Inca One Completes Desorption Plant Acquisition And Boosts Net Revenue Margin
VANCOUVER, BC – September 23, 2015 - INCA ONE GOLD CORP. (TSX-V: IO) ("Inca One" or the "Company”) is pleased to announce that Chala One SAC, its wholly owned operating subsidiary in Peru, has acquired a carbon desorption plant for the Chala One processing plant (the “Chala One plant”, or “Chala One”).
The addition of the desorption plant is the most recent enhancement in the processing infrastructure at the Chala One plant, providing an additional layer of vertical integration. Desorption conducted in the newly acquired plant enables the Company to perform the desorption step previously conducted by third parties, thereby removing a bottleneck and helping the Company reduce operating cost. The desorption plant was operated successfully in situ at its original Chala City location for several harvests where it achieved all pre-established operating parameters and benchmarks. It has now been re-located to a secure facility on site at the Chala One mill site.
In addition to the acquisition of the desorption plant, the Company has made ongoing adjustments in the milling and leaching operations at the Chala One plant to fine tune the performance of the plant to increase recovery and reduce costs. Over the last eight weeks, these adjustments have yielded an increase in Chala One’s net revenue margins (“NRM”), or the difference between the cost of minerals purchased and the resulting sales revenue, from a somewhat inconsistent range up to 25% NRM (previous to this period), to a more consistent 40% to 50% NRM range.
Edward Kelly, President and Chief Executive Officer, stated: "The Chala One plant has delivered a solid performance during its expansion, start up, and since the commencement of commercial production. The Company has laid the foundation for the plant’s performance on an ongoing basis into the future. The addition of the desorption plant and the full implementation of its operation at Chala One will further enhance our economic and operating efficiency at the plant. We are also pleased with the performance of our technical team in increasing our net revenue margins, a significant achievement in operating cost and a strong demonstration of the technical competency of our personnel. We look forward to the continuing economic performance of Chala One.”
About Inca One
Inca One is a Canadian-based mineral processing company with a gold milling facility in Peru, servicing government-permitted, small-scale miners. As part of the terms of the original purchase agreement for the Chala, Peru processing facility, Inca One has an agreement between its wholly owned subsidiary, Chala One SAC, and the seller and initial permit applicant, to operate under the umbrella of formalization until the successful completion of all the environmental and operating permits. Peru, a highly mineral-rich country, is one of the world's top producers of gold, silver, copper and zinc, with substantial production coming from small scale miners who need government permitted milling facilities to process their mineral (such as the Company's Chala Plant).
On behalf of the Board,
President & CEO
INCA ONE GOLD CORP.
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INCA ONE GOLD CORP.
Telephone: (604) 568-4877
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Statements regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices; (ii) a change in market conditions; and (iii) the fact that the Company has limited operating experience with its Chala plant and future operational results may not be accurately predicted based on this limited information to date. Except as required by law, the Company does not intend to update any changes to such statements.
This news release deals only with the Company's Chala plant, which is an industrial project. This presentation does not deal at all with the Company's sole mineral exploration property, the Corizona property. Investors should note that no resource has been established on the Corizona property and all of the material currently being processed at the Chala plant is received from local small-scale mining operations.