Kincora Copper Launches First Systematic Drilling at Meritilga Gold Discovery

Kincora Drills Into History: First Systematic Program in Over a Decade Targets High-Grade Gold at Condobolin

The Kincora Copper Condobolin drilling program at the Meritilga gold discovery marks a pivotal moment for the ASX and TSXV-listed company (KCC). Kincora Copper has commenced drilling at its 100%-owned Condobolin epithermal gold, silver, and base metals project in the Cobar Basin of Central West NSW. The capital-efficient program of up to eight diamond core holes marks the first systematic drilling campaign at the historic Condobolin Mineral Field in more than ten years, targeting down-dip and on-strike extensions at the high-grade Meritilga discovery alongside new coincident geochemical and geophysical targets.

Furthermore, the announcement comes as AngloGold Ashanti continues funding active drilling at Kincora's Nevertire South porphyry project, highlighting a dual-track strategy that maintains lean capital exposure while advancing multiple high-quality targets simultaneously.

Why Condobolin Has Returned to the Exploration Radar

The Condobolin Mineral Field carries a mining history extending back to the late 1800s, when up to 25 informal open pit operations operated across the district. Shallow mining was eventually constrained by the water table, whilst exploration efforts faced similar limitations from the weathering profile that obscured mineralisation below approximately 30 metres depth.

Modern drilling techniques capable of penetrating well beyond the weathered zone have, however, transformed this historical constraint into a contemporary opportunity. Approximately 20% of the wider project features outcropping or sub-cropping geology, with average cover depth in non-outcropping areas remaining below five metres. This geological setting supports effective and cost-efficient surface sampling and geological mapping for target generation.

Kincora has consolidated 100% ownership of the project, completed a ~150 km² airborne electromagnetic (AEM) geophysical survey in Q4 2025, and secured all necessary land access agreements and permits for a first-phase program of up to eight drill holes. Permitting is underway for a broader program targeting up to 15 holes at depths reaching 350 metres.

The Meritilga Discovery: High-Grade Results Demanding Follow-Up

The current program builds upon the Meritilga prospect, a blind shallow gold discovery made in 2012 by Clancy Exploration (now RareX Limited). Initial work identified a coincident 2 km x 2 km arsenic-lead-zinc-gold geochemical anomaly overlying key northeast-striking structures identified through 3D induced polarisation (IP) surveys.

Previous exploration results across the project demonstrate compelling grades:

The Meritilga lode represents a consistent mineralised body that remains open both up and down dip. Consequently, the current program specifically targets this open geometry for the first time at meaningful depth.

"We are very excited to be drilling at two highly prospective projects, including the first systematic drilling program in over a decade at our wholly owned Condobolin project. Cobar style deposits are often vertically extensive with repeating mineral systems. Our commenced program will, for the first time, properly test that potential at Meritilga and advance our geological concept of a deeper intrusion(s) driving zoned hydrothermal systems across multiple historical mines and targets — offering both attractive grade and scale opportunity."

— John Holliday, Technical Committee Chair, and Peter Leaman, VP of Exploration, Kincora Copper

Understanding Epithermal Systems: Why Depth Matters for Investors

What Defines an Epithermal Gold-Silver Deposit?

Epithermal deposits form at or near the Earth's surface, typically within 1–2 km depth, from hot mineralised fluids rising from deeper magmatic or hydrothermal sources. These systems concentrate high gold and silver grades in veins, breccias, and fault zones, making them economically attractive even at modest scales.

Does the Cobar Basin Offer a Structural Advantage?

Cobar Basin deposits exhibit an important characteristic: they tend to be vertically extensive with mineralisation repeating at depth in stacked lenses or zones. This vertical continuity means high-grade intercepts identified near surface could represent the uppermost expression of much larger systems.

Prior drilling at Meritilga has only tested shallow levels, with the Kincora Copper Condobolin drilling program at Meritilga marking the first systematic attempt to understand deeper extensions.

What Are the Investment Implications?

If the Meritilga system demonstrates behaviour consistent with comparable Cobar Basin deposits, depth extensions could materially increase the scale of mineralisation. This geological understanding potentially transforms what appears as a near-surface discovery into a system with significantly greater resource potential.

Key technical terms:

• Epithermal: Ore deposits formed from hydrothermal fluids at relatively low temperatures and shallow depths
• Induced Polarisation (IP): Geophysical technique detecting sulphide mineralisation underground based on electrical chargeability of rocks
• AEM (Airborne Electromagnetic Survey): Geophysical survey method using airborne instruments to detect conductive bodies beneath the surface
• Pathfinder elements: Chemical elements (arsenic, antimony, bismuth) occurring alongside gold that help identify mineralised systems
• Breccia: Rock formed from angular fragments cemented together, often associated with hydrothermal fluid pathways

A Geological Model With Scale Ambition

Kincora's approach at Condobolin extends beyond simple follow-up drilling through a broader geological thesis. The company's working model proposes that a deeper intrusive body drives a zoned hydrothermal system expressed across multiple historical mines and prospects at or near surface.

