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ROKEBY RESOURCES LIMITED Capital/Financing Update 2018
65707_rns_2018-08-26_d06c4309-09d0-44cc-8da2-639889d96514.pdf
Capital/Financing Update
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27 August 2018
+20% ZINC AS INCA'S SECOND PROJECT EXPANDS
HIGHLIGHTS
- Further high-grade mineralisation in reconnaissance samples at Cerro Rayas Project:
- o Sample IM-001328: 20.96% Zn, 174g/t Ag, 17.27% Pb
- o Sample IM-001369: 14.16% Zn, 150g/t Ag, 36.45% Pb
- o Sample IM-001327: 10.27% Zn, 13.3g/t Ag, 4.66% Pb
- Applications for additional concessions lodged
- First round of concession applications nearing approval
Inca Minerals Limited (Inca or the Company) wishes to update the market on developments at its Cerro Rayas Project. Reconnaissance mapping and sampling has identified further very high-grade zinc (Zn), silver (Ag) and lead (Pb) mineralisation along extensions of a major NW-SE trending mineral belt. Three additional concession applications have been lodged covering these mineralised areas. These three new concessions are in addition to the five concession applications now nearing approval and the two original concessions.
New Mineralisation on New Concessions at Cerro Rayas
The Company has lodged applications for three additional concessions: Yacuna (200ha), Intihuañunan (100ha) and Huaytapata Sur (100ha) covering very high-grade mineralisation and important extensions of the NW-SE mineral belt (Figure 2). The Cerro Rayas Project area (granted and pending) stands at 3,000ha.
At Yacuna very high-grade mineralisation is associated with a brecciated structure bearing NE-SW within dolomitised limestone. Three channel samples were taken from visible mineralisation (gossan with smithsonite and galena) in outcrop (Figure 1), IM-001367 (channel length: 0.70m), IM-001368 (channel length: 0.40m), IM-001369 (channel length: 0.50m). Sample IM-001369 contains 14.16% Zn, 150g/t Ag and 36.45% Pb and sample IM-001368 contains 4.08% Zn, 25g/t Ag and 4.31% Pb.
Figure 1 FAR LEFT: Outcrop where sample IM-001369 was taken. LEFT: Detail of sample location. IM-001369 contains 14.16% Zn, 150g/t Ag, 36.45% Pb. Also refer to Figure 2.
Like at Yacuna, high-grade mineralisation at Huaytapata Sur is associated with a brecciated structure within dolomitised limestone. In this instance, mineralisation is exposed in a historic shallow mine working called Irapata. Sample IM-001328 contains 20.96% Zn, 174g/t Ag and 17.27% Pb; sample IM-001327 contains 10.27% Zn, 13.3g/t Ag and 4.66% Pb; and sample IM-001331 contains 3.5% Zn, 166g/t Ag and 10.37% Pb.
Suite 1/16 Nicholson Road, Subiaco, WA 6008 • PO BOX 38, West Perth, WA 6872 Telephone: +61 (08) 6145 0300 • ABN: 36 128 512 907 Website: www.incaminerals.com.au
Figure 2 LEFT: Cerro Rayas geology and project concession plan. The three most recent concession applications are marked with bold black lines while the other concession areas (granted and under application) that make up the project are within the bold blue lines. Also shown are the new sample locations and the currently known historic mine workings. The mine workings in blue are located on the two original Cerro Rayas concessions (La Elegida and La Elegida I). The mine wokings in red are located on the new Cerro Rayas concession application areas. There are a total of eleven mine workings at Cerro Rayas as well as other outcrop sites with known mineralisation. They are distributed along four mineralised corridors that define the NW-SE trending mineral belt. These are marked as broad yellow lines. The dashed black line shows a known regional fault. The geological sequence comprises NW-SE trending Jurassic-aged (mauve and purple), and Cretaceous-aged (green) limestones. Limestones are typical hosts of carbonate replacement polymetallic deposits. Refer also to Figure 5.
Previous Concession Applications Nearing Approval – Strong Mineralisation Early Exploration Focus
The Company's five previous concession applications, namely Vicuña Puquio, Vicuña Puquio II, Puyuhuan, Tablamachay and Huaytapata, are nearing approval. As previously released (ASX announcement 7 February 2018), these concessions host strong Zn-Ag-Pb mineralisation at a number of historic mine workings and also host very significant extensions of the parallel NW-SE mineralised corridors (Figure 3) (Tables 1, 2, 3). All five applications are due to be granted in September.
