Kincora Provides Exploration Update

• First phase drilling of 6 holes completed for two targets at the Bronze Fox project
• Results to hand for 2,876 metres of drilling from the 4,264 metres completed to date
• Drilling commenced at the East Tsagaan Suvarga project testing three targets
• Total 2019/2020 program for up to 18,000 metres

VANCOUVER, Sept. 10, 2019 - Kincora Copper Ltd. (the "Company", "Kincora") (TSXV:KCC) is pleased to provide a drilling update for its 100% owned two priority copper-gold porphyry projects in the Southern Gobi, Mongolia.  First phase drilling for 4,264 metres at two targets has concluded at the Bronze Fox project, three holes at both targets, with activities commenced at the East Tsagaan Suvarga ("East TS") project for up to 6,200 metres testing three target zones.

Project generation and earlier stage project pipeline exploration activities continue as Kincora is the most active foreign listed junior seeking to make the next Tier 1 discovery in Mongolia.

HIGHLIGHTS

Results have been returned for 2,876 metres of drilling at Bronze Fox.

• West West Kasulu target: 3 holes drilled with extensive lower grade mineralisation returned and localised higher-grade zones increasing towards the west from the Tov fault.
• • Full assay results for drill hole F103, including:
  • • 20 metres at 0.41% Cu (0.64% CuEq) from 140m
    • 120 metres at 0.31% Cu (0.41% CuEq) from 700m
  • Partial assay results for drill hole F107, including:
  • • 8 metres at 0.25% Cu (1.26% CuEq) from 528m
    • 10 metres at 0.45% Cu (0.54% CuEq) from 630m
    • 22 metres at 0.45% Cu (0.55% CuEq) from 654m
    • 30 metres at 0.37% Cu (0.50% CuEq) from 702m
    • 10 metres at 0.28% Cu (0.79% CuEq) from 828m
    • 2 metres at 0.22% Cu (1.14% CuEq) from 880m
      
      
• Western Trend target: hole F104 returned 42 metres at 0.32% CuEq from 146m, including 4 metres at 1% CuEq from 146m

Peter Leaman, Senior Vice-President of Exploration, commented, "First phase drilling and assay results for two thirds of drilling completed has confirmed and better defined the large lower grade porphyry system at Bronze Fox with localised higher grade zones in the western zone proximal to a key regional fault. A full review of first phase drilling will shortly occur focusing on the potential for further higher-grade zones and potential follow up activities.

Our recently commenced maiden target testing drilling program at East TS will for the first time test the potential for preserved higher grade porphyry mineralisation within the Tsagaan Suvarga Intrusive Complex which already hosts one large open pit porphyry development project.

Kincora's ability to secure the East TS project in a brownfield environment which in most other parts of the world would have experienced considerable drilling across the complex, and within 3 years commence such a drilling program supports the project generation strategy we continue to pursue for further globally significant new discoveries".

Figure 3: Bronze Fox phase 1 2019/20 drilling program - Significant intercepts

Figure 4: Bronze Fox phase 1 2019/20 drilling program - Drill hole collar locations

East Tsagaan Suvarga

Kincora's wholly owned East Tsagaan Suvarga ("East TS") project is located approximately 10-15 kms to the east of the Tsagaan Suvarga porphyry Cu/Au mine ("TS"), which is under development on the western margin of the Tsagaan Suvarga Intrusive Complex ("TSIC") on a transverse structure. Tsagaan Suvarga has had over US$370 million invested to date and is forecast to produce 316,000t Cu and 4,400t Mo pa.

Importantly, the Tsagaan Suvarga deposit is hosted in Devonian age rocks, which also host the Oyu Tolgoi cluster of deposits that include the high-grade Hugo Dummet and Heruga mineralization within a preserved porphyry setting.  This latter series of orebodies underpin Oyu Tolgoi's potentially 100-year mine life being scheduled to be the world's third largest copper mine.

Kincora's geological concept that the multiple phase 2019/2020 drilling programme for up to 6,200 metres is seeking to confirm is that Hugo and/or Heruga style mineralization may be present beneath the younger cover in the East TS tenement in a favourable preserved porphyry setting. This is supported by the tenement being located on the eastern margin of the same Devonian intrusive complex as Tsagaan Suvarga, first phase drilling, and subsequent encouraging geophysics. 

