| |  |  | 
|
| |   Mon Mar 8, 2004
Inca Pacific Increases its Ownership in Magistral Project to 100%
|
| | VANCOUVER, BRITISH COLUMBIA--Inca Pacific Resources Inc. announces that Inca Pacific S.A., a wholly owned subsidiary of Inca Pacific Resources Inc., has acquired Anaconda Peru's 51% interest in the Magistral Project for US $2,100,000 thus increasing its interest to 100%.
Anthony Floyd, President and CEO, said "Inca Pacific is pleased to now own 100% of the Magistral copper-molybdenum project and to be advancing the project to Bankable Feasibility at a time when metal prices are expected to remain robust for the foreseeable future."
Preparations are underway to begin the Bankable Feasibility Study. Drilling is expected to commence in the middle of April. AMEC (Peru) S.A. ("AMEC") has prepared an estimation of costs and schedule study for the project. AMEC have defined the activities and associated costs required to advance the project to completion of feasibility studies within 2 years. AMEC envisions the program of work to be completed in three phases that progressively advance the project according to the expected timeframe. Phase I consists of fieldwork, an infill drill program, a mineral resource estimate and a scoping study for a total duration of 6 months (finished in September 2004). Phase II includes follow up drilling and preliminary feasibility study activities (6 months duration and finished in March 2005) while Phase III includes all activities to prepare and present a bankable feasibility report by March 2006 (12 months duration).
Total Mineral Resources have been estimated at 105 million tonnes grading 0.74% copper, 0.052% molybdenum and 3.90 grams/tonne silver at a copper cut-off of 0.50% copper. The resources are categorized as follows:
-----------------------------------------------------------------------
Resource Category Tonnes Copper Molybdenum Silver
(millions) (%) (%) (grams/tonne)
-----------------------------------------------------------------------
Measured 31 0.79 0.055 4.00
-----------------------------------------------------------------------
Indicated 33 0.78 0.052 4.30
-----------------------------------------------------------------------
Inferred 42 0.68 0.050 3.60
-----------------------------------------------------------------------
This equates to 1.7 billion pounds of copper, 115 million pounds of molybdenum and 13 million ounces of silver. An economic evaluation conducted by the previous operator, Anaconda Peru, based on a before-tax evaluation of the project and at a 10% discount rate, placed a net present value of CDN $150 million using the following metal prices: copper (US $1.00/pound), molybdenum (US $5.00/pound) and silver (US $5.50/ounce).
Interpretations of geological and geochemical data, principally from the drilling completed to date, indicate that the skarn and porphyry-style mineralization forms a coherent body which is still open to depth. The mineral resources have been calculated in accordance with definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). The resource calculation and economic evaluation were prepared by Anaconda Peru and audited by Lawrence A. Dick, Ph.D., P.Geo., the Qualified Person as that term is defined in National Instrument 43-101 of the Canadian Securities Administrators.
Inca Pacific and Anaconda Peru have together spent over US $6,000,000 on the property. Work has included 24,640 metres of diamond drilling in 76 holes, geotechnical analyses, preliminary metallurgical testing, preliminary mine layout and open pit design, tailings studies, environmental base line studies, and socio-economic studies. In addition scoping studies, some at the pre-feasibility level of detail, have been carried out by Anaconda Peru which indicate that no significant technical obstacles preclude the development of a 15,000 tonnes per day open pit mine at Magistral.
Inca Pacific is a resource exploration company with a focus on copper, gold and molybdenum projects with robust economics in Peru. Visit our website at www.incapacific.com for the latest corporate information.
Standard & Poor's Listed
INCA PACIFIC RESOURCES INC.
Signed:
Anthony Floyd, President and Director
-30-
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. |
| |
| | You can return to the Top of this page
|
| |
|
| |
