Canadian copper explorer Inflection Resources (CSE:AUCU) has reported the best hole so far at its flagship Duck Creek Project, with the latest find right near the licence boundary of Kincora Copper’s (ASX:KCC) Nyngan Project in New South Wales.
Inflection revealed late last week that drillhole DCKDH020 intersected encouraging hydrothermal alteration and sulphide mineralisation, including the most intense alteration of all holes completed across its entire New South Wales portfolio, which covers over 7000km2.
Following Inflection’s news, the company’s shares rallied 27%, pushing the junior explorer’s market capitalisation to C$19 million ($20.6 million). Shares added a further 10.5% on Friday (4 October), boosting the company’s market capitalisation to C$20 million.
Inflection President Alistair Waddell says the hole was designed to test an ambient noise tomography (ANT) target, resulting from a Fleet Space Technologies survey, that coincides with a distinct magnetic high and broad gravity low, which are key features the company is using specifically for targeting.
“The intersection of altered monzodiorite intrusions in this hole, along with tourmaline and magnetite veinlets associated with highly anomalous arsenic values is considered very encouraging as these features are often found proximal to other alkalic porphyry systems in New South Wales,” he says.
Inflection reports a broad zone of elevated copper up to 788 parts per million (ppm) and arsenic values averaging 43.9ppm over a 448.5m interval, with values up to 212ppm, explaining these are “highly anomalous as 200m to 500m from the Cadia Ridgeway ore body (Newmont) reports arsenic in the 20ppm to 30ppm range and copper in the 200ppm to 300ppm range”.
Inflection is advancing Duck Creek in partnership with AngloGold Ashanti (NYSE:AU), which is drilling for tier one copper-gold porphyry deposits.
AngloGold Ashanti is also partnering Kincora on its Nyngan Project, where a maiden partner-funded drill program will shortly begin comprising six to eight holes and an estimated 4,000-5,000m budget before year end.
Fleet Space Technologies also recently undertook ANT and gravity geophysical surveys – the first time the company has combined the two – over Kincora’s ground, with the results due out very soon.
While both projects have shown potential for “large-scale” porphyry targets, and have had a similar exploration approach and coverage from the Fleet Space surveys, and, even the same asset level partner with AngloGold Ashanti, Inflection is almost double Kincora’s current market capitalisation.
Kincora CEO Sam Spring tells Mining.com.au the Duck Creek Project – and its partnership with AngloGold Ashanti – is Inflection’s flagship project, while Kincora’s Nyngan Project is literally next door, has the same partner, and is just one of four partner projects, with Kincora also retaining a number of “very attractive more advanced and wholly owned projects”.
“We expect to see rigs shortly turning funded by our partners supporting up to 10,000m, drill testing up to 13 large-scale copper-gold porphyry targets before year-end. These provide very clear share price catalysts,” Spring says.
“We are very encouraged by the results Inflection are announcing on our licence boundary, how they are being received by the market and the very favourable direct peer group valuation that provides.”
The Nyngan Project was the first ground Kincora secured in NSW with regional geophysics strongly indicating the potential to host what Kincora describes as “the largest volcano-intrusive complex of the Macquarie Arc offering a new district-scale setting”.
Spring says the Inflection drilling to date is supporting this concept and scale potential.
“Inflection’s drill hole DCKDH020 is about 1.4km from the boundary of the Nyngan Project, and to put that into perspective the footprint of the Cadia complex is 5.7km – we will be watching their progress pretty closely with our drilling at Nyngan looking to test eight other new porphyry complex targets,” he adds.
Inflection notes that downhole geophysical surveys support its view and hypotheses that ANT lows can successfully represent zones of hydrothermal alteration and highs intrusions.
“It appears that the Fleet Space ANT is very much supporting their approach to exploration and likely step out drilling that has commenced into a velocity low – meaning only closer to our licence boundary,” Spring explains. “We look forward to shortly also annoucing the results of Fleet Space’s surveys at Nyngan”.
The upcoming drilling program at Nyngan will comprise mud-rotary drilling through the post mineral cover sequence followed by diamond core drilling to test the targeted basement.
AngloGold is funding the drilling program, while Kincora will manage it in exchange for a 10% management fee.
The program is the first by Kincora in partnership with AngloGold, which can earn up to an 80% interest in the Nyngan and Nevertire projects by spending up to $50 million.
Write to Angela East at Mining.com.au
Images: Kincora Copper