The early exploration on these five concessions will focus on the seven new historic mine workings occurring on this ground. Like the mine workings at La Elegida (Vilcapuquio, Torrepata and Wari), the Company will undertake detailed mapping and channel-sampling to understand the nature of the Zn-Ag-Pb mineralisation. Exploration will also focus on the NW-SE trending structures (mineralised corridors) believed to be importation conduits for mineralisation. Results of this work would be used to design a drilling program to test high priority targets.
Figure 3 ABOVE: A satellite plan showing the Cerro Rayas Project area (white solid line - prior to the additional concession applications) and the sample location areas (yellow boxes) of previously announced results. Known mineralisation is distributed along a number of prominent NW-SE corridors (translucent red-brown lines) and associated SW-NE splay structures which define a major regional mineral belt that parallels the Chonta Fault System.
| Sample Location Coordinates | Channel | Zinc | Lead | Silver | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SampleNumber | Easting | Northing | Elevation | Sample Location(Mine/ outcrop ) | Width | Length | ICP40B AAS41B CON21B ICP40B AAS41B CON29G ICP40B AAS41B | |||||||
| (m's) | (m's) | (m'a ALS) | (m's) | (m's) | ppm | % | % | ppm | % | % | g/t | g/t | ||
| IM-001305 | 463,507 | 8,614,997 | 4,614 Outcrop | 0.20 | 0.50 >10000 | 17.48 | -- >10000 | 4.2 | -- | -- | 1.9 | |||
| IM-001306 | 463,509 | 8,614,998 | 4,615 Outcrop | 0.25 | 0.40 >10000 | 5.71 | -- | 2258 | -- | -- | -- | 0.4 | ||
| IM-001307 | 463,514 | 8,614,996 | 4,615 Outcrop | 0.30 | 0.50 >10000 | 19.88 | -- >10000 | 4.35 | -- | -- | 1.8 | |||
| IM-001308 | 463,516 | 8,614,996 | 4,611 Outcrop | 0.10 | 0.40 >10000 | 6.42 | -- | 211 | -- | -- | -- | 0.2 | ||
| IM-001309 | 463,507 | 8,614,999 | 4,610 Outcrop | 0.25 | 0.50 >10000 | 5.11 | -- >10000 | 1.84 | -- | -- | 0.8 | |||
| IM-001311 | 463,507 | 8,615,000 | 4,612 Outcrop | 0.20 | 0.25 >10000 | >20 | 33.91 >10000 | 6.81 | -- | -- | 4.5 | |||
| IM-001312 | 463,507 | 8,615,001 | 4,612 Outcrop | 0.25 | 0.25 | 3611 | -- | -- | 375 | -- | -- | -- | 0.2 | |
| IM-001317 | 463,266 | 8,615,591 | 4,648 Outcrop | 0.25 | 0.50 | 7614.9 | -- | -- | 365 | -- | -- | -- | <0.2 | |
| IM-001318 | 463,266 | 8,615,594 | 4,648 Outcrop | 0.20 | 0.40 >10000 | 2.17 | -- | 345 | -- | -- | -- | 0.4 | ||
| IM-001319 | 464,810 | 8,613,974 | 4,668 Outcrop | 0.30 | 0.30 >10000 | >20 | 32.86 | 4551 | -- | -- | -- | 98.6 | ||
| IM-001321 | 464,795 | 8,613,966 | 4,666 Outcrop | 0.30 | 0.25 | 2340.2 | -- | -- | 648 | -- | -- | -- | 2.4 |
Table 1 BELOW: Previously announced assays for Vicuña Puquio and Vicuña Puquio II (ASX announcement 7 February 2018).
Table 2 BELOW: Previously announced assay results for Puyuhuan (ASX announcement 7 February 2018).
| Sample Location Coordinates | ChannelZinc | Lead | Silver | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SampleNumber | Easting | Northing | Elevation | Sample Location(Mine/ outcrop ) | Width | Length | ICP40B AAS41B CON21B ICP40B AAS41B CON29G ICP40B AAS41B | |||||||
| (m's) | (m's) | (m'a ALS) | (m's) | (m's) | ppm | % | % | ppm | % | % | g/t | g/t | ||
| IM-001287 | 463,667 | 8,612,416 | 4,392 Puyuhamani | 0.30 | 0.50 | 47200 | 4.72 | -- | 641 | -- | -- | 0.1 | ||
| IM-001302 | 464,446 | 8,612,433 | 4,588 Outcrop | 0.25 | 0.60 | 299.7 | -- | -- | 253 | -- | -- | -- | 0.2 | |
| IM-001303 | 464,479 | 8,612,351 | 4,612 Outcrop | 0.10 | 0.70 | 1929.2 | -- | -- | 89 | -- | -- | -- | 0.2 | |
Table 3 BELOW: Previously announced assay results for Huaytapata (ASX announcement 7 February 2018).
