KINCORA Typical Southern Gobi terrane ; One o e of a a s ser - - PowerPoint PPT Presentation
KINCORA Typical Southern Gobi terrane ; One o e of a a s ser eries es o of t tren enches es a across t the o e oxide e COPPER zone a e at W Wes est K Kasulu West Kasulu prospect, Bronze Fox T eam, Location, T argets SOUTHERN
SOUTHERN GOBI COPPER-GOLD BELT, MONGOLIA
January 2019 KCC.TSXV
Typical Southern Gobi terrane;
One o e of a a s ser eries es o
tren enches es a across t the o e oxide e zone a e at W Wes est K Kasulu West Kasulu prospect, Bronze Fox
KCC.TSXV
The views expressed in this presentation are based on information derived from Kincora Copper Ltd’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
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
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
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
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
competition in the 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 statements. The Company disclaims any intention or obligation to update or revise any forward-looking information and statements whether as a result of new information, future events or otherwise, except to the 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 January 14th, 2019 and is in C$, unless otherwise stated.
2 KCC.TS .TSXV 2 2
Background: Lookout at the Oyu Tolgoi open pit
Mongolia conference site visit Sep’18
hosted over 3600 stakeholder site visitors in 2018
to Oyu Tolgoi
Location: Elephant country Targets: Elephants
KCC.TS .TSXV 3 3
Team: Discovery track record
Background: High grade monzodiorite intersection at hole F62 in West West Kasulu, Bronze Fox
3.1% Cu, 0.3% Au & 467ppm Mo
KCC.TS .TSXV 4 4
Exceptional Tier 1 porphyry discovery track record with deep in-country/international experience Implementing proven exploration strategy Low overheads with “skin in the game” alignment to shareholders Dominant position in proven world-class underexplored belt First modern systematic district scale exploration in belt New Silk Road within trucking distance to worlds largest commodity consumer High grade focus within/on strike to large exploration target: Bronze Fox
(incl. 800m @ 0.4% CuEq , incl 37m >1% CuEq Exploration target: 1.3-1.5Mt CuEq metal 1 on slide 29)
Brownfield project: East Tsagaan Suvarga (<15km from >US$1b project) District holding being advanced Leading project generation in-country
Background: Maiden drilling at E TS project near Devonian outcrop
ETS003 intersected fertile Devonian monzodiorite with background Cu & Mo
Director, T echnical Committee Chair John Holliday 1 Peter Leaman 2 Senior VP of Exploration, T echnical Committee Imants Kavalieris 4 Advisor T echnical Committee Tsolmon Amgaa 6 Project Generation Geologist
, Pakistan) 2
ebar
KCC.TSXV 5
KCC.TSXV
Cameron McRae 7 Independent Chairman President & CEO, T echnical Committee, Director Molor Erdenebat 5 Head Geologist Sam Spring 8
7
6
8 10
rading copper and other commodities in Mongolia/Asia region
Further details on slide 28 - full bio’s @ www.kincoracopper.com
KCC.TSXV
Notable copper & gold occurrences
