Trundle Drilling Intersects Mineralization

MELBOURNE - Kincora Copper Limited reported on the new phase of drilling at the brownfield Trundle project, located in the Macquarie Arc of the Lachlan Fold Belt (LFB) in NSW, Australia. The drilling is testing 5 shallow large-scale porphyry and porphyry-related skarn targets across the 3.2km strike of the mineralized magnetic complex at the southern portion of the Trundle license.

John Holliday, Technical Committee Chair, and Peter Leaman, VP of Exploration, reported, "Kincora's first three drill holes from the current drill program at Trundle have been very encouraging, with all having intersected zones of potential ore grade mineralization at relatively shallow depths.

The Botfield massive, mineralized magnetite skarn intersection has indicated that the 0.75-1km long Botfield magnetic high anomaly is likely caused by a large magnetite skarn body.  This is interpreted to be part of a very large porphyry-related copper-gold system. The magnetic anomaly had not been tested effectively by historic drilling. The Botfield prospect will be followed up by a priority hole into the core of the magnetic anomaly 250m further to the east.

We believe the Botfield skarn is the uplifted, nearer surface part of the extensive and well mineralized skarn system at our previously discovered Southern Extension Zone. Botfield hole TRDD037 intersected massive magnetite skarn from only 330 meters vertical depth compared to 710 meters vertical depth in TRDD032 located 430 meters to the west.

Additionally, intersecting porphyry style mineralization at shallow depths with good grades at the Dunn's North and South prospects, located 640 meters apart, provides significant encouragement in a new area of exploration. Our understanding of these new prospects has been greatly improved with gold and porphyry A veins logged at Dunn's North and gold, copper and notably high molybdenum grades at Dunn's South. A review of these prospects, and adjacent open prospects, is ongoing."

Kincora's new phase of drilling at the Trundle project commenced in January 1, and is testing 5 adjacent systems and separate large-scale porphyry targets across an existing 3.2km mineralized strike. Assay results have been returned for Kincora's first holes at the Dunn's North and Dunn's South prospects, located 640m meters apart. These assays have confirmed significant zones of potentially ore grade porphyry mineralization at shallow depths. Petrology and fertility analysis is pending with a review commenced of these prospects, and adjacent open prospects, for follow up exploration.

While assay results are pending for the first hole drilled at the Botfield prospect, notable zones of visible mineralization have been prioritized. These include a zone of coarse chalcopyrite-bornite-pyrite epithermal veins, as well as massive and banded magnetite pyrite-chalcopyrite skarn horizons. A step out hole from previous shallow intrusive mineralization at the North-East Gold Zone is in progress, with a priority follow up hole at the Botfield prospect then planned.

Kincora's first hole at the Botfield prospect, TRDD037, sought to test for the first time a large magnetic high complex coincident with shallow anomalous copper-gold and an IP chargeability high anomaly. The concept Kincora sought to test was of a large untested skarn and/or porphyry complex, potentially associated with the emerging Southern Extension Zone (SEZ) discovery. This discovery was made by Kincora in the past 18 months to the west, and the southern extension of the multiple phase intrusive complexes intersected by Kincora and previous explorer drilling.

Hole TRDD037 supports the current working interpretation that the Botfield prospect is located in an uplifted block, in the order of almost 500m, to the immediately adjacent SEZ prospect across an interpreted significant N-S fault zone. The relatively shallow chalcopyrite-bornite-pyrite epithermal veins are new to the project, and support vectors to a more proximal and prospective level in porphyry system.

Hole TRDD037 intersected over 30 meters of massive magnetite skarn from only 330 meters vertical depth compared to an interpreted equivalent horizon of 34 meters from 710 meters vertical depth in TRDD032, located 430 meters to the west, with similar stratigraphic horizons above and below these zones.

The geophysical inversions and targets for TRDD037 correlate well with visual logging and current interpretations of the returned diamond core, benefiting from the relatively shallow depths and width of the massive magnetic zone and associated sulphides. The Botfield prospect has been prioritized for follow up. Planned hole TRDD039 will step out a further 250 meters to the east testing the up-dip coincident magnetic and induced polarization (IP) chargeability anomaly cores, and at potentially open-pitable depths.

Assay results from completed hole TRDD037, and planned TRDD039, will assist in determining the next phases of drilling at the Botfield and SEZ prospects.