TIER 1 DRILLING AND DISTRICT SCALE EXPLORATION
SOUTHERN GOBI COPPER-GOLD BELT, MONGOLIA
May 2018 KCC.TSXV
KINCORA COPPER TIER 1 DRILLING AND DISTRICT SCALE EXPLORATION - - PowerPoint PPT Presentation
KINCORA COPPER TIER 1 DRILLING AND DISTRICT SCALE EXPLORATION SOUTHERN GOBI COPPER-GOLD BELT, MONGOLIA May 2018 KCC.TSXV Cautionary Statement on Forward-Looking Information and Statements The views expressed in this presentation are based
SOUTHERN GOBI COPPER-GOLD BELT, MONGOLIA
May 2018 KCC.TSXV
KCC.TSXV
The views expressed in this presentation are based on information derived from Kincora Copper Limited’s (“Kincora”) own internal and publicly available sources that have not be independently verified. This presentation contains certain forward-looking information and statements which may not be based on fact, including without limitation, statements regarding the Company’s expectations in respect of its future financial position, business strategy, future exploration and production, mineral resource potential, exploration drilling, permitting, access to capital and events or developments that the Company expects to take place in the future. All statements, other than statements of historical facts, are forward-looking information and statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will” and similar expressions identify forward-looking information and statements. In addition to the forward-looking information and statements noted above, this presentation includes those that relate to: the expected results of exploration activities; the estimation of mineral resources; the ability to identify new mineral resources and convert mineral resources into mineral reserves; ability to raise additional capital and complete future financings; capital expenditures and costs, including forecasted costs; the ability of the Company to comply with environmental, safety and other regulatory requirements; future prices of base metals; and the ability of the Company to obtain all necessary approvals and permits in connection with the development of its projects. Such forward-looking information and statements are based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such information and statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward- looking information and statements. Such factors include, but are not limited to, fluctuations in the price of copper and other commodities, the inability of the Company to raise sufficient monies to carry out its business plan, changes in government legislation, taxation, controls, regulations and political or economic developments in Mongolia, the accuracy of the Company’s current estimates of mineral resources and mineral grades, the accuracy of the geology of the Company’s projects, risks associated with mining or development activities, including the ability to procure equipment and supplies, including, without limitation, drill rigs, and the speculative nature of exploration and development, including the risk of obtaining necessary licenses and permits. Many of these uncertainties and contingencies can affect the Company’s actual performance and could cause actual performance to differ materially from that expressed or implied in any forward-looking information and statements made by, or on behalf of, the Company. Readers are cautioned that forward- looking information and statements are not guarantees of future performance. There can be no assurance that such information and statements will prove to be accurate and actual results and future events could differ materially from those presented in such information and statements. Forward-looking information and statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information and statements. Such risks include, but are not limited to, the volatility of the price of copper, uncertainty of mineral resources, exploration potential, mineral grades and mineral recovery estimates, delays in exploration and development plans, insufficient capital to complete development and exploration plans, risks inherent with mineral acquisitions, delays in
mining industry, risks associated with the ability to retain key executives and personnel, title disputes and other claims, changes in governmental and environmental regulation that results in increased costs, cost of environmental expenditures and potential environmental liabilities, accidents or labour disputes. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information and
extent required by applicable laws. The scientific and technical information in this presentation was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and was reviewed, verified and compiled by Kincora’s staff under the supervision of Peter Leaman (M.Sc. Mineral Exploration, FAusIMM), Senior Vice- President of Exploration of Kincora, who is the Qualified Person for the purpose of NI 43-101. All pricing & information in this presentation is at close of business May11th, 2018 and is in C$, unless otherwise stated.
