SLIDE 1
Discovery Drilling
Team, Location, Targets
September 2019- f Kincora, who is the Qualified Person for the purpose of NI 43-101.
Discovery Drilling Team, Location, Targets September 2019 The - - PowerPoint PPT Presentation
Discovery Drilling Team, Location, Targets September 2019 The - - PowerPoint PPT Presentation
Discovery Drilling Team, Location, Targets September 2019 The views expressed in this presentation are based on information derived from Kincora Copper Ltds (Kincora) own internal and publicly available sources that have not be
SLIDE 2 2
The views expressed in this presentation are based on information derived from Kincora Copper Ltd’s (“Kincora”) own internal and publicly available sources that have not be independently verified. This presentation contains certain forward-looking information and statements which may not be based on fact, including without limitation, statements regarding the Company’s expectations in respect of its future financial position, business strategy, future exploration and production, mineral resource potential, exploration drilling, permitting, access to capital and events or developments that the Company expects to take place in the future. All statements, other than statements of historical facts, are forward-looking information and statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will” and similar expressions identify forward-looking information and statements. In addition to the forward-looking information and statements noted above, this presentation includes those that relate to: the expected results of exploration activities; the estimation of mineral resources; the ability to identify new mineral resources and convert mineral resources into mineral reserves; ability to raise additional capital and complete future financings; capital expenditures and costs, including forecasted costs; the ability of the Company to comply with environmental, safety and other regulatory requirements; future prices of base metals; and the ability of the Company to obtain all necessary approvals and permits in connection with the development of its projects. Such forward-looking information and statements are based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such information and statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and statements. Such factors include, but are not limited to, fluctuations in the price of copper and other commodities, the inability of the Company to raise sufficient monies to carry out its business plan, changes in government legislation, taxation, controls, regulations and political or economic developments in Mongolia, the accuracy of the Company’s current estimates of mineral resources and mineral grades, the accuracy of the geology of the Company’s projects, risks associated with mining or development activities, including the ability to procure equipment and supplies, including, without limitation, drill rigs, and the speculative nature of exploration and development, including the risk of obtaining necessary licenses and permits. Many of these uncertainties and contingencies can affect the Company’s actual performance and could cause actual performance to differ materially from that expressed or implied in any forward-looking information and statements made by, or on behalf of, the Company. Readers are cautioned that forward-looking information and statements are not guarantees of future performance. There can be no assurance that such information and statements will prove to be accurate and actual results and future events could differ materially from those presented in such information and statements. Forward-looking information and statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information and statements. Such risks include, but are not limited to, the volatility of the price of copper, uncertainty of mineral resources, exploration potential, mineral grades and mineral recovery estimates, delays in exploration and development plans, insufficient capital to complete development and exploration plans, risks inherent with mineral acquisitions, delays in obtaining government approvals or permits, financing of additional capital requirements, commercial viability of mineral deposits, cost of exploration and development programs, risks associated with competition in the mining industry, risks associated with the ability to retain key executives and personnel, title disputes and other claims, changes in governmental and environmental regulation that results in increased costs, cost of environmental expenditures and potential environmental liabilities, accidents or labour disputes. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information and statements. The Company disclaims any intention or obligation to update or revise any forward-looking information and statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws. The scientific and technical information in this presentation was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and was reviewed, verified and compiled by Kincora’s staff under the supervision of Peter Leaman (M.Sc. Mineral Exploration, FAusIMM), Senior Vice-President of Exploration
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The most active listed junior seeking to make the next Tier 1 discovery in Mongolia.”
