Kincora Copper Limited press release

Exploration portfolio drilling update

2021-07-08

TSXV - TSX Venture Exchange · Copper · Gold · Silver · Zinc · Lead · Arsenic · Canada · Drill Results

Canada NewsWire

Two rigs operational at the brownfield Trundle project: First hole of maiden drilling program at the Nyngan project a geological success Advanced preparations to commence drilling this month at the Fairholme project Acquisition and joint venture agreement signed with Resilience Mining Mongolia to retain carried upside to the Mongolian portfolio with drilling expected next quarter

MELBOURNE, Australia , July 8, 2021 /CNW/ - Kincora Copper Ltd. (the Company, Kincora) (TSXV: KCC) (ASX: KCC) is pleased to provide an exploration and drilling update across the project portfolio focused in the Macquarie Arc of the Lachlan Fold Belt (LFB) in NSW, Australia .

Two rigs remain operational at the brownfield Trundle project, having recently completed a maiden Kincora hole at the Nyngan project.

John Holliday , Technical Committee chair, and Peter Leaman , Senior VP of Exploration, commented: "Since the $10m raising and listing on the ASX at the end of March the team has been executing the stated strategy of actively drilling our priority pipeline of projects in the Macquarie Arc. Other portfolio activities also been pursued with implications to value creation for Kincora shareholders, including for our Cundumbul and Mongolian licenses.

A recent highlight of our drilling at the Trundle Park prospect has been the best confirmation to date of our targeted "brownfield" Northparkes style setting and series of intrusive systems at the Trundle project. Continued systematic drilling is benefitting from improved geological understanding of the system and following up vectors provided.

Two rigs are currently active at the Trundle project, located approximately 10km apart at the Mordialloc North-East and Trundle Park prospects, ahead of drilling commencing this month at the advanced exploration and very prospective Fairholme project".

Figure 1: Kincora's priority tenement holdings in the Lachlan Fold Belt

Sit in favourable locations of the key porphyry belts of the Macquarie Arc Are at advanced stages of exploration and/or host large scale footprints Demonstrate potential hallmarks of neighbouring world-class deposits

Figure 2: Multiple priority activities and value catalysts

Two drill rigs are currently operational at the Trundle project, one hole was recently completed at the Nyngan project, and drilling is scheduled to commence this month at the Fairholme project Neighbouring explorer drilling is taking place on the license boundary to the Cundumbul project.

[](https://mma.prnewswire.com/media/1559751/Figure_2_Multiple_priority_activities_and_value_catalysts.html)

Trundle project

Since initial drilling commenced in April 2020 , Kincora has completed 22 holes for 14,452 metres at the Trundle project. Two rigs are currently drilling at the Trundle Park and Mordialloc North East prospects (latter part of the wider Mordialloc intrusive complex), located approximately 10km apart.

Figure 3: Trundle is the only brownfield porphyry project held by a listed junior in the Lachlan Fold Belt (LFB) with Northparkes (owned by CMOC and Sumitumo) the second largest porphyry mine in Australia (endowment 5.5Moz Au & 4.5Mt Cu 1 )

1 Bespoke March 2020 report by Richard Schodde , MinEx Consulting, for Kincora

Trundle Park prospect

Kincora's drilling at Trundle Park has focused on simultaneously testing both the near surface skarn mineralization and underlying causative intrusive porphyry source, advancing and confirming our working geological model beyond previous explorer drilling (average depth only 28m ).

Improved geological understanding has provided the confidence and vectors to drill to comparable depths to where the core of similar systems occurs elsewhere in the wider and immediate region, at Cadia and Northparkes respectively.

The mineralized skarn footprint at Trundle Park has been identified over 500m strike-length north south and remains open. On-going drill hole TRDD024 is testing the eastern extension potential of high-grade skarn associated mineralisation intersected in TRDD011 (including 42m @ 0.64% Cu and 0.58g/t Au from 32m - see press release January 20, 2021 ), and an expected underlying intrusion.

With improved vectors and geological modeling benefitting from Kincora's activities since drilling commenced in April 2021 , hole TRDD022 was recently completed to 940m following up previous holes TRDD001 and TRDD010. TRDD022 is the deepest hole drilled at the Trundle Park prospect and provides the greatest _"proof of concept" _support for the targeted Northparkes and/or Macquarie Arc style causative porphyry intrusive type complexes within the Trundle project.

