REG - Origo Partners PLC - Investment in Mongolian copper-gold prospect

September 13 (Bloomberg)--

Origo Partners Plc ("Origo") today announced the acquisition of a 25% stake in Kincora Ltd, owner of the Bronze Fox copper-gold prospect ("Bronze Fox") in Mongolia for US$3 million.
 
Bronze Fox contains a number of exploration prospects, within a license covering 22,323 hectares in the Buyant area of Mandakh Soum of Dornogobi Aimag, situated in the south of Mongolia.  The prospect lies in the Mongolian copper belt and is 140 kilometres northwest of the Oyu-Tolgoi copper-gold mine.  Within the Bronze Fox licence area there is evidence of copper mineralisation at the surface of a 1 kilometre long, 600 metre wide monzonite intrusion, continuing to a depth of at least 400 metres.  Gold mineralisation associated with copper is evident in a 12 metre wide band, suggesting the possibility of selectively mining a gold-rich zone.
 
Under the terms of the transaction, Origo has acquired 25% of Kincora for a total cash consideration of US$3 million.  Kincora, which is a BVI registered copper and gold exploration company, owns a 100% interest in the Bronze Fox prospect through a wholly-owned Mongolian subsidiary.  Origo has also been granted an exclusive option, exercisable prior to June 30, 2011, to increase its shareholding to 75% for an additional consideration of US$12 million.
 
Between 1975 and 1979 Soviet exploration teams trenched and drilled 23 diamond holes totalling 3,453 metres within the licence area.  In 2005, Ivanhoe Mines also took rock chip samples, trenched, measured induced polarisation by gradient array and drilled twenty-four shallow diamond holes totalling 6,769 metres.  This combined exploration work has identified the carapace of a large copper-gold mineralised system and revealed high potential for additional prospective intrusion-related gold and molybdenum targets.  Kincora's drilling campaign, scheduled to begin in mid-September, will target several of these known copper-gold and gold zones.
 
Kincora will be operated by a three person exploration committee comprising two Origo representatives: Origo's Chief Geologist Dr Alan Watchman and Origo's Head of Mining Luke Leslie.  As Chairman of the committee, Dr. Watchman, will oversee the exploration programme, under which  5 Origo geologists will be seconded to the Bronze Fox project.  Alan Watchman has 38 years experience managing copper-gold and other exploration programs having previously led projects at Breakway Resources, Goldstake Exploration, Abra Mining, Aldershot Resources and Integrated Production Resources.