Inca One Enters Into Additional Gold Ore Purchase Arrangements For Mill Feed At Chala One Plant
VANCOUVER, BC- January 15, 2015 - INCA ONE GOLD CORP. (TSX-V: IO) ("Inca One" or the "Company"), further to its press release of October 8, 2014, is pleased to announce that it has entered into additional multi-delivery letter of agreements (“LOA”) to purchase ores from a second and third mine in Peru as mill feed for the Chala One gold milling plant (the "Chala Plant").
To date, the Company has a total of 3 LOA’s in place covering 950 tonnes per month of gold ore, and is negotiating for the purchase of additional tonnage. The Company’s target is to have 1,500 tonnes per month under LOA’s, or 50% of the total expected 3,000 tonnes per month to supply the expanded operating capacity. The balance of the mill feed is expected to come from ongoing spot purchases in the market.
Highlights of the LOA’s and the Company’s ore purchase program include the following:
- LOA’s signed with permitted mining operators in Peru.
- Mill feed is expected to meet the targets for grade, quality and consistency.
- Stockpiling continues in anticipation of ramping up to a constant 100 tonnes per day ("TPD") capacity now that plant expansion is completed.
"We are very pleased to have significant mill feed committed to us to supply our mill expansion” said Edward Kelly, Inca One’s President and CEO. “We have built solid relationships with a number of local miners and miners from around Peru, all of which are government-approved, permitted operations. We continue to work toward obtaining the supply of a base amount of 1,500 tonnes per month of ore under LOA’s, while our ongoing negotiations to purchase quality ores under spot arrangements continues to provide us great advantages in enhancing our overall mix of mill feed. Our stockpile continues to mount up in anticipation of the expanded operations.”
About Inca One
Inca One is a Canadian-based ore processing company with a gold milling facility in Peru, servicing government permitted small scale miners. A highly mineral rich country, Peru 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 ore (such as the Company's Chala One plant).
On behalf of the Board,
President & CEO
INCA ONE GOLD CORP.
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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.