Shares in Inca Minerals surge 13% as drilling starts at Riqueza
Inca Minerals’ (ASX code: ICG) announcement on Monday morning that its maiden drilling program at Riqueza had commenced resulted in the company’s shares spiking 13% in the first hour of trading, eclipsing their 12 month high of 2.5 cents.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
The start of drilling follows the issue of the official drilling commencement date, a milestone in its own right, but as Managing Director Ross Brown pointed out, since the time the drill permit was lodged ICG has more than quadrupled the number of targets at Riqueza, substantially improving the group’s understanding of the mineralisation.
The parameters of the DIA drilling permit provide ICG with a drilling capacity of 16,800m (14,000m + 20%) and a trench capacity of 3,080m, in Brown’s view representing a sizable allowance that will enable the company to properly investigate the myriad of quality targets that appear concentrated at Riqueza.
Riqueza hosts two related mineral deposits, a zinc-silver-lead replacement deposit at the Humaspunco-Pinta combined prospect area and a zinc-silver-lead-gold deposit at the Uchpanga prospect. Management is of the view that these deposits form part of a large intrusive-related replacement mineral system.
BHP moves in alongside ICG
Providing confidence in ICG’s read of the geological features is the fact that three mines in the near vicinity are intrusive-related replacement deposits, and with BHP Billiton having recently lodged applications for ground directly adjacent to Riqueza, the mining giant must see the prospect of a substantial deposit.
ICG’s list of priority drill targets has increased recently with the firming-up of the 800 metre long Callancocha Structure feeder zone (Callancocha Target) as a major new high priority target. The Callancocha Target adds to the eight kilometres of Zn-Ag-Pb-bearing veins, a conservative estimate of one square kilometre of stacked mantos, and an increasing number of breccias at Humaspunco”.
Explaining ICG’s exploration strategy, Brown said,” DIA trenching and the detailed mapping and systematic sampling program (DMASS) will run as parallel programs at the same time as drilling”.
Management expects assay results from early drilling to be released as early as mid to late April, perhaps providing share price momentum that could see the company continue to rerate.