AngloGold Ashanti to earn-in to the NJNB Project
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Kincora Copper (AngloGold) (NYSE: AU; JSE: ANG) for the Northern Junee-Narromine Belt (NJNB) Project, comprising the Nyngan and Nevertire licenses.AngloGold Ashanti plc - AngloGold has the right to spend up to
A$50 million to earn a 80% interest through:A$25 million of exploration expenditure to earn a 70% joint venture interest (Phase I) including a minimumA$2 million expenditure obligation, with Kincora the initial operator for a 10% management fee.- Completion of a Pre-Feasibility Study (PFS) or funding of a further
$25 million of expenditure to earn a 80% joint venture interest (Phase II).
- Under the agreement a wide range of virgin, large intrusive-related copper-gold targets will be drill tested.
- The undercover extension along the NJNB of the renowned Macquarie Arc porphyry copper-gold geology is a globally significant exploration opportunity. Regional geophysics strongly indicates that Kincora's Nyngan and Nevertire licenses host two of the very few remaining, almost untested, volcano-intrusive complexes of the Macquarie Arc. Kincora was the early entrant securing a district scale position in the interpreted shallow to moderate covered core sections of the NJNB by pegging Nyngan and Nevertire.
- AngloGold has now secured Earn-in and Joint Venture Agreements with both Kincora and Inflection Resources (AUCU.CSE) (Inflection) covering ~8,000km2 across the NJNB. AngloGold has spent over
A$6 million in exploration of the Inflection agreement area in the last 12 months, with further drilling planned shortly at Inflection'sDuck Creek and Moonagee prospects which separately abut Kincora's Nyngan license (1).
"We are excited to partner with bold explorer AngloGold whose support provides the capital, technical and belt scale capacity required to aggressively drill test and begin realising the potential of Kincora's district scale land position in the almost unexplored, under cover NJNB extension of the Macquarie Arc.
This is virgin exploration territory and a major opportunity with huge upside offering Cadia-scale discovery potential.
AngloGold, a successful greenfield explorer, is already investing in the belt with drilling programmes 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.
We look forward to commencing on the ground exploration and testing a pipeline of large-scale targets across both the Nyngan and Nevertire licenses."
Figure 1 (See PDF): The Macquarie Arc is a proven Tier 1 terrane and
The Northern Junee-Narromine Belt (NJNB) is an untested district of the Macquarie Arc situated under the post-mineral cover
The key terms of the Agreement with
- AngloGold may earn a 70% initial interest by incurring
A$25 million in total expenditure on exploration in the initial earn-in period of up to seven years upon which a joint venture would be formed (Phase I). This includes a minimum expenditure ofA$2 million within the first two years (Minimum Obligation). AngloGold is permitted to withdraw from the Agreement after satisfying the Minimum Obligation or payment of any shortfall. - AngloGold can then earn an additional 10% interest (for a total interest of 80%) by completing a Pre-Feasibility Study (PFS) or by funding a further
$25m of expenditure over an additional three years (Phase II). - During the Minimum Obligation period, Kincora will operate and conduct all exploration activities as directed by an Exploration Management Committee that will comprise two members from each party, and be entitled to a 10% management fee.
- The Agreement is otherwise on terms that are customary for similar agreements and includes the agreed principal terms of the proposed joint venture agreement which will apply if AngloGold earns an interest in the NJNB tenements.
- All expenditure timelines under the Agreement can be accelerated.
Kincora was the early mover into the Northern Junee-Narromine Belt (NJNB), securing a district scale portfolio of the interpreted most prospective and shallow to moderate covered part of the northwards extension of the Macquarie Arc under post mineral cover.
This district is situated within a structural jog and favourably comparable to the
The NJNB is virgin exploration territory and offers new district-scale discovery potential with spatial and temporal settings, coupled with regional magnetics and gravity, supportive of large-scale intrusive complexes and targets analogous to porphyry deposits located in the southern and more mature sections of the Macquarie Arc (see Figure 2).
It is well documented that the composite volcanic and intrusive complexes elsewhere in the belt have large alteration and geochemical halos that are identifiable from public access regional geophysical surveys, with the mineralised deposits generally situated on intrusive level cross-arc structures (see Figure 2).
Despite regional magnetics effectively mapping the Macquarie Arc volcanic belts due to the post mineral cover there has been very limited prior drilling of the northern extensions of both the Junee-Narromine and Molong belts relative to the southern more outcropping sections. These more mature southern exploration regions hosts over 160Moz gold equivalent inventory and a number of world-class mines (Cadia, Cowal and Northparkes).
Figure 2 (See PDF): The relatively mature southern portion of the Macquarie Arc hosts a metal endowment of over 160Moz gold equivalent with the northern undercover extension being virgin territory despite potentially hosting the largest volcano-intrusive complex
Regional magnetics effectively maps the Macquarie Arc volcanic belts with the large-scale porphyry complexes that host the world-class mines in the Arc identifiable from public access regional geophysical surveys with the mineralised deposits generally situated on intrusive level cross-arc structures
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 (see Figure 3).
The NJNB is now largely pegged by Kincora, Fortescue Metals Group (FMG.ASX) and Inflection Resources (AUCU.CSE). More recently Kincora has also led pegging activities in the northern extension of the Molong belt having secured the Wongarbon project (subsequent pegging activities by Talisman Mining (TLM.ASX) and then Inflection).
Following a new technical discovery of an inferred altered Macquarie Arc volcanic and intrusive system at the
In
Figure 3 (See PDF): The northern extension of the Macquarie Arc outscores many rival emerging global porphyry districts
The Macquarie Arc is
AngloGold has a track record of successful exploration with its greenfields and brownfields exploration programmes seeking to support sustainability and growth of its business. AngloGold's greenfield exploration strategy aims to discover large, high-value Mineral Resources that will eventually lead to the development of new gold mines.
For more information please visit AngloGold's website at www.anglogoldashanti.com
For more information please visit Kincora's website at www.kincoracopper.com
This announcement has been authorised for release by the Board of
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