| Sample Location Coordinates | Channel | Zinc | Lead | Silver | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SampleNumber | Easting | Northing | Elevation | Sample Location(Mine/ outcrop ) | Width | Length | ICP40B AAS41B CON21B ICP40B AAS41B CON29G ICP40B AAS41B | |||||||
| (m's) | (m's) | (m'a ALS) | (m's) | (m's) | ppm | % | % | ppm | % | % | g/t | g/t | ||
| IM-001293 | 467,197 | 8,609,838 | 4,672 Huaytapata | 0.35 | 0.55 >10000 | 9.79 | -- >10000 | 4.49 | -- | 7.7 | -- | |||
| IM-001294 | 467,197 | 8,609,841 | 4,673 Huaytapata | 0.15 | 0.60 >10000 | 16.81 | -- >10000 | >20 | 24.92 | -- | 123 | |||
| IM-001295 | 467,200 | 8,609,839 | 4,678 Huaytapata | 0.15 | 0.40 >10000 | >20 | 26.25 >10000 | 4.76 | -- | 33.8 | -- | |||
| IM-001296 | 467,348 | 8,608,406 | 4,279 Callhuamachay | 0.25 | 0.30 >10000 | >20 | <30 >10000 | 6.49 | -- | -- | 73.2 | |||
| IM-001297 | 467,352 | 8,608,416 | 4,282 Callhuamachay | 0.20 | 0.60 >10000 | 1.98 | -- >10000 | >20 | 33.1 | 107 | >100 | |||
| IM-001298 | 467,353 | 8,608,415 | 4,290 Callhuamachay | 0.20 | 0.60 >10000 | 1.86 | -- >10000 | >20 | 30.16 | -- | 98.1 |
Figure 4 ABOVE: Sample location plan of assay results in Table 1 - 3. The sample locations are shown on the concession plan to provide a broad view of their distribution. Enlarged areas are provided to show detail of the individual samples (channel orientations and relative position). Inca's granted and pending land holding (excluding the three most recent concession applications) is indicated by a dashed black line (showing the outer limit of all Inca concessions). The original Cerro Rayas concessions (La Elegida and La Elegida I) are indicated by a dashed blue line and contain the three mine workings Vilcapuquio, Torrepata and Wari.
Suite 1/16 Nicholson Road, Subiaco, WA 6008 • PO BOX 38, West Perth, WA 6872 Telephone: +61 (08) 6145 0300 • ABN: 36 128 512 907 Website: www.incaminerals.com.au
New Mineralised Belt Parallel to the Chonta Mineral Belt at Riqueza
Including granted and soon to be granted concession areas, Cerro Rayas now hosts an eight-kilometre strike length of an important Zn-Ag-Pb mineral belt comprising many more kilometres of mineralised structures and faults. This mineral belt is parallel to the Chonta Fault System which controls regional basin development and basin compression (Figure 5) as well as porphyry, skarn and carbonate replacement mineralisation. The Company believes the extensive fault system at Cerro Rayas has the same potential as the Chonta Fault System for hosting mineralisation. Indeed, numerous Tertiary-aged intrusions and mines (operating and historic) are known along its course (Figure 6).
"The Cerro Rayas Fault System is believed to be a repeat of the Chonta Fault System" says Inca's Managing Director, Mr Ross Brown. "As such, the NW-SE and SW-NE trending structures at Cerro Rayas are important conduits for mineralisation and a focal point for exploration.".
Figure 5 ABOVE: A schematic regional cross section showing the relationship between Cerro Rayas and Riqueza with regard to basin-controlling faults. Basin-controlling faults are important structures in the creation of sedimentary basins. The Cretaceous-aged limestone sequence (blue), which occurs at Riqueza, overlies the Jurassic-aged limestone sequence (green), which occurs at Cerro Rayas. During regional basin compression, the structures are reversed (black arrows). It is often during compression that intrusive stocks are emplaced and mineralisation develops.
Figure 6 BELOW: Satellite image showing the location of the cross section in Figure 5 in relation to Inca's Greater Riqueza and Cerro Rayas projects. Also shown: the position of the parallel fault systems and interpreted/known faults (thin yellow lines) and traverse faults (thin dashed yellow lines); the approximate extent of the Jurassic (green) and Cretaceous (blue) limestones is indicated; and the mines and plants in the area. This plan is modified from a similar figure presented in a previous ASX announcement dated 14 May 2018.
