TIER 1 DRILLING AND DISTRICT SCALE EXPLORATION
SOUTHERN GOBI DEVONIAN COPPER-GOLD BELT, MONGOLIA
March 2018 KCC.TSXV
KINCORA COPPER
Drilling at the brownfield East Tsagaan Suvarga Devonian porphyry target - 3Q’17
KINCORA TIER 1 DRILLING AND DISTRICT SCALE EXPLORATION COPPER - - PowerPoint PPT Presentation
KINCORA TIER 1 DRILLING AND DISTRICT SCALE EXPLORATION COPPER SOUTHERN GOBI DEVONIAN COPPER-GOLD BELT, MONGOLIA Drilling at the brownfield East March 2018 KCC.TSXV Tsagaan Suvarga Devonian porphyry target - 3Q17 Cautionary Statement on
SOUTHERN GOBI DEVONIAN COPPER-GOLD BELT, MONGOLIA
March 2018 KCC.TSXV
Drilling at the brownfield East Tsagaan Suvarga Devonian porphyry target - 3Q’17
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 March15th, 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
Commenced the first modern Tier1 drill testing and district scale reconnaissance exploration program in a world-class porphyry belt T echnical team with multiple Tier 1 copper discoveries & board with track record in Mongolia Large-scale copper-gold exploration target announced for West Kasulu prospect, Bronze Fox East T sagaan Suvarga drilling confirms brownfield Devonian porphyry target Strategic value from earlier stage exploration pipeline (100% of 1437 km2) and further countercyclical corporate and 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 and up to 20,000 metres of drilling
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 19 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)
KCC.TSXV
– 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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China’s doorstep; world’s largest consumer of copper and coal Sparsely populated, generally flat open desert, not at altitude Between >US$14b OT and >US$1b TS copper projects, & 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
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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T echnical Committee Board (ex-T
echnical Committee)
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 Duchintav Khojgor
Government Relations. A proactive Mongolian partner, >20 years' entrepreneurship experience, including many Mongolian mining/ exploration entities, and major shareholder since Kincora’s formation Eric Zurrin CEO of Shanta Gold. 15 years’ experience in mining and investment banking, previously with UBS Investment Bank in London. Canadian national and has worked and lived North America, London, Hong
Director, T echnical Committee Chair Non-Executive Chairman & Shareholder 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
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Proprietary knowledge, gained via: Senior T echnical/Project Generation T eam
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 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 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
T echnical Committee Advisor
T echnical Advisor
Origo-Trafigura –
President & Chief Geologist
Trafigura - member
BHP/Ivanhoe JV – BHP Exploration
Manager Mongolia
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
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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
Large-scale exploration target for West Kasulu prospect Potential 2018 work programs include: Refining high grade infill/extension drill targets resource definition activities
mining license conversion
Shivee Tolgoi mineralised trend
West Kasulu
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 5000m
“Advanced” drilling exploration target
East Tsagaan Suvarga
Ulgii Khud massif
Phase 1 drilling and geophysics supports geological model Potential 2018 work programs include: Two phase Induced Polarization (IP) Drilling
Red Well NE OT trend Bayan T al Argalant T
Hills Bronze Fox
⌃
Legend
Kincora Licenses Interpreted key structures Interpreted Devonian Belt Mineralized Cu-Au occurrence Mineral Resource & Ore Reserve
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Red Well Argalant, Ulgii Khud Massive Tourmaline Hill Bayan Tal Bronze Fox – West Kasulu1 East TS Bronze Fox – oxide studies 2
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 2 Micromine – 2012
See slide 18 for further details
Independent block models
KCC.TSXV Kharmagtai Intrusive Complex (KIC) West Kasulu
Mining Associates review of West Kasulu (Jan’18)
supports an large scale exploration target:
Previous internal studies supported potential small-
scale, oxide SXEW development project at West Kasulu (positive NPV at current spot copper prices)
14 NDAs & 1 period of exclusivity in prior cycle
Bronze Fox Intrusive Complex (BFIC)
Tourmaline Hills Intrusive Complex Mandakh Soum