Supporting evidence includes:

• Pathfinder element zonation displaying classic patterns: an inner arsenic-antimony-bismuth-tungsten core, transitioning outward to gold-barium-thallium zones, and extending to lead-zinc-silver-selenium at the outer rim
• Coincident geophysical anomalies from AEM and IP surveys aligning with known mineralisation
• Structural controls where the main Meritilga Fault is cross-cut by north-south trending faults, creating favourable traps for mineralising fluids

The current program tests this model by drilling to depths of up to 350 metres, representing the first systematic sub-weathered zone investigation in the field's history. If proven correct, this model opens pathways not only to depth extensions at Meritilga, but to understanding the full system scale across the wider project area.

Cobar Basin Context: M&A Activity Validates the District

The Cobar Basin maintains over 150 years of high-grade mining history and has recently witnessed notable corporate activity demonstrating the strategic value of district assets.

Recent discoveries across the broader district — including Federation, Achilles (Australian Gold & Copper), Mallee Bull, Southern Nights, and Wagga Tank — demonstrate that modern exploration techniques continue identifying new mineralisation in established mining regions.

In addition, Condobolin sits approximately 40 km south of Kingston Resources' Mineral Hill mill, a proximity that management notes as strategically relevant given established processing infrastructure and potential synergies driving basin consolidation.

Dual-Engine Strategy: Managing Capital Allocation Across the Portfolio

Kincora operates a hybrid project generator strategy, maintaining high ownership in select targets whilst attracting partners to fund exploration at others. This structure, furthermore, optimises capital allocation across the portfolio.

Current active programs:

• Condobolin (100% owned): Kincora sole-funding capital-efficient diamond drilling of up to eight holes
• Nevertire South (Northern Junee-Narromine Belt): AngloGold Ashanti funding drilling, with Kincora receiving management fees

Broader portfolio metrics:

• Over $100 million in potential partner funding unlocked across multiple projects
• More than 18,000 metres of partner-funded drilling
• Over A$9 million in partner-funded exploration since late 2024
• Management fees and exploration activities continuing to expand

This framework enables Kincora to advance the Kincora Copper Condobolin drilling program at Meritilga without diluting interests in partner-funded projects, preserving upside across the portfolio whilst maintaining lean, focused programs.

Upcoming Milestones and Development Timeline

The program structure generates results progressively. Phase 1 outcomes will inform follow-up programs at Meritilga whilst simultaneously advancing geological understanding of the broader Condobolin system.

Investment Considerations for Kincora's Current Position

Several factors converge to create the current investment positioning:

1. Proven high-grade discovery in hand. The Meritilga intercepts, including 4m @ 20 g/t gold and 1m @ 62 g/t gold, represent genuinely high-grade results in a system that remains open and untested at depth.

2. First systematic exploration in over a decade. A meaningful information gap exists at Condobolin that this program begins addressing. The geological upside has not received proper evaluation until now.

3. Credible geological model indicating scale potential. The deeper intrusive thesis, supported by element zonation and geophysics, offers potential expansion beyond near-surface veins into a district-scale system.

4. Capital efficiency with full ownership. An eight-hole diamond drilling program in a well-understood geological setting at a 100%-owned project represents disciplined exploration capital deployment.

5. Active M&A provides valuation context. The A$1.6 billion Harmony-MAC transaction and other recent deals demonstrate that quality Cobar Basin projects attract serious corporate interest.

6. Simultaneous dual drilling campaigns. The combination of sole-funded Condobolin drilling and partner-funded Nevertire South activity generates news flow and exploration progress across two fronts from a single capital base.

"Kincora Copper has positioned itself at an early but potentially high-value inflection point at Condobolin. This historic gold field, never properly drilled at depth, carries genuinely high-grade surface results and a geological model pointing to meaningful scale. With drilling now underway, results from this program represent the most significant test of the Condobolin thesis to date. In a Cobar Basin that continues attracting major corporate attention, investors should monitor closely what emerges from these holes."

Ready to Go Deeper With Kincora Copper?

With drilling now underway at Meritilga and AngloGold Ashanti actively funding exploration at Nevertire South, Kincora Copper (ASX: KCC) is advancing on two fronts simultaneously — all while maintaining 100% ownership of the Condobolin project. High-grade results, a compelling geological model, and a capital-efficient dual-program strategy make this an investment story worth following closely. Visit kincoracopper.com to learn more about the company, its projects, and how to get involved before the drill results start flowing.