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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T Tsag sagaan aan S Suvar arga a Oyu Oyu T Tolg
Kharma magtai Wh Whit ite e Hill Hill Ulaanbaa Ulaanbaatar ar Er Erdene denet Ba Bayan an Ai Airag Zu Zuun Mo Mod Br Bron
F Fox Ba Bayan an Kh Khundii Sar Saran an Uul Uul Bor Boroo
Gatsuurt
Alt Altan an Ts Tsagaan Ov Ovoo
Oyut Ulaan Ulaan Ol Olon
Ovoot
Kh Khadat Ba Bayan an Uul Uul
KCC.TS .TSXV 7 7
Southern Gobi region
Source: Company & Industry data
KCC.TSXV
⌃
Entrée 2018 targets / Rio Tinto drilling West Kasulu / Oxides
Legend
Oyu T
(“OT”) Rio Tinto/ TRQ/ Entrée Kharmagtai
Xanadu Mines Ikh Shankh private
Tsagaan Suvarga (“TS”) MAK/EBRD
Red Well XV-19315 TRQ / Rio Tinto drilling Bronze Fox T
Hills Argalant, Ulgii Khud Massive
2017/19 drilling activities Kincora Licenses (100%) Incumbent new licenses Other license holders Interpreted Devonian belt Resource / Cu-Au occurance
TRQ Aug’18 drilling/targets Rio Tinto operated
30km
Kincora priority drill targets
Bronze Fox East TS
(incl. 800m @ 0.4% CuEq , incl 37m >1% CuEq
Exploration target: 1.3-1.5Mt CuEq metal 1 on slide 29)
8
KCC.TSXV
150km Tsagaan Suvarga Kharmagtai Bronze Fox East TS XV19315
Source: Company & Industry Data
9
Background: Pre-stripped Serven Sukhait
Oxide material within the eastern pit
KCC.TS .TSXV 9 9
Oyu Tolgoi 150km
KCC.TSXV
Sparsely populated, generally flat
at altitude Between >US$14b OT & >US$1b TS copper projects, plus major coal basin
(incl. Erdenes Tavan T
“White Pearl” Camp Oyu T
Bronze Fox Tsagaan Suvarga 32km 27 km 129km Km’s from White Pearl Camp
80km
Km’s to China from OT Manlay Mandakh Khanbogd
Gashuun sukhait
Kincora’s year
round “White Pearl” camp
Water wells at
Bronze Fox, White Pearl & East TS
Grid power within
license area and 500 metres from camp (linking OT to
TS to Mandakh soum)
Annual average
temperature is 2ºC. Can work all year around
KCC.TS .TSXV 10
Background: OT aquifer & power lines to TS
10 10
KCC.TSXV
20 40 60 80 100 120 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Copper in major discoveries (Mt Contained)
Adapted from S&P Global Market Intelligence report which identified 220 primary copper deposits (generally >500,000t of Cu Mt in reserves/past production) initially identified by discovery holes drilled between 1990-2017. Year of addition based on interpreted “discovery hole”.
* 20 40 60 80 100 120 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Copper in major discoveries (Mt Contained) Copper in discoveries (RoW) Copper in discoveries (
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Copper in discoveries (RoW) Copper in discoveries (MGL) Copper price (US$/lb)
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5
Average LME Copper Price (US$/lb) (US$/lb)
Analysis excludes T sagaan Suvarga project, also in Southern Gobi (1.4Mt Cu resource) 2 20 40 60 80 100
OT – Hugo Dummett Kharmagtai OT – Shivee OT – Heruga OT – Sth Oyu
2009-12 most majors sought position in Southern Gobi
Kharmagtai – Zaraa? Bronze Fox & East TS?
Majors balance sheets restored Lack of pipeline – revisit Gobi
11 11
2 9% of contained metal discovered globally 1
KCC.TSXV
12 12
1 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. Refer to slide 29 for full disclaimers/notes.
