Inca Minerals has reported a large-to-giant sized carbonate replacement deposit at the Greater Riqueza zinc-silver-lead project in Peru as part of a geophysical survey funded by South32.
Riqueza is located within a part of Peru’s mineral belt, the Miocene Porphyry-skarn mineral belt, and the Chonta mineral belt more locally.
The significant deposit was discovered in Yanacolipa, one of the three large target centres at Riqueza that covers 4.42 square kilometres and four high-priority targets.
South32 decided to exercise an earn-in option for 60 per cent of Riqueza in August this year in return for funding the survey. The sum, which is being discussed, hovers between $US8–10 million ($11–14 million).
Negotiations between the two companies were showing good progress, said Inca in an ASX statement.
Inca will conduct 3D modelling following the completion of this surface geophysics interpretation.
Company managing director Ross Brown said, “Three-dimensional modelling is critical to exploration planning. It provides an indication of the potential size, shape and depth of each and every target.
“Through this knowledge, budgets and logistics for sampling programs, ground geophysics and drilling programs may be constructed. This is a vital aspect of earn-in agreement negotiations.”
Inca expects to complete negotiations with South32 within 90 days of receiving the geophysics report.