Kincora was granted the exploration licence in February last year, following the eastern section of Mongolia only being opened up in the second half of 2015 following a five-year moratorium on issuing new exploration licences.
The southern edge of Red Well is as close as 15km along the trend of the Oyu Tolgoi and Shivee Tolgoi mineralized systems.
At the eastern margin, a historic rock chip sample returned 2% copper, 0.25 grams per tonne (g/t) gold, 1.5 g/t silver, 0.25% arsenic and zinc, 0.08% lead, and 0.002% molybdenum and bismuth, with further copper and other anomalies identified to the immediate west.
"The immediate and general regional setting of Red Well is considered to be highly prospective," said Sam Spring, president and chief executive of Kincora.
"Recent drilling activities by Rio Tinto based on geophysical targets on the licence immediately adjacent to the south along the general north-northeast arc transverse trend from Oyu Tolgoi also provides encouragement.
"Ongoing ground magnetic and gravity surveys are expected to advance our interpretation of Red Well and refine target generation for follow-up exploration."
Spring said the group's recent placing with the European Bank for Reconstruction and Development (EBRD) had further strengthened Kincora's balance sheet supporting an acceleration of exploration activities.
"First phase drilling and initial follow-up geophysics has already be completed at Devonian target No. 1, East Tsagaan Suvarga, and drilling is ongoing at our second target, Bayan Tal."
Kincora shares are up 9.38% to C$0.35 in Toronto.