Mine Feasibility Pre- Feasibility Title Concept
Advanced Drilling T arget T esting Max uplift in shareholder value
Reconnaissance Resource Delineation
KCC.TSXV
13 13
SolGold case study:
Raisings / drilling Mar’16 Sep’16 Jun’17 Nov’17 Oct’18 Nov’18 Amount raised ($m) A$5.7 US$54 US$41.2 C$75.6m US$59.2 US$3.2 @ price /sh 2.3p $0.16 41p 25p 45p 37.14p Drill holes completed 13 15 23 39 67 67 Stage Ta Targ rget Te t Testing sting As Asses essmen ent “Top up rights” Share price re-rating 20x Resource Maiden Upgrade Industry groups Newcrest Newcrest Newcrest BHP Newcrest
“Original” Ivanhoe Mines case study:
e Advanced Drilling T arget T esting
Discovery Assessment Discovery Production Discovery Value Discovery Risk Financing & construction
Source: Company & Industry data Source: Adapted from Lion Selection, with thanks to Hedley Widdup
KCC.TSXV
14 14
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 Previous shallow drilling at NW monzonite zone failed to reach subsequent IP & coincident magnetic anomalies with 4 (Kinocra) holes drilled
Previous shallow drilling (<320m) short of &/or adjacent to subsequent interpreted intrusions & geophysical targets
“OT Discovery Hole” A geophysical/ hypogene target
Previous drilling failed to reach the geophysical target and mineralization zones
West West Kasulu East TS
Source: Adapted from Ivanhoe & “Exploration of the Oyu Tolgoi Copper, Gold, Silver Deposit in South Gobi, Mongolia” presentations
KCC.TSXV 15 KCC.TS .TSXV 15 15
2005 4 holes 1237 metres 2011 Ivanhoe Mines 2006-09 Temujin Mines 17 holes 1680m1 Kincora Copper 2012 2013-16 IVN JV BHP Kincora Copper Exclusivity with major Windfall Tax Bronze Fox excluded
Retained by Ivanhoe C$40-50m Mkt Cap
Background: Discovery of Oyu Tolgoi
(Elsevier 2018) – Figure 15.1, with thanks to Sergei Diakov Aug’05 BHPB OT project review delegation: L2R - D Hernandez, R Friedland, P Leaman, C Forster, M Salamon & M Randolph
Key milestones for Western license
106 Dispute
2km
“If we have Bronze Fox & Oyu Tolgoi today, and we were just starting the exploration process, it's not at all clear to me that we would screw around with Oyu Tolgoi”- Robert Friedland Mar’05 2
Focus was extensive surface mineralization in eroded granodiorite zone illustrating size of the system at Bronze Fox (only 1 yr drilling*)
2012 KCC consolidates
Bronze Fox - drilling incl’s. F62:
13m @ 1.4% CuEq within 390m @ 0.49% CuEq 3
2018 (post funding) KCC reviews new geology & geophysics
New focus is extensive preserved & younger monzodiorite targets (across fault from eroded
granodiorite)
1 Drilling by T
emujin impacted by only 100 metres of RC rods
2 Source: http://archive.li/Cv07X 3 Refer to slide 29 for full
disclaimers/notes.
Unrestricted (“U’”) access U’ access New targets 4 holes 3148m U’ access Volcanics Granodiorite
Phases of Drilling
(predominate lithology target) 2005 – Ivanhoe (Granodiorite/too shallow 4 Monzodiorite) 2010 – Nadmin (Granodiorite) 2011 – Kincora (Granodiorite) 2011 – Temujin1 (too shallow for Monzodiorite) 2012 – Kincora (Granodiorite/4 holes Monzodiorite) 2014 – Kincora (Volcanics)
Monzodiorite
Insert: Drilling over IP chargeability with Mining Associated block model:/ exploration target Western strike insufficiently tested RHS: Drilling phases at Bronze Fox over
current license boundary – impacted by ownership, geological knowledge & drilling equipment1
License Boundary
KCC.TSXV
C$XX
ü Resolution
106-license dispute
ü Bronze Fox
reconsolidated
ü IBEX merger
Block model supports large scale exploration target (Jan’18) 1 ü 416-428Mt @ 0.26-0.30% Cu 1 ü up to 2,437Mlb of copper & 0.84Moz gold 1
(monzodiorite zone:141Mt for 890Mlb of copper & 0.25Moz gold) 1
C$40-50m Mkt Cap
ü 14 NDAs ü 1 Company Offer ü Separate period of
exclusivity with copper major
X 106-license dispute
Block Model New Gravity & Mag Geophy- sical review “SJ” IP Survey
Key regional fault & change in lithology ü 3 of 4 holes by Kincora in now understood monzodiorite >1% Cu ü Western Bronze Fox license hosts monzodiorite intrusion
New Surface Geology
16 16
2012 Now
1
106 License Dispute
SG’s for 43-101
24km core relogged
1 Refer to slide 29 for
full disclaimers/notes.