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One of a series of trenches across the
West Kasulu prospect, Bronze Fox
First modern Tier1 drill testing & district scale exploration program in a world-class porphyry belt T eam with multiple Tier 1 copper discoveries & track record in Mongolia Exploration T arget: one of the largest in-situ copper systems in Mongolia, with only modest drilling & new high grade drill targets (West Kasulu, Bronze Fox) Drilling confirmed “brownfield” target
(East T sagaan Suvarga)
Dominant exploration pipeline (100% of 1230 km2) Countercyclical corporate & expansion activities
Location Tea eam Target ets
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Resolution of dispute for Bronze Fox, consolidating West Kasulu prospect IBEX merger consolidates district. New industry leading technical team C$5.92m raised supporting 12-mth budget
Large-scale exploration target announced for West Kasulu prospect
krige estimates. There has been insufficient exploration to define a mineral resource & it is uncertain if further exploration will result in the target being delineated as a mineral resource1
Successful Phase1results: incl. East TS drilling confirms brownfield porphyry target Initial 2018 field work recommenced Phase 2 exploration - 2 targets proposed for drilling, advancing pipeline Further corporate/expansion activities and discussions with industry groups
4Q’1 ’15 4Q’1 ’16 1Q’1 ’18 3Q’1 ’17 1Q’1 ’18
1 See slide 23 for further details and disclaimers
4 1Q’1 ’18
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⌃ 30km
Entrée 2018 targets / Rio Tinto drilling
1 >US$1b construction project (>US$370m spent) 2 $5.3b expansion to 3rd largest copper mine (>US$9b spent)
West Kasulu / Oxides
Legend
Oyu T
(“OT”)2 Rio Tinto/TRQ/ Entrée Resources
Kharmagtai Xanadu Mines Ikh Shankh private
Tsagaan Suvarga (“TS”) 1 MAK/EBRD
Red Well Bayan T al NE OT trend XV-19315 TRQ / Rio Tinto drilling Bronze Fox East TS T
Hills Argalant, Ulgii Khud Massive
2017/18 drilling activities Kincora Licenses (100%) Incumbent new licenses Other license holders Interpreted Devonian belt Resource / Cu-Au occurance
Oyu T
copper mines built in recent decades
currently in the mining industry
(any commodity, any location)
Globally Attractive
Rio Tinto:
pursuing expansion (1H’17)
Codelco:
Mongolia
CEO Pizarro (Aug’17)
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“We see that Mongolia has the
things better than Chile 40 years ago”
– Codelco, Nov’17
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Oyu Tolgoi Tsagaan Suvarga Kharmagtai Bayan Tal Bronze Fox East TS XV19315 Notable arc transverse structures Ulgii Khud
Same size landmass in Northern Chile there are now:
Porphyries occur in clusters on key structures within established belts
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Sparsely populated, generally flat
at altitude Between >US$14b OT & >US$1b TS copper projects, plus major coal basin
(incl. Erdenes Tavan T
7 “White Pearl” Camp Bayan T al Oyu T
Bronze Fox Tsagaan Suvarga 32km 27 km 52km 129km Km’s from White Pearl Camp
80km
Km’s to China from OT Manlay Mandakh Khanbogd
Gashuun sukhait
Kincora’s year
round “White Pearl” camp
Water wells at
Bronze Fox, White Pearl & East TS
Grid power within
license area and 500 metres from camp (linking OT to
TS to Mandakh soum)
Annual average
temperature is 2ºC. Can work all year around
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John Holliday >30 years exploration with BHP Minerals and Newcrest Mining Principal discoverer/site manager for Cadia/Marsden Tier 1 gold-copper porphyry, with worldwide experience in goldcopper deposit exploration, discovery and evaluation Ray Nadarajah Seasoned finance executive and investor with extensive experience in the natural resources and infrastructure sectors in Mongolia and globally. Ex-TPG Capital, Rio Tinto, Citi and Goldman, having worked in over 25 countries. Fluent in Mandarin Chinese and T
