- Exploration alliance agreement with Earth AI for the Cundumbul
porphyry project
- Success based alliance seeks to leverage Earth AI's vertically
integrated, proprietary artificial intelligence and machine
learning capacity to generate and drill test targets
- Up to $4.5m to be spent by Earth
AI over 2 years:
-
- Initial reconnaissance field trip planned over the summer to
assist refine drill targets
- Up to 3% royalty earnt by Earth AI only upon new drilling
discovery (qualify intersection)
- Cundumbul is located in the world-class Molong belt of the
Macquarie Arc, 30km south of Boda (>10Moz AuEq discovery) and
70km north of Cadia (>90Moz AuEq endowment), with previous
surface exploration and limited drilling confirming porphyry
potential
MELBOURNE, Australia, Oct. 6, 2022
/CNW/ - Kincora Copper Limited (TSXV: KCC) (ASX: KCC)
(Kincora or the Company) is pleased to announce the
execution of an Exploration Alliance Agreement (Exploration
Alliance) with Earth AI Pty Ltd (Earth AI) covering the Cundumbul
project.
Sam Spring, President & CEO,
commented:
"The Exploration Alliance with Earth AI seeks
to accelerate target generation and drill testing at the Cundumbul
project. The project is strategically located in Australia's foremost porphyry region.
Previous surface exploration and limited
drilling has confirmed fertile intrusive porphyry systems in both
the north and south of the project, located over 10km
apart.
Earth AI has applied its proprietary cloud
based AI and machine learning technology resulting in priority
targets identified for field checking. Boots on the ground
reconnaissance is expected over the summer to assist advance and
refine the drill targeting process.
The agreement with Earth AI is consistent
with Kincora's exploration strategy to systematically advance,
apply industry leading geoscience and drill test our strategically
located and district scale project portfolio in the Lachlan Fold
Belt."
Key terms of the Exploration
Alliance
The Exploration Alliance allows for a co-funding model and joint
technical committee, whereby Earth AI will have day-to-day
management and control of exploration activities, and contribute up
to A$4.5m of total exploration
expenditure across the project over a two-year period with an
option to extend for a further year.
Subject to a minimum of 1500 metres of diamond drilling and a
Qualifying Drilling Intersection resulting in a new discovery (as
defined within the Exploration Alliance Agreement), Earth AI is
entitled to a net smelter return royalty (Royalty) of up to 3% in
connection with a to be agreed upon area surrounding the discovery
(Area of Interest, size dependent on the extent of the newly
discovered mineral system).
Kincora is under no obligation to explore, develop or mine the
Cundumbul project during the period of the Exploration Alliance.
However, upon Earth AI successfully drilling a Qualifying Drilling
Intersection and having carried out a minimum of 1,500 metres of
diamond drilling, whereafter the second anniversary of the Royalty
Trigger Date if no mineral resource has been defined and the annual
exploration expenditure in the Area of Interest falls below
US$250,000, Earth AI will have the
option to assume operational control and buy all of the Royalty
Tenements that overlap with the Area of Interest under the Royalty
Deed, for a cash purchase price equal to US$1,000,000 plus a 2% net smelter.
The Agreement will not affect the capital structure of the
Company or current ownership in the project, with Kincora and RareX
Limited (REE:ASX) retaining the existing 65% and 35% respective
interests in the Cundumbul project/license. Rights of first refusal
customary for such an ownership and Exploration Alliance structure
are in place.
About Earth AI
Earth AI is a San Francisco
(USA) headquartered Artificial
Intelligence (AI) company that has a vertically integrated metals
exploration approach to targeting, testing and verifying
discoveries that are required for the electric vehicle and
renewable energy revolutions.
Earth AI has an in-house geological team, proprietary cloud
computing and integrated geological AI review and machine learning
process supported by boots on the ground field assessment approach.
Refer to Figure 2 for an overview of its disciplined and staged
approach for metals exploration.
Earth AI seeks to efficiently reduce the lead-time and cost to
discovery, with drilling utilising its Mobile Low Disturbance (MLD)
diamond rig and associated equipment. Earth AI's NSW field
based operations are located in Young.
Stage 0
AI
Targeting
Cloud computing and
geology review
Criteria: High probability AI target in a fertile geological
setting
|
Stage 1
Field
Testing
Geological field
trip to test predicted sites
Criteria: Geochemistry
anomaly, ore-related mineralogy
|
Stage 2
Geological
assessment
Geological
mapping
Criteria: 1-2
hypotheses for orebody location & genesis
|
Stage 3
Locating the
orebody
Diamond drilling
Criteria: Ore grade
>0.5% CuEq & indicative alteration, intersection thickness
>30m
Reasonable potential
for >500Mt @ <500m depth
|
About the Cundumbul
project
The Cundumbul project is located in the central Molong volcanic
belt of the Macquarie Arc in Central West NSW. The project is
approximately 30km south of Alkane's Boda-Kaiser porphyry project
(maiden Boda resource >10Moz AuEq and maiden Kaiser resource
scheduled 1Q'2023), 25km north of Copper Hill (>3Moz AuEq
resource) and 70km north of Cadia (>90Moz AuEq endowment).
Exploration efforts at the Cundumbul project were last lead by
Mitsubishi Materials Corporation during an earn-in period
(concluded 2015). Previous exploration has included mapping, soil
sampling, rock chip sampling, induced polarisation (IP), gravity
and magnetic geophysical surveying, with more limited follow up
auger, RC and diamond drilling.
Mineralised monzonitic intrusions have been identified at both
the Bells and Andrews prospects, in the north and south
respectively of the Cundumbul project, located over 10km apart.
More recent exploration by Sultan Resources at multiple common
prospect mineral systems adjacent to the projects license boundary
have returned extensive hydrothermal alteration, anomalous copper
and gold, and further confirmed porphyry potential.
Cundumbul Project background
The Cundumbul Project includes one single license covering
34.6km2 and was secured by Kincora in the March 2020 agreement with RareX Limited ("REE" on
the ASX). Kincora is the operator, holds a 65% interest in the
Trundle Project and is the sole funder until a positive scoping
study is delivered at which time a fund or dilute joint venture
will be formed.
Further details on the Cundumbul project is available from the
Independent Technical Report included in the Company's ASX initial
public offering prospectus, with additional information on
Kincora's portfolio in NSW and exploration strategy also available
on the Company's website: https://kincoracopper.com
This announcement has been authorised for release by the Board
of Kincora Copper Limited (ARBN 645 457 763)
Forward-Looking Statements
Certain information regarding Kincora contained herein may
constitute forward-looking statements within the meaning of
applicable securities laws. Forward-looking statements may include
estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact.
Although Kincora believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to have been correct. Kincora
cautions that actual performance will be affected by a number of
factors, most of which are beyond its control, and that future
events and results may vary substantially from what Kincora
currently foresees. Factors that could cause actual results to
differ materially from those in forward-looking statements include
market prices, exploitation and exploration results, continued
availability of capital and financing and general economic, market
or business conditions. The forward-looking statements are
expressly qualified in their entirety by this cautionary statement.
The information contained herein is stated as of the current date
and is subject to change after that date. Kincora does not assume
the obligation to revise or update these forward-looking
statements, except as may be required under applicable securities
laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) or the Australian Securities Exchange accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Kincora Copper Limited