Suite 1/16 Nicholson Road, Subiaco, WA 6008 • PO BOX 38, West Perth, WA 6872 Telephone: +61 (08) 6145 0300 • ABN: 36 128 512 907 Website: www.incaminerals.com.au
Table 4: Assay Results of New Samples (Zn, Ag, Pb)
| Table 4: Assay Results of New Samples (Zn, Ag, Pb) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Lccation | Channel Dimension | Zn | Zn | Zn | Zn | Ag | Ag | Pb | Pb | Pb | Pb | ||||
| Sample | ppm | ppm | % | % | ppm | g/t | ppm | % | % | % | |||||
| Number | Easting (m's) Northing (m's) Elevation (sasl) | Length (m's) Width (m's) ICP40B ICP40B AAS41B CON21G ICP40B AAS41B ICP40B AAS41B CON29C CON29G | |||||||||||||
| IM-001326 | 467618.0 | 8607643.0 | 4309 | 0.40 | 0.15 | 9438.5 9438.5 | -- | -- | 4.7 | -- | 844 | -- | |||
| IM-001327 | 467621.7 | 8607659.3 | 4315 | 0.30 | 0.20 | 102700 102700 | 10.27 | -- | 13.3 | -- | 46600 | 4.66 | |||
| IM-001328 | 467620.5 | 8607659.3 | 4315 | 0.20 | 0.15 | 209600 209600 | >20 | 20.96 | 174 | 174 | 172700 | 17.27 | |||
| IM-001329 | 467625.0 | 8607663.0 | 4323 | 0.45 | 0.30 | 36100 | 36100 | 3.55 | -- | 4.1 | -- | 9729 | -- | ||
| IM-001331 | 467623.7 | 8607660.8 | 4317 | 0.45 | 0.20 | 35000 35000 | 3.5 | -- | 166 | 166 | 103700 | 10.37 | |||
| IM-001367 | 462307.0 | 8616616.0 | 4642 | 0.70 | 0.25 | 28200 28200 | 2.82 | 11.6 | -- | 11100 | 1.11 | -- | -- | ||
| IM-001368 | 462301.0 | 8616617.0 | 4642 | 0.40 | 0.35 | 40800 40800 | 4.08 | 25 | -- | 43100 | 4.31 | -- | -- | ||
| IM-001369 | 462347.0 | 8616688.0 | 4620 | 0.50 | 0.15 | 141600 141600 | 14.16 | 150 | 150 | 364500 | >20 | -- | 36.45 |
Above: Typical landscape of Cerro Rayas. Despite high altitudes, local relief is gentle which allows good access throughout the project area. The predominant Jurassic-aged limestone sequence forms craggy grey outcrop as ridges and as platforms.
*****
Competent Person's Statements
The information in this report that relates to exploration results and mineralisation for the greater Riqueza and Cerro Rayas projects located in Peru, is based on information compiled by Mr Ross Brown BSc (Hons), MAusIMM, SEG, MAICD Managing Director, Inca Minerals Limited, who is a Member of the Australasian Institute of Mining and Metallurgy. He has sufficient experience, which is relevant to exploration results and to the style of mineralisation and types of deposits under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Brown is a fulltime employee of Inca Minerals Limited and consents to the report being issued in the form and context in which it appears.
