Inca One obtains DIA approval for Las Huaquillas High-Grade Gold Project
June 13, 2013
- Successfully obtained DIA approval from Ministry of Energy and Mines of Peru
- Previous results include 78m of 2.71 g/t and 14.0m of 8.41 g/t Au
- Historic resource of 6.57 million tonnes grading 2.09 g/t Au(1)
- Significant infrastructure being funded by Peruvian Government
Vancouver, B.C., June 13, 2013 – INCA ONE RESOURCES CORP. (TSX-V: IO) – (“the Company” or “Inca One”) is pleased to announce that, after an extensive and detailed evaluation, it has received the Directorial Resolution N° 169-2013-MEM/AAM dated May 29th, 2013 from the General Bureau of Environmental Affairs ("DGAAM") of the Ministry of Energy and Mines (“MINEM”) of Peru approving the Company's Environmental Impact Statement ("DIA") which will permit the future drilling program on its Las Huaquillas Au – Cu Project ("the Project").The Project is located in the area of San Ignacio and Namballe districts, within the Cajamarca department.
The approval of the DIA confirms that the environmental and social aspects addressed in the DIA fulfill all the aspects required by the Peruvian environmental authorities in order to complete advanced exploration activities in the country. This is a result of many months of hard work by the Company’s Peruvian management team, staff members, project stakeholders and consulting team and represents an important milestone for the Company and its shareholders.
The DIA Environmental Impact Statement includes information regarding the socio-economic baseline study that identifies the direct and indirect potential impacted surface areas, the public participation chapter that demonstrates the mechanisms that the Company implemented during the awareness program, the community relations plan, the environmental baseline study, the proposed exploration program, the environmental management program, and the closing plan for 20 drill platforms.
“The Las Huaquillas gold project is an extremely prospective asset, within a well understood high-grade gold system. Only a quarter of the zone has been drill tested while it remains open at depth.” states Edward Kelly, President and CEO of Inca One, “We are extremely pleased with the outcome, and I wish to extend my gratitude towards the local community, the Government, and our social/legal team all of whom are responsible for this positive result.”
About Las Huaquillas
Located in the Department of Cajamarca in northern Peru the Project is easily accessible by road and is situated at a relatively low elevation of between 1000 to 1800 meters. It consists of 9 mineral concessions and is 3700 hectares in size.
In 1997 and 1998, Sulliden Gold Corporation Ltd. (TSX: SUE, “Sulliden”) carried out an integrated exploration program on the Project. It included surface exploration, underground sampling and diamond drilling. The exploration identified a 2.2 km long structurally controlled Au-Ag anomalous corridor named Los Socavones.
The average true width encountered to date of the Los Socavones gold mineralization is 20+ meters, with some intercepts more than 75 meters in true width. Only a quarter of the length of the Los Socavones Zone has been drill tested in some detail while the depth remains open. (1)
Table 1: Highlighted mineralized intercepts of the Los Socavones Zone. (1)
|DDH Hole||From (m)||To (m)||Length (m)||Au (g/t)||Ag (g/t)|
In 1998, Sulliden estimated that a 500 meter section of the 2.2 km long Los Socavones Zone hosts a geological resource of 6.57 million tonnes grading 2.09 g/t Au and 25.2 g/t Ag, equivalent to 443,000 ounces of gold and 5.3 million ounces of silver. This has been calculated at a cutoff of 1.5 g/t gold, and remains open at depth and along strike. This historic resource, based on 10 drill holes and 20 mineralized intercepts and was estimated by Sulliden to a depth of 200 meters(1)
Note: The historic resource was calculated in 1998 and the Company has not completed the work necessary to have the historical estimate verified by a Qualified Person. The Company is not treating the estimate as a current NI 43-101 defined resource and the historical estimate should not be relied upon. The Project will require considerable future exploration which the Company intends to carry out in due course.
As part of Peruvian President Humala’s mandate for public investment, $68 million US dollars will be spent over the span of 2013-2015 on building and improving infrastructure in Northern Peru to rehabilitating roads from Chamaya -Jaen-San Ignacio-Rio Chinchipe near the Peruvian / Ecuador boarder. This is a major transformation of approximately 125km of poorly build gravel/dirt roads to widened paved roads, and great news for both local residents and foreign operating mining operation.
Currently four international mining companies operate out of Northern Peru: Rio Tinto (La Granja), Newmont (Yanacocha), Anglo American (Michiquillay) and Goldfields (La Cima). Inca One Resources’ Las Huaquillas Gold Project will greatly benefit from large-scale investment and construction of modernized roads and power grid.
Inca One is currently reviewing opportunities to leverage the prospective value of Las Huaquillas for shareholders in a non-dilutive manner.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43‐101 and reviewed on behalf of the Company by Thomas A. Henricksen, PhD, a Qualified Person under NI 43‐101.
About Inca One:
Inca One Resources Corp. (TSX-V: IO) is a Canadian resource company focused on acquiring and advancing properties in the South American country of Peru.
Inca One is currently advancing its principal asset, the Las Huaquillas Gold-Copper Project in northern Peru which consists of nine mineral concessions totaling 3,700 hectares in size.
The Company has also entered into an Option Agreement with Canadian Mining S.A. to acquire 100% of the Corizona Mining Concession located approximately 85 kilometers from the city of Lima, Peru.
The Corizona Gold Project consists of 259 hectares.
The Project contains a large hydrothermal system with gold hosted in a hematite-chlorite-quartz epithermal vein system. Previous work and sampling from these veins have reported very consistent grades of more than 10 g/t Au over vein widths of 0.5 to 1.5 meters. Several samples from this previous work also reported over 100 grams per ton.
Following the completion of a formalization process, Inca One will be able to explore and produce up to 350 tons of material per day while working towards formal operating permits and authorizations. Currently, a bulk sampling program is underway. Investors should note that no resource has been established on the Corizona Property in respect of which the bulk sampling program has been initiated.
More information on the Company and its Projects can be found at www.incaone.com.
On behalf of the Board,
INCA ONE RESOURCES CORP.
For More Information Contact:
(1) Source: Sulliden Annual Report filed August 12, 1998, available on www.sedar.com
Statements in this press release regarding the Company which are not historical facts are “forward-looking statements” that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties such as the risk that the closing may not occur for any reason. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) the inability of the parties to consummate the definitive letter agreement; (ii) fluctuation of mineral prices; (iii) a change in market conditions; (iv) the inability to produce the technical report for any reason whatsoever; and (v) the refusal of the Exchange to accept the proposed transaction for any reason whatsoever. Except as required by law, the Company does not intend to update any changes to such statements.
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