Summary of key work programmes
Between October and December 2012, a further 4,885m of diamond drilling was completed with 1,473m being shallow holes testing oxide mineralisation around the West Kasulu target. This resulted in a total of 15,809m being drilled for the year across 40 holes (previous year 12,435m across 23 holes). Of the 17,051 total samples, 16,547 results have been received to date.
Summary of key findings of the 2012 exploration review:
-- Deeper sulphide mineralisation at West Kasulu - Three holes completed in late 2012 aimed at testing and extending the area around the promising drill Hole F62 (announced September 5th, 2012) in the Bronze Fox license. These holes have encountered broad lower grade mineralisation with limited higher grade zones which does not supported the potential for a substantial deep economic copper resource in the immediate area. Mineralisation remains open to the southwest with promising mineralisation encountered on the neighboring license (in license 15075) and also possibly to northeast based on geophysics which stretch's about 4kms in length. Further details are provided below.-- Previously untested anomaly extends West Kasulu strike potential 2km - Hole F72, the last of the year, supports geophysical analysis that mineralisation encountered at the West Kasulu prospect continues into a new zone up to 2km to the east. While only partial assay results have been returned, with most mineralisation broad lower grade copper, and with highest grade of 4.06% Cu and 0.19g/t Au, F72 reconciles to the geophysics target profile, adding substance to further IP analysis and supporting a substantial target zone of over 2kms between F72 and West Kasulu. F72 also suggests that the larger West Kasulu system could be linked with the Leca Pass target, with existing high grade mineralisation identified in some strong alteration zones indicating further high grade resource potential.-- Further shallow porphyry mineralisation at West Kasulu - A number of mineralised porphyry dykes were intersected at shallow depths as hole extensions in the late 2012 oxide drilling programme, including 8 metres at almost 1% CuEq (Hole F82 from 168 metres). These dykes are from several metres to over 10 metres, with porphyritic texture and generally associated with further porphyry breccia with over 5-10% of sulfides (most are chalcopyrite). The assay results returned indicate these porphyries are generally with about 0.5% Cu and 0.2 to greater than 1g/t Au. These intersections further confirm the copper-gold porphyry potential in the West Kasulu area.-- Analysis of potential oxide development project continued - An infill programme of 10 shallow holes for around 100-200 metre depth was completed in the West Kasulu oxide target zone in the last quarter of 2012. Results have not increased the potential oxide resources and removed the potential for an economic sulphide resource. Further metallurgical analysis is required and desktop reviews and initial discussions for the availability and sources of water and acid have been progressed. A decision to move to pre-feasibility studies is not expected until mid 2013 subject to favourable infill drilling, metallurgical test and desktop reviews.-- Follow up geophysics and deep IP: To date IP and other geophysical techniques have penetrated to no more than 400m below the surface in limited areas predominately across only the Bronze Fox license. The rationale for assessing the potential use of further and deeper IP analysis is to provide cost effective and detailed information to greater depths than 400m (to potentially over 1,500m) and/or across the majority of Kincora's landholding. Given the recent technical success of Holes F70 and F72 testing previous "blind" targets, with little surface expressions of mineralisation, and Kincora's extensive drilling below 400m (deepest hold to date being 1,360m) further IP across the licenses and to greater depth is expected to improve target generation particularly given the recent success of such techniques at other large scale copper porphyry targets (including Oyu Tolgoi) and ability to reconcile existing drilling data to such geophysics. Other high priority areas within Kincora's three licenses, such as Happy Geo and Tourmaline Hills, are still grass root targets.-- 35 holes of the 40 drilled in 2012 hit copper and/or gold mineralisation and 13 holes of these contain intersections of greater than 1g/t Au with the highest intersection hitting gold grade of 7.77g/t. A total of 21 holes have intersections of greater than 0.5% Cu, with 8 holes containing intersections of greater than 1% Cu, and the highest intersection returning 4.06% Cu in Hole F72, approximately 2km east of West Kasulu. The results of the 2012 exploration programme continue to demonstrate that the Bronze Fox project hosts a large area of lower grade copper and gold mineralisation, open at depth and in every direction with high-grade intersections and new targets continuing to be generated. A summary of detailed 2012 assay results is available on the Kincora website (http://www.kincoracopper.com/bronze-fox- project/technical-reports/2012 assay result summary).