Suite 1/16 Nicholson Road, Subiaco, WA 6008 • PO BOX 38, West Perth, WA 6872 Telephone: +61 (08) 6145 0300 • ABN: 36 128 512 907 Website: www.incaminerals.com.au
Key Words Used in this Announcement (order of appearance and/or cross-reference in this word list)
| ReconnaissanceMapping | Refers to very early-stage, in some cases, first-pass geological mapping, recordingrock types, structure, alteration and mineralisation. |
|---|---|
| Reconnaissance | Refers to very early-stage, in some cases, first-pass sampling. Sampling methods Samplingmay vary from grab sampling (selective pieces of rock from a specific interesting smallarea typically <1m2) to Channel Sampling. |
| Channel Sampling | A sampling technique whereby a continuous length of rock is collected for assay testing,usually in a perpendicular orientation to mineralisation. A single channel sample is typicallyone metre long in length or shorter. A series of channel samples may extend for tens ofmetres. This technique is often used in trenches or across large expanses of rock Outcrop. |
| MineralisedOutcrop | An expanse of rock open to the natural surface of the land which hosts visible signsof Mineralisation. |
| Gossan | Said of a rock or mineralisation that comprises weathered sulphide minerals. |
| Brecciation/Breccia | At Cerro Rayas, taken to mean broken or fragmented rock. The rock fragments are called |
| Clasts and the space around the clasts is called the Matrix. Often the matrix in the breccia | |
| veins at Humaspunco contains the Ore-forming Minerals. | |
| Clasts | The coarse component of a Breccia, at Cerro Rayas generally meaning angular fragments |
| of Country Rock (Limestone). | |
| Matrix | The fine component of a Breccia, occurring between the Clasts. |
| Structure | A very broad and widely used geological term used at Cerro Rayas to mean localised linear |
| features often in association with Breccias. | |
| Dolomite Alteration | A process that involves the alteration of (change to) a rock, mineral or mineralisation |
| resulting in the formation of dolomite – a calcium magnesium carbonate. | |
| Limestone | A calcium carbonate sedimentary rock typically formed by ancient coral reefs. |
| Smithsonite | Zinc carbonate mineral with the chemical formula ZnCO3 with 52.15% Zn by mol. weight. |
| Sphalerite | Zinc sulphide mineral with the chemical formula ZnS with 67.09% Zn by mol. weight. |
| Galena | Lead sulphide mineral with the chemical formula PbS with 86.60% Pb by mol. weight. |
| Fault | A surface or zone of rock fracture along which there has been displacement. |
| Cretaceous | A geological period between 145 million and 65 million years ago. |
| Jurassic | A geological period between 201 million and 145 million years ago. |
| Mine Working(s) | A small mine(s) typically artisanal in nature. These small mines varying in size considerably |
| - but generally comprise one to <10 adits (mine openings) and one to <20 drives and slopes | |
| (mining tunnels) with a total mine length of <1,000m. They tend to be either excavated byhand or simple mechanical means. | |
| Mineralisation | A broad term that refers to a mineral deposit or mineral concentration or the process thatleads to the formation of a mineral deposit or mineral concentration. |
| Mineralised Trend | A linear alignment of known zones mineralisation. |
| Ore-forming | Minerals which are economically desirable. In the case of Cerro Rayas, they include |
| Minerals | Sphalerite, Smithsonite and Galena. This contrasts with Gangue Minerals. |
| Gangue Minerals | Valueless minerals that occur with Ore-forming Minerals. In the case of Cerro Rayas calcite |
| is the main Gangue mineral. | |
| CarbonateReplacement | A process in which carbonate minerals are "replaced" by another mineral or minerals.Carbonate replacement takes place in Mississippi Valley Type Deposits, Vein, Manto andBreccia Deposits. |
Key Words Used in this Announcement (order of appearance and/or cross-reference in this word list) cont…
| Vein | A tabular or sheet-like form of mineralisation, often resulting from in-filling a vertical or |
|---|---|
| Manto | near-vertical fracture. They often cut across Country Rock.A tabular or sheet-like form of mineralisation, often resulting from replacement along |
| layers of limestone. They often lay parallel to Country Rock. | |
| Country Rock | Rock that encloses or is cut by mineralisation. And more broadly, rock that makes up the |
| geology of an area. The Country Rock at Cerro Rayas is Jurassic-aged Limestone of thePucará Group. | |
| Polymetallic | A term that describes for multi-element nature of a Deposit or Mineral Belt. |
| Mineral Belt | A term that describes a particular area that hosts a concentration of Deposits. |
| Deposit | A [mineral] Deposit is a naturally occurring accumulation or concentration of metals or |
| minerals of sufficient size and concentration that might, under favourable circumstances, | |
| have economic value (Geoscience Australia). It is not a defined term in the JORC Code 2012 | |
| for Australasian Reporting of Exploration Results, Mineral Resources and Ore Reserves | |
| (JORC 2012). | |
| Porphyry (Deposit) | A type of Deposit containing Ore-forming Minerals occurring as disseminations and veinlets |
| in a large volume of rock. The rock is typically porphyritic (a texture of large crystals in afine groundmass). Porphyry Deposits are economically very significant. | |
| Skarn (Deposit) | A type of Deposit that forms as a result of Alteration which occurs when hydrothermal |
| fluids interact between igneous and sedimentary rocks. In many cases, skarns are | |
| associated with the intrusion of granitic rocks, especially Porphyry intrusions, withinLimestone. | |
| Tertiary | A geological period between 65 million and 2.58 million years ago. |
| Intrusive (-ion) | The emplacement of magma (igneous rock) into pre-existing rock. |
| Basin (-controlling)Fault | Used in this announcement to refer to deep-seated Structures that control the shapeand development of sedimentary basins. In the case of Cerro Rayas and Riqueza thesedimentary basin is in-filled with Jurassic and Cretaceous Limestones. |
Appendix 1
The following information is provided to comply with the JORC Code (2012) requirements for the reporting of channel sampling results by the Company on three concession applications known as Yacuna, Intihuañunan and Huaytapata Sur (located in Peru).