Figure 4: Key mineralized intervals with skarn zone extended over 500m

Plan view of current working Leapfrog geological model (drill hole traces for holes > 50m depth only)

Figure 5: TRDD022 provides the greatest " _proof of concept" _support to date for the targeted causative porphyry intrusive type complexes within the Trundle project

Working Leapfrog model section of TRDD022 alongside illustrative conceptual Macquarie Arc porphyry model and interpreted setting of TRDD022 (refer to corporate presentation for further details on our Alkalic Porphyry Model – Macquarie Arc example adopted from Alan Wilson 2003)

Below shallow skarn alteration, TRDD022 intersected a thick interval of equi-crystaline monzodiorite from 376m to 723m depth, which was expected from the geological model (Figures 4, 5 and 6). Notable and positive indicators include:

Multiple felsic intrusions, with: (1) an early monzodiorite, cut by (2) quartz-monzodiorite and in turn by (3) later aplite dykes – see Figure 7 (a); Presence of epidote-garnet-magnetite-pyrite skarn assemblages filling fractures cutting monzodiorite, occurring as endo-skarn associated with these intrusions; Observation of intense red alteration of monzodiorite interpreted to be representing outer potassic (K-spar) alteration along the margins of a monzodiorite stock (petrology studies proposed) - see Figure 7 (b); Sulphide mineralisation and quartz veining - see Figure 7 (c); and, A deeper level garnet-magnetite skarn hosted by andesite volcanoclastic rocks.

Recent drilling, logging and geological interpretation at Trundle Park has also provided significantly improved structural interpretation of various key faults and interpreted controls of mineralisation.

Testing for the porphyry copper-gold potential associated with felsic intrusions like the monzodiorite and quartz-monzodiorite intrusions intersected in TRDD022, and also TRDD015 (previously reported, see April 22 nd , 2021 press release), towards the north, northwest and west remains open at Trundle Park.

These results reiterate Kincora's working geological model and provide further hallmarks of Trundle hosting the potential for, and anomalous setting to, a series of large-scale gold rich copper porphyry pipes that a responsible for the extensive skarn and near surface mineralization intersected to date and setting akin to the Northparkes mineralized system on the eastern margin of the same interpreted mineralized complex (which hosts an existing endowment 5.5Moz Au and 4.5Mt Cu 1 ). Continued drilling is planned at the Trundle project, with the next phase of drilling and land access at Trundle Park being planned (and already permitted).

Figure 6: Key mineralized intervals with illustration of interpreted multiple causative intrusions driving nearer surface mineralisation and skarn alteration

Section of current working Leapfrog geological model (drill hole traces for holes > 50m depth only)

[](https://mma.prnewswire.com/media/1559749/Figure_6_Key_mineralized_intervals_with_illustration_of_interpreted_multiple_causative_intrusions_dr.html)

Figure 7: Examples of the rock types in hole TRDD022, Trundle Park prospect

(a) Monzodiorite (grey) cut by orange-red quartz-monzodiorite at 626.5m down hole, in turn cut by quartz-carbonate veinlets (white).

(b) Monzodiorite (light-grey) with strongly developed and variable red alteration (interpreted hematite and outer potassic) along with fine magnetite veinlets (black) and some quartz veins (white), from 679m down hole.

(c) Brecciated monzodiorite (light-grey) with strongly developed and variable red alteration (interpreted to be outer potassic). Pyrite with chalcopyrite occur as matrix fill or along veins, from 714m (left) and 718m (right) down hole.

Photos of selected intervals which are not representative of the mineralization hosted on the whole property or Trundle Park prospect but are of the lithology's intersected in the mineralized zones in these sections of drill hole. There is insufficient drilling data to date to demonstrate continuity of mineralized domains and determine the relationship between mineralization widths and intercept lengths, true widths are not known.

Mordialloc prospect

Kincora has completed 6 holes at the central Mordialloc prospect and confirmed a large mineralised multiple phase intrusive complex with intervals of low-grade copper and molybdenum, including TRDD005 with 12m @ 0.29% Cu and 0.33g/t Au from 138m , TRDD006 with 306m @ 0.10% Cu, 0.06g/t Au and 19.4ppm Mo from 144m , TRDD019* with 20m @ 0.07% Cu and 0.20g/t from 88m and TRDD020* with 68m @ 0.11% Cu, 0.04g/t Au, and 24ppm Mo from 82m depth (*newly reported).

Drilling is ongoing along with further holes to follow up co-incident geochemical and geophysical anomalies around the peripheries of the complex both in the northeast and southwest.

