Inca Pacific, Anaconda wrap up drilling

Vancouver — Inca Pacific Resources (IP-V) has tabled encouraging drill results from the Magistral copper porphyry-skarn property in Peru.

The 49-hole, 4,000-metre diamond drill program was managed by partner Anaconda Peru, a wholly owned subsidiary of London-based Antofagasta. The recent holes, nos. 53 to 60, were all collared in the western part of the intrusive complex, which represents the heart of the deposit.

Forty-nine holes have been drilled this year, and results are still pending for 16. Since 1999, 76 holes have been drilled.

The inferred resource was last estimated at 190 million tonnes grading 0.83% copper and 0.06% molybdenum. The resource lies in a saddle-shaped body of mineralization that measures 1.2 km long by 125 metres wide and extends to a depth of at least 350 metres.

Anaconda’s objectives include: keeping capital costs under US$280 million; lowering the operating costs to less than US50 per lb. copper; and upgrading the geological resource (190 million tonnes grading 0.83% copper and 0.06% molybdenum) to the drill-indicated category.

Through Anaconda, Antofagasta can earn a 51% interest in the project by spending US$2.9 million this year. Once this is done, the company can increase its ownership to 65% by advancing the property to the feasibility stage within two years. Once vested, Inca Pacific will have seven years in which to complete a feasibility study and develop the project. The government will retain a net profits royalty.

Results from the latest batch of drill holes are outlined in the accompanying table.

HoleFrom-ToIntervalCopperMolybdenum