Investment opportunity
§ Drilling: Multiple phase, multiple project, extensive drilling program in
2019/2020 targeting new porphyry discovery(s)
§ Pipeline: First modern systematic district scale exploration in the highly
mineralized but vastly underexplored Southern Gobi copper belt
§ Project Generation: Foremost foreign group pursuing new opportunities in
Mongolia
§ Team: Exceptional track record of Tier 1 discoveries, know Mongolia and
have “skin in the game” equity ownership
§ Strong Backing: Sophisticated and consolidated shareholder register § Funded: $6.25m offering in June 2019 supports up to 12-month budget
“
SLIDE 4 4
Institutions 57% Retail 17% HNW + Family Office 19% Board Management 7%
Corporate summary KCC - TSXV
Capital Structure Shareholder Summary
135m
Issued shares
$10.1m1
Market Cap
$6.25m2
Cash
$3.9m
Enterprise value
LIM Advisors 27% New Prospect Capital 12% Notes:- 1. Share price $0.075 (COB 20/9/19)
- 2. Cash balance: funds received from Jun 22nd, 2019 raising
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Kincora’s story
1st modern systematic district scale exploration in the Southern Gobi copper belt Target testing drilling2011
Kincora formed § Eastern Bronze Fox license2012
Bronze Fox consolidated § Hole F62: > 37m @ >1% CuEq within 800m @ 0.4% CuEq § Offer for Kincora, period- f exclusivity & 14 NDAs
2013–16
106-license dispute resolved § Western Bronze Fox licence revoked/then returned2016
IBEX merger § Kincora consolidates dominant and district scale position in Southern Gobi copper belt New technical team/targets2017
Funding for new technical team § Phase 1 of two-phase exploration program completed2018
Governance issues/overhang resolved § 3 of 5 board turned over § 2 overhangs crossed: new 28% shareholder § Large exploration target for Bronze Fox2019
Funded/unimpeded exploration + drilling § $6.25m § Up to 12 month / 18,000 metre budget SLIDE 6 6
Internationally
§ Multiple Tier 1 Discoveries, includes: – Cadia Au/Cu (Newcrest, Australia) 1 – Reko Diq Cu/Au (for BHP, Pakistan) 2
Mongolia§ Ex BHP South Gobi (Falcon) Ivanhoe JV team – Exploration Manager (Mongolia) 2 – Chief Geophysicist (Global) § Chief geophysicist: BHP/Ivanhoe/HPX – Consultant geophysicist KCC: Barry de Wet § Executive from Oyu Tolgoi's Exploration Team 3 § Mongolia Project Generation head Trafigura § Senior geologist Teck & Vale 4
1 John Holliday Director, Technical Committee Chair 2 Peter Leaman Senior VP of Exploration, Technical Committee 3 Imants Kavalieris Advisor, Technical Committee 4 Tsolmon Amgaa Project Generation GeologistTeam
Exceptional exploration record
+ “Skin in the game”, 7% of register 3 4 1 2 SLIDE 7 7
§ Chairman2: ex President & CEO Oyu Tolgoi/chair of Exploration Committee § CEO3: 7 years leading Kincora § Head of Business Development for Oyu Tolgoi – Independent Director KCC: Ray Nadarajah § Trader for Marc Rich & Co/Glencore International – Trading copper and other commodities in Mongolia/Asia region – LIM Advisors’ nominee director KCC: Lewis Marks § Recent former director of Steppe Gold – Current construction project in Mongolia
Board
1 Molor Erdenebat Head Geologist 2 Cameron McRae Independent Chairman 3 Sam Spring President/CEO, Technical Committee, DirectorKnow Mongolia
More than 40 years experienceFull development cycle
More than 150 years specific sector experience 1 2 3 SLIDE 8 8
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T Tsag sagaan aan S Suvar arga a Oyu Oyu T Tolg
- lgoi
- i
- nze
- Ga
- Oyu
- n Ov
- ot
Mongolia
Notable copper and gold occurrences Copper & gold resource or exploration targets Major copper & gold mines/development projects Kincora properties Copper porphyry showings Copper scarn or massive sulfide deposits/showings Island arc Back arc basin Devonian belt Southern Gobi copper belt regionRich in natural resources with
- nly 30% of the country explored
One of the last under-explored frontiers
SLIDE 9 9
Within trucking distances to the worlds largest commodity consumer Sparsely populated, generally flat open desert, not at altitude, rapidly emerging infrastructure, skilled labor force & favorable operating costs Between >US$14b OT & >US$1b TS copper projects, plus major coal basin (incl. Erdenes Tavan Tolgoi (ETT))
“White Pearl” Camp Oyu T
- lgoi
Location
Large resource endowments on the new Silk Road One of the world’s fastest developing mining and infrastructure regions
SLIDE 10 10
Bronze Fox project
§ West West Kasulu
(incl. Exploration target: 1.3-1.5Mt CuEq metal 1 on slide 20)§ West Extension
East Tsagaan Suvarga project
§ 3x Tier 1 scale brownfield targets
Dominant district scale position in Mongolia’s leading porphyry belt 5 independent and large scale drill targets within 2 mineralized projects
Location
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Multiple systematic value drivers
Mine Feasibility Pre-Feasibility Title Concept Bronze Fox: Western trend Tourmaline Hills Advanced Drilling Target Testing Max uplift in shareholder value East TS “brownfield” porphyry: 3 targets Bronze Fox: West West Kasulu – infill/on strike from Exploration Target 1 Reconnaissance Resource Delineation Project Generation: ground truthing prospective districts/targets application for new strategic landholding Red Well West Kasulu,: The potential quantity and grade ranges are conceptual. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource SLIDE 12 12
2019/20 work programs
June 2019
Oversubscribed raising § C$6.25m private placement § Two anchor investorsAutumn 2019
East Tsagaan Suvarga – Phase 1 drilling commenced § Hıgh priority holes at 3 large scale and independent targetsWinter-Spring