“Search” IP Survey Funding New Technical Team
KCC.TSXV
Inferred high-grade target zone associated with coincident magnetic low, chargeability high (15-20mV/V) & encouraging grade/vectors from hole F57 & F62 on periphery of interpreted target
Outcrop & location of section IP (see slide 1 for IP & mag low) & location of section
OPEN A B A B A B
Conceptual cross section – Looking NE
Chargeability high (see slide 19 for coincident magnetic low & wider IP profile)
Monzodiorite Granodiorite
F62 F57 License Boundary
Monzodiorite Granodiorite
T
T
Outcrop & location of section Conceptual cross section – Looking NE
Background: 24,139 metres of Bronze Fox core were relogged in 2018
Relogging activities at the White Pearl camp
KCC.TSXV 17 19
Conceptual cross section – Looking NE
Conceptual cross section – Looking NE
Monzodiorite
preserved & younger
Granodiorite
eroded
KCC.TSXV
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
Open Open Open Open License Boundary
Granodiorite
eroded
Monzodiorite
preserved & younger
Mining Associates (Jan’18) - Block Model 1 Green: Western (higher grade) monzodiorite zone Blue: Eastern granodiorite zone
(Plan view of >0.2% Cu envelope)
Open
1 Refer to slide 29 for full disclaimers/notes.
18
KCC.TSXV 19 19
Northern Ecuador
C
d u c t i v i t y – k e y r e g i
a l f a u l t s & l i t h
y M a g n e t i c – d e e p s e a t e d & l a r g e i n t r u s i
T
F a u l t C h a r g e a b i l i t y – u n t e s t e d w e s t e r n s t r i k e c
n c i d e n t w i t h m a g l
Chargeability Conductivity Magnetics
Open Open
Tov Fault Shear zone
Open Open 2km
S h e a r Z
e
License boundary Mining Associations block model/ exploration target Drill hole Key fault
E a s t e r n L i c e n s e W e s t e r n L i c e n s e License boundary Mining Associations block model/ exploration target Drill hole Key fault
Chargeability over conductivity & magnetics with the Mining Associates block model, historic drilling & license boundary
#2 #1 #1 #2 #2 #1
strike
target of 141Mt for 890Mlb of copper & 0.25Moz gold in the monzodiorite zone1
>500m wide
strike), coincident with a large chargeability high/demag zone, and discrete surface anomalies (mapping, soil & pan con sampling in 2018)
limited drilling, supporting subsequent geophysics
1 See slide 29 for further details and disclaimers
Previous drilling including Ivanhoe / Temujin / Kincora
KCC.TSXV
20 20
Block model Block model
ü On section from F62*: First time test the central
coincident chargeability high and magnetic low anomalies (periphery intersected in F62) drilling into the right lithology (ie into the monzodiorite , not away)
ü Step out from Mining Associate exploration
target
0.49% CuEq
coincident demaag zone
and right lithology (monzodiorite) for the first time
Tov Fault
New Targets
infill step out
Chargeability
(Vertical depth 190-480m)
Magnetisation
(Vertical depth 480m-c.1500)
Exploration Target1
v Fault
Block Model1 (Mining
Associates
288Mt1 141Mt1
Infill 260m
???
Strike >1km
SI Units Suscepti- bility Charge- ability (mV/V)
Monzodiorite Granodiorite
copper in one drill season of unimpeded access
helps explain previous results with lithology and geophysical anomalies now understood
#1
1 Refer to slide 29 for
full disclaimers/notes.