Independent Non- Executive Director, T echnical Committee Chair Independent Non- Executive Director
Sam Spring Leads Kincora's activities since 2012, incl. active exploration, resolution of 106- license/IBEX transaction disputes, together with an active M&A strategy Former mining analyst, >10 years within Goldman Sachs and Ocean Equities, CA and CFA Charterholder
President & CEO, Director
Peter Leaman >40 years exploration with BHPB, incl. Country manager Mongolia, 2006-09 responsible for the Ivanhoe JV , and PanAust Ltd, Multiple discoveries incl. Tier 1 Reko Diq Cu/Au porphyry with focus on copper- gold porphyries
Senior Vice-President of Exploration
Kincora’s White Pearl camp
Southern Gobi Extensive experience as a Director and CFO of numerous publicly traded corporations in the metals and mining industry, and been CFO to Kincora since Sep’14. Principal of BridgeMark Financial
Company Chartered Accountants Anthony Jackson
CFO, Director
echnical Committee)
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Proprietary knowledge, gained via:
Molor Erdenebat >10 years of base metal exploration and mining experience including roles with Trafigura, Erdene Resource Development and Solomon Resources, in Mongolia and Africa Tsolmon Amgaa >20 years in mineral exploration with juniors, and more recently with the majors Vale and Teck as Senior Geologist. Working knowledge of the Mongolian copper belts and interpretation of their geological controls and models
Origo-Trafigura –
President/Chief Geologist
Trafigura - member
BHP/Ivanhoe JV –
BHP Exploration Manager (Mongolia) & Chief Geophysicist (Global)
Teck - country manager,
project generation
Ivanhoe - one of 6
executive exploration team at OT
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Last district scale exploration 2006-09
BHP JV with Ivanhoe Khashagerel Bat-Erdene and Imants
Mongolia and have worked on some of the largest Cu deposits in SE Asia Imants was one of the 6 executive exploration team during the exploration & delineation of the Oyu Tolgoi deposits Henry T ebar Formerly President & Chief Geologist of Trafigura Origo JV in Mongolia, having identified & truthed >300 targets. >30 years’ experience in copper, precious/ base metals & geothermal in Asia (ex- Leyshon Res., Central China Goldfields, Anomaly Res., BHPB, Billiton)
Plus Minerals LLC
Plus Minerals LLC
T echnical Committee Advisor
Barry de Wet
Geophysics Consultant
>50 years experience, actively contributing to discovery of mineral deposits with Ivanhoe Mines Group (Ivanhoe Australia & HPX) & BHP Billiton Minerals Exploration (former Chief Geophysicist). Knowledge of Southern Gobi belt from BHP , HPX and being a former board member of IBEX
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Red Well Tourmaline Hill Bronze Fox – West Kasulu1 East TS
Mine Feasibility Pre- Feasibility Advanced Drilling T arget T esting Reconnaissance Title Concept Resource Delineation
Independent block models:
1 Mining Associates - 2018 2 Micromine - 2012
1 Mining Associates – 2018
416-428Mt @ 0.26-0.30% Cu 3
2 Micromine – 2012
0.4-23.8Mt @ 0.27-0.40% Cu 3
3 West Kasulu, Bronze Fox: The potential quantity & grade ranges
are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource
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⌃
Rio Tinto Drilling
Alagbayan Massif Oyu Tolgoi mineralised trend Tsagaan Suvarga Massif
Kincora camp
⌃
Kincora licenses Interpreted key structures Interpreted Devonian Belt Mineral Resource and Ore Reserves Mineralised Cu-Au occurrence Confirmed Devonian stratigraphy
Confirmed Devonian Stratigraphy
Value catalysts include: Refining & drill testing high grade infill targets Refining & drill testing extension & new targets NI 43-101 resource definition activities (data quality)
mining license conversion
Shivee Tolgoi mineralised trend
30km
