Inca One Gold (IO.V) has announced a very important deal, as it has signed a letter of agreement with an approved small-scale mining company whereby the latter will truck its ore to Inca One’s Chala One processing facility. The company will provide an initial 350 tonnes per month (roughly 11 tonnes per day) with a possibility to increase this to 1000 tonnes per month (33 tonnes per day). This could be a cornerstone agreement as at a supply rate of 1000 tonnes per month, this one customer would fill one third of Inca One’s total planned capacity of 100 tonnes per day. This agreement is another piece of evidence that there’s plenty of ore available in the Chala region for third party processing.
Meanwhile, the construction activities at Chala One are ongoing. The first ball mill has already been delivered to site and the second mill is expected to arrive shortly. We expect an update from the company in one of the next few days, and we continue to aim for a fully commissioned 100 tonnes per day plant by the end of this year or January next year. Everything seems to be going well in Peru, and with this first ore supply agreement there remains little doubt Inca One will be able to find sufficient high-grade ore to feed its mill.
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Disclosure: The author holds a long position in Inca One Gold. Inca One also is a sponsor of the website. Please see our disclaimer for current positions.
