Kincora partners with AngloGold on NJNB project in Australia

Kincora Copper (TSXV: KCC; ASX: KCC) has secured a key partner in AngloGold Ashanti (NYSE: AU; JSE: ANG) for its Northern Junee-Narromine Belt (NJNB) copper-gold project in Australia.

Kincora says AngloGold has signed a deal to earn up to 80% of the Nyngan and Nevertire licences that form the NJNB project in return for total spending of A$50 million.

Following the announcement, shares of Kincora Copper shot up 57% to $0.055 apiece as of 3 p.m. EDT, for a market capitalization of $11.9 million.

AngloGold can earn an initial 70% interest by spending A$25 million on exploration over up to seven years, after which a joint venture would be formed. This includes a minimum spend of A$2 million within the first two years, during which Kincora will act as operator and be entitled to a 10% management fee.

In a second phase, AngloGold can earn an additional 10% interest by either completing a prefeasibility study or by funding another A$25 million worth of work over 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 active in 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 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.