- Current capacity of 100 tons per day
- In proximity to high concentration of small scale miners for mill feed
- 42 acres of land providing ample room for plant expansion
- Located in a highly concentrated, high-grade small scale mining district
INCA ONE GOLD CORP.'s wholly owned Peruvian subsidiary, CHALA ONE S.A, purchased a mineral processing facility (the "Chala Plant") located in Chala, Peru in 2013.
As of February 1, 2015 Chala One SAC commenced commercial production after successfully upgrading the Chala Plant processing capacity to 100 tonnes per day. The Chala Plant now constitutes a full service milling facility, with weighing, sampling and metallurgical test facilities on site, along with crushing, grinding and carbon-leaching circuits, and full material handling and tailings disposal facilities. The Company is able to receive and fully process gold-bearing material from legal small-scale miners, and produce loaded carbon for smelting and recovery of gold and silver off-site.
Inca One Gold Corp. has entered into multi-delivery letter of agreement (LOA) with several legal small-scale miners. The Company's target is to have 50 percent of its mill feed under LOAs, with the remaining 50 percent of its mill feed coming from spot purchases in the market.
As part of the terms of the original purchase agreement for the Chala Plant, Inca One has an agreement between its wholly owned subsidiary, Chala One SAC, and the seller and initial permit applicant, to operate under the umbrella of formalization until the successful completion of all the environmental and operating permits. Inca One is in the process of applying for additional commercial permits to incrementally increase capacity up to 350 tons per day.
The Chala Plant purchase was a strategic acquisition that will further the expansion of the Company's Peruvian operations. Acquiring the mineral processing facility has saved the Company significant capital, time and resources by reducing the construction and permitting process associated with building a new mineral processing plant.
The recent legislation requiring small millers to apply for commercial permits is beginning to create high demand for formalized milling operations similar to the Chala One Plant. The Chala district is a highly concentrated, high-grade small scale mining district and we believe that it is imperative to secure a strong foothold in the region to ensure our business continues to expand as intended.