Section 1 Sampling Techniques and Data
| CRITERIA | JORC CODE EXPLANATION | COMMENTARY |
|---|---|---|
| Sampling techniques | Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industry standardmeasurement tools appropriate to the minerals underinvestigation, such as down hole gamma sondes, orhand-held XRF instruments, etc.). These examplesshould not be taken as limiting the broad meaning ofsampling. | This announcement refers to eight newassay results from the channel samplingconducted on three new concessionareas. |
| Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used. | ChannelsamplelocationsweredeterminedbyGPS.Thespatialconfigurationofthechannelswasperpendicular to mineralisation. | |
| Aspects of the determination of mineralisation that areMaterial to the Public Report. In cases where 'industrystandard' work has been done this would be relativelysimple (e.g. 'reverse circulation drilling was used toobtain 1m samples from which 3 kg was pulverised toproduce a 30g charge for fire assay'). In other casesmore explanation may be required, such as where thereis a coarse gold that has inherent sampling problems.Unusual commodities or mineralisation types (e.g.submarine nodules) may warrant disclosure of detailedinformation. | Channels perpendicular to the exposedmineralisationwereusedtoobtaincontinuous samples approximately 2kg inweight and between 0.2m and 0.7m longacross the target. | |
| Drilling techniques | Drill type (e.g. core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc.)and details (e.g. core diameter, triple or standard tube,depth of diamond tails, face-sampling bit or other type,whether core is oriented and if so, by what method,etc.). | N/A – no drilling or drilling results arereferred to in this announcement. |
| Drill sample recovery | Method of recording and assessing core and chipsample recoveries and results assessed. | N/A – no drilling or drilling results arereferred to in this announcement. |
| Measures taken to maximise sample recovery andensure representative nature of the samples. | N/A – no drilling or drilling results arereferred to in this announcement. | |
| Whether a relationship exists between sample recoveryand grade and whether sample bias may have occurreddue to preferential loss/gain of fine/coarse material. | N/A – no drilling or drilling results arereferred to in this announcement. | |
| Logging | Whether core and chip samples have been geologicallyand geo-technically logged to a level of detail tosupport appropriate Mineral Resource estimation,mining studies and metallurgical studies. | N/A – no drilling or drilling results arereferred to in this announcement. |
| Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc.) photography. | N/A – no drilling or drilling results arereferred to in this announcement. | |
| The total length and percentage of the relevantintersections logged. | N/A – no drilling or drilling results arereferred to in this announcement. |
| CRITERIA | JORC CODE EXPLANATION | COMMENTARY | |||
|---|---|---|---|---|---|
| Sub-samplingtechniques and | If core, whether cut or sawn and whether quarter, halfor all core taken. | N/A – no drilling or drilling results arereferred to in this announcement. | |||
| sample preparation | If non-core, whether riffled, tube sampled, rotary split,etc. and whether sampled wet or dry. | N/A – no drilling or drilling results arereferred to in this announcement. | |||
| For all sample types, the nature, quality andappropriateness of the sample preparation technique. | Channel sampling follows industry bestpractice. | ||||
| Quality control procedures adopted for all subsampling stages to maximise "representivity" ofsamples. | Nosub-samplingprocedureswereundertaken. | ||||
| Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for field duplicate/secondhalf sampling. | In channel sampling the orientation of thechannel was aligned perpendicular to thevisible zone of mineralisation. With allsamples,measurestoensurerepresentative sampling took place. | ||||
| Whether sample sizes are appropriate to the grain sizeof the material being sampled. | The sample sizes are adequate in terms ofthenatureanddistributionofmineralisation visible in the channel. | ||||
| Quality of assay dataand laboratory tests | The nature, quality and appropriateness of the assayingand laboratory procedures used and whether thetechnique is considered partial or total. | The analytical assay technique used in theelemental testing of the channel samplesfor non-Au was 4-acid digestion and HClleach, which is considered a completedigestionformostmaterialtypes.Elemental analysis was via ICP and atomicemission spectrometry. Au techniquesincluded fire assay with AA finish. Theanalytical assay technique used in theelemental testing is considered industrybest practice. | |||