Kharmagtai Intrusive Complex Bronze Fox Intrusive Complex Tourmaline Hills Intrusive Complex Ikh Shankh Lithocap Shuteen Lithocap
“Brownfield” TS style target
Current Activities 14 holes for 3452m Geophysics Stage 2 Drilling
Large scale exploration target (Jan’18) 1
East Tsagaan Suvarga
Ulgii Khud massif
Phase 1 drilling/geophysics Value catalysts include: Induced Polarization (IP) Drilling
Red Well NE OT trend Bayan T al T
Hills Bronze Fox
⌃
Legend
Kincora Licenses Interpreted Devonian Belt Mineralized Cu-Au occurrence Mineral Resource & Ore Reserve West Kasulu
1 The potential quantity & grade ranges are conceptual in nature. There has
been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource Disclosure note re West Kasulu Interpreted key structures
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Eas astern z zone: S Sear arch I IP i in 2 2013 by by K Kincora a Western z zone: H Historic v vector I IP by by I IVN VN
500 M Metres
Induced Polarization surveys (Eastern zone: “Search” IP in 2013 by Kincora)
31.1 17.5 11.8 8.2 5.8 4.1 2.7 0.9
Chargeability (mV/V /V)
14 9 5 2
Chargeability (mV/V /V)
Ivanhoe (est 2005: @ 200m) Kincora (2013: @ 500m) Eastern license Western (previously disputed) license F62 F57 F85 12
ü 3.12% Cu, 0.32g/t Au & 467 ppm Mo ü 864 metres @ 0.38% CuEq, with 37 metres @ 1% CuEq ü 1.67% Cu, 0.20g/t Au & 27 ppm Mo ü 173 metres @ 0.30% CuEq ü 1.41% Cu & 0.15g/t Au ü 10 metres @ 1.48% CuEq
F62 F57 F85
At least min. 8m interval @ >0.5% CuEq or 1m >1g/t Au Other drill holes End of hole License boundary T
Le Legend Mining A Associat ates 2 2018 Expl plorat ation T Tar arget NW monzonite zone SW granodiorite zone
3 of 4 holes drilled by Kincora in newly understood western zone have intersected higher grade mineralization Previous shallow grid drilling (by vender) based on geochem anomalies with subsequent Kincora IP, magnetic & gravity targets remaining untested New high grade targets proposed for drilling (Mining Associates block model, geophysical review & core relogging – latter, part by copper major under exclusivity)
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No Norther ern Ecuador Ecuador
Kharmagtai Intrusive Complex (KIC) West Kasulu Bronze Fox Intrusive Complex (BFIC)
Tourmaline Hills Intrusive Complex
Explorat.Stage Strike Depth (up to) Drilling @ T arget stage Drilling @ Resource stage T arget / Res. Drilling total Mineralized AoI License Size Operator % Interest Ticker Market Cap KIC - Kharmagtai Maiden-Resource 1.8km (3 centres) >1km N/A 108,130m 203Mt >160,000m 25km2 66.5km2 Xanadu 76.5% XAM.AU / CN C$102m BFIC – West Kasulu Pre-Resource 1.5km 1.3km 24,139m . N/A 416-438Mt <50,000m 40km2 223km2 Kincora 100% KCC.CN C$10m Mining Mining Associates es B Block Model el/ Exploration Exploration T arget et a at W Wes est Kasulu G Green een: W : Wes ester ern (higher er g grade) e) zone t e target et Blue: E e: Easter ern zone t e target et
Pl Plan v view ew o
>0.2 .2% Cu en envel elope e Company data. Refer 25/1/18 press release “Large copper-gold porphyry target quantified at Bronze Fox”; &, 21/11/17 “Kincora appoints consultant for review of Bronze Fox” for details on West Kasulu
F85 F62 F57
Cascabel - Alpala Maiden-Resource 0.5km >2.2km N/A <57,000m 1080Mt >110,000m 25km2 50km2 SolGold 85% SOLG.LSE / CN C$814m
Kharmagtai
So Souther ern G Gobi, M , Mongolia (Carbonifer erous a age) e)
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Oyu T T
discover ery: O : OTD 1 D 150 w was t the f e first ‘d ‘deep eep‘ h ‘ hole t e that t tes ested ed t the h e hypogen ene a e at St Sth W Wes est
Source: Kincora Copper, company data (including Ivanhoe and Zeus presentations)
Previous shallow drilling at NW monzonite zone failed to reach subsequent IP , and coincident magnetic, anomalies with 3 holes drilled only on margin of targets Previous shallow drilling (<320m) short of or adjacent to subsequent interpreted intrusions
