VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/30/11 -- Kincora Copper Limited (TSX VENTURE: KCC) (the "Company" or "Kincora Copper") -
-- Kincora acquires outstanding 25% of Kincora Group Limited in exchange
for 20% of Kincora Copper shares.
-- Diamond drilling in 2011 has extended copper mineralization 4km east of
West Kasulu zone.
-- Three rigs are currently on site and operating. Plan for 12,000m to be
drilled by year end.
-- Hole F39 has intersected chalcopyrite and pyrite mineralization from
500m depth and has now stopped at 985.1m.
-- Duchintav Khojgor to join the Kincora Copper Board of Directors.
The Company is pleased to announce that it has reached an agreement (the "Sale Agreement") with Mr. Duchintav Khojgor, the owner of the 25% interest in Kincora Group Limited not otherwise held by Kincora Copper, whereby Mr. Khojgor will sell his interest to the Company in exchange for 27,666,366 common shares of the Company, which shares will represent 20% of the then issued shares and outstanding shares of the Company. Concurrent with the closing of the Sale Agreement, Mr. Khojgor will be appointed to the Board of Directors of the Company.
Completion of the Sale Agreement remains subject to acceptance of the TSX Venture Exchange.
Kincora Group Limited is a BVI company, the principal asset of which is the Bronze Fox copper/gold project in Mongolia (the "Bronze Fox Project"). Following closing of the Sale Agreement, Kincora Group Limited will be owned as to 100% by Kincora Copper.
Kincora Copper is also pleased to announce an Exploration Update for the Bronze Fox project, which occupies 223.23 sq km of land 140km northeast of Oyu Tolgoi on the same metallogenic belt.
The Company has completed 7,155m of diamond drilling within the central part of the license covering an area of 30 sq km since April 2011. This has extended the potential zone of copper mineralization east to a distance of over 4km with the mineralization remaining open in all directions. 11 of the 13 holes intersected continuous low grade copper mineralization from surface which also contained high grade intervals.
Exploration highlights
-- In West Kasulu, copper mineralization extends to more than 900m in
depth.
-- One drill hole (F39) was drilled in Leca Pass 4km to the east of West
Kasulu intersecting over 150m of copper mineralization in diorite
porphyry. This new copper mineralization sits in a high IP chargeability
anomaly zone, stretching a length of about 6km.
-- All drill holes in West Kasulu and Leca Pass intersected copper
mineralization
-- 6 holes were drilled in Buchanan Heights and Sophie North, with 5 holes
intersecting gold and copper mineralization with those areas indicating
a gold resource potential.
-- A third drill rig has been added to the exploration program to
accelerate the drill out of an increasingly large mineralization area.
-- During April and May, geological mapping and vector IP surveys over the
license area were completed simultaneously with the drilling program. 3
new geophysical high anomaly areas have been identified
-- The geological team on-site has now been expanded to five, which will
allow additional work extending over the whole license area. This
includes two senior geologists experienced in exploration work on
porphyry copper and various types of gold and iron deposits, and three
junior geologists who are enthusiastically tackling the regional work.
Stephen Fabian, Kincora Copper's President & CEO, comments, "We are extremely pleased to have Duchintav Khojgor show his confidence in the Company and elect to convert his 25% direct interest in Bronze Fox into a stake in Kincora Copper. We are also very excited by the results of the drilling which indicates that Bronze Fox has the potential to contain a large area of copper mineralization as well at the potential for a significant gold resource. With the addition of the third drill rig we expect to complete more than 12,000 m of drilling before the end of the year."
John Rickus, a director of Kincora Copper, is the Qualified Person who prepared this information that forms the basis for the scientific and technical information contained in this news release.
About Kincora Copper:
Kincora Copper Limited is a mining exploration and development company focused on copper/gold deposits in Mongolia. Its key asset is the Bronze Fox copper-gold deposit located in southeast Mongolia along the Oyu Tolgoi copper belt. The Bronze Fox Project is located approximately 140km to the northeast of the world-class Oyu-Tolgoi copper/gold project, and is 250 kilometers from the Chinese border.
To view the five images associated with this release, please click the following link: http://media3.marketwire.com/docs/830KCCimages.pdf.
Neither the TSX Venture Exchange not its Regulatory 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.
Contacts:
Kincora Copper Limited
Stephen Fabian
President & CEO
33 6493 10649
First Canadian Capital Markets
Eric Balog
+1 416 742 5600 or Toll free: 1 866 580 8891