Figure 8: Drilling is currently taking place at Mordialloc NE prospect targeting a higher grade part of the larger intrusive complex

Drill hole TRDD024 has commenced testing the Mordialloc North-East (Mordialloc NE) prospect. A series of systematic holes by Kincora in this region is seeking to test an extensive zone of partial leach soil gold and copper geochemistry, with strong quartz-epidote alteration occurring in float rocks at surface and several historic shallow aircore holes intersecting elevated copper on the northern edge of the prospect. The favourable surface geology is located within the magnetic complex and co-incident with a large scale, high amplitude Induced Polarization (IP) chargeability anomaly, which was the focus of the prior explorer drilling at Trundle.

In 2015, then High Powered Exploration (HPX) followed up its 38km 2 proprietary Typhoon gradient array survey with 3D modelling of pre-existing magnetic, gravity and geological data and drilled one hole (TRACD001). TRACD001 tested the northern section of the largest and highest amplitude chargeability anomaly identified across the Trundle project, in an area of no previous deep drilling.

TRACD001 drilled to 589m , intersected a blind mineralised system consisting of porphyritic monzonite dyke and high-temperature garnet-calc-silicate skarn. Abundant vein and disseminated sulphides (significant pyrite with minor chalcopyrite-molybdenite), K-feldspar associated veins, vein density and abundant garnet proximal to the porphyritic monzonite provided significant encouragement.

The best intersection returned from TRACD001 was 8m @ 0.26g/t gold, 0.07% copper and 31ppm molybdenite, including 2m @ 0.51g/t gold, 0.14% copper and 55ppm molybdenite from 407m . TRDD001 was technically successful opening up a significant previously untested search space, and indicated a potential pyrite rich shell potentially associate on the periphery of the core of the porphyry system.

Kincora's drill hole TRDD024 is the first follow up drilling (and only the second hole to below 18m depth) in this prospect area since HPX walked away from its earn-in for the Trundle project following only one season of exploration before the 2016 downturn in the cycle.

Trundle assay results

Further assay results have been received for four holes with new intervals including:

TRDD017 and TRDD018 at the Trundle Park prospect indicate: TRDD019 and TRDD020 at the Mordialloc prospect include:

Full drill hole collars and significant assay results are available in Tables 2-6.

Nyngan project update

The first hole (NYDD001) of a maiden Kincora drilling program at the Nyngan project has recently been completed to 628m testing one of a multiple magnetic complexes (interpreted to be Macquarie Arc terrane) on the license.

NYDD001 was a geological success intersecting basement volcanics (mainly basalts) from 306m (in-line with anticipated target depth) and various fossil inter bands. Geological logging coupled with analysis and age dating of the fossils is currently taking place ahead of further follow up drilling, potentially in the second half of the year.

The 100%-owned Nyngan project covers a large area of 762km 2 in interpreted highly prospective geologic terrane with encouraging limited previous explorer drilling and increasing neighbouring drilling activities.

Drilling testing Cundumbul project

On July 7 th , 2021, Sultan Resources Ltd (Sultan, ASX - SLZ) announced initial results for its maiden drilling program of its Big Hill gold copper porphyry target that sits on the license boundary of Kincora's Cundumbul project 1,2,3 .

Sultan has permits in place for up to 10-holes for 4500 metres of diamond drilling with a first pass 3-hole program completed for 1136 metres 1,2,3 . The initial program has intersected interpreted porphyry alteration with disseminated pyrite, trace chalcopyrite and bornite, been described as "extremely encouraging", "marking the distal parts of an alkalic Au-Cu porphyry system" and "giving confidence to proceed with additional drill testing" with drill collars within 300 metres of the Cundumbul license boundary 1, 2, 3 (for further details refer to Kincora's May 19 th press release).

Sultan states that the Big Hill target displays coincident and complimentary magnetic and Induced Polarization (IP) responses, high grade copper and gold rock chips, distinct gold and copper plus pathfinder element geochemical soil anomalism and porphyry-style alteration within host-rock geology and a structural setting consistent with the upper or outer parts of an alkalic porphyry gold copper system such as Cadia and Boda 2, 3 . The Big Hill target is located approximately 50km in equal distance to both Cadia and Boda in the Molong Belt of the Macquarie Arc of the Lachlan Fold Belt.

The Big Hill magnetic complex is approximately 5km long by 2.5km wide situated within both the Sultan and Kincora licenses. Kincora looks forward to monitoring Sultan's continued progress at the Big Hill target and other identified targets on or near to the license boundary.