MVA (ground magnetics) background with IP chargeability iso-surfaces
West West Kasulu Bronze Fox F62 F62: drilled across periphery of target, geology correlates HP1 PV1
KCC.TSXV TSIC intersected (Hole #) e #) TSIC not intersected Inferred TSIC pluton boundary Conceptual intrusive body(s) 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 21
Target is equivalent preserved high grade Hugo or Heruga orebody (or series of
Oyu T
the T sagaan Suvarga intrusion
KCC.TS .TSXV 21 21
Background: Fleet of trucks that have completed the pre-strip of the eastern Serven Sukhait open pit
MAK’s Tsagaan Suvarga project
See slide 30 for further details
KCC.TSXV
22
2011 IBEX 2016 Ground mag Kincora Copper 2017 14 holes 3452m
Key milestones for East TS
Zeus IP Survey/ Prospecting KCC-IBEX Merger Age dating Fertility Mapping Soil sampling 2018 Ground Magnetics + Gravity SJ IP Survey
ü Interpreted from Induced Polarization (IP), magnetic, gravity & resistivity data with
spatial correlation with Phase 1 drilling (Cu/Mo assay & magnetic susceptibility)
ü Demagnetised zones are interpreted to represent magnetite-destructive mineralized
phyllic or argillic alteration in structural trend within brownfield intrusive
ü SJ (“SJ”) Geophysics 3D IP, resistivity & magnetotelluric survey supports multiple
coincident geophysical and geological targets for drilling
22 KCC.TS .TSXV
Moderate IP High Strong IP High
Section: Phase 1 drilling holes ETS011, 003 & 002 ü Confirmed fertile brownfield Devonian environment (+positive green rock) on eastern margin of TS Intrusive Complex ü Preserved porphyry - Carboniferous above Devonian stratigraphy in holes ETS001/003/002 (purpose <25m basement sample of
ü ETS011/003/002 – highest Cu/Mo grades short of extensive magnetic & chargeable body in monzodiorite (did not test subsequently defined coincident geophysical targets) 22 22 22
Background: Magnetics
IP chargeability high (iso- surfaces) coincident with MVA (magnetic) interpreted intrusion (background)
Mag High
(sediments?)
Strong IP High Moderate IP High ETS011 ETS003 ETS002 Demag
Drilling to basement confirmed fertile preserved brownfield mineralized monzodiorite Devonian complex below Carboniferous cover but short of subsequently defined large deep seated coincident chargeable, magnetic & resistive anomalies
Demag Zone
(intrusion?)
KCC.TSXV
23 23 S e c t i
Interpreted altered intrusive body (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
S e c t i
( S l i d e 2 2 ) Interpreted altered intrusive body (magnetite depletion) Interpreted altered intrusive body (magnetite depletion)
2km
S e c t i
( s l i d e 2 2 )
Interpreted halo of magnetite alteration at 700m - high amplitude magnetisation in red
Interpreted intrusive bodies (magnetite depletion)
SJ Geophysics 3D IP – chargeability at 700m –
drilling
Previous shallow to basement drilling (<320m) short of &/
subsequent interpreted intrusions & geophysical targets
3km
KCC.TSXV 24 24
Capital structure (KCC : TSXV)
Sh Share e price price (14/1/19) (14/1/19) 12 c cen ents 52-week range 9.5–29 cents Secondary overhangs (22/6/18) 13c (C$2.59 million) Last raising (Sep/Oct’17) 33c (C$5.92 million) Issued shares 70.7 million Market et C Capitalization C$8.5 .5 m million Cash ( (Sep Sep’1 ’18 a accounts) C$1.5 .5 m million Enterprise Value C$7.0 million Options 3.6 million Weighted average price 42c / term 2 years (Sep
Sep’1 ’18 accounts accounts) )
Warrants 11.9 million Weighted average price 47c / term 0.7 year (Sep
Sep’1 ’18 accounts accounts) )
HNW / Family Office Board / T echnical T eam Retail Insitutional
