Kincora Copper Ltd (ASX: KCC) Partners with AngloGold Ashanti plc for NJNB Project

Kincora Copper Limited (ASX: KCC) has announced a significant milestone by entering into a definitive Earn-in and Joint Venture Agreement with AngloGold Ashanti plc for the Northern Junee-Narromine Belt (NJNB) Project. This collaboration involves the Nyngan and Nevertire licenses, situated in the renowned Macquarie Arc.

Back of today’s ASX announcement the share surged 50% to reach $ 0.054 at 1:14 PM AEST, 28th May 24. 

Key Highlights of the Agreement

1. Phased Investment and Earn-in Structure

• Phase I: AngloGold has committed to spending A$25 million on exploration to earn a 70% interest in the project. This includes a minimum expenditure of A$2 million within the first two years, during which Kincora will act as the operator for a 10% management fee.
• Phase II: AngloGold can earn an additional 10% interest, bringing their total stake to 80%, by either completing a Pre-Feasibility Study (PFS) or funding another A$25 million in exploration over an additional three years.

1. Strategic Exploration Targets

• The NJNB project focuses on testing large, virgin intrusive-related copper-gold targets. This area represents a significant extension of the Macquarie Arc, a globally recognized geological formation known for its copper-gold porphyry systems.

1. Potential and Regional Significance

• Kincora's Nyngan and Nevertire licenses are strategically located within the NJNB, an underexplored region with potential for major discoveries comparable to world-class deposits like Cadia. The project's significance is underscored by its location in a district with favorable geological conditions for large-scale mineral systems.

Strategic Insights from Kincora's Leadership

John Holliday, Technical Committee Chair, and Peter Leaman, VP of Exploration, highlighted the transformative potential of this partnership. They emphasized the benefits of AngloGold's technical expertise and financial muscle, which are crucial for realizing the full potential of Kincora’s extensive landholdings in the NJNB.

"We are excited to partner with AngloGold, whose support provides the capital, technical, and belt-scale capacity required to aggressively drill test and begin realizing the potential of Kincora’s district-scale land position in the almost unexplored NJNB extension of the Macquarie Arc. This is virgin exploration territory with huge upside offering Cadia-scale discovery potential," said Holliday and Leaman.

Source: KCC ASX Announcement

Broader Implications and Regional Context

AngloGold Ashanti's involvement in the NJNB extends beyond Kincora's licenses. The company has secured similar agreements with Inflection Resources, covering approximately 8,000 square kilometers in the region. AngloGold has already invested over A$6 million in exploring these areas, with ongoing drilling plans at the Duck Creek and Moonagee prospects, which are adjacent to Kincora’s Nyngan license.

NJNB Project Overview

The Northern Junee-Narromine Belt represents a new frontier in copper-gold exploration. Kincora was an early mover in securing this district-scale portfolio, targeting the most prospective and shallow covered parts of the Macquarie Arc's northward extension. This region is geologically similar to the Lachlan Transverse Zone, known for hosting significant porphyry systems like Cadia and Northparkes.

Despite its potential, the NJNB has seen limited drilling compared to the more explored southern sections of the Macquarie Arc. The mature regions of the Arc host over 160 million ounces of gold equivalent inventory and several world-class mines, highlighting the untapped potential of the NJNB.

About AngloGold Ashanti

AngloGold Ashanti plc (NYSE: AU; JSE: ANG, market capitalization ~US$10 billion) is a global gold mining company with a diverse portfolio of operations, projects, and exploration activities across nine countries on four continents. The company is known for its successful greenfield exploration programs aimed at discovering large, high-value mineral resources.

About Kincora Copper Ltd

Kincora Copper is focused on world-class copper-gold discoveries, with significant landholdings in Australia and Mongolia's leading porphyry belts. The company's strategy involves active exploration and project generation in these prolific regions.

Conclusion:

The definitive Earn-in and Joint Venture Agreement between Kincora Copper Ltd (ASX: KCC) and AngloGold Ashanti plc represents a landmark opportunity for investors. This partnership not only brings substantial financial backing and technical expertise to the Northern Junee-Narromine Belt (NJNB) Project but also significantly de-risks Kincora's exploration activities.

This agreement signals a strong vote of confidence from a leading global gold mining company in the untapped potential of Kincora's assets. The structured, phased investment by AngloGold—totaling up to A$50 million—ensures a robust and systematic approach to uncovering the copper-gold potential of the NJNB.

The NJNB's location within the Macquarie Arc, renowned for its world-class porphyry systems, adds a compelling layer of strategic value. The early mover advantage of Kincora in this underexplored district, combined with the proven exploration success of AngloGold, sets the stage for potentially transformative discoveries.

The initial exploration phase led by Kincora will provide early insights and momentum, while the long-term commitment from AngloGold offers a clear pathway to unlocking significant value. 

With Kincora's strategic vision and AngloGold's formidable support, the NJNB Project stands poised to become a major player in Australia's mining landscape. This collaboration not only enhances Kincora's growth prospects but also reaffirms the company's commitment to delivering value to its shareholders through disciplined and impactful exploration efforts.