Transcription of The Stock Network Interview with Kincora Copper (ASX:KCC TSXV:KCC) CEO, Sam Spring
Lel Smits: Kincora Copper is an emerging Australia-focused copper gold explorer now successfully proving up the prospectivity of its extensive project portfolio. These assets are located in Australia’s Macquarie Arc and Mongolia’s Southern Gobi, two of the globe’s leading porphyry belts. Joining me from Kincora Copper is its President and Chief Executive Officer, Sam Spring. Sam, welcome back to the Stock Network.
Sam Spring: Thanks, Lel, great to be here.
Lel Smits: Now, Kincora and earning partner AngloGold Ashanti have now expanded the drilling program at the company’s Ningen Porphyry project for a second time. What motivated your decision to extend this drilling campaign? And can you also outline what does it entail?
Sam Spring: That’s right, Lel. So off the back of good results late last year, we expanded the scale of the program. What was six holes is now on hole 16.
And the good results are providing proof of showing that we’re in Macquarie Arc rocks. We’re seeing the right indicators supportive of porphyry and epithermal environment. We’ve done a ground gravity survey in January, February. Those results are positive. It’s generated more targets. So we’re in there following those targets up as we speak right now.
So good results have expanded the program twice already at Ningen.
Lel Smits: Great to hear. Now, Kincora and earning partner AngloGold Ashanti will also soon transition drilling from the Ningen projects to the Nevattai projects, which are described as the most advanced and geologically prospective porphyry project in the covered extensions of the Macquarie Arc. Can you outline the significance of this development?
Sam Spring: Yeah, that’s another positive. Well, last month, we did a second earning deal with AngloGold Ashanti. This program, once we finish at Ningen, we’ll go down to Nevattai, including this new project, Nevattai South, that we’ve just done this deal for, which we’re really excited about.
And so is AngloGold by expanding the agreement. We think, as you say, it’s the best covered extension target in the Macquarie Arc. Newcrest previously drilled, got some very good intervals.
There were over 20 holes followed up, chasing out southern extension. The northern extension wasn’t chased because the license wasn’t consolidated. And a number of groups have done good exploration activities that support that northern part of the magmatic complex is where you want to be.
And that’s where we’re going with this drilling program. Should be late July, August that we move the rig down there.
Lel Smits: Well, that’s certainly a lot of positives and onto another one, you’re receiving management fees for operating these exploration programs. Can you outline how many fees you’ve actually received to date and also how this figure is expected to grow moving forward?
Sam Spring: Yeah. And obviously as an explorer, you generally don’t have income. So how you fund your exploration can be a challenge. The nice thing about this earn-in model that we’ve got, which we’re looking to apply on a couple of other negotiations we’re having at the moment, is that we’re the operator, there’s a 10% management fee. So the partners funding that exploration, we’ve got a discretionary income that pays for our corporate costs.
So it’s really pleasing to see those management fees ramping up as our drilling programs continue. What we’ve stated is we want to get to a near-term objection of 10 million a year of partner funded drilling that gives us a circa 10% management fee that from a cash operating perspective means our corporate costs are covered. So we feel that we’re on track with that. Great development.
Lel Smits: And finally, I believe a recent shareholder overhang has been removed. Can you provide an update here on a share trading activity?
Sam Spring: Yeah, that’s right. Well, we’ve had a formal largest shareholder of the company that has been using a number of positive news flow events recently as liquidity events. That shareholders now exited the register only a couple of weeks ago, which is really positive because that means positive news flow should be well received in the market. And it’s interesting that we’ve seen a flow of shares from the ASX to our drill listing in Canada to reflect that we’re trading at a premium in Canada. So I guess we’re now in a positive situation with drills turning and a share price environment where good news should be rewarded.
Lel Smits: Fantastic. Well, great to get an update on your exploration ramp up also generating that steady increase in fees and look forward to following more developments.
Sam Spring: Fantastic. Thank you, Lel.