1 Refer to Sultan Resources press release July 7 th , 2021 "Diamond drilling confirms porphyry potential at Big Hill porphyry Au-Cu target"

2 Refer to Sultan Resources press release April 29 th , 2021 "Big Hill IP results define 'classic' East Lachlan porphyry Au-Cu priority drill target"

3 Refer to Sultan Resources press release May 18 th , 2021 "Maiden drill programme at priority Big Hill porphyry Au-Cu target commences"

Fairholme project update

Permits and land access agreement are to hand with advanced preparations in progress to commence drilling this month at the Fairholme project for a first phase 6,000m drilling program.

Initial diamond drilling will focus on the Gateway prospect, following up multiple shallow to moderate depth broad, with localized high grade gold and copper intervals, within a north trending 2km long by 300m wide copper-gold-zinc anomaly (>500ppm, >0.1g/t Au & >900ppm Zn).

Figure 9: Kincora's Fairholme project has various hallmarks to the neighbouring world-class Cowal mine

Mineral tenure, zonation, alteration and structure provide significant encouragement for the Gateway to host a higher level porphyry associated system located 15km north and on trend from a similar series of high-sulphidation deposits in the gold corridor at Cowal – refer to Figure 9.

The last phase of exploration at Fairholme focused on the deeper porphyry related potential Until Kincora's upcoming program looking to replicate the exploration targets, techniques and success achieved by Evolution Mining at Cowal, no shallower activities have taken place. Cowal's gold inventory has grown from 3.4Moz to 9.7Moz (net of 1.7Moz mine depletion) 1 ; with a target total endowment of 15Moz gold 1 ( 1 source: Evolution September 2020 investor day and February 2021 resource statement).

Resilience definitive agreement

Further to the binding term sheet executed with Resilience Mining Mongolia Pty Ltd (now Resilience Mining Mongolia Limited) (Resilience) a definitive acquisition and joint venture agreement has been signed relating to Kincora's Mongolian asset portfolio.

Resilience has received in-principal approval from the Australian Securities Exchange (ASX) for its planned Initial Public Offering (IPO, ticker reserved " RM1 "), completed a pre-IPO financing and is in advanced preparations for a $5 -6 million raising alongside the IPO.

A key use of proposed funds for Resilience (subject to successful IPO) includes drilling walk up and permitted targets at the Bronze Fox mining license and neighboring Tourmaline Hills exploration license, and commencing reviews of at/near surface oxide mineral systems at Bronze Fox (within the existing mining license and existing exploration target) for drilling and desktop economic studies. Field activities are expected to shortly commence post IPO in the next quarter.

The key commercial terms from the original term sheet remain in place and provide Kincora significant upside to exploration, project generation and development successes in Mongolia without near to medium term funding obligations.

Kincora will retain 9.9% in Resilience post the ASX listing and fund raising, and retain a 20% carried asset level interest until certain project milestones are achieved (further commercial details provided in the December 14 th , 2020 press release and in Kincora's March 1 st , 2021 ASX prospectus).

This announcement has been authorised for release by the Board of Kincora Copper Ltd (ARBN 645 457 763)

Table 1: Nyngan project - Collar Information

Table 2: Trundle project - Collar Information

| For further details, including QAQC procedures, please refer to the following press releases: | | | 1. | July 6, 2020 - Kincora announces high-grade gold-copper results from first hole at Trundle | | 2. | July 23, 2020 - Kincora reports further strong encouragement at Trundle | | 3. | September 3, 2020 - Kincora provides update on expanded drilling program at Trundle | | 4. | November 30, 2020 - Kincora intersects broad mineralized zones at Trundle | | 5. | January 20, 2021 - Kincora intersects further shallow mineralization at Trundle | | 6. | March 2021, Independent Technical Report for the ASX prospectus | | 7. | April 22, 2021 Exploration Update | | 8. | July 8, 2021 Exploration Update |

Table 3: Trundle Park target hole TRDD017 - Anomalous results for full assays results

Table 4: Trundle Park target hole TRDD018 - Anomalous results for full assays results

Note for Tables 3-4: Interpreted near surface skarn gold and copper intercepts are calculated using a lower cut of 0.20g/t and 0.10% respectively. Porphyry gold and copper intercepts are calculated using a lower cut of 0.10g/t and 0.05% respectively. Internal dilution is below cut off; and, * Dilutions related with Core loss

Table 5: Mordialloc target hole TRDD019 - Anomalous results for full assays results

Table 6: Mordialloc target hole TRDD020 - Anomalous results for full assays results

Note for Tables 5-6: Porphyry gold and copper intercepts are calculated using a lower cut of 0.10g/t and 0.05% respectively. Internal dilution is below cut off; and, * Dilutions related with Core loss

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.