Inca raises capital for exploration at Riqueza
In a double dose of good news, Inca Minerals (ASX: ICG) announced on Monday morning that it had raised $880,000 to assist in further exploration initiatives at its zinc focused Riqueza project in Peru, and the group also advised of the identification of promising zones at its Uchpanga prospect, part of the broader Riqueza project.
The capital raising was involved a placement of 80 million shares at $0.011 per share, which is in line with the company’s last closing price. Importantly, the placement was made to Peru based investors, indicating support for the project in that country.
ICG’s Managing Director, Ross Brown said, “The interest and appreciation of Riqueza’s potential continues to grow and these funds will assist in funding the second phase of the company’s upcoming drilling program”.
Reports on exploration progress at Uchpanga are promising given that the area being sampled has previously returned peak values of 21% zinc, 920 grams per tonne silver, 16.7% lead and 3.6 grams per tonne gold.
However, assay results from samples taken are yet to be analysed and potential investors shouldn’t make assumptions regarding the outcome of this analysis. Furthermore, ICG is an early stage exploration company operating in an area where there is a degree of sovereign risk and as such should be considered a speculative investment. Independent financial advice should be sought before investing in this stock.
As management gains a better understanding of Uchpanga’s geology its prospects are looking better with Brown saying, “This mineralised structure zones becomes a very high priority zinc, silver, lead and gold drill target with the 750 metre long gossan that corresponds to the structure zone helping to define the size of this heightened target”.
In drawing conclusions between what has been identified at both the Uchpanga and Humaspunco prospects, Brown said, “Notwithstanding the differences between the two prospects, the juxtaposition of these forms of mineralisation is far from coincidental”.
He highlighted that there is a demonstrable association between gold mineralisation and zinc-silver-lead mineralisation in the local district.
Assay results should be reported ‘shortly’, and in conjunction with the release of those results, Brown said that an update of the group’s exploration program would be provided.