New PR,lots of movement
Inca hires engineering firm, orders mills for Chala One
2014-07-15 13:01 ET - News Release
Mr. Edward Kelly reports
INCA ONE RESOURCES CORP.: CHALA ONE PLANT UPDATE
Inca One Resources Corp. has provided an update on the company's phase I Chala One plant expansion in Arequipa, Peru.
Highlights:
- Engaged Peruvian engineering firm with considerable experience in building milling facilities of up to 300 tonnes per day;
- New 50-tonne-per-day ball mill has been ordered with arrival expected in the third quarter;
- Stockpiling ore and negotiating ore supply contracts for continuous mill feed.
Inca One has engaged ED & ED Engineering Services SA, a Peruvian engineering firm which has built a number of plants for the ore-processing sector of up to 300 tons per day. The engineering firm is currently on site, developing the facility's start-up strategy and overseeing the construction of the plant expansion.
Two new 50-tonne-per-day ball mills have been purchased to be added to the current 25-tonne-per-day circuits at Chala One. The first ball mill is scheduled into the processing circuit by the end of the third quarter while the second ball mill will be added by the end of the fourth quarter. With the two new 50-tonne-per-day ball mills operating in tandem, the company will achieve a combined capacity of 100 tonnes per day. The mill already has sufficient tailings capacity to support the additional throughput.
The company has begun stockpiling initial shipments of ore for processing in preparation to have ample supply for continuous milling by the end of the third quarter. To ensure optimum throughput postexpansion, the company is pursuing additional ore purchase agreements with several small-scale miners that can meet or exceed the company's gold grade target of 0.8 ounce per ton gold (24.9 grams per tonne gold).
In addition to ramping up Chala One to 100-tonne-per-day capacity by the fourth quarter of 2014, the company is currently reviewing the economics and cash flow, and permitting requirements to expand its facility to 250 tonnes per day to better meet the area's future ore processing needs and generate significant cash flow.
The Chala One plant is currently a 25-tonne-per-day carbon in leech (CIL) plant located on 17 hectares of property in the region of Arequipa. Arequipa hosts the largest amount of small-scale mines, which are legal to buy and process ore from. These are mines that are unable to support stand-alone plants and the potential demand for ore processing is considerable.
Inca One continues to build Chala to be an ore processing facility of choice. The company looks forward to updating its shareholders on further developments at the Chala processing facility.
Corizona update
The company would also like to provide an update and further direction on Corizona. As reported, the company shipped a bulk sample of vein material from the La Corizona property to the Chala plant for test milling. The bulk sample, totalling 28.5 dry tonnes, was extracted from three underground headings within the Los Angeles vein structure (vein B).
Assays received from Minera Lab SAC reported grades of 0.246 ounce per ton gold, 0.175 ounce per ton gold and 0.033 ounce per ton gold for the three sample sites. Metallurgical testwork was not conducted. The bulk sample material was blended with mill feed already present at the Chala ore processing facility, and later processed.
In light of the variable gold grades realized from the bulk sampling program, Inca One has decided to temporarily suspend work at La Corizona property. The company believes shareholder value is better sought in the expansion of the Chala ore processing facility where ore purchase agreements with small-scale miners provided mill feed at an average grade of 0.5 ounce per ton gold during the initial test milling program.
We seek Safe Harbor.