Within a confirmed brownfield and preserved porphyry environment, a maiden target testing drill program is seeking to test three independent targets at East TS, which like at Oyu Tolgoi, sit within a favourable structural setting and Devonian age intrusion below a Carboniferous cap. These targets are interpreted as a series of intrusions supporting the concept of preserved higher-grade orebody(s) within the Tsagaan Suvarga mineralised system at moderate depths.                                                 

¹ Exploration target range per a Mining Associates review and block model. The potential quantity and grade is conceptual in nature, and based on nearest neighbour and ordinary krige estimates within an interpreted 0.2% Cu grade shell based on 81 drill holes spaced approximately 200 x 200 m within the West Kasulu prospect within the western central portion of the Bronze Fox Intrusive Complex. The drill spacing is too broad to define grade continuity, but does illustrate geological continuity. No assumptions regarding eventual economic extraction have been applied. The potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

For further details please refer to the January 25^th, 2018 press release "Large copper-gold porphyry target quantified at Bronze Fox" https://www.kincoracopper.com/news/press-releases/11-2018/19-large-copper-gold-porphyry-target-quantified-at-bronze-fox 

² The Copper Equivalent (CuEq) calculation represents an estimate for the total value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage based on spot prices (Cu $2.51/lb, Au $1542/oz and Mo $10.9/lb). Grades have not been adjusted for metallurgical or refining recoveries and the copper equivalent grades are of an exploration nature only and intended for summarizing grade. The copper equivalent calculation is intended as an indicative value only.

About Kincora Copper Limited (KCC – TSXV)

Kincora operates in the Gobi copper belt of South Mongolia.  It has a dominant land position and is undertaking the first modern systematic district scale exploration, centred on the Bronze Fox and East Tsagaan Suvarga ("ETS") porphyry projects. This wholly owned portfolio has attracted a first-class technical team who are credited with multiple discoveries of Tier 1 copper deposits.

Reinterpretation of existing data (incl. relogging & block model analysis of over 24,000m of drilling at Bronze Fox), the acquisition of additional geophysical data (Induced Polarization, gravity & magnetics at both projects) and first phase drilling at ETS since late 2016 under the current technical team has advanced both projects significantly, resulting in new and large geological targets.  

All data has been iteratively interpreted in a technically rigorous workshop format by the Kincora in-house technical team with appropriate involvement of specialist consultants and advisors to the technical committee.  This has ensured that quality targets have been identified and prioritised for drilling, with a detailed multiple target, multiple phase drill programs budgeted at Bronze Fox and ETS. These programs are fully permitted and now funded.

These targets sit in the "target testing" to "advanced drilling" phases of projects development, which for copper porphyries offers the maximum uplift in project (and shareholder) value. These targets, for their respective stages of exploration, are considered "as good as you get within a global setting". Confirmation of our geological models with positive results from the proposed drilling have the potential to demonstrate, and in time, elevate both projects to Tier 1 or world-class status¹.

In Jun'19, Kincora closed an oversubscribed $6.25m offering, cornerstoned by two large specialist natural resource institutional investors, funding a 12-month work program supporting high priority drilling for up to 18,000 metres and ongoing expansion plans.              

June 2019 corporate presentation: www.kincoracopper.com/investors/presentations 

Exploration strategy 2019: www.kincoracopper.com/about-us/exploration-strategy-2019  

"Introduction to Mongolia" presentation: www.kincoracopper.com/investors/mongolia 

¹ Kincora recognises that the terms "World Class" or "Tier 1" are subjective and our targets are conceptual in nature, yet to be supported by drilling results to support an sufficient understanding of their potential grade or scale, let alone potential economics that are commonly associated with such terms. However, both the Bronze Fox and East TS projects have complementary geological and geophysical characteristics, with significant target zone potential and are in known mineralised systems in a proven prolific but underexplored copper porphyry belt. It is the view of Kincora that confirmation of our geological models with positive results from the proposed drilling have the potential to demonstrate, and in time, elevate both projects to Tier 1 or world-class status.

Qualified Person

The scientific and technical information in this news release was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and was reviewed, verified and compiled by Kincora's geological staff under the supervision of Peter Leaman, Senior Vice-President of Exploration of Kincora Copper, who is the Qualified Person for the purpose of NI 43-101.

Forward-Looking Statements

Certain information regarding Kincora contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Kincora believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Kincora cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Kincora currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date. Kincora does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.

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.

SOURCE Kincora Copper Ltd.