Inca One Resources Corp. (IO:CA)

Inca One Metals Corp. (TSX-V: IO) is a Canadian resource company focused on acquiring and advancing properties in the South American country of Peru.
Peru, which was home to the Inca Empire, is currently the largest gold producer in South America (1), hosting mines which produced up to 26 million ounces of gold (2). A highly mineral-rich country, Peru is the largest producer of silver and 2nd largest producer of copper worldwide as of 2009 (3).
The Company's experienced management team is committed to forming strong community partnerships and operating in a socially responsible manner as it works to identify quality projects. Inca One is advancing its principal asset, the Las Huaquillas Property in northern Peru. The project which consists of 9 mineral concessions totaling 3,700 hectares in size, hosts two separate styles of mineralization; a gold-silver bearing zone and copper-gold porphyry zones.
Historic work includes:

1. The discovery of Los Socavones, a gold-silver bearing zone. "Using more than 20 mineralized intercepts, Sulliden calculated that the Los Socavones zone hosts a geological resource of 6.57 million tonnes grading 2.09 g/t Au and 25.2 g/t Ag, equivalent to 443,000 ounces of gold and 5.3 million ounces of silver." (4) The historic resource was calculated in 1998 and the Company has not completed the work necessary to have the historical estimate verified by a Qualified Person. The Company is not treating the estimate as a current NI 43-101 defined resource and the historical estimate should not be relied upon. The Project will require considerable future exploration which the Company intends to carry out in due course.

Upon receipt of the appropriate permits, Inca One intends to perform confirmation drilling within the area previously drilled, and to test for potential extensions of the mineralization, both along strike and further down dip.

2. The San Antonio discovery of a copper-gold porphyry zone. "Diamond drill hole LH97-17, which led to the discovery of this zone, was drilled to investigate the southern portion of the copper soil anomaly. Composed of quartz-magnetite-chalcopyrite-bornite veins and veinlets in a quartz diorite, the most significant mineralized intersection of this hole is 100.7 m grading 0.28% Cu, 0.38 g/t Au and 4.5 g/t Ag, including a 21 metre-section grading 0.46% Cu, 0.74 g/t Au and 4.9 g/t Ag. The grades of the 21 metre-section are similar to average grades shown in many of the world's largest porphyry copper-gold deposits." (4)

Previous exploration on the property has identified two porphyry copper-gold targets. The company intends to conduct further exploration on these targets.

Property Location

Las Hauquillas is located in the Cajamarca Department of northern Peru, 10 kilometres south of Ecuador and 1,100 kilometres north of Lima. The property lies within the Miocene Metallogenic Belt of central and northern Peru, which stretches over 900 kilometres along the western Cordillera and adjacent high plateau provinces.
The belt is divided into two sub-belts:

• The western belt is named the Quiruvilca-Pierina Sub-Belt,
• The eastern belt is named the Michiquillay-El Toro Sub-Belt.

Based on the recent discoveries of other companies working in Peru and Ecuador, the Las Huaquillas property is located in the northern extension of the Michiquillay-El Toro Sub-Belt. The property is situated within a major caldera characterized by a concentric and radial fracture pattern. The oldest rocks consist of intermediate volcanics belonging to the Jurassic Oyotún Formation, and were intruded by Cretaceous and Jurassic intrusions of dioritic to granodioritic composition.

Project and Regional Geology

"The Cajamarca mining district, located in northern Peru, has one of the largest gold inventories in South America with the economic high-sulphidation Yanacocha gold mine, plus several smaller gold epithermal and porphyry copper-gold deposits." (6) The region demonstrates an assemblage of Mesozoic and Tertiary volcanic and intrusive rocks. With respect to metallogeny, the gold-silver mineralized belt has undergone numerous episodes of deformation and is defined by many hydrothermal mineral deposits of different types that were formed anywhere between 6 and 20 million years ago.
Almost half of the property is covered by Pleistocene and Cretaceous sediments. During the course of past geological surveys, several conjugate fault systems were mapped. Movement along these faults was interpreted to be reverse, based on the juxtaposition of plutonic rocks over older volcanic rocks. Finally, a ring-dyke structure mapped in the Cementerio sector is indicative of the potential for porphyry mineralization in this sector.
Los Socavones shows potential for expansion of the gold-silver bearing zone both at depth and along strike. Metallurgical testing has indicated good results for gold recovery on this style of gold mineralization. Three separate zones have been identified, and large intercepts have been identified, as shown in image to the right. Diamond drilling along a strike length of 1,000 meters and underground workings along 400 metres of strike length and 100 metres vertically were previously completed.
The Los Socavones zone is located at the eastern end of a northeast, 2.1-kilometre long, gold-bearing structure that also passes through the Las Huaquillas and El Huabo mineralized areas.
The Los Socavones zone is characterized by:

• A strong, induced polarization anomaly extending for at least 2.1 kilometres,
• A coinciding gold-zinc-lead-arsenic soil anomaly,
• The presence of gold-silver mineralization and sericitic alteration.

The San Antonio porphyry zone is located one kilometre northwest of the Los Socavones zone and is characterized by a crescent-shaped, strong induced polarization anomaly coinciding with a high magnetic anomaly.

History of the Property

• 2011 - The Las Huaquillas Property is being optioned by Inca One Metals for up to 100% ownership.
• 1998 - Fully integrated exploration program composed of mapping, trenching, soil and stream-sediment geochemical surveys, geophysical surveys and diamond drilling was conducted by Sulliden Gold Corporationn Ltd.
• 1996 - Sulliden Gold Corporation Ltd. signed an option agreement for the complete land package and completed a $5 million financing.
• 1987-1992 - Exploration program was conducted by the Cooperación Minera Peruano-Alemana (CMPA) which resulted in the discovery of the Los Socavones gold-silver zone. Metallurgical studies indicated good results for gold recovery.

1 http://www.usfunds.com/interactive/global-gold-mining-production/

2 http://www.newmont.com/south-america

3 Source: US Geological Survey (2009 Minerals Yearbook - Peru, February 2011)

4 Source: Sulliden Annual Report filed August 12, 1998, available on www.sedar.com .

5 Source: Tectonic, Magmatic and Metallogenic Evolution of The Cajamarca Mining District, Northern Peru. PHD Thesis; Richard Charles Idris Davies. December 2002.

Disclaimer

The technical information in this website has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed on behalf of the Company by Thomas A. Henricksen, PhD, a Qualified Person under NI 43-101.
Statements regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties such as the risk that the closing may not occur for any reason. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) the inability of the parties to consummate the definitive letter agreement; (ii) fluctuation of mineral prices; (iii) a change in market conditions; (iv) the inability to produce the technical report for any reason whatsoever; and (v) the refusal of the Exchange to accept the proposed transaction for any reason whatsoever. Except as required by law, the Company does not intend to update any changes to such statements.
The historic resource was calculated in 1998 and the Company has not completed the work necessary to have the historical estimate verified by a Qualified Person. The Company is not treating the estimate as a current NI 43-101 defined resource and the historical estimate should not be relied upon. The Project will require considerable future exploration which the Company intends to carry out in due course