2,437Mlb of copper and 0.84Moz gold, ranking as one of the largest potential in-situ copper-gold systems in Mongolia and with only modest drilling
nature and based on nearest neighbor and ordinary krige
mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource
fault – only 4 holes for 2,170m drilled by Kincora (including F62 with 37m @ >1%CuEq, within 1000m mineralized zone)
at its advanced Kharmagtai porphyry project, where Mining Associates provided a similar review with an exploration target 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 Post-Resource 1.8km 1km N/A 108,130m 203Mt >160,000m 25km2 66.5km2 Xanadu 76.5% XAM.AU / CN A$147m So Souther ern G Gobi C Carbonifer erous C Cu-Au s system ems St Sth G Gobi C Carbonifer erous C Cu-Au ex exploration p projec ects 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 A Associates es B Block M Model el/Exploration T T arget et: : Pl Plan v view ew o
>0.2 .2% C Cu en envel elope: G e: Green een - W
ester ern z zone, B e, Blue: E e: Easter ern z zone e target et * 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”
F85 F62 F57 12
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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 500 M Metres
Monzodiorite Monzogranodiorite At least min. 8m interval @ >0.5% CuEq or 1m >1g/t Au Other drill holes End of hole License boundary T
Only 2 active & unencumbered drilling seasons (one by Kincora) across the two license portfolio that hosts the West Kasulu prospect within the BFIC NW monzonite zone identified across regional NNE (“Tov”) fault, where 3 of 4 holes (F62, F57 & F85) drilled by Kincora (2012) intersected higher grade
mineralization (including best hole at the project: F62 with 37m @ >1%CuEq, within 1000m of mineralized zone)
Legend Mining Associates 2018 Exploration Target NW monzonite zone SW granodiorite zone Lithology interpretation Granodiorite Intrusion Post Mineralized Porphyry Mineralized Porphyry 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 Eastern license Western (previously disputed) license F62 F62 F85 F57 F57 F85 13
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Phase 1 confirmed brownfield target: 14 holes for 3452m subsequent infill ground
magnetics and maiden gravity surveys
Two phase Induced Polarization (IP)
survey planned for the Spring
Phase 2 target testing drilling program
scheduled for the Summer (budget 5,000m)
Correct geological and structural with
scope for a preserved porphyry setting
equivalent preserved high grade Hugo or Heruga orebody as at Oyu Tolgoi
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 14
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ETS ETS001 001 ETS ETS002 002 ETS ETS003 003 ETS ETS004 004 ETS ETS005 005 ETS ETS006 006 ETS ETS007 007 ETS ETS008 008 ETS ETS009 009 ETS ETS0010 0010 ETS ETS0011 0011 ETS ETS0012 0012 ETS ETS0013 0013 ETS ETS0014 0014 127m 127m 283m 283m 81m 81m 321m 321m 300m 300m 205m 205m 174m 174m 309m 309m 210m 210m 229m 229m 304m 304m 304m 304m 300m 300m 300m 300m
1000 1000 40 3900ppm-> 200 200 20 100 100 20 200 200 20 20 20 20 20 30 40 40 10 20 40 100 100 100 100 100 100 400 400 300 300 400 400 300 300 200 200 100 100 200 200
Lithology interpretation 2017 Drilling TSIC intersected (Hole #) TSIC not intersected Assay Traces Laboratory XRF Overburden T rachyte Sediments Andesite, basalt Sedimentary breccia Carboniferous sediments Devonian quartz monzonite Devonian monzodiorite
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0.40 0.60
Capital structure (KCC : TSXV)
Share price (Mar 15th, 2018) 16 cents Issued shares 69 million Market Capitalization C$11 million Cash (est YE Dec’17) C$3.25 million Debt nil Enterprise Value C$7.8 million 52-week range 14–57 cents
(Management Est. – Mar 15th 2018)
3Q’17 raisings lead by two new and large institutions post extensive due diligence and supported 12 month budget Consolidated shareholder register: >80% in top 20 shareholders Only 12.3m warrants
Kincora share price (C$/sh) since Jan’16
Origo Partners PLA 23% Duchintav Khojgor 7% Other board/management 7% EBRD 6% New Insto’s / Family offices 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
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gold belt (100% interest covering 1437 km2)
eam with exceptional Tier 1 porphyry track record and “skin in the game”
portfolio in the belt; systematically advancing pipeline of targets
drilling and exploration budget, including:
independent exploration target), and potential resource definition activities, oxide studies and mining license conversion at Bronze Fox
sagaan Suvarga porphyry target
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18 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.
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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. .