One Resource Stock under Discussion - Inca Minerals Plunges On Moving To Battery Metals’ Space

  • Oct 23, 2018 AEDT
  • Team Kalkine
One Resource Stock under Discussion - Inca Minerals Plunges On Moving To Battery Metals’ Space

Inca Minerals Limited (ASX: ICG), a junior resource company, saw a significant fall in stock prices on 23 October 2018, as the company released its strategic and exploration update in which the company informed that recently the board of the company has refined its strategy to consider new and additional projects with commodities such as vanadium, cobalt, nickel and phosphate. After the release of this news, the Share prices of Inca Minerals substantially decreased by 25 percent as on 23 October 2018.

The company’s stated strategy has been to acquire and explore base and precious metal projects with a view of developing these projects into possible mines or demonstrating their value to others. Greater Riqueza (Riqueza) and Cerro Rayasare are two polymetallic exploration projects of Inca Minerals which are located in Peru. The initial exploration at Riqueza has been highly successful and it resulted in the discovery of a mineralized system comprising zinc, silver and lead replacement mineralization; high-sulphidation, epithermal gold and skarn copper mineralization covering a 5km x 5km area. Riqueza has progressed from an early-stage, single concession (1,000ha) project to a nine-concession, 6,000ha project with many dozens of mineralized veins, mantos, breccias and stockworks across six prospect areas. 

A diversified metals and mining company - South32 limited, has funded geophysics survey Riqueza which were completed in 2018. The geophysics survey resulted in the discovery of a considerable number of large porphyry and porphyry-skarn targets. This has led to the initiation of negotiations between Inca and South32 Limited of an earn-in agreement (EIA). After the completion of the negotiation, it is expected that Inca will manage the exploration and majority of the exploration will be funded through the earn-in funding amount.

The exploration at Cerro Rayas has always focused on the known mine workings historically exploited for ZnAg-Pb. Recent sampling program results have identified various additional mine workings and highly prospective geology in proximal areas. Currently, the company’s board believes that Cerro Rayas could follow a similar trajectory like Riqueza.

The demand for the Company’s staff and resources in Peru has increased and it is expected that it will remain at these levels. The Board is open to the other opportunities particularly where the projects provide a diversification in commodity and/or region.

The Board has been particularly interested in commodities with an attractive supply-demand equation and that’s why the board has recently refined its strategy to consider new and additional projects with commodities such as vanadium, cobalt, nickel and phosphate. In recent times, the demand for metals like vanadium and cobalt have increased substantially and moreover the prices of these metals are touching sky mainly due to increase in the demand of electric vehicles all around the world.

In the past three months the share price of the Inca Minerals decreased by 20.00 percent as on 22 October 2018. ICG’s share traded at $0.003 with a market capitalization of $11.21 million as on 23 October 2018.


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