The New South Wales Government is injecting funding into Kincora Copper’s (ASX:KCC) Wongarbon Project via its Critical Minerals and High-Tech Metals Exploration Program (CMEP).
Kincora has received a grant of $143,483 to support drilling at the project, which covers 173km2 and is interpreted to host one of the few large and untested intrusive complexes of the Macquarie Arc in New South Wales.
The $2.5 million CMEP, part of the Critical Minerals and High-Tech Metals Strategy 2024-35, is aimed at bolstering the state’s position in critical minerals and high-tech metals by co-funding exploration activities on a 50% basis over the next two years.
The Wongarbon Project, which Kincora secured in mid-2024, is believed to be located within a similar system to that hosting the former Newcrest-owned Cadia mine, Evolution Mining’s (ASX:EVN) Cowal and Northparkes mines and Alkane Resources’ (ASX:ALK) 14.7-million-ounce Boda and Kaiser deposits.
Newcrest previously identified Wongarbon as a new district scale/intrusive complex undercover target, but did not explore it further because of its higher priority Cadia East and Ridgeway discoveries.
In October last year, Kincora expanded its partnership with Fleet Space Technologies to include the Wongarbon Project.
Fleet Space agreed to undertake multiphysics surveys at the project to identify and refine targets, and also has the right to earn a 20% stake in the project by drilling at least 2,000m.
CEO Sam Spring says maiden drilling will begin shortly following the non-dilutive grant.
“We would like to thank the NSW Government for the direct financial support to Kincora and the wider industry via the Critical Minerals Strategy 2024-35,” he says.
“These programs provide a strong pro-investment and pro-exploration to mining message to all stakeholders.”
The granting of the funding follows a competitive expert panel review process.
Six exploration geochemistry, 12 exploration geophysical and 11 drilling grants were awarded to 18 explorers, with 21 of the 29 grants focused on copper exploration.
“As indicated by recent US Government policy, copper is one of, if not the most critical of the critical minerals due to its essential role in the energy transition and national security, and essential role in industrial production and the wider economy,” Spring notes.
“Recent discoveries in both the Macquarie Arc and Cobar Basin highlight the significant potential for further new globally significant copper and other critical mineral projects within NSW’s Lachlan Fold Belt.”
Daan de Jonge, Lead Analyst – Copper Demand and Prices for Benchmark Mineral Intelligence, said during a webinar ahead of LME week last week that data centres in particular are an incredibly high growth sector for copper demand from a very small base.
“Before ChatGPT launched in 2022, the growth was very, very small and the total number was effectively less than 100,000 tonnes [of copper],” he said.
“Since ChatGPT launched and AI has become what it is now, demand has been incredibly rapid. We estimate that from 2022 to where we are now to 2025, the compound annual growth rate of copper required in the construction of data centres was 39.5%.
“This is not total growth, this is compounded annualised growth, which is, of course, very, very significant. We don’t expect this to really go away.”
de Jonge expects demand will continue through to 2030 at a compound annual growth rate of just under 20%, which will require an additional 1 million tonnes of supply for data centre construction alone.
At the same time, the copper market is witnessing its first year of contraction since 2019, according to Piotr Kulas, Lead Analyst – Copper Supply for Benchmark.
“This lack of growth in the mining space has created a very tight market that was very supportive to the price this year,” Kulas said during the webinar.
Since April the LME copper price has jumped about 23% to over US$10,600 ($16,312) a tonne.
Write to Angela East at Mining.com.au
Images: Kincora Copper
