Clarification and Retraction I guess the boys down there made some mistakes :-)).
I wonder if it`s going to affect the SP in the short term,or anything else for that matter.
It`s misleading alright, they have a chance to correct it..
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Inca One retracts misleading Corizona info 2014-01-24 20:01 ET - News Release
Mr. Edward Kelly reports
INCA ONE RESOURCE CORP.: CLARIFICATION AND RETRACTION OF PREVIOUSLY ISSUED TECHNICAL DISCLOSURE
As a result of a review by the British Columbia Securities Commission, Inca One Resources Corp. is issuing the following news release to clarify and/or retract its disclosure. In those instances where the company has clarified or revised previous disclosure, the company advises readers not to rely on such statements as they may continue to be found in the public domain.
The company's website, its investor materials and certain news releases contained disclosure regarding the company's La Corizona project that were not compliant with National Instrument 43-101, standards of disclosure for mineral projects, as detailed below, and in particular in connection with the relationship between Corizona and the company's Chala One gold milling facility.
The La Corizona project technical report non-compliant disclosure
The technical report entitled "La Corizona Project," prepared by John Buckle, PGeo, dated May 22, 2013, found on the company's website, discloses in various places historical estimates that are not compliant with NI 43-101. Examples of historical estimates in the report that are not compliant with NI 43-101 include, but are not limited to:
- Page 33 -- a historical resource of 137,686 tonnes at 9.03 grams per tonne gold reserve;
- Page 33 -- 1,226,176 tonnes of geological resource (without disclosed grade).
The disclosure in the report found on the company's website was not in compliance with NI 43-101 as it omitted information required by NI 43-101 about relevance and reliability, original historical classifications, and grade. The company therefore retracts the prior disclosure of these historical estimates.
The company intends to amend the report to be in compliance with NI 43-101. Until such time as an NI 43-101-compliant technical report has been prepared, the report has been removed from the company's website. The company will also file its amended report on its profile on SEDAR.
Non-compliant references to "ore" or "orebody"
The operations section of the company's website and the company's corporate presentation dated November, 2013, both refer to "10 faces to the orebody." The terms "ore" and "orebody" imply technical feasibility and economic viability that should only be attributed to mineral reserves. Given that there are no reserves associated with Corizona, the use of the word "orebody" is not compliant with NI 43-101, and the company retracts the same. The company has removed the disclosure from its website.
Misleading and non-compliant disclosure with respect to Corizona and Chala One
The company has made certain disclosure with respect to the processing of material from Corizona at Chala One. The company would like to clarify that the Chala One processing mill's only current source of mill feed is from Peruvian artisanal miners. On one occasion only, the company processed a small amount of bulk sampling material from Corizona at Chala One. Such disclosure includes the following:
- The operations section of the company's website disclosed that the company is obtaining bulk sampling of 40 tonnes per day, ramping up to 80 tonnes per day at Corizona.
- The company's Sept. 9, 2013, news release discloses that the company will focus on generating cash flow from processing high-grade ore from the company's Corizona mine and other Peruvian gold mining operations.
- The company's Nov. 14, 2013, news release and the management's discussion and analysis dated Dec. 30, 2013, disclose that on Nov. 9, 2013, the company shipped its first load of 30 tons of material from Corizona to Chala One to be processed.
- The corporate presentation and the company's fact sheet disclose that at 50 tonnes per day, Chala One would generate approximately $4.3-million in gross operating profit.
- The corporate presentation provides further details on the economics of Chala One.
The above disclosure, both each on its own and taken together as a whole, is misleading and not in compliance with NI 43-101, as it links production at Corizona with processing at Chala One, treats the transferred material as a mineral reserve and implies a positive economic analysis to support a production decision at Corizona. Accordingly, the company clarifies that it has not made any economic analysis regarding Corizona and has not made a decision to advance Corizona to production.
In addition, although the company sometimes refers to Corizona as the "Corizona mine," it is an exploration property, is no longer an operating mine and has no current production. Materials taken from Corizona are bulk sampling materials only.
With no current mineral resource, there is no valid basis for a preliminary economic analysis, and NI 43-101 restricts disclosure of economic results and future production quantities under these circumstances. The company retracts the statements relating to potential operating profit and the economics of Chala One as they may be misinterpreted to disclosure results of an economic analysis regarding Corizona.
Regardless, the implication that company has made a production decision without current resources and without first establishing mineral reserves and completing a feasibility study may be misleading, as it did not provide adequate disclosure regarding the increased uncertainty and the higher risk of economic and technical failure associated with a production decision under these circumstances.
The company has removed the operations section, the corporate presentation and the fact sheet from its website and is updating them accordingly.
The technical content of this news release has been approved by Van Phu Bui, a director of the company and a qualified person as defined in NI 43-101.
We seek Safe Harbor.