The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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14 | ASIA Miner | Volume 14 • Issue 1 | 2017 GOVERNMENT reforms, proposed new infrastructure projects and improving market conditions in resource-rich Mongolia are helping attract mining companies back to the market. Mongolia's vast mineral and energy resources, particularly at Oyu Tolgoi (OT) and Tavan Tolgoi mines, are well known. Both fueled much of the country's early double digit growth, before falling com- modity prices and investor confidence coupled with macro-eco- nomic factors curtailed growth and activity. Austrade's Senior Trade Commissioner for Korea and Mongolia Amanda Hodges said the recently appointed government was im- plementing changes to restore investor confidence and enhance the mining sector. "The new government, led by the Mongolian People's Party (MPP) elected in mid-2016, has been focused on diversifying Mongolia's investment and trade partners. "Projects such as Mongolia's new airport, due for completion in 2017, are rejuvenating interest, given the significant foreign invest- ment. Financing is being provided by Japan's Bank for International Cooperation while South Korea's Samsung C&T Corporation is op- erating as general assistant executor of the project. "Other key projects include various road and rail projects and a fifth power plant for Ulaanbaatar. With current supply at full capacity, a power station based at Tavan Tolgoi (coal mine) would help re- duce the dependence of OT on China for power." Amanda Hodges said these activities and the proposed pub- lic-private partnership project list being developed would potentially open increased opportunities for Australian businesses to consider. There are many Australian businesses operating in Mongolia, especially Australia's world-class METS companies. An estimat- ed 200 Australian businesses have already provided services valued at more than $US83 million to the OT mine. OT is a stra- tegic partnership with Rio Tinto, a significant shareholder, who earlier this year announced its commitment to invest US$5.3 billion in Stage II. Amanda Hodges said this investment was expected to present additional business opportunities for Australian METS suppliers, particularly in niche areas and in the provision of high-tech equip- ment and machinery. Rio Tinto aims to make OT a world-class op- eration by introducing world's best mining practices in workplace health and safely, skills and training development, and create more than 5000 skilled jobs. This could create opportunities for Australia's education and training providers. "Australia has maintained a strong education relationship, with more than 20 years of Australian government post-graduate schol- arships. There is also potential to develop academic and commer- cial linkages between Australian and Mongolian higher education institutions," she said. Opportunities for Australian businesses KINCORA Copper has outlined a multi-tar- get, multi-stage strategy for tier one porphyry copper-gold exploration in southern Mongo- lia. Early priorities will be Bayan Tal and East Tsagaan Suvarga (TS) where Oyu Tolgoi-style stratigraphy has been confirmed. Recent Bayan Tal work returned an intersec- tion of 18 metres @ 0.66% copper equivalent down hole on the margin of the interpreted system while analysis has also identified the East TS target. Kincora's president and CEO Sam Spring said: "We are excited by the targets identified at Bayan Tal, which is an extensively miner- alised system with distal copper-gold porphy- ry returned along its southern margin. "Recent activities have confirmed similar Devonian stratigraphy to Oyu Tolgoi, the first targets since with such attributes that we are aware of. Advancements in geology and geo- physics support multiple drill ready targets at Bayan Tal and East TS, which are the best early candidates for a new tier 1 porphyry dis- covery in the South Gobi. "New analysis has shown Tsagaan Suvarga can be classified as a Devonian quartz mon- zodiorite system, essentially identical to the high-grade ore bodies at Oyu Tolgoi, and East TS is part of this suite." Regarding the pipeline, extensive ground magnetics, detailed mapping, regional and local geochemistry, petrography, whole rock geochemistry with fertility analysis, and age dating are ongoing to advance a portfolio of high quality, ranked exploration targets across the district level portfolio developing additional drill targets and areas for systematic explora- tion in the 2017 spring and summer. Kincora's portfolio supports the advance- ment of potential Oyu Tolgoi and TS ana- logues, and/or traditional gold-rich finger-type porphyries. Exploration activities are focused on replicating systematic and proven tech- niques that have been successful at other similar profile targets. "Location, team and targets are the key ingredients for a successful exploration play. Since closing the IBEX transaction we have started outlining key positive developments on these fronts that differentiate and positions Kincora well moving forward, with systematic exploration advancing our targets up the value curve," Sam Spring said. Meantime, Kincora has raised more than C$532,000 in a non-brokered private place- ment with the funds to advance the Mongo- lian exploration portfolio. Concurrently Kinco- ra has agreed to settle debt of US$48,576 owing to HPX Techco Inc, an affiliate of High Power Ventures, on account of loans made in the course of the IBEX Transaction, by issuing 186,831 shares. Kincora outlines multi-target strategy Examining an outcrop on one of Kincora Cop- per's prospects in southern Mongolia.

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