Inca Pacific Resources Inc.

Inca Pacific Resources Inc.

January 05, 2005 08:30 ET

Inca Pacific Resources Inc.: New Independent Estimate by AMEC Confirms 20% Increase in Measured and Indicated Resources at Magistral, Peru


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INCA PACIFIC RESOURCES INC.

TSX VENTURE SYMBOL: IPR

JANUARY 5, 2005 - 08:30 ET

Inca Pacific Resources Inc.: New Independent Estimate
by AMEC Confirms 20% Increase in Measured and
Indicated Resources at Magistral, Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 5, 2005) - Inca Pacific
Resources Inc. (TSX VENTURE:IPR) is pleased to report the results of an
independent mineral resource estimate by AMEC (Peru) S.A. ("AMEC") for
the Magistral copper-molybdenum deposit located in Ancash, Peru. The
estimate was commissioned after the completion of an 8,000 metre infill
core drilling program. AMEC's Mineral Resource estimate, which
represents an increase of 20% in measured and indicated resources and
only a 7% decrease in inferred resources, is briefly summarized as
follows:



Measured & Indicated Mineral Resources

----------------------------------------------------------------------
Cu %
Cut-Off Tonnes
Grade Millions Copper % Molybdenum % Silver ppm
----------------------------------------------------------------------
0.5 76.0 0.76 0.055 3.7
0.4 108.3 0.66 0.054 3.4
0.3 155.7 0.57 0.051 3.0
----------------------------------------------------------------------


Inferred Mineral Resources

----------------------------------------------------------------------
Cu %
Cut-Off Tonnes
Grade Millions Copper % Molybdenum % Silver ppm
----------------------------------------------------------------------
0.5 39.4 0.71 0.039 2.9
0.4 62.1 0.61 0.041 2.7
0.3 110.2 0.50 0.040 2.4
----------------------------------------------------------------------


AMEC's estimate is based on assay results from 32,640 metres of drill
core in 108 holes.

The previous Mineral Resource estimate was prepared by NCL Ingenieria y
Construccion S.A. for Minera Anaconda Peru S.A. ("Anaconda"), a
subsidiary of Antofagasta PLC and audited by Lawrence A. Dick, Ph.D.,
P.Geo in 2002. It was published on May 19, 2004 and stated that the
Measured & Indicated Resources, at a 0.5% Cu cut off, totaled 63.2
million tonnes grading 0.78% Cu, 0.054% Mo and 4.1 g/t Ag while the
Inferred Resources, at a 0.5% Cu cut off, totaled 42.2 million tonnes
grading 0.68% Cu, 0.05% Mo and 3.6 g/t Ag.

This resource estimate is the first product of a multi-phase program
designed by AMEC to allow completion of a Bankable Feasibility Study by
June 30, 2006. AMEC envisioned that the program of work should be
completed in three phases. Phase I consisted of fieldwork, a drill
program, a mineral resource estimate, Technical Report and a scoping
study (new Preliminary Assessment) for a total duration of 9 months (to
be finished by January 2005). Phase II will include follow-up drilling
and preliminary feasibility study activities (11 months duration and
finished in December 2005) while Phase III includes all activities to
prepare and present a Bankable Feasibility Study by June 2006 (6 months
duration). Extensive preliminary work has been performed to date, which
includes exploration drilling, geotechnical analyses, preliminary mine
layout and open pit design, tailings studies and environmental studies.

Armando Simon, Ph.D., MAIG and Doug Reddy, P.Geo., both employees of
AMEC, are the principal Qualified Persons responsible for the Technical
Report. Steve Blower, P.Geo., under the direction and supervision of Dr.
Simon and Mr. Reddy, P.Geo, prepared the resource. Doug Reddy provided
AMEC's third party opinion as to compliance by Inca Pacific with
National Instrument 43-101 with respect to disclosure of resource
estimates at Magistral.

Inca Pacific is a resource exploration company with a focus on copper,
gold and molybdenum projects in Peru. Visit our website at
www.incapacific.com for the latest corporate information.

INCA PACIFIC RESOURCES INC.

Anthony Floyd, President and Director

Standard & Poor's Listed

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Inca Pacific Resources Inc.
    Clive Massey
    Investor Relations
    (604) 662-3902
    Email: cmassey@incapacific.com
    Website: www.incapacific.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.