Inca One Resources (IO.V) has provided another update on the progress at Chala One where the company is expanding the mill capacity from 20-25tpd to 100tpd before the end of this year. The first ball mill with a 50tpd capacity is almost ready and should be brought to the Chala facility before the end of this month. Additionally, the down payment for the second mill with the same capacity has also been made, and the company is now expecting that mill to be delivered in November.
This sounds like Inca One will indeed be able to have a 100tpd capacity by the end of this year, and if the average grade of the ore it’s sourcing is indeed somewhere between 0.5-0.8 oz/t, then 2015 could be a pivotal year for the company, as for the first time in its history, Inca One will be free cash flow positive.
> Click here to read the press release
Disclosure: The author holds a long position in Inca One. Inca One is a sponsor of the website. Please see our disclaimer for current positions.
