Kincora now has a fourth near-term drill project as neighbour gears up to test shared large gold-copper target
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Kincora has scored a win in the red-hot Lachlan Fold Belt of NSW with another junior effectively testing one of its projects with the drilling of a neighbouring project kicking off this month.
Following a recent induced polarisation (IP) survey and rock chip sampling, fellow explorer Sultan Resources (ASX:SLZ) plans to start drilling at its Big Hill gold-copper prospect, which borders Kincora Copper’s (ASX:KCC) Cundumbul licence.
Sultan describes the Big Hill prospect as “the standout, undrilled porphyry gold-copper target in the central Lachlan Fold Belt” and is planning a 10 by 450m depth diamond drilling program commencing mid-May.
The Big Hill Complex is interpreted to represent the upper or outer parts of an alkalic porphyry gold-copper system like Newcrest Mining’s (ASX:NCM) mammoth 50 million oz operating Cadia mine and Alkane Resources’ (ASX:ALK) still growing Boda prospect.
Boda revealed itself in September 2019 following a massive drill hit of 502m at 0.48g/t gold and 0.2 per cent copper, 211m from surface. Further high-grade results were announced earlier this week, including 101m at 2.47g/t gold and 0.83 per cent copper from 824m, sending Alkane’s share price up over 30 per cent creating almost $140m in shareholder value. The Big Hill Complex is located about equal distance from Boda and Cadia.
Rock chip samples at the Big Hill prospect have delivered high grades of up to 24.6 grams per tonne gold and 26.1 per cent copper.
The recent IP survey revealed a large-scale chargeability anomaly measuring about 1km long by 650m wide and extending down to about 500m. The IP anomaly occupies the centre of the 5km long by 2.5km wide Big Hill Magnetic Complex and is complementary with previous high-grade rock chips, distinct gold and copper plus pathfinder element geochemical soil anomalism and porphyry style alteration.
From publicly available airborne magnetics it appears approximately 80 per cent of the magnetic complex is almost split equally across Sultan’s and Kincora’s ground and the IP target at Big Hill straddles the licence boundary.
This effectively drill tests another project of Kincora’s without the company having to do any of the heavy lifting. This means Kincora will have four projects being drilled in the next quarter.
“We are watching with keen interest the progress being rapidly made by Sultan at its Big Hill porphyry gold-copper prospect,” Kincora CEO Sam Spring said exclusively to Stockhead.
“The target Sultan has presented is very large and with up to 4500m of drilling on their portion of the magnetic complex, this will be effectively testing our adjoining Cundumbul project. It is not often you get something for nothing in this industry but success by Sultan would certainly generate a lot of value for Kincora, we will be wishing them all the best for their drilling program.
“The last exploration undertaken Cundumbul was funded by Mitsubishi with only 844m of prior shallow drilling.
“With drilling ongoing at our Trundle project, and to shortly commence at our Nyngan and then Fairholme projects, Kincora is set to enjoy significant news flow across four strategically placed porphyry projects in the next quarter.”
Also raising the profile of the Macquarie Arc and proving it is the right place for an explorer to be, Alkane’s headline making Boda just keeps getting bigger.
Two diamond core holes drilled into the prospect extended the high-grade gold and copper mineralisation below previous drilling by a further 100m.
Kincora, which made its debut on the ASX at the end of March making it a dual-listed company in Canada and Australia, is currently drilling the only brownfield project, Trundle, held by a listed junior in what is now known as Australia’s foremost porphyry district.
Besides Newcrest and Alkane, Evolution Mining (ASX:EVN) is also an LFB tenant with its flagship Cowal gold-base metals mine.
In a recent Cowal site visit presentation, the company talked up the regional opportunities available, saying the Macquarie Arc is a “world class geologic setting for gold and copper-gold deposits”.
Kincora controls a district scale 1,649sqkm, eight-licence project pipeline. Trundle shares the same mineralised system as the Northparkes mine, which is Australia’s second-largest porphyry mine and hosts 4.5 million tonnes of copper and 5.5 million oz of gold.
This article was developed in collaboration with Kincora Copper, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.