(MENAFN - ProactiveInvestors - Australia) Inca Minerals (ASX: ICG) will soon begin maiden drilling at its flagship Chanape Porphyry Project in Peru following the granting of an exploration permit.
The permit was granted by the Ministerio De Energia Y Mias, and paves the way for drilling to begin.
Chanape is located in the Yanacocha Pierina gold-silver belt which hosts over 75 million ounces of gold.
All previous exploration confirms that a large porphyry system is present at Chanape, which lies near to the 1.4 billion tonne Toromocho copper-silver-molybdenum porphyry.
A drill rig is currently located at Breccia Pipe 8, on of 50 breccias within the project, where a deep drill hole is planned to test the extension of known gold, silver and copper mineralisation
Previous drilling returned an average of 1.3 grams per tonne (g/t) gold, 24g/t silver and 0.2% copper over 100 metres from surface.
Another hole is planned to investigate Breccia Pipe 11.
Coincident geophysics, geochemistry, epithermal gold, silver, copper mineralisation and alteration patterns strongly indicate the presence of a porphyry system at Chanape.
Only one of the 50 breccia pipes has been adequately drilled in first pass drilling, and it returned an intersection of more than 2g/t gold equivalent over 100 metres from surface, which is open-ended.
Inca recently closed its capital raising oversubscribed, adding A805,000 to its cash reserves.
The company issued 40.25 million shares at 0.02 each to professional and sophisticated investors.
The funds raised will be allocated to phase 1 of Inca's drilling campaign at Chanape.