Categories: Mining Stocks
Topics: Copper Stocks

Kincora Copper (TSX-V: KCC)(OTCQB: BZDLF) CEO Sam Spring on Major Drilling Catalysts at Nevertire South and Boree Creek, Australia

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of the very busy Kincora Copper (TSX-V: KCC)(OTCQB: BZDLF) — Mr. Sam Spring. Sam, great to have you on. It was great catching up in New Orleans in person.

Busy conference, busy booth, a lot of potential new shareholders. And I thought, given the fact that gold is soft a bit and copper has pulled back just a little bit in the near term, but given the fact that I’m extremely bullish on both those metals going into 2027, I thought it’d be a good time to have a conversation about what 2026 has meant for Kincora. And then, of course, I’d love to chat with you about what comes next.

Sam Spring: Yes, and the conference was really productive, Gerardo. It was great to catch up face-to-face with you and so many other shareholders there. Obviously, the markets aren’t great at the moment, but it was really pleasing to hear that there were a number of investors that I’d met at Rick Rule’s conference who had come on, increased their positions, or were new to the register since, and even some that were buying stock that week.

So really productive and worthwhile, and great to be able to get out there and explain where we’re at with what we’ve achieved so far this year and really what’s ahead of us next year because our quarterly, which is just coming out this week, sort of indicates, along with a drilling update with AngloGold Ashanti just out, things are ramping up in terms of a step change of exploration activity and new ground and really making this hybrid prospect-generator model more scalable.

Gerardo Del Real: You’re doing something at the same time that typically isn’t done by a junior resource company. You are increasing the exploration activity, you’re expanding the portfolio, and then at the same time you’re actually adding to your cash position. That usually doesn’t happen in that order, right? Can you explain how you’ve worked this hybrid prospect-generator model to your advantage to be able to pull that off going into the end of the year here?

Sam Spring: Yes, and it’s a scenario I’m not used to, Gerardo. And we’re very mindful that having an increasing treasury is a very fortunate position, and we’ve really got to be disciplined with where that capital goes. 

As Jeff Phillips and Rick Rule mentioned to us earlier in the year, when we got the divestment of our Mongolian projects executed, which is generating US$10 million in cash flow, with another US$3.5 million expected before year-end… the goal is to use that capital to make this business model more scalable… and we’re certainly looking to do that.

Just in the last quarter, we’ve got an option agreement. We’ve picked up more ground ourselves that sees us up to 10 projects, all of which have got clear value catalysts and work programs for how we look to add value. But we’ve also increased our land position by almost 50%. And that really, with the right ground and the right targets, does make this a really exciting business model. Because with the exploration game, it’s all about shots on goal. It’s all about putting as many meters into the ground as possible. And we’re drilling with AngloGold Ashanti and getting some pretty good results.

And we’ve just seen them accelerate their expenditure for this year, testing a new target called Cookara. But we’re also gearing up for — by the end of the year, we’ll have gone from field activities at one project to three. And then in the next six months, we’ll drill six different projects. So it really is getting on the front foot to making the portfolio bigger with as many good targets as possible, but really putting the drill bit to work.

And one of the key elements is how many more deals can we do to recycle capital into our core operations, do similar deals like the Mongolian deal to unlock value, and get further partners into this portfolio as well.

Gerardo Del Real: You just increased the budget for the drilling at Cookara. Can you explain the target, and can you explain what you’re hoping to see there?

Sam Spring: Yes, and I guess we increased it because our partner did. AngloGold Ashanti’s earning in. They’re the ones paying the bills. We’re the operator, and we receive a management fee for that. But we’re really encouraged by the results that we’re getting at our Nevertire South license. And AngloGold received the usual data, did a review themselves, looked at some of their proprietary vectoring and sort of pathfinder analysis, and saw some really interesting targets that they wanted to drill this year before the end of the calendar year.

And that’ll see about A$6 million being spent by them in calendar year 2026 with those earn-ins. And with Cookara, there’s three holes that we’re looking to drill at that target right now. And one of those will be the deepest hole that we’ve drilled to date at the project, really seeing if we can vector into the core of, I guess, one of these traditional Macquarie Arc intrusion systems or a porphyry target.

Gerardo Del Real: Talk about your success with those systems because I think there’s a lot of capital on the sidelines that’s waiting for tax-loss selling season to kind of get near the end of it. And going into the new year, I think, again, the metals are going to strengthen. And I think there’s going to be a lot of capital that comes into the space. Can you speak to some of your team’s technical success and discovery success in the past? This is not a new type of system for you or your team.

Sam Spring: No, it’s not. And John Holliday and Peter Leaman are our senior exploration technical directors. John’s probably one of the foremost experts in this part of the world, having originated and led the discovery phases at Cadia, which is 90 million ounces gold equivalent, and until recently, Australia’s largest gold mine with negative operating costs because of the copper credits. And a lot of these projects in the portfolio are projects that John’s looked at before.

The Boree Creek project that we just picked up in the last month and have an option agreement over is a really attractive target. It’s amazing that in this part of the world you can find outcropping minerals and intrusions right in the heart of where you want to be that just haven’t had exploration for the last 20 years. 

But that’s the competitive advantage our technical team has through its local presence, established network, and relationships, with Kincora having operated here since 2020. 

Gerardo Del Real: Lots to look forward to in 2027. What should we expect?

Sam Spring: More drilling results, I guess, Gerardo. That’s the key for any junior. But for where we’re at with this business model, it’s also looking at further asset-level partnerships. We’ve got to be very focused on getting the right partners in for some of these big projects. But with drilling at six different projects in the next six months, there should be plenty of news flow to keep an eye out for.

Gerardo Del Real: A lot to look forward to. You’re cashed up, drills are turning, you’ve got multiple projects, you’ve got an expanded portfolio. Should be a really fun 2027. 2027 comes quick. Sam, thank you so much for that update.

Sam Spring: My pleasure, Gerardo. The foundations are there, and there’s really a step change in the business model taking place. So a great opportunity to provide an update. Thank you.

Gerardo Del Real: Appreciate it. Thank you for your time, as always.

Sam Spring: Cheers.

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