ICG shares spike as Cerro Rayas returns robust zinc grades

By Trevor Hoey. Published at Nov 29, 2016, in Juniors

Inca Minerals (ASX: ICG) has released assay results for samples collected during a brief mapping and sampling program at its Cerro Rayas zinc project in October.

This is the group’s second zinc-silver-lead focused project in Peru, and it is located 15 kilometres from the Riqueza project which is approximately nine months ahead of Cerro Rayas on the exploration curve.

There are strong similarities in mineralisation between the two projects with Riqueza having already delivered impressive exploration results.

The Cerro Rayas results included peak values of 42.77% zinc, 258 grams per tonne silver and 26.1% lead.

ICG’s shares surged in early morning trading in response to this news, increasing from the previous day’s close of 1.7 cents to hit a high of 2 cents, representing an increase of 17.5%

However it should be remembered that this is an early stage play and share trading patterns should not be used as the basis for an investment. Those considering this stock should seek independent financial advice.

Exploration focused on two old mine workings, Vilcapuquio to the north of the concession and Wari to the south. Working sample averages from both sites featured outstanding zinc grades of 18.8% and 30.5% respectively.

ICG’s Managing Director, Ross Brown highlighted the fact that Vilcapuquio was strongly mineralised in zinc only, while Wari has demonstrated mineralisation consistent with high levels of zinc, silver and lead being contained in the orebody.

A minimum of two high-quality exploration targets at Cerro Rayas

Summing up the significance of these early stage results, Brown said, “Both appear to be separate structure-related mineralised systems almost certainly associated with geological faults, and this being the case we now have a minimum of two high-quality exploration targets at Cerro Rayas”.

From a broader perspective, initial exploration initiatives at Cerro Rayas are focused on determining the characteristics of mineralisation occurring at the two mine workings located within the project area. Understanding the style, strike direction and width of mineralisation, along with other geological factors will assist ICG in shaping future exploration.

From a longer term perspective, management intends to focus on identifying additional zones of mineralisation along known mineralised structures, as well as identifying additional mineralised structures. Several phases of mapping and sampling are planned for 2017, and depending on results ICG will then make a decision as to whether it will progress to drilling.

S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Facebook
Twitter
LinkedIn