East Tsagaan Suvarga – Phase 2 drilling § Follow up from Phase 1 § Total budget for 6,200 metresJuly-September 2019
Bronze Fox – Phase 1 drilling completed § 4,264 metres drilled § 6 holes, 2 at each target § Results to hand & announced for only 2,876 metresWinter-Spring 2020
Bronze Fox – Phase 2 drilling § Up to 3,800 metre budget left § Potentially seek to test western strike at West West KasuluSpring 2020
- Potential Bronze Fox and/
- r Tsagaan Suvarga
- Potential Bronze Fox
Pipeline: First modern systematic district scale exploration Project Generation: Foremost foreign group pursuing new opportunities in Mongolia
Budget: Up to $1m for 4,000 metres drilling SLIDE 13 13
East Tsagaan Suvarga
§ First target testing drilling for a preserved and high-grade porphyry within the Tsagaan Suvarga Intrusive Complex Three Tier 1 scale brownfield targets Shadows of >$1b mine (no regional exploration) Right location, geology and geophysics for discovery TSIC intersected (Kincora drilling) TSIC not intersected Inferred TSIC pluton boundary Conceptual intrusive body(s) Kincora East TS licenses MAK Serven Sukhait pits (reserves) JICA targets (mineralized outcrop) Cenozoic cover Creataceous cover Triassic volcanics Pennsylvanian volcanics Turnaisian sediments Devonian pluton Lithology interpretationSuccess:
Support concept for series of preserved high-grade orebody(s) and analogue to “Hugo” and “Heruga” at Oyu TolgoiDrilling for the “Hugo” of the Tsagaan Suvarga intrusive complex
SLIDE 14 14 Two large mineralized targets Phase 2 drilling up to ~3,800m in 2019/20 Exploration target: 1.3- 1.5Mt CuEq metal1
Bronze Fox
1 West Kasulu,: The potential quantity and grade ranges are conceptual. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Chargeability Bronze Fox Intrusive Complex (“BFIC”) plan view over Induced Polarisation (“IP”) chargeability 2019 phase 1 drilling: § West West Kasulu target: Holes F103, F107 & F108 § West Extension target: Holes F104, F105 & F106 See September 10th, 2019 “Exploration update” press release for further details § Limited drilling supports one of largest copper systems in Mongolia § Previous 37m @ >1% CuEq (2 on slide 20)Success:
Confirm high-grade in multiple zones and expand existing exploration target (seek maiden resource and mining license)Testing a new geological model: high grade system / targets advanced
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Project Generation
“
§ 3 corporate transactions in Mongolia – including securing/consolidating Bronze Fox and the dominant position in the
Southern Gobi belt via the IBEX merger§ 2 new licenses issued directly from the State § Walked >200 projects/targets in the last 18 months as part of due diligence § Recent application for new strategic exploration license prospective for gold rich
copper porphyries– large size, favorable location, previous limited drilling (including a >1% copper hit)
inadequately followed upLeveraging team and systematic exploration approach
Foremost foreign group pursuing counter-cyclical expansion opportunities in Mongolia.”
“
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Why Kincora?
§ Strategy and technical merits validated by oversubscribed capital raising § Team with exceptional Tier 1 discovery track record § Strong & aligned shareholder register, board & management § First modern systematic exploration across a district scale portfolio now advanced to first
“Target testing” (drilling for discovery) programs§ Value catalysts: 5 independent drill targets at 2 mineralized & large scale projects – Each target success: offering likely 10x+ re-rating – first significant new copper discovery(s) globally since 2014 – Drilling 2 high grade targets at western zone and strike of West Kasulu (Bronze Fox) – Success: confirm high-grade zones & rapidly expand existing large scale
independent exploration target (seek maiden resource & mining license)– Drilling 3 confirmed “brownfield” Tier 1 scale targets (East Tsagaan Suvarga) – Success: support concept for series of preserved high grade orebody(s) per Hugo/
Heruga orebodies within Oyu Tolgoi mineralized system– Foremost foreign group pursuing countercyclical expansion opportunities in Mongolia – Success: leveraging our exploration approach via attractive new projects
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Appendix - Bios: Board and Technical team
Technical Committee Over 30 years exploration with BHP Minerals and Newcrest Mining Principal discoverer/site manager for Cadia/Marsden Tier 1 gold-copper porphyry, with worldwide experience in goldcopper deposit exploration, discovery and evaluation. Sam Spring President & CEO, Director Joined Sept 2012 Leads Kincora's activities since 2012, incl. active exploration, resolution of 106-license/IBEX transaction disputes, together with an active M&A strategy. Former mining analyst, >10 years within Goldman Sachs and Ocean Equities, CA and CFA Charterholder. Over 40 years exploration with BHPB, incl. Country manager Mongolia, 2006-09 responsible for the Ivanhoe JV, and PanAust Ltd, Multiple discoveries incl. Tier 1 Reko Diq Cu/Au porphyry with focus on copper-gold deposits. John Holliday Independent Non- Executive Director, Technical Committee Chair Appointed Nov 2016 Peter Leaman Senior Vice-President of Exploration Appointed Nov 2016 Senior Technical/Project Generation Team Over 20 years in mineral exploration with juniors, and more recently with the majors Vale and Teck as Senior- Geologist. Unique knowledge of the
- Res. and Solomon Res., in Mongolia
- years. Extensive experience across
- Kavalieris. Extensive experience in
- f the largest Cu deposits in SE Asia.
