Does ICG have a company maker at Riqueza?

Many of us on HC truly believe Inca Minerals (ICG) to be a once in a lifetime share.

A quick recap for those who want to know about ICG:

- Drilling Campaign: Inca has begun its maiden drilling campaign at its Riqueza Zn-Ag-Pb project in Peru. 14,000m drilling allowance with an automatic 2,800m allowance. It also has approval for significant trenching which will allow it to “open” up the prospect by trenching across areas of interest to get a better understanding of structure, geology and geometry.

- Projects: There are now four highly prospective areas at Riqueza, the Humaspunco Prospect (“Humaspunco”), the Humaspunco South Prospect (“Humaspunco South”), the Pinta Prospect (or “Pinta”) and the Uchpanga Prospect (or “Uchpanga”). The Humaspunco area has two components to it. The Humaspunco hill where most of the initial veins and mantos were found and, more recently, an area to the west of the Callancocha fault/feeder zone which has newly identified mineralisation and significant fracturing (potential sites for veining and other mineralisation).

- Strong Experienced Management: Strong management team (Ross and Justin) that are very quick to update the market and very keen to fast-track this project. Ross is an experienced Geologist with over 26+ years in various countries (Australia, Asia, Africa, South America) and with various commodities. They had the foresight to mobilise the drill rigs prior to receiving the drill commencement date. We know the horrible floods and landslides that have been experienced in Lima and in the far north in Peru... having experience in Peru and knowing how to work with the locals and the seasonal aspects of a country you are exploring in is imperative.

- BHP: BHP have applied for ground literally adjacent to (and in part overlapping) ICG ’s tenements (Ross has confirmed this overlapping ground to be ICG ground). BHP is a multinational and does not look at projects that do not “fit” their operation profile - they aim for large scale, large tonnage and long life projects. They will be eyeing the drill results from ICG over the coming months.

- Chinalco / Chinese smelter investment: Through some brilliant research from some HC posters on here it has been determined that people currently and previously associated with Chinalco (Aluminum Corporation of China Limited) have done a soph raise with ICG. Their Peru branch seems to have invested in ICG (more than likely Chinese government funded). The fact that the Chinese (and potentially a large company) has taken an early position in ICG, ahead of drilling, is a real vote of confidence in the project. However it also raises the prospect, if the current drilling campaign is hugely successful, that a pre-emptive takeover bid, most likely seriously undervalued, could occur. The reasoning behind this statement is that the Chinese investors do not usually take a passive and minority shareholding in a company if it has good assets and the expectation is that they would seek to gain control of ICG if it turns out that Riqueza is a decent sized and economic deposit. It is noted that for the moment, ICG have secured a commitment from the new Chinese investors to vote in-line with the ICG board. In addition to this the tireless efforts of the Doc to create the shareholder group, it has only set us up in a stronger position to counter-act any lowball offers.

- Zinc: Zinc is on fire currently. Supply shortages in China (and abroad) at all time lows and Zinc mine closures or restarts will mean Zinc will be on track for a strong 2017 (and 2018). Prices currently holding above $2,600+ per MT and going as high as $2,950 per MT in Feb 2017 means Zincs rally should continue on. We see stories like this regularly: "...zinc hits a three-week peak on persistent supply shortages."

- MD on the ground: Ross is in Peru as we speak on the ground (and will be on site on the 29th March 2017) and a drilling update or announcement is expected shortly. We should be expecting core visuals any time now followed by assays on the first holes.

- Funds: Well funded for the upcoming drill campaign at Riqueza ($4m+ in the bank). ICG has a knack for regular small raisings however we are fully funded for the upcoming drill.

- Resource estimates: Whilst it is not possible to state with any certainty exactly how big and valuable any resource could be, until such time as the drilling program has either identified a resource or allowed the company to announce an “exploration target”, it is not unreasonable to think that we could be looking at a gross $5 - $50 billion resource (based on metal value – this is not an NPV or profit comment) here depending on the final grade and resource size of anything found - drilling will prove or disprove this as reality or fantasy but I for one would hate to be sitting on the sidelines when I had the chance to take a decent position.

This is just a recap of my thoughts of ICG and its current position. I would encourage all who are on the sidelines to seriously consider looking into ICG. With my discussion with other ICG shareholders, over the past days and months, we truly can't wait to see what drilling will uncover. This is not financial advice but I hope that this post outlines the potential that ICG has moving forward. I encourage everyone to do your own research and have a good look at the company’s ASX releases and also a couple of recent  promos' by “The Next Small Cap”.

If you haven't jumped on board the shareholder group (and you own ICG shares) I would recommend you email the Doc - even if it is just a few hundred thousand shares... every share counts. Please bear in mind if you are aiming at short term trading or day trading ICG there is no need to contact the Doc.

For your reference and to get in contact with the good Doctor (he gave me permission to use his email):

Dr. Jonathan West: [email protected]

Best of luck to all holders over the coming months.

Dooze