LIM (Jun’18) 28% Board/Management 7% EBRD (Oct’17) 6% Instos / Family office (Aug’17) 14% Other Instos 16% HNW 14% Other retail 13%
(Management Est. – Jan 14th 2019)
Sophisticated & consolidated register T
KCC.TSXV 25 25
IBEX deal announced IBEX deal closes 2nd tranche raising closes Shareholder
0.2 0.3 0.4 0.5 1.5 1.0 0.5
Jan’18
Volume lume sinc ince Jan’16
Jan’17 Jan’16
0.6
28% 19.9m shares
Last 15 months – milestones:
New T T ea eam/T arget ets F Funded ed: C$5.9m raised
Stren engthen ened ed: 3 of 5 members turned over
ec echnical T T ea eam St Stren engthen ened ed: +Barry de Wet
Share R e Reg egister er St Stren engthen ened ed: + : + 3 institutions (new 29% cornerstone (LIM Advisors), EBRD & PE group)
counter ercyclical ex expansion o
es in Mongolia
moder ern s system ematic d district s scale ex e exploration commenced in the world class Southern Gobi belt
e Fox: L : Large s e scale t e target et + new ew h high g grade z e zones es
TS: c S: confirmed ed m multiple b e brownfiel eld T T1 t target ets
Corporate h e hea eadwinds o
er s shadow m miles estones es & i impacted ed St Stage 2 e 2 d drilling
New Team & Targets but need new funding providers Share overhang emerges 35% 18m shares
KCC.TSXV 26 26
F62 @ Bronze Fox: 800m @ 0.4% CuEq, incl 37m >1% Resolution of Bronze Fox dispute, again consolidates project IBEX merger, new T echnical T eam & initial T argets C$5.92m raised (2 new recognized institutions) à overhang shortly emerges ---- Large-scale exploration target for Bronze Fox Shareholder overhang crossed post board transitions, new cornerstone investor ---- 2 projects with multiple T1 scale drill targets, advancing pipeline Drilling planned for 1Q’19 3Q’1 ’12 4Q’1 ’15 4Q’1 ’16 3Q’1 ’17 2Q’1 ’18 1Q’1 ’18 4Q’1 ’18
C$m Mkt Cap $20m $40m $0m
T ec echnical Corporate T ec echnical Corporate e T ec echnical Corporate T ec echnical
Miles estone t e type
Exploration success
KCC.TSXV
27
eam with exceptional Tier 1 porphyry track record
high g grade t e target ets at western zone and strike of West Kasulu (Bronze Fox)
Succes ess: confirm high-grade zone & large scale independent exploration target – supporting potential first significant copper discovery globally since 2014
e confirmed ed “ “brownfiel eld” T Tier er 1 1 s scale t e target ets (East T sagaan Suvarga)
Succes ess: support concept for series of preserved high grade orebody(s) within T sagaan Suvarga mineralized system (per Hugo/Heruga orebodies within OT mineralized system)
ercyclical ex expansion o
es in Mongolia
Succes ess: path to control for “T arget testing”-”Advanced drilling” copper, gold &/or VMS project/district
Background: Kincora’s White Pearl camp
Southern Gobi, OT & TS road / powerline
27 27
KCC.TSXV 28 28
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. Cameron McRae Seasoned mining industry
LLC where he led the construction & start-up of the then US$6 billion Oyu T
southern Mongolia. Advisor to Kincora for majority of period since OT . UB based.
Independent Non Executive Director, T echnical Committee Chair Independent Chairman
Sam Spring Leads Kincora's activities since 2012,
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
echnical Committee)
Lewis Marks Former practicing & currently registered New York lawyer, who has lived in Asia for 37 years, including residence and business
the last 17 years. Extensive experience across the natural resource sector. UB based.
Independent Non-Executive Director
Ray Nadarajah Seasoned finance executive & investor with extensive experience in the natural resources and infrastructure sectors in Mongolia and globally. Ex-TPG Capital, Rio Tinto, Oyu T
Goldman, having worked in over 25 countries.
