In another positive production update for the Chala One processing plant in Peru, Inca One Gold (IO.V) announced it has produced an additional 3,186 ounces gold as well as 4,069 ounces silver in the period from June 3 until July 31st (58 operating days). That’s a positive development as Inca One was able to keep the throughput and average grade pretty stable.
We expect the production rate to increase in the current 8-week cycle as Inca One is now consistently processing between 80 and 100 tonnes per day, so we would quietly be aiming to see a gold production of 3,500 ounces in the current 8 week cycle. The average recovered grade of the ore in the June-July period was 0.76 ounces of gold per tonne as well as 0.97 ounces silver per tonne of rock. The silver content is actually a nice bonus as even though Inca One doesn’t have to pay for the silver in the ore it purchases, it does receive 100% of its value from the refiner.
Meanwhile, a new tailings pond (see the picture on top of this blogpost) has been installed at Chala One, increasing the useful life of the current tailings facilities to three years. We will be visiting the Chala One processing plant again in the fall, and will obviously report back on our findings.
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Disclosure: The author holds a long position in Inca One Gold. Inca One is a sponsor of the website. Please see our disclaimer for current positions.
