Kincora Copper’s (ASX:KCC) earn-in partner on the Bronze Fox Copper-Gold Project in Mongolia, Orbminco (ASX:OB1), is working quickly towards a high-priority drilling program after honing in on new higher grade targets on the western margin of the West Kasulu resource.
Drilling is planned for the second quarter of this year after sampling of an historic trench returned results of 17m @ 0.5% copper and 0.34 grams per tonne gold, including 6m @ 1% copper and 0.6g/t gold, and 4m @ 0.6% copper and 0.2g/t gold.
Ahead of drilling, Orbminco will undertake geophysical surveying, including induced polarisation, to define possible subsurface sulphide mineralisation for drill testing.
Surveying will also assist in further refining three existing multiple-phase porphyry targets, one intermediate sulfidation target and identify further potential shallow targets for maiden drill testing.
Orbminco Managing Director Ralk Kriege says the new trench results, coupled with drilling results from the 2024 drilling program and review of existing chargeability anomalies, supports an extension of existing geophysical coverage and a proposed high-priority drilling program to better understand the higher-grade potential of the open western strike of the Bronze Fox Intrusive Complex.
Last year’s drill program returned top hits of 26m at 0.91% copper equivalent from 14m, including 2m at 8.29% from 24m.
The trench on the western edge of the West Kasulu resource remains largely unsampled, with only visible mineralisation sampled to date.
Meanwhile, the resource itself remains open to the west, beneath shallow cover, where a review of an induced polarisation survey completed by Kincora in 2018 defined a number of strong, untested chargeability anomalies.
Rock chip sampling also indicates that mineralisation extends to the northwest, with numerous samples showing grades of over 0.5% copper.
Induced polarisation surveys will also be completed at the Shuteen North target ahead of maiden drilling, also set to begin in the second quarter, to confirm the discovery of a new, and third, intrusive complex at the Bronze Fox project, which is interpreted to be related to the Shuteen lithocap.
The Shuteen North target is located 10km southwest of West Kasulu and has never been drilled.
Limited prior exploration by Kincora recorded subcropping copper mineralisation and multiple phase intrusive systems associated with strong mineral alteration across a 15km by 6km target zone named the Shuteen North Intrusive Complex.
“The Shuteen North target has the potential to be the third intrusive complex at Bronze Fox and is a compelling, near-surface and new large-scale target interpreted to be associated with the Shuteen lithocap, the largest lithocap in the Southern Gobi,” Kriege says.
“The importance of this conceptual geological setting is significant given the lithocap at the Oyu Tolgoi project was an important early-stage exploration marker.
“Preparations are taking place to undertake geophysical surveys and surface field activities early in the next quarter, to refine existing and generate new targets ahead of drilling at both the western extension of the Bronze Fox Intrusive Complex and at the Shuteen North Intrusive Complex.”
The Southern Gobi region, which is largely known as a major coal producing region, is emerging as a critical new source of copper supply, with an endowment of 85 million ounces of gold and 50 million tonnes of copper.
Mongolia exports about 1.4 million tonnes each year of copper concentrate but has the potential to ramp up to 2-2.5 million tonnes annually in the future, according to Mongolian Minister of Mining and Heavy Industry Ganbaatar Jambal.
Orbminco can earn up to an 80% stake in the Bronze Fox Project by spending US$4 million ($6.1 million) over five years.
Under the deal, Kincora is Orbminco’s largest shareholder and retains asset-level exposure via a carried interest to final investment decision or bullet payment with net smelter return asset-level upside.
Write to Angela East at Mining.com.au
Images: Kincora Copper