| For geophysical tools, spectrometers, hand-held XRFinstruments, etc., the parameters used in determiningthe analysis including instrument make and model,reading times, calibrations factors applied and theirderivation, etc. | N/A – No geophysical tool or electronicdevice was used in the generation ofchannel sample results other than thoseused by the laboratory in line with industrybest practice. | ||||
| Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy (i.e.lack of bias) and precision have been established. | Blanks, duplicates and standards wereused as standard laboratory procedures.TheCompanyalsoenteredblanks,duplicates and standards as an additionalQAQC measure. | ||||
| Verification ofsampling and assaying | The verification of significant intersections by eitherindependent or alternative company personnel. | The channel sample assay results areindependently generated by SGS Del Peru(SGS) who conduct QAQC procedures,which follow industry best practice. | |||
| The use of twinned holes. | N/A – no drilling or drilling results arereferred to in this announcement. | ||||
| Documentationofprimarydata,dataentryprocedures, date verification, data storage (physicaland electronic) protocols. | Primary data (regarding assay results) issupplied to the Company from SGS in twoforms: Excel and PDF form (the latterserving as a certificate of authenticity).Both formats are captured on Companylaptops/desktops/iPads which are backedup from time to time. Following critical |
Suite 1/16 Nicholson Road, Subiaco, WA 6008 • PO BOX 38, West Perth, WA 6872 Telephone: +61 (08) 6145 0300 • ABN: 36 128 512 907 Website: www.incaminerals.com.au
| CRITERIA | JORC CODE EXPLANATION | COMMENTARY |
|---|---|---|
| Verification ofsampling and assayingcont… | assessment (eg price sensitivity, inter alia),when time otherwise permits, the data isentered into a database by Company GISpersonnel. | |
| Discuss any adjustment to assay data. | No adjustments were made. | |
| Location of datapoints | Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mineworkings and other locations used in Mineral Resourceestimation. | N/A – no drilling or drilling results arereferred to in this announcement. |
| Specification of the grid system used. | WGS846-18L. | |
| Quality and adequacy of topographic control. | In the case of channel sampling, locationcoordinates were established by GPS. | |
| Data spacing anddistribution | Data spacing for reporting of Exploration Results. | In channel sampling, the orientation of thechannel was aligned perpendicular to theknown visible zone of mineralisation. Withallsamples,measurestoensurerepresentative sampling took place withindividual samples taken in <1m lengths.Data spacing is considered industry bestpractice. |
| Whether the data spacing and distribution is sufficientto establish the degree of geological and gradecontinuity appropriate for the Mineral Resource andOre Reserve estimation procedure(s) and classificationsapplied. | Norepresentationsofextensions,extrapolations or reference to gradecontinuityweremadeinthisannouncement. | |
| Whether sample compositing has been applied. | No sample compositing had been appliedto generate assay results subject of thisannouncement. | |
| Orientation of data inrelation to geologicalstructure | Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to whichthis is known, considering the deposit type. | Assayresultssubjectofthisannouncement are believed associatedwith brecciated carbonate replacementmineralisation. The breccias subject of thisannouncement were accurately mappedduring sampling with dip and contactmeasurements taken. The gradesarebelievedrepresentativeofinsitumineralisation. |
| If the relationship between the drilling orientation andthe orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material. | N/A – no drilling or drilling results arereferred to in this announcement. | |
| Sample security | The measures taken to ensure sample security. | Sample security is managed by theCompany in line with industry bestpractice. |
| Audits or reviews | The results of any audits or reviews of samplingtechniques and data. | Geologicalreviewsofsamplingprocedures are performed on site bysenior geological staff. Where consideredappropriate, assay data is independentlyaudited. None were required in relation toassay data subject of this announcement. |
Suite 1/16 Nicholson Road, Subiaco, WA 6008 • PO BOX 38, West Perth, WA 6872 Telephone: +61 (08) 6145 0300 • ABN: 36 128 512 907 Website: www.incaminerals.com.au
Section 2 Reporting of Exploration Results
| CRITERIA | JORC CODE EXPLANATION | COMMENTARY |
|---|---|---|
| Mineral tenementand land tenurestatus | Type, reference name/number, location and ownershipincluding agreements or material issues with thirdparties such as joint ventures, partnerships, overridingroyalties,nativetitleinterests,historicalsites,wildernessornationalparkandenvironmentalsettings. | TenementType:Peruvianminingconcession applications. Concession Names:Yacuna, Intihuañunan and Huaytapata Sur.Ownership: Concessionapplications arepending. |
