Kincora Copper has secured a key partner in AngloGold Ashanti for its Northern Junee-Narromine Belt (NJNB) copper-gold project in Australia.
In a press release Tuesday, Kincora said the companies have executed a definitive agreement under which AngloGold may earn up to 80% of the Nyngan and Nevertire licences that form the NJNB project in two phases.
Following the announcement, shares of Kincora Copper shot up 57% to C$0.055 apiece as of 3 p.m. EDT, for a market capitalization of C$11.9 million ($8.7m).
In the initial phase, AngloGold may earn a 70% interest by incurring A$25 million in total expenditure on exploration for up to seven years, upon which a joint venture would be formed. This includes a minimum expenditure of A$2 million within the first two years, during which Kincora will operate and conduct all exploration activities and be entitled to a 10% management fee.
In the second phase, AngloGold can then earn an additional 10% interest by either completing a pre-feasibility study (PFS) or by funding a further A$25 million of expenditure over an additional three years, which would bring its total spending to A$50 million.
Under the agreement, the Kincora team will drill test a wide range of large intrusive-related copper-gold targets. According to the company, the property hosts two of the very few remaining, almost untested, volcano-intrusive complexes of the Macquarie Arc, a renowned porphyry district in Australia.
Kincora was the early entrant securing a district-scale position in the interpreted shallow to moderate covered core sections of the NJNB by pegging the Nyngan and Nevertire licences. Also pegging the area are Fortescue Metals Group (ASX: FMG) and Inflection Resources (CSE: AUCU).
For AngloGold, it has now secured earn-in and JV agreements with both Kincora and Inflection covering approximately 8,000 sq. km. across the NJNB.
Over the last 12 months, the miner has spent over A$6 million in exploration of the Inflection agreement area, with further drilling planned shortly at the Duck Creek and Moonagee prospects, which separately abut Kincora’s Nyngan licence.
“AngloGold, a successful greenfield explorer, is already investing in the belt with drilling programs on neighbouring projects and clearly shares our view of the NJNB having the potential to yield a new district of Tier-1 gold-rich copper porphyry system discoveries,” John Holliday, technical committee chair, and Peter Leaman, VP of exploration, stated.
The copper-gold potential of the NJNB and northern extension of the Molong belt is beginning to be recognized as they compare extremely favourably to other global porphyry hot spots for exploration and development, it said.