“OT Discovery Hole” A geophysical/ hypogene target
Previous drilling failed to reach the geophysical target and mineralization zones
West Kasulu East TS
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2017 maiden drilling & geophysics: 14 holes for 3452m Subsequent infill ground magnetics
& maiden gravity surveys
Multiple targets at explorable
depths (>200m depth)
Concept is a high grade potassic
zone core of a preserved porphyry copper deposit(s)/structural trend
Induced Polarization (IP) survey planned
to refine targets
Phase 2 target testing drilling program
scheduled for the Summer/Autumn
TSIC intersected (Hole #) e #) TSIC not intersected Inferred TSIC pluton boundary
Cu anomalies in soils Kincora East TS licenses MAK Serven Sukhait pits (resource) JICA targets (mineralized outcrop) Cenozoic cover Creataceous cover T riassic volcanics Pennsylvanian volcanics T urnaisian sediments Devonian pluton Lithology interpretation 15
Analogue for East TS hosting an equivalent preserved high grade Hugo or Heruga orebody as at Oyu Tolgoi
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Interpreted from magnetic, gravity & resistivity data with spatial correlation
with Phase 1 drilling (Cu/Mo assay & magnetic susceptibility)
Demagnetised zones may represent magnetite-destructive mineralized
phyllic or argillic alteration in structural trend within brownfield intrusive
ETS011 ETS002 ETS003 Demagnetise d Intrusion? S e c t i
Interpreted altered intrusive body (magnetite depletion)
Interpreted intrusive bodies (magnetite depletion) Interpreted altered intrusive body (magnetite depletion) Interpreted intrusive bodies (magnetite depletion)
2km
Interpreted halo of magnetite alteration at 700m - high amplitude magnetisation in red Section: Susceptibility logs in holes ETS11 ,3 & 2 Magnetisation Amplitude shows mineralisation in alteration halo ü ETS011 – highest Cu/Mo grades just above magnetic body ü ETS003 - anomalous Cu/Mo into the top of an extensive concealed magnetisation body
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0.40 0.60 an' Apr Jul' Oct an' Apr Jul' Oct an' Apr
Capital structure (KCC : TSXV)
Share price (May 11th, 2018) 14 cents Issued shares 69 million Market Capitalization C$9.6 million Cash (YE Dec’17) C$3.3 million Debt nil Enterprise Value C$6.3 million 52-week range 12–43 cents
(Management Est. – May 11th 2018)
3Q’17 raisings (C$5.92m @ 33c/sh) lead by two new & large institutions post extensive due diligence supporting 12 month budget Consolidated shareholder register: >80% in top 20 shareholders Only 12.3m warrants
Kincora share price (C$/sh) since Jan’16
Origo Partners PLA 23% Duchintav Khojgor 7% Board/Management 7% EBRD (Oct’17) 6% New Insto’s / Family offices (Aug’17) 14% Other Insto 16% HNW 14% Other retail 13%
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IBEX deal announced IBEX deal closed
0.4 0.2
Apr’16
Volume since Jan’16 (C$m/mth)
$2m $1m
Jul’16 Oct’16 Jan’17 Jul’17 Oct’17 Jan’18 Apr’17
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HNW / Family Office Board / Techical Team Ret etail Institutional Institutional Apr’18
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eam with exceptional Tier 1 porphyry track record
(Bronze Fox):
sagaan Suvarga target
sagaan Suvarga mineralized system as the Hugo or Heruga orebodies within the Oyu T
Feb’18 field work in one of a series of informal gold mining areas
Tourmaline Hills Intrusive Complex
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May’18 – C$21m TSXV IPO, having raised US$26 million privately Steppe Gold Nov’17 – Underwritten A$16.5 million rights issue Aspire Mining Sep’17 – Oversubscribed A$15.4 million placement Xanadu Mines Mar’17 – T eck Resources $0.5 million non-brokered private placement Erdene Resource Development Corp Feb’17 – Oversubscribed $13.8 million bought deal financing Erdene Resource Development Corp Jan’17 – Oversubscribed C$7.6 million equity offering Entrée Gold Jun’16 – Successful A$12.2 million placement Xanadu Mines Apr’16 – Sandstorm $2.5 million royalty linked private placement Erdene Resource Development Corp