| The security of the land tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area. | The concession applications are in goodstanding at the time of writing. | |
| Exploration done byother parties | Acknowledgement and appraisal of exploration byother parties. | This announcement does not refer toexploration conducted by previous parties. |
| Geology | Deposittype,geologicalsettingandstyleofmineralisation. | The geological setting of the area is that offolded sequence of Jurassic limestones ofthe Pucará Group and the CeracapuquioFormation.Multiplebrecciastructuresoccur in the project area which are believedfault-related. Multiple Zn-Pb-Ag occurrencesare associated with major structural trendswhichcrosstheprojectarea.Thismineralisationishostedindolomiticlimestone breccias and is believed to beMississippi Valley Type in style. |
| Drill holeinformation | A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for all Materialdrill holes: | N/A – no drilling or drilling results arereferred to in this announcement. |
| •Easting and northing of the drill hole collar•Elevation or RL (Reduced Level – elevation abovesea level in metres) of the drill hole collar.•Dip and azimuth of the hole.•Down hole length and interception depth.•Hole length. | ||
| If the exclusion of this information is justified on thebasis that the information is not material and thisexclusion does not detract from the understanding ofthe report, the Competent Person should clearlyexplain why this is the case. | N/A – no drilling or drilling results arereferred to in this announcement. | |
| Data aggregationmethods | In reporting Exploration Results, weighting averagingtechniques,maximumand/orminimumgradetruncations (e.g. cutting of high grades) and cut-offgrades are usually Material and should be stated. | Weighted averages were applied where anaverage grade is calculated over intervalscomprisingdifferentindividualchannellengths. No maximum/minimum truncationswere applied. |
| Where aggregate intercepts incorporate short lengthsof high grade results and longer lengths of low graderesults, the procedure used for such aggregation shouldbe stated and some typical examples of suchaggregations shown in detail. | N/A – no weighted averages of this naturewereapplied,normaximum/minimumtruncations were applied. | |
| The assumptions used for any reporting of metalequivalent values should be clearly stated. | N/A – no equivalents were used in thisannouncement. |
| CRITERIA | JORC CODE EXPLANATION | COMMENTARY | ||
|---|---|---|---|---|
| Relationshipbetweenmineralisationwidths and interceptlengths | These relationships are particularly important in thereporting of Exploration Results.If the geometry of the mineralisation with respect tothe drill hole angle is known, its nature should bereported. | As the channel sampling was perpendicularto visible mineralisation, the widths areconsidered true widths, commencing andfinishing at the foot and hanging walls of thevisible mineralisation. | ||
| If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (e.g. 'down hole length, true width not known'). | ||||
| Diagrams | Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported. These shouldinclude, but not limited to a plan view of drill hole collarlocations and appropriate sectional views. | Plans are provided showing the position ofchannel samples of this announcement. | ||
| Balanced reporting | Where comprehensive reporting of all ExplorationResults is not practicable, representative reporting ofboth low and high grades and/or widths should bepracticed to avoid misleading reporting of ExplorationResults. | TheCompanybelievestheASXannouncement provides a balanced reportof its exploration results referred to in thisannouncement. | ||
| Other substantiveexploration data | Other exploration data, if meaningful and material,should be reported including (but not limited to):geological observations; geophysical survey results;geochemical survey results; bulk samples – size andmethod of treatment; metallurgical test results; bulkdensity,groundwater,geotechnicalandrockcharacteristics; potential deleterious or contaminatingsubstances. | This announcement makes reference to twoprevious ASX announcements dated: 7February 2018 and 14 May 2018. | ||
| Further work | The nature and scale of planned further work (e.g. testsfor lateral extensions or depth extensions or large-scalestep-out drilling). | By nature of early phase exploration, furtherwork is necessary to better understand themineralisation appearing in undergroundmines that were channel sampled, subjectof this announcement. | ||
| Diagrams clearly highlighting the areas of possibleextensions,includingthemaingeologicalinterpretations and future drilling areas, provided thisinformation is not commercially sensitive. | N/A: Refer above. |
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Suite 1/16 Nicholson Road, Subiaco, WA 6008 • PO BOX 38, West Perth, WA 6872 Telephone: +61 (08) 6145 0300 • ABN: 36 128 512 907 Website: www.incaminerals.com.au