora shares added 4.35% in Toronto to C$0.24. "The review has assisted to quantify Kincora's large tonnage system at Bronze Fox, which has surprised on the upside to expectations, providing parameters for future exploration and steps required for a potential [National Instrument] 43-101 defined resource," said Sam Spring, president and chief executive officer. Notably, two zones have been identified within the West Kasulu prospect in the western central area, bisected by a regional fault, he added.
"Previous drilling by Kincora into this now better understood western zone is limited to only four holes for 2,170 metres during 2012, with three of those holes providing higher-grade intersections, including F62 which returned 37 metres at 1.01 per cent copper equivalent within a broader intersection.
"New drill targets have been recommended and further analysis is ongoing to support potential additional targets.
"Kincora's next technical workshop is scheduled for next week and will look to determine the next steps at Bronze Fox as well as advance the rest of the company's projects located within its dominant position in the Southern Gobi Devonian copper belt."
Bronze Fox has an extensive mineralised footprint of over 40 sq km within the Bronze Fox intrusive complex (BFIC).
Kincora consolidated ownership of the West Kasulu prospect in early 2012 but completed only one field season of exploration before being impacted by a licence dispute (now resolved), where the western licence was revoked and depressed copper prices, and then completing the IBEX transaction.
The exploration target discussed above is supported by a 3-D block model generated by nearest neighbour and ordinary kriging methods supporting a tonnage exploration target range of between 416mln tonnes (Mt) and 428 Mt, grading 0.26% to 0.30% copper for up to 2,437mln pounds of copper and 840,000 ounces gold.
It is uncertain if further exploration will result in the target being delineated as a mineral resource, Kincora added.