Kincora strikes $50 million earn-in deal with AngloGold 

Kincora Copper (ASX:KCC) has secured a deal with AngloGold Ashanti (NYSE:AU) that allows for the US$10 billion ($15 billion) miner to earn up to an 80% stake in Kincora’s Northern Junee-Narromine Belt (NJNB) Project in New South Wales by spending up to $50 million.

AngloGold has an increasing attraction to the Macquarie Arc in the prolific Lachlan Fold Belt, with the company having inked a $135 million deal in the first half of 2023 with Canada’s Inflection Resources (CSE:AUCU) to earn into five of its copper-gold projects in the region.

To earn a phase-one stake of 70% in Kincora’s Nyngan and Nevertire licences, AngloGold, via its wholly owned subsidiary AngloGold Ashanti Australia, must spend $25 million within seven years on exploration. 

This includes drill testing a range of virgin, large intrusive-related copper-gold targets.

The Macquarie Arc is host to several large intrusion-related porphyry deposits and has been described as an analogue of the Golden Triangle in British Columbia, but with the Macquarie Arc having witnessed much less exploration.

The Golden Triangle hosts most of the major gold, silver, and copper deposits in west-central Stikinia – a 1000km-long oceanic arc terrane running along the length of the Canadian Cordillera.

There has been limited prior drilling of the northern extensions of both the Junee-Narromine and Molong belts because both are undercover compared to the southern more outcropping sections.

These more mature southern exploration regions host over 160 million gold equivalent ounces and a number of major mines, including the formerly Newcrest-owned Cadia mine and Evolution Mining’s (ASX:EVN) Cowal and Northparkes mines. 

Kincora, which has a market capitalisation of around $8.9 million, says the undercover extension along the NJNB of the Macquarie Arc porphyry copper-gold geology is a “globally significant” exploration opportunity. 

Regional geophysics indicate that the Nyngan and Nevertire licenses host two of the few remaining, almost untested, volcano-intrusive complexes of the Macquarie Arc.

AngloGold is required to spend at least $2 million within the first two years, with Kincora to act as initial operator for a 10% management fee. After the minimum spend condition is met, AngloGold has the option to withdraw from the partnership.  

If the company meets its full phase-one commitments, it can then boost its interest to 80% by either completing a Prefeasibility Study or spending another $25 million within three years to advance the project. 

This new agreement expands AngloGold’s earn-in footprint across the NJNB to about 8,000km2

AngloGold has spent over $6 million so far on exploration over Inflection’s ground in the last 12 months. Further near-term drilling is planned at the Duck Creek and Moonagee prospects, which separately border Kincora’s Nyngan licence. 

Technical Committee Chair John Holliday and Vice President of Exploration Peter Leaman say the agreement with AngloGold provides the capital, technical and belt-scale capacity required to aggressively drill test and begin realising the potential of Kincora’s district-scale land position in the almost unexplored, undercover NJNB extension of the Macquarie Arc.

“This is virgin exploration territory and a major opportunity with huge upside offering Cadia-scale discovery potential.

AngloGold, a successful greenfield explorer, is already aggressively investing into the belt with drilling programs on neighbouring projects and clearly shares our view of the NJNB having the potential to yield a new district of tier-one gold-rich copper porphyry system discoveries.”

Kincora says it was an early entrant in the NJNB, with the pegging of Nyngan and Nevertire securing the company a district-scale position in the interpreted shallow to moderate covered core sections of the belt.

The NJNB is now largely pegged by Kincora, Fortescue Metals Group (ASX:FMG) and Inflection Resources. 

More recently, Kincora pegged ground in the northern extension of the Molong belt. Talisman Mining (ASX:TLM) and Inflection subsequently also pegged ground in the area. 

Write to Angela East at Mining.com.au 

Images: Kincora Copper
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Written By Angela East
Managing Editor Angela East is an experienced business journalist and editor with over 15 years spent covering the resources and construction sectors and more recently working as a communications specialist handling media relations for junior resources companies.