Kincora Copper has solid base to embark on serious elephant hunt
Kincora Copper holds some of the best mining real estate in Mongolia, and work is about to get started in earnest.
Kincora Copper now has solid base from which to embark on a serious elephant hunt. Kincora Copper holds some of the best mining real estate in Mongolia, and work is about to get started in earnest. This salient fact about geology lies at the root of everything that’s been done by Kincora Copper in Mongolia’s South Gobi desert, which is generally recognized as one of the last under explored copper frontiers and a relatively attractive operating environment within trucking distance to the world’s largest consumer of copper. The geological model is also proven in other more mature porphyry belts. The largest of Mongolia’s porphyries, Oyu Tolgoi, which is one of the world’s largest and most gold-rich has now gone into production and is being expanded after the largest project financing of its kind in the hard rock industry. A second porphyry project in this belt is in development. In the wake of positive legislative developments and the likely impact of Oyu Tolgoi’s expansion on international investor attention towards Mongolia, a strong majority result in a Parliamentary election and a low point in the commodity cycle, it fell to Kincora to become the consolidation vehicle of choice for South Gobi copper licenses, and the vehicle of choice too for some of the best mines in copper porphyry exploration. Times have been tough in mining over the past few years and it’s been necessary for more than a few companies to club together and focus on core priorities. Kincora picked up the IBEX licenses in scrip transaction that initially valued them at US$900,000, which looks well when set against the +US$25 mln of spend that’s been historically invested. Kincora’s Bayan Tal target sits on the right big picture geological structure, which is found in Chile, other mature porphyry belts and the two mines in the South Gobi.
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