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 | 5 Road to Success have their number one team, including the project manager who was previously working for Major at OT. Bronze Fox is only 140km away, in the same belt and with often the same aged and style of rocks, so having that kind of experience puts us in good stead. We are already seeing the benefts of this in drilling recovery rates and the profession- alism of the team. Major was a little more expensive than the other tenders on headline rate per metre basis, but you get what you pay for and we believe the results are already demonstrating this. You can't squeeze the supply chain too hard because at the end of the day it will come back to bite you. "Last year although we didn't drill, we probably spent the most amongst juniors on exploration in the copper space. We did 50sqkm of induced polarization that went down below 400 metres which was our previous limit and some areas went well below 1000 metres. We also did alteration analysis and some fertility analysis. I dare say our current drilling program along with our regional gold work, including some re- cently completed trenches for gold and copper, will be right up there in terms of work carried out this year." New principal geologist Kincora has recently appointed Henry Tebar as principal geologist and has also added a number of quality local geologists to its team. Henry Tebar has extensive copper and base metals exploration experience in various emerging and frontier countries, with proven porphyry ore body discovery experience. He is familiar with Bronze Fox via his previous role as president and chief geologist of the Trafgura-Origo Joint Venture in Mongolia, has extensive knowledge of various regional opportunities and has an existing working relationship with Kincora's exploration di- rector Yawen Cao. "He will assist with the regional work because about 33% of previous drill holes at Bronze Fox have intersected at least 1.0 gram/tonne gold but we've never really had the resources to do a specifc program. The funds raised this year give us a unique position of being able to fund the program," Sam Spring says. Within Mongolia there are other companies doing work this year, in- cluding Xanadu and Erdene Resources, who weren't very active last year. "Xanadu is drilling and Erdene has completed a program more focused on gold. We are starting to see positive signs from juniors in Mongolia after a frustrating and unproductive period. The coal price, and lack of rail infrastructure, means it is even tougher for coal compa- nies operating and exploring in Mongolia." Need for stable policy The main message Kincora received during recent well attended road- show sessions is that investors need to see a few things achieved by the Mongolian Government in order to attract signifcant capital. "Peo- ple need to see assurances from Mongolia before they are willing to part with any signifcant investment funds. We are seeing this caution affecting all projects, with OT underground expansion being the perfect example. "Recently it has been diffcult to get any sort of certainty in Mongolia and it seems as though you take one step forward on the back of per- ceived support but then the government makes a negative statement and you go three steps back," Sam Spring states. "Late last year the government did some international roadshows with the common mes- sage being that it had learnt from past mistakes and would fx some of these issues, which made companies in the mining space feel a little more optimistic. More than six months later there haven't been too many issues on that list fxed." Following this interview with Sam Spring and just before the spring session of parliament ended there were some positive moves from Mongolia with parliament voting to amend legislation governing min- ing activity by ratifying changes to the mining law of 2006. Among the changes will be expansion of Mongolia's landmass open for ex- ploration and subsequent mining activity, with 20% of the country set to be rated as available for development, rather than the 8% available previously. The amendments will also see an end to the moratorium on new min- eral exploration licences, imposed in 2010 as a means of cooling the rush into the sector at the time. Lifting the ban is intended to encourage a return to Mongolia by mining frms, as is the provision extending the term of exploration on a lease from nine years to 12. Detailed imple- mentation policies are not yet available. Trenching in June 2014 at the Happy Geo prospect. A Bronze Fox core sample showing quartz-sulphide veins with minor chalcopyrite.

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