Some recent encouraging articles and ASX announcements have been made recently that hint to the potential resource at Chanape.
Article extract from ResourceStocks August/September 2013 “Inca Minerals : Short-Term Pain For Long-Term Gain”
“ … Inca has already been approached by five majors – some listed, some private – for whom Chanape ticks their boxes. Some of these are looking at diversifying into copper-gold away from Western Australia.
The excitement over Chanape stems largely from its size. While one drill hole does not make a deposit, the indications are compelling: widespread porphyry style alteration, over 50 breccia pipes, a very large geophysical anomaly (2.5 km x 1.0 km) – it all points to a very large porphyry being present. The billion tonne-plus Toromocho copper-silver-molybdenum porphyry deposit is just 30 km away.
Taking all of this into consideration, Brown said that “it is not beyond our expectations that a billion-plus tonne deposit could be located at Chanape. After all, like Toromocho we have a copper-silver-molybdenum porphyry”. Another drawcard of Chanape is that the project exposes investors to commodities across the spectrum – gold, copper, silver and molybdenum. …”
Since this article was published Inca minerals has completed the Phase surface rock chip 50 x 50 m grid sampling and the Induced polarisation (IP) survey where Lead has also been added to the product mix.
Selected extracts from today’s ASX announcement “Chanape Delivers Rich Epithermal Gold and Silver” of interest …
“… • Twenty eight breccia bodies and seven breccia structures discovered in P2 bring total number of breccias Identified in P1 and P2 programs to 73 ( on approximately two thirds of project area )
• Large , well-defined geophysics anomalies coinciding with surface target zones, define porphyry targets for drilling with in 2.5km x 1km Spontaneous Potential Anomaly
Geophysical Targeting
A total of 40.9 line kilometres of Induced Polarisation (“IP”) were completed across the P1/P2 area.
This data has been modelled to reveal stunning anomalies highly reminiscent of sulphide-bearing porphyries.
A key to this new level of understanding is the field configuration of the IP survey , allowing for the first time, interpretation below 300m depth.
The result of this IP survey is the generation of a set of compelling epithermal and porphyry targets juxtaposed in close proximity to the surface, yet extending beyond the vertical limit of interpretation (>600m).
…”
For the first time we now see that the geophysical target is 2,500 m (length) x 1,000 m (width) x 600m+ (depth) (i.e. open at depth). Bearing in mind that only two thirds of Chanape has been geologically mapped.
Resource tonnage target estimate based on these measurements provides an estimated tonnage (if the resource is contiguous) of:
Resource Tonnage estimate = Length (m) x Width (m) x Depth (m) x Specific Gravity (tonnes/cu.m)
Specific gravity: 2.3 tonnes / cu.m (for Quartz/Fields Porphyry at Toromocho)
(2500 x 1000 x 600) = 1,500,000,000 cu.m x 2.3t/cu.m = 3,450,000,000 tonnes
Therefore, the billion tonne-plus estimate that Ross Brown was quoted as saying in the ResourceStocks article is not un-reasonable (if the drilling campaign un-locks the potential of Chanape).
What I find very encouraging from the Phase 1 and 2 surveys to-date are the number of breccias discovered (73 on approximately two thirds of project area) and breccia structures that start at the surface and continue to depth (IP survey showed “a set of compelling epithermal and porphyry targets juxtaposed in close proximity to the surface, yet extending beyond the vertical limit of interpretation (>600m)” (i.e. it is open at depth)
The rock chip sampling also produced some exceptional results …
Grid rock chip sampling
-large gold, silver, copper, molybdenum anomalies A total of 392 rock chip samples were taken on a 50m grid across the P2 area
Exceptional assay results have resulted in the identification of porphyry targets across the P1/P2 areas
Measure: 31.1034768 g per troy oz Sample Number: 733
Current Metal Prices: Gold 1370.10 USD/troy oz Silver 22.963 USD/troy oz Copper 7265.50 USD/t Lead 2229.50 USD/t Molybdenum 9.34 USD/lb (20585 USD/t)
Sample Number 733 Product Mix value per tonne of ore Gold 1.02 oz x 1370.10 USD/troy oz = 1397.50 USD Silver 21.31 oz x 22.963 USD/troy oz = 489.34 USD Copper 5.2 kg x 7265.50 USD/t = 37.78 USD Lead 8.8 kg x 2229.50 USD/t = 19.62 USD Molybdenum 1.62 kg x 20585.00 USD/t = 33.35 USD Total/t of ore = 1977.59 USD
While this is only one sample of the gold bearing epithermal breccia pipe/system it shows the potential of Chanape. You can apply the same formulae to the other surface rock chip samples.
Given the potential scale of Chanape (billion tonne-plus target), even at low cut-off grades there is a massive potential resource siting under the mountain shown in the photograph.
The photograph also shows that many of the breccia systems are exposed to the surface, which looks as though it could be a large open-cut operation to extract the ore.
What is also interesting is the vulnerability of ICG to a friendly or hostile takeover.
ICG has only 420,487,615 ordinary shares on issue with an additional 50,000,000 shares that are likely to be issued sometime over the next few months.
228,056,618 shares have been traded in the last month (22/07/2013 to 21/08/2013) or 54.24% of the stock on issue. With an additional 25,590,000 today (as at 1:41pm).
There is a lot to like about ICG.
As always DYOR and good luck to the long-term shareholders,
Cheers,
GrayNomad
ICG Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
(20min delay)