Inca Pacific Resources Inc.
TSX VENTURE : IPR

Inca Pacific Resources Inc.

July 07, 2008 09:00 ET

Inca Pacific Receives Government of Peru Approval of Magistral Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2008) - Inca Pacific Resources Inc. (TSX VENTURE:IPR) is pleased to announce that it has received formal approval of its Magistral Final Feasibility Study ("FFS") from the Government of Peru ("GOP"). In connection with this approval Inca Pacific has provided a bank guarantee for the sum of US$3 million in favour of the GOP. The purpose of the guarantee is to assure performance of the first year investment commitment for mine construction as defined in the FFS.

Anthony Floyd, President & CEO said, "This is another important milestone in the development of Magistral. It will allow us to place orders for long lead time equipment, negotiate surface rights agreements with our local communities and accelerate the permitting process including ESIA approval."

Magistral, as defined by the FFS, involves the development of a 20,000 tonnes per day open-pit mine and concentrator operation that will produce separate copper and molybdenum concentrates over a 15-year period. Magistral is located in northern Peru approximately 260 kilometers east of the city of Trujillo. Concentrates will be trucked from the mine to the port of Salaverry, near Trujillo, and then shipped to smelters and refineries overseas. Plant tailings will be impounded in tailings storage facilities located near the mining operation. The project also includes major improvements to the site access roads, construction of site support facilities and a 50-kilometer electrical transmission line.

INCA PACIFIC RESOURCES INC.

Anthony Floyd, President and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information