Kincora Copper Ltd (CVE:KCC) revealed it has been granted a new exploration licence covering 762 sq km, which is known as the Nyngan project in the Lachlan Fold Belt (LFB), in New South Wales (NSW), Australia.
Notably, the Nyngan project covers a significant portion of the northern sector of the Junee-Narromine volcanic belt, and Alkane Resources Ltd's (ASX:ALK) recent discoveries have led to a re-rating for several junior firms operating in the area, said Kincora.
The Lachlan Fold Belt hosts both Newcrest's Cadia-Ridgeway camp and China Molybdenum Group's Northparkes mine.
READ: Kincora Copper says it's "well-funded" to continue dual exploration and project generation strategy; updates on activity
"The Nyngan project provides the company an opportunity to explore for porphyry-related gold-copper mineralisation within a relatively under-explored section of a proven and highly prospective belt," said Sam Spring, the president and chief executive at Kincora.
"The license is one of the largest in what is Australia's leading porphyry belt. Alkane Resources Limited's recent discovery's, subsequent to our application for this license, have supported a significant re-rating in the valuations of the few juniors active in this region, on average over 200%; a region which is dominated by the mid-tiers and majors," he added.
Spring said the exploration model being used by the company in the Southern Gobi, Mongolia was very complementary to what it had proposed at the Nyngan project.
Kincora also noted the cooperative drilling program announced earlier this month by the NSW government that aimed to financially support undercover exploration and targets that demonstrate strong prospectivity and that it plans to apply for State cooperative funding.
The Nyngan region has attracted interest from a number of companies, originally in pursuit of iron-oxide copper-gold and then large tonnage porphyry copper-gold mineralisation, Kincora told investors.
Areas prospective for hydrothermal alteration and porphyry stocks have been widely recognized but only a few holes have ever been drilled to the basement in the region.
Recent exploration success by Alkane Resource Limited drilling similar depth and style targets has stimulated exploration and corporate activities in the wider region. It made two new discoveries, in both the Molong and Junee-Narromine volcanic belts, which have underpinned a re-rating of various listed exploration peers.
Announced on September 9 this year, at Alkane's Bodo prospect within the Northern Molong belt, a hole returned significant gold-copper porphyry mineralisation, including 502 metres at 0.48 grams per ton (g/t) gold and 0.2% copper with 12 metres at 3.28 g/t gold and 0.67% copper.
This intersection has been described by some as the best porphyry exploration discovery in the broader Lachlan Fold Belt, away from the three mine centers of Cadia, Cowal and Northparkes in the last 20 years.
Alkane has also had success at three gold prospects supporting a 15.8-23.8 million tonne (Mt) at 1.7-2.2 g/t gold target south of their Tomingley Gold Operations (TGO) in the Southern Junee-Narromine belt.
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