VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 7, 2013) - Inca One Resources Corp. (TSX VENTURE:IO) -
- Toll milling agreement secured within 135Km from Corizona Mine
- 20 day turn around from material drop off to payment received
- Bulk sampling program continues extraction of Level -2 from Los Angeles Vein
INCA ONE RESOURCES CORP. ("the Company" or "Inca One") is pleased to announce that it and its operating partner at the Corizona Gold Project in Lima Peru, Canadian Mining SA ("the Partners") have secured a toll milling agreement with renowned Peruvian ore processor Grupo Dore to process the bulk sample material produced from its Corizona Gold project in Lima, Peru.
The agreement states that the Partners will fulfill all necessary requirements to sell bulk sample material from the Corizona project, and will pay to Grupo Dore the cost to mill its material, including a capital charge plus a toll milling fee per ton of bulk sample material produced.
Under the terms of the toll milling agreement, the Partners will transport all material produced at the Corizona project via truck to Grupo Dore's nearby processing plant located in the Ancon District, north of Lima, just 135 km from the Corizona project.
Material brought to the plant will be systematically sampled for quality assurance and grade control. Inca One has a contract with SGS Labs to assay the samples from the mill site. As samples are taken, metallurgical testing will commence to determine the optimum processing conditions.
Time from delivery of the material at the mill to receiving payment is approximately 20 days.
The bulk sample program is proceeding in two ways: underground development of Level -3; and extraction of the high-grade Los Angeles vein from Level -2.During this development phase, the Partners are reviewing various milling plants which are for sale and could be used for operations to process the material from the Corizona project.
"We are very pleased with the timely development of the Corizona project and the execution of the toll milling agreement to process the material," said Edward Kelly, President & CEO of Inca One. "We are one step closer to meeting our objective of building a positive cash flow company through the consolidation and development of low capital costs, near term producing assets."
The Corizona Mining Concession lies, approximately 85 kilometers from the city of Lima, Peru with existing roads, power and water on site.
The Corizona project is subject to a formalization process, which allows exploration and production of up to 350 tons per day while working toward formal operating permits and authorizations. Canadian Mining is a private Peruvian company, which has an option to acquire the project from the underlying property owner. It is submitting an IGAC (corrective environmental management instrument) to the Ministry of Energy and Mines as due procedure to obtain commercial operating permits.
More information on the company and its projects can be found at www.incaone.com.
On behalf of the Board,
INCA ONE RESOURCES CORP.
Edward Kelly, President& CEO
Statements in this press release 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 such as the risk that the closing may not occur for any reason. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) the inability of the parties to consummate the definitive letter agreement; (ii) fluctuation of mineral prices; (iii) a change in market conditions; (iv) the inability to produce the technical report for any reason whatsoever; and (v) the refusal of the Exchange to accept the proposed transaction for any reason whatsoever. Except as required by law, the Company does not intend to update any changes to such statements.
Investors should note that no resource has been established on the Corizona Property in respect of which the bulk sampling program has been initiated.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.