Inca signs option agreement over Santa Rita

PERTH (miningweekly.com) – Junior explorer Inca Minerals has secured an option over the Santa Rita silver/lead/zinc project, in central Peru.

The ASX-listed company told shareholders on Tuesday that should Inca move to acquire the project, the company would be liable for a $1.77-million consideration, with the payments to be staggered.

Inca would also be liable for a 20% net smelter royalty over the project. However, the junior has retained a 20-year option to buy back 50% of this net smelter royalty for $1-million.

The option agreement would span a period of five years.

The Santa Rita project is located in the rich mineral belts of central Peru, and past extensive rock chip sampling has identified six high-grade silver/lead/zinc veins and one high-grade silver/lead/zinc manto.

Additional veins and mantos have also recently been discovered and an extensive grid-soil sampling programme has identified a 700 m by 500 m area of more than 1% zinc extending well beyond the known veins and mantos.

Inca said on Tuesday that the company intended to develop the high-grade veins and mantos, with drilling to start in the soonest possible time frame, subject to the grant of an early stage drill permit.

The company would also conduct geophysical surveys to obtain a clearer understanding of the mineralised system, while targets for drill testing would be generated and prioritised.