Categories: Mining Stocks
Topics: Copper Stocks

Kincora Copper (TSX-V: KCC)(OTC: BZDLF) CEO Sam Spring on Robust Treasury and Drilling Aggressively into a Copper Gold Bull Market

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of Kincora Copper (TSX-V: KCC)(OTC: BZDLF), Mr. Sam Spring. Sam, how the heck are you this afternoon, sir?

Sam Spring: Very good, Gerardo. Always good to link up.

Gerardo Del Real: Well, morning Down Under for you. You are up and at it early. Listen, you've had a couple of news releases recently that I think bode well for catalyst here in an environment where gold is at $5,200, copper is near the $6 level, silver is near the $90 level. You announced a $4 million financing, a strategic financing. This comes on the back of a financing earlier in the year, where you saw lead orders from the likes of Rick Rule and Jeff Phillips. Not only did you have lead orders from them, they decided they wanted to lock up their shares for a bit. And now you consolidated and commenced geophysics, and you formed a partnership at your Cowal East project. A lot going on. Let's talk about the financing first and the thinking behind it.

Sam Spring: Yeah. And as you pick up there, Gerardo, there's a lot going on, but it's the market to be hitting the portfolio of eight projects as hard as we can. And we had a call with Rick and Jeff earlier in the year before the Vancouver shows about what we're doing across the portfolio, how the market's rewarding exploration success, our cost of capital's changed, and looking at how can we extract more value out of the portfolio that we've got.

There's eight projects within it. There's a couple of work programs ongoing, but there's other projects which this fundraising now should be able to support and accelerate. And as you pick up, we did a financing on the venture exchange that had a 12-month hold last year. This financing was an ASX-led financing, so letting the dual listings both participate.

And it supported some good Australian and international institutions coming onto the register as well. So really a strong platform in terms of topping up the treasury, over seven and a half million dollars in the bank now. And very consistent with this hybrid prospect project generator model and really trying to hit that portfolio of eight projects harder.

Gerardo Del Real: Well, listen, you're clearly hitting the ground running. You had the news here recently with the geophysics and the partnership. Can you speak to that? I mean, I get excited about this part of the portfolio for the simple fact that it was last held by Gold Fields and there was no fieldwork done for over a decade. And in this price environment, these are the types of projects where if you're able to grab that tiger by the tail with the geophysics and with some of the groundwork, this is where the discoveries happen. And that's my favorite way to add value to my personal portfolio and to subscribers' portfolio. Can you speak to that?

Sam Spring: Yeah. And again, this is what having some treasury in the bank account supports is that we were opportunistically able to peg the ground that became available adjacent to our Jemalang project. We increased the scale of that portfolio by 40%. We now refer to it as Cowal East because it's literally the other side of Lake Cowal to Evolution Mining's flagship Cowal mine, which in the December quarter was generating over $3 million of free cash flow a day. And it's a world-class mineral province.

You've got over 20 million ounces gold there, over five million tonnes within this complex, which is pretty much consolidated just by the majors and Kincora. So we've been able to get very prospective ground. And as you picked up, do a pretty innovative partnership here with Atomionics, which is a new-generation ground gravity explorer. And we've got a traditional gravity survey that's just commenced.

And Atomionics at their cost with their technology will come in and do a survey over that. And this Cowal East project, as you pick up, was previously the focus of Gold Fields that was earning in and ultimately owned this project last commodity cycle. And it's a very prospective location. It's got a confirmed gold intrusion system on it, but it just hasn't had the work. And as you say, these are the sort of sleeper projects that really have the potential to generate big discoveries.

Gerardo Del Real: You mentioned the portfolio, a lot of irons in the fire. What do the next several quarters look like?

Sam Spring: Yeah. And I'm just up in the field with the technical team gearing up for that. We're still drilling with AngloGold Ashanti up at our Nevertire South project and seeing some really encouraging results. We earlier in the year announced some strong results. So that program's doing extremely well and should continue to have news flow coming through for a significant portion of this year. We're just also gearing up for drilling to commence at our Condobolin project next month. Condobolin sits in the southern end of the Cobar basin.

It's a really interesting discovery that was made last commodity cycle that hasn't been followed up and potentially within trucking distance to an existing mill that's seeking third-party oil. As you picked up, Cowal East, we've just commenced that traditional ground gravity survey. Atomionics is our partner for following that up. And I guess with that financing that we just closed in the last few weeks, there's a few other projects that will start getting capital allocated to them, and there should be further news flow on those.

And some of those are really our flagship assets that we retain 100% on. And we're not looking to deviate from the hybrid prospect generator model. What we're looking to do is really add some value to those projects in a very focused, capital-efficient way as we continue to have conversations with major potential partners, asset-level partners for those.

Gerardo Del Real: Sounds like you got the cash and it sounds like it's drill, baby, drill the rest of the year.

Sam Spring: It is. And it's sort of trying to extract value across that portfolio of eight projects and both with the drill bit, but also further deal flow. So I think there'll be plenty of news and value catalysts out there and having that treasury there just means that we're able to accelerate the business model and be more on the front foot as we're speaking to a number of these potential partners for new asset-level deals.

Gerardo Del Real: Excited for what the next several quarters hold. Thank you so much, Sam.

Sam Spring: Pleasure. Thank you, Gerardo, for the opportunity.

Gerardo Del Real: Chat again soon. Cheers.

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