Inca completes 3D survey, unveiling massive potential at Riqueza
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Inca Minerals' (ASX:ICG) investment prospects should be considerably enhanced by the completion of a geophysics report that was released to the market on Wednesday.
On the back of this newest development, ICG is on an upward trajectory — currently up 14% at $0.004.
The final interpretation of the geophysics survey conducted at the company’s Great Riqueza Project is contained in a 53-page geophysics summary report from service provider, Resource Potentials.
Among the key conclusions, the report states that a large to giant sized carbonate replacement deposit (CRD) could occur within the Yanacolipa target centre in the north-east part of the project — one of three large target centres recognised at Riqueza.
The size of Yanacolipa and the size of the Antamina copper-zinc skarn deposit are compared in the geophysics report.
Yanacolipa includes four adjoining high priority targets and has an area of 4.42 square kilometres, whilst the area of the 990 million tonne Antamina copper-zinc skarn deposit is approximately 1.8 square kilometres.
The large scale of the potential Yanacolipa CRD (red border) is illustrated below compared with the Antamina deposit (black border):
Resource Potentials commenced three-dimensional modelling to better define the targets following completion of the surface geophysics interpretation in August.
3D magnetic vector inversion (MVI) modelling methods were used and solid 3D shapes generated to help visualise the shape of the porphyry/porphyry-skarn like targets.
The following is an MVI model of the Pacamachay target, one of three priority one targets making up Yanacolipa.
The modelling which covered the entire survey area and specific targets is now complete, an essential precursor for exploration planning, prompting managing director Ross Brown to say: “3D modelling provides an indication of the potential size, shape and depth of each and every target."
"Through this knowledge, budgets and logistics for sampling programs, ground geophysics and drilling programs may be constructed. This is a vital aspect of earn-in agreement negotiations.”
Poised to complete EIA with South32
Inca has now reached a key inflection point at the Riqueza Project as this provides the information required by global mining group, South32 (ASX:S32), to complete the remaining terms of an earn in agreement (EIA).
The general terms already agreed include South32 earning a 60% interest in the project for an amount ranging between US$8 million and US$10 million, subject to agreement on remaining terms.
Interestingly, the South32 earn-in amount values 100% of the project at between A$18.8 million and A$23.5 million, suggesting that Inca is considerably underdone with its current market capitalisation.
Inca said that discussions and negotiations between the two companies concerning the planned exploration program are progressing well.
Negotiations will continue and the remaining EIA terms and conditions agreed upon.
Contractually, there is now a 90-day negotiation period which commenced on receipt of the geophysics report.
Given the positive interaction and tenor of discussions between the two companies to date, Inca expects negotiations can be completed within this timeframe.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
