VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/29/13 -- Kincora Copper Limited (the "Company", "Kincora") (TSX VENTURE: KCC) has today filed its annual operational and financial results for the year ended December 31st, 2012. The Company's audited Consolidated Financial Statements and Management's Discussion and Analysis has been filed with SEDAR, and is available on the Company website at www.kincoracopper.com.
John Rickus, President and CEO commented, "The year 2012 was dominated by global economic contractions with the junior resource industry impacted particularly hard. Despite significant progress delivering on our stated exploration, development and acquisition strategy a series of adverse external and Mongolia specific uncertainties over this period, and emerging into 2013, have adversely affected our share price performance in particular and as well as that of most Mongolian asset classes which are trading at or near 52 week lows (or significantly longer). As such we have taken measures to strengthen the Company, align our strategy with current market conditions and I thank our shareholders for their ongoing support.
"While the Bronze Fox license remains our flagship project, with field season activities in 2012 confirming and significantly advancing a number of copper porphyry targets at the West Kasulu prospect, I am pleased to confirm that recent correspondence with MRAM confirms all our licenses are in good standing. Uncertainty relating to our lower priority two Golden Grouse licenses has undoubtedly impacted our share price and led to Kincora trading at a clear discount to its listed Mongolian copper exploration peers.
"Kincora continues to closely monitor key events and political developments in respect to mining and foreign investment laws. In particularly the expected resolution of current issues facing Oyu Tolgoi, the largest proposed project financing in the mining industry and achievement of Stage 1 commercial production by the end of June, is likely to be a very positive catalyst favourably impacting investor sentiment to Mongolia. This event is scheduled to occur at a time when Presidential elections will conclude (June 26th), which will bring to a close a highly uncertain two year political cycle following Parliamentary elections and the subsequent change in Government last year."
John Rickus further noted, "Finally, I would like to thank our Director of Exploration, Yawen Cao, and his Mongolian team for their continued hard work particularly as we shortly resume exploration activities. To reach this stage of exploration and development activities at Bronze Fox is a very commendable achievement particularly bearing in mind our licenses are only in their fourth year.
"Despite the significant uncertainties that have emerged since mid last year we see recent external events as potential catalysts for an improvement in market sentiment towards Mongolia and especially Kincora. We note that the Mongolian Parliament has already supported an amendment to the Foreign Investment Law (SEFIL) and a proposed amendment to the securities market law. Similarly Erdene Resource Development Corp.'s strategic alliance with Teck Resources Limited is a sign of strategic investors continued interest in Mongolia, in particular, copper exploration. Kincora remains comfortably funded with planned exploration activities expected to significantly advance our asset portfolio. "
Highlights for the year ended December 31st, 2012 and subsequent developments through March 31st, 2013 include:
-- Large-scale exploration targets advanced: Over 15000 metres of drilling during 2012 confirmed and significantly progressed a number of copper porphyry targets at the West Kasulu prospect (in Bronze Fox) for both bulk lower grade and deeper higher-grade copper mineralisation. Scout drilling activities coupled with IP analysis supports a mesothermal predominately gold target to the approximately 4-5 km south, south-east of the West Kasulu copper porphyry target and establishment of an epithermal predominately gold target at the Tourmaline Hill prospect/neighbouring license.-- Anomaly extends target zones and adds substance to further geophysics: In late 2012 two previously untested anomalies at Bronze Fox, which were identified from the first phase 3D Induced Polarisation ('IP') programme earlier in the year, were drilled. Whilst not encountering economic mineralisation, both holes were technical successes, returning significant alteration warranting further exploration activities. Furthermore mineralisation encountered reconciles to the geophysics target profile, adding substance to further IP analysis and supporting a substantial new target zone of over 2kms at West Kasulu.-- Analysis of potential oxide development project commenced: A first phase oxide development project, if viable, could provide cash flow to be reinvested into further exploration and conversion to a mining license. Following initial infill drilling and metallurgical analysis a decision to move to pre-feasibility studies for a shallow, small scale open pit mine to produce cathode copper by heap leaching is subject to further drilling, metallurgical analysis, desktop reviews and clarity on the proposed new Government Minerals Policy.-- Executive management team strengthened: Two senior executives have been appointed bringing valuable technical, commercial and financial markets experience with them to the Company's existing operations and business development strategy.-- Regional consolidation and corporate opportunities advanced: Two commercial agreements have been completed, further opportunities being evaluated and discussions with potential strategic investors regarding technical and financial synergies ongoing.-- Successful capital raisings: Two capital raising in the second half of 2012, with notable support from the Company's largest shareholder and a new significant scale Hong Kong based institution, provides Kincora a number of options and flexibility to resume optimal exploration activities in 2013. The Company's cash balance as at April 23rd, 2013 is $2,604,782 supporting board approved activities until 2014 with the management also focusing on further reducing overhead and administrative costs.-- Planned resumption of field activities and confirmation of licenses standing: Despite recent speculation driven by an ongoing Mongolian court case, Kincora has had confirmation from the Mineral Resources Authority of Mongolia ("MRAM") that all its licenses remain in good order. A staged systematic exploration programme is planned with field season activities expected to recommence within the next month. The core focus of these activities is to refine exploration data and specify target generation of the copper porphyry targets at the West Kasulu prospect in light of the positive results at depth (eg hole F62) and other shallower zones of bulk and higher grade porphyry mineralisation (eg holes F82, F92 and F72) encountered late 2012. Also this will potentially enable Kincora to undertake a deep IP programme and possibly further drilling at identified high priority targets in the second half of the year which, if successful, could to lead to a significant exploration target range. Further details on Kincora's planned exploration activities are provided in our 2012 Annual Report.
About Kincora Copper Limited
Kincora Copper Limited is a mining exploration and development company based in Vancouver and listed on the TSX Venture Exchange that was formed in mid 2011.
Kincora's ambition is to be the leading listed independent copper exploration and development company in the highly prospective and proven Oyu Tolgoi South Gobi porphyry copper belt in southeast Mongolia. The Company is currently exploring its wholly owned Bronze Fox, Tourmaline Hills and North Fox projects which host an extremely large and strategically located mineralised footprint covering over 40km2.
The projects are situated only 250km from the Chinese border and within 140km of two large scale greenfield copper construction projects: Oyu Tolgoi, invested capital to date approximately US$6.6 billion and target production of up to 160,000t/ day; and, Tsagaan Suvarga, estimated capex US$1b and target production of 40,000t/ day. Other significant mines and associated infrastructure are being developed in this immediate region.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Kincora Copper Limited
VP Corporate Development
+61431 329 345
Kincora Copper Limited