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Oct’17 – 7x oversubscribed international Government of Mongolia bond US$800m @ 5.6% for 5.5 years May’17 – Protection of existing Investment Agreements Delay in IMF approval of EFP until Parliament legislation confirms investor agreements (removal of sub-clause 11) Feb’17 – “Total External Financing Package (EFP) will be around US$5.5 billion” IMF lead with Mongolian Government - underpinned by mining sector May’16 – “Approval of a US$5.3 billion investment” for underground development of Oyu T
Rio Tinto, T urquoise Hill Resources, Oyu T
Canada, USA & Australia Govts, along with 15 commercial banks (incl IFC)
“Company” Xanadu‟s Managing Director & Chief Executive Officer, Dr Andrew Stewart, said “The results of this targeted ” million ounces of gold resource (see Xanadu‟s ASX announcement –
– – “ ”) “ ”). (“ ”) at a price of C$0.77 per including the full exercise of the Underwriters’ 15% over “ ”) “We are ex shareholders into Erdene”, said Peter ey, Erdene’s President and CEO. “ ” “ ”)
– – “ ”) “ ”). (“ ”) at a price of C$0.77 per including the full exercise of the Underwriters’ 15% over “ ”) “We are ex shareholders into Erdene”, said Peter ey, Erdene’s President and CEO. “ ” “ ”) – – “ ”) “ ”). (“ ”) at a price of C$0.77 per including the full exercise of the Underwriters’ 15% over “ ”) “We are ex shareholders into Erdene”, said Peter ey, Erdene’s President and CEO. “ ” “ ”)
“Company” Xanadu‟s Managing Director & Chief Executive Officer, Dr Andrew Stewart, said “The results of this targeted ” million ounces of gold resource (see Xanadu‟s ASX announcement –
Precious Metals CompanyKCC.TSXV
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Tsagaan Suvarga Oyu Tolgoi Kharmagtai White Hill Ulaanbaatar Erdenet Bayan Airag Zuun Mod Bronze Fox Bayan Khundii Saran Uul Boroo Gatsuurt Altan Tsagaan Ovoo Oyut Ulaan Olon Ovoot Southern Gobi Oyu Tolgoi- Tsagaan Suvarga copper belt
Copper & gold resource or exploration targets Major copper & gold mines/development projects Kincora properties Copper porphyry showings Copper scarn or massive sulfide deposits/showings Island arc Back arc basin Devonian belt
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21 Legend: Geo eochron: incl. age dating, green rock, petrographic & lithochem/geochronological; GMA GMAG: ground magnetics; G Gravity; ground gravity; IP IP: Induced Polarization; Inter erp: interpretation Exploration Targets:
1 Mining Associates Jan’18 report and block model
supports a total exploration target of:
for up to 2,437Mlb of copper and 0.84Moz gold (0.2% Cu cut off), ranking as one of the largest potential in-situ copper-gold systems in Mongolia and with only modest drilling.
conceptual in nature and based on nearest neighbour and ordinary krige estimates. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
2 Micromine Consulting Services Oct’12 report and block
model supports near surface exploration target of:
(0.2% Cu cut off and 1% top cut).
conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
IBEX Merger Review Access resolved
Illustrative program timeline
Project generation (Southern Gobi and other underexplored districts)
Historical 2017 2018
Target Target Style
Bronze Fox Intrusive Complex 15000 / 17977 West Kasulu Oxide East TS 13615 PCD Tourmaline Hills 17977 Au Red Well 20294 PCD or Au Bayan Tal 14396 PCD Ulgii Khud Massive (incl Argalant) 14523 PCD / Au 14877 14876 15167
Exploration Target / block model Relog core Access resolved Desktop studies (met analysis /block model) Relog core Access resolved
Exploration Targets
416-428Mt @ 0.26-0.3% Cu 0.4-23.8Mt @ 0.27-0.4% Cu
1 2
IBEX Merger IBEX Merger IBEX Merger
?
