Orbminco (ASX:OB1) has confirmed expansion and higher grade potential of the West Kasulu resource on Kincora Copper’s (ASX:KCC) Bronze Fox Porphyry Project in Mongolia.
Orbminco can earn up to an 80% stake in the Bronze Fox Project by spending US$4 million ($6.1 million) over five years, with Kincora being Orbminco’s largest shareholder and retaining asset-level exposure via a carried interest to final investment decision (FID) or bullet payment with net smelter return (NSR) asset-level upside.
This news comes after Orbminco completed a 16-hole for 2,516m diamond core drilling program, which was designed to infill and extend the existing JORC mineral resource estimate.
Highlights of the latest assay results include 26m @ 0.91% copper-equivalent from 14m, including 2m @ 7.97% copper; and 486m @ 0.21% copper-equivalent with all but one of the 16 holes returning significant mineralisation.
Managing Director Ralf Kriege describes the results of Orbminco’s maiden drilling program as “highly encouraging”, saying that it will support converting the remaining exploration license to a mining lease.
“Orbminco will use the results to progress planning for the 2025 season, which will target extensions of the high-grade mineralisation to the west and the undrilled regional targets,” Kriege says.
Speaking to Mining.com.au, Kincora Copper CEO Sam Spring says the latest results highlight significant scale and grade potential remaining at the Bronze Fox intrusive complex, which is one of the three large shallow intrusive complexes at the project.
Spring tells this news service that Orbminco is planning to do geophysical work during the Mongolian spring season, which will help map the scale and focus of a proposed high-impact and shallow drilling program for 2025 that will test the potential for an open pit target.
“The western strike potential is supported by holes F111 and F124 being mineralised from surface to end of hole, with some decent grades (up to 8% copper in F111 from only 24m depth), with new mapping identifying new copper showings that are outside the limits of prior drilling and the existing resource/exploration target,” he adds.
“Of particular note is the grade in F111, it is not often you see that sort of grade in porphyries and so close to surface.
“Hole F109, which returned a nearly 500m mineralised interval, supports further work needing to be done to better understand the deeper part of the system but it is clear that the near-term priority, given some very promising and open near-surface results, is following up the open pit potential.
“We believe Orbminco is also contemplating geophysics at various porphyry targets at Shuteen North, which is the third complex within the Bronze Fox Project and it has never been drilled.
“The lithocap was an important element to the original exploration at Oyu Tolgoi, with the Shuteen lithocap being the largest lithocap in Southern Gobi. The three mapped shallow intrusive complexes at Shuteen North are potentially related to the Shuteen lithocap and offer very exciting and large scale targets.”
The Bronze Fox Project, which covers 175km2, is the fourth emerging porphyry district in the Southern Gobi.
It is covered by a 30-year mining licence, with a second and full mining licence across the project to be applied for shortly, and hosts a maiden inferred resource of 194.1 million tonnes @ 0.26% copper-equivalent down to about 325m below surface, with a further exploration target of 100-300 million tonnes.
Meanwhile, earlier this week, Orbminco signed a non-binding heads of agreement with Sarama Resources (ASX:SRR) to divest its 80% interest in the Mt Venn Project. Cazaly Resources (ASX:CAZ) owns the remaining 20% minority stake in Mt Venn.
Formerly known as Woomera Mining, Orbminco says the divestment aligns with its new focus on the Bronze Fox Project.
Kincora is focused on becoming a leading pure-play porphyry explorer in Australia and has adopted a project generator/partner model for its tier one scale porphyry projects.
“The Orbminco results are the first to come through and be announced from the 7,200m partner-funded drilling programs that took place in the fourth quarter of last year,” Spring says.
“It’s really positive to see that we’re at that next phase of our transition to the partner-funded exploration model with plenty of drilling results and plans for 2025 programs to come.”
Write to Aaliyah Rogan at Mining.com.au
Images: Kincora Copper