Independent Non-Executive Director Appointed Aug’18 Appointed Jul’18 Appointed May’18
Molor Erdenebat >10 years of base metal exploration and mining experience including roles with T rafigura, Erdene Res. and Solomon Res., in Mongolia &
experience in all different stages of exploration & with Kincora since 2014. Tsolmon Amgaa >20 years in mineral exploration with juniors, and more recently with the majors Vale and T eck as Senior Geologist. Working knowledge of the Mongolian copper belts and interpretation of their geological controls and models. Henry T ebar
Formerly President & Chief Geologist of T rafigura 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., BHP , & Billiton).
Head Geologist Project Generation Geologist Consultant Geologist
Plus Minerals LLC
Plus Minerals LLC 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 T
T echnical Committee Advisor
>50 years experience, actively contributing to discovery of deposits with Ivanhoe Group (Ivanhoe Australia & HPX) & BHPB (Chief Geophysicist). Knowledge of Sth Gobi belt from BHP (with Peter Leaman in Ivanhoe JV) , HPX and former IBEX board member. Barry de Wet
Geophysics Consultant
KCC.TSXV
2005 4 holes 1237 metres 2011 Ivanhoe Mines 2006-09 Temujin Mines 17 holes 1680m* Kincora Copper 2012 4 holes 3148m 2013-15 IVN JV BHP Kincora Copper Exclusivity with major Windfall Tax 106 Dispute Bronze Fox excluded
Retained by Ivanhoe
* Drilling by Temujin Mines impacted by having only 100 metres of RC rods
C$40-50m Mkt Cap Hole F62: 13m @ 1.4% CuEq within 390m @ 0.49% CuEq
Key milestones for Western license
* 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
ü Notable Mongolian copper porphyry systems
Mining Associates exploration target at West Kasulu
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.
Hole F62 (across the Tov fault at West Kasulu) – 37m grading 0.83% copper and 0.14g/t gold (1.01% CuEq) from 573m, within 391m @ 0.50% CuEq (0.41% copper and 0.08g/t gold) and 794m at 0.40% CuEq. The Copper Equivalent (CuEq) calculation represents an estimate for the total value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage based on spot prices (Cu $3.11/lb, Au $1279/oz and Mo $7.1/lb). Grades have not been adjusted for metallurgical or refining recoveries and the copper equivalent grades are of an exploration nature only and intended for summarizing grade. The copper equivalent calculation is intended as an indicative value only.
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 0.5547 0.02 Kharmagtai Exploration 129 0.36 0.36 Inferred 2 OT, Hugo Dummet Construction 1,835 0.7916 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 0.334 0.01 Kharmagtai Exploration 469 0.31 0.19 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
1 Reported Measured & Indicated Mineral Resources as report to respective code (J 2 Reported Inferred Mineral Resources as report to respective code (JORC or NI 43-1 3 Cut-off grade - CuEq per respective technical report (otherwise stated as Cu %) 4 Reported at 0.3% CuEq cut off 5 Reported total holes and metres drilled
Holes included Metres in 745 136 441,456 148,889 921 282 613 54,764 189,170 326,510 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 0.58 2018 0.30 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 0.42 2018 0.30 4 de (JORC or NI 43-101) I 43-101) es included 441,456 148,889 54,764 189,170 326,510
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
29 29
Canadian Office 800 - 1199 West Hasting St Vancouver, BC V6E 3T5 Canada +1 604 283 1722 Mongolian Office Khasvuu Building, Peace Avenue, T ransporter’s St, Ulaanbaatar 14210 +976 701 0095 Sam Spring President & CEO enquiries@kincoracopper.com
Background: Mongolyn Alt LLC’s (MAK) Serven Sukhait open pit development project – 10-15km’s from the drill targets at Kincora’s East TS project
US$377 million invested of US$1,089 million total capital, forecast to produce up to 316,000tpa Cu and 4,400tpa Mo.
.
www.kincoracopper.com @KincoraCopper Kincora Copper Limited