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* Refer to the following press releases for further details: 25/1/18 Large copper-gold porphyry target quantified at Bronze Fox; &, 21/11/17 Kincora appoints consultant for review of Bronze Fox
Notable Mongolian copper porphyry systems
Mineralized system Current Stage Mt Cu, % Au, g/t Mo, % Measured & Indicated 1 OT, Hugo Dummet Construction 976 1.61 0.38 0.003 OT, Heruga Studies OT, Oyut OP (ex mined) Mining 1,092 0.43 0.27 0.006 OT, Oyut UG Studies 107 0.35 0.61 0.003 Tsagaan Suvarga (Primary) Construction 291 0.55 0.02 Kharmagtai Exploration 46 0.42 0.51 Inferred 2 OT, Hugo Dummet Construction 1,835 0.79 0.18 0.005 OT, Heruga Studies 1,816 0.39 0.37 0.011 OT, Oyut OP (ex mined) Mining 389 0.29 0.16 0.004 OT, Oyut UG Studies 159 0.39 0.32 0.003 Tsagaan Suvarga (Primary) Construction 15 0.33 0.01 Kharmagtai Exploration 157 0.32 0.28 Holes and metres drilled 5 OT, Hugo Dummet Construction OT, Heruga Studies OT, Oyut OP (ex mined) Mining OT, Oyut UG Studies Tsagaan Suvarga Construction Kharmagtai Exploration 921 282 265 54,764 108,130 326,510 Holes included Metres in 745 136 441,456 148,889 CuEq Grade Date Cut-off grade 1.87 2015 0.37 3 2015 0.61 2015 0.22 3 0.73 2015 0.37 3 0.60 2009 0.20 0.73 2015 0.3 & 0.5
4
0.93 2015 0.37 3 0.65 2015 0.37 3 0.40 2015 0.22 3 0.59 2015 0.37 3 0.36 2009 0.20 0.49 2015 0.3 & 0.5
4
54,764 108,130 326,510 es included 441,456 148,889
1 Reported Measured & Indicated Mineral Resources as report to respectiv 2 Reported Inferred Mineral Resources as report to respective code (JORC o 3 Cut-off grade - CuEq per respective technical report (otherwise stated as 4 Reported at 0.3% CuEq cut off within pit shells & cut-off 0.5% CuEq applie 5 Reported total holes and metres drilled
ctive code (JORC or NI 43-101) RC or NI 43-101) as Cu %) applied to underground
Mining Associates exploration target at West Kasulu
Notes:
Project
1
Exploration Targe Exploration targe West Kasulu - Target Range Mt Cu, % Au, g/t Mo, % 416 0.26 0.06 0.003
0.30 0.07 0.004 ation Target1 target range (per the Mining Ass CuEq Grade Contained Metal CuEq Mt 2 Date Cut-off grade Holes included Metres included 0.30 1.3
1.5 Associates review) - The potential quantity and grade ranges are 2018 0.20 76 24,139
1 2
Exploration targe nearest neighbo approximately 2 The drill spacing economic extrac exploration to de mineral resource Copper Equivale summed and exp have not been ad intended for sum target range (per the Mining Ass hbour and ordinary krige estimate ly 200 x 200 m within the West K acing is too broad to define grade traction have been applied. The to define a mineral resource and urce. valent (CuEq) calculation represe expressed in equivalent copper en adjusted for metallurgical or r summarizing grade. The copper Associates review) - The potential quantity and grade is conceptual in nature, and based on timates within an interpreted 0.2% Cu grade shell based on 81 drill holes spaced est Kasulu prospect within the western central portion of the Bronze Fox Intrusive Complex. rade continuity, but does illustrate geological continuity. No assumptions regarding eventual The potential quantity and grade is conceptual in nature, there has been insufficient and it is uncertain if further exploration will result in the target being delineated as a resents an estimate of the total value for each metal, multiplied by the conversion factor, pper percentage based on spot prices (Cu $3.11/lb, Au $1279/oz and Mo $7.1/lb). Grades al or refining recoveries and the copper equivalent grades are of an exploration nature only & per equivalent calculation is intended as an indicative value only.
Mongolyn Alt LLC’s Serven Sukhait open pit development project – 13km’s from the East TS target
US$377 million invested of US$1,089 million total capital, forecast to produce up to 316,000tpa Cu and 4,400tpa Mo. .