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Appendix - Copper and Coal’s importance to the Mongolian economy
The Mongolian economy is heavily dependent on existing large and long life projects – two copper projects & one coal basin – two at critical stages of large expansion plans Erdenet Mining Corp (‘Erdenet’) (51% Government of Mongolia (‘GoM’)/49% Private) Copper-Molybdenum Metallurgical/Thermal Coal Copper-Gold-Silver- Molybdenum 1978 Erdene Tavan Tolgoi (‘ETT’) (100% GoM/ proposed part IPO) Proposed rapid expansion post IPO, including construction of rail 2011 Oyu Tolgoi LLC (‘OT’) (34% GoM/ 66% TRQ – controlled and operated by Rio Tinto) Ongoing construction of underground expected to result in >2.5x in volume 2013 Source: ”Introduction to Mongolia presentation”, Kincora Copper August 2019 - https://www.kincoracopper.com/investors/mongolia 1 2 3 4 5 6 7 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Non-mining Other Mining Erdenet OT Coal Erdenet Copper has been a key contributor the Mongolian economy since the 1980s. Step change in export volumes from Oyu Tolgoi open pit production (stage 2 exports from the underground to be >2.5x in volume). Scope for MAK’s Tsagaan Suvarga project to enter (copper) production? Marginal nature of coal sector evident by volatility of export volumes and price. Mid 2020’s? Step change in export volumes from ETT & ramp up of Aspire operations? Mongolia Exports (US$ billion) 29% Coal 51% Copper 4% Gold 15% Other State Budget Contribution 2011–2018 29% Coa 51% Coppe 4% G 15% Othe Non- mining mining First production SLIDE 19 19
Appendix - Exploration success case study in Mongolia
Value creation curve: The Discovery and Development of the Oyu Tolgoi deposit(s) Lower risk Higher risk Production and future Startup (Open pit) Development Feasibility Discovery Pre-discovery Concept INV/TRQ (CAD) $25 $20 $15 $10 $5 $0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Timeline Better and better drill results prove out the copper-gold deposit, driving up the share price and speculation At this point, speculative retail investors- exit. Institutional investors come on board
- r even decades to lay the
SLIDE 20 20
Appendix - Bronze Fox, Large-scale Cu-Au target
Defined Resources and Reserves Notable Mongolian copper porphyry systems * Refer to the following press releases for further details: 25/1/18 Large copper-gold porphyry target quantified at Bronze Fox; &, 21/11/17 Kincora appoints consultant for review of Bronze Fox- 1. Exploration target range (per the Mining Associates review) – The potential quantity and grade is conceptual in nature, and based on nearest
- 2. Copper Equivalent (CuEq) calculation represents an estimate of the total value for each metal, multiplied by the conversion factor, summed and
- 1. Reported measured and indicated Mineral Resources as report to respective code (JORC or NI 43-101)
- 2. Reported Inferred Mineral Resources as report to respective code (JORC or NI 43-101)
- 3. Cut-off grade – CuEq per respective technical report (otherwise) stated as Cu %)
- 4. Reported at 0.3% CuEq cut off
- 5. Reported total holes and metres drilled
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KCC.TSX .TSXV
Sam Spring
President & CEO enquiries@kincoracopper.com Ulaanbaatar +976 701 0095 Vancouver +1 604 283 1722Follow
www.kincoracopper.com @KincoraCopper Kincora Copper Limited
Contact
www.kincoracopper.com/investors/mongoliaIntroduction to Mongolia presentation