The Asia Miner

SEP-OCT 2014

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

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September/October 2014 | ASIA Miner | 3 Road to Success KINCORA Copper is adopting a common sense approach to surviving in diffcult global economic conditions and to weathering the storm that has hit the mining industry in Mongolia. The Canadian-listed compa- ny is taking measured steps towards advancing its highly prospective Bronze Fox Copper Project in the prolifc South Gobi region and this appears to be bearing fruit. The company's president and CEO Sam Spring says that while there is defnitely a need for caution in the current climate, particularly in Mon- golia, explorers must continue to carry out their work in the quest to fnd another Oyu Tolgoi (OT) … and all the signs are encouraging for Kincora. He says the company commenced a new drilling campaign in late May utilizing two diamond drill rigs and one RC rig. "We are testing targets defned since we last drilled in 2012 and are getting some good results. We have done a lot of long-lead time, technical work that in hindsight probably should have been done before the 2012 drilling as it has enabled us to better understand the targets." The current program has been designed to advance and test a num- ber of large-scale copper porphyry targets focused at the West Kasulu, Sophie North and Leca Pass prospects, and a new target called Shar- gal Tolgoi (Yellowish Hill). Targets include the last hole drilled in December 2012, which returned localized copper of +4% on the periphery of a then untested IP chargeability high and in the western region, about 1km along strike, of previous drilling at West Kasulu in Shargal Tolgoi region. Sam Spring says, "We were close to having something economic in 2012 and hopefully the 2014 work will help us solve the piece of the puzzle that was previously missing. We have been able to undertake this work because we had an oversubscribed raising in March. It wasn't easy and about 66% of the $5 million raised came from new investors which is good in these tough global markets and even better considering Mongolia is particularly diffcult." Investors are still prepared to consider Kincora, he says, be- cause the money is going into the ground and into that stage of exploration where, if you have some success, they can ride the value curve. "Technically, people understood some of the similarities in what we are looking to do and what Ivanhoe achieved at OT in 2001 that led to the discovery hole. There are no certainties as it is exploration but it is that part of the exploration cycle where success brings signifcant rewards. "Unfortunately for most exploration companies in current markets with limited feld season activities, the bulk of their re- maining budget is spent on general and administrative (G&A) purposes, which does not add to shareholder value. We have compiled fgures indicating that our G&A to exploration ratio is the highest in our peer group." Exploration focus Sam Spring says there is no certainty of what exploration results will be but at least management and the Board are completely aligned with shareholders. "We are incentivized to generate good exploration results and try to maximize share- holder value in these diffcult economic times. At the end of the day, when we went out to raise money this year that is what investors saw as the differentiating factor between us and a lot of our other peers and we are putting our money Common sense prevails at Bronze Fox By John Miller, editor, The ASIA Miner A Major Drilling RC Schramm drill rig in operation at the Bronze Fox Copper Project during June. Kincora Copper's Bronze Fox project is in the prolifc South Gobi region of Mongolia, not far from the Chinese border.

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