Inca Pacific tables Magistral results

Vancouver — With the latest round of drilling on the Magistral copper porphyry-skarn property complete, partners Inca Pacific Resources (IP-V) and Anaconda Peru are moving ahead with a resource calculation on the promising Peruvian project.

Anaconda Peru, a wholly owned subsidiary of London-based Antofagasta, managed the 49-hole, 4,000-metre diamond drill program. The recent results from the western part of the intrusive complex, which represents the heart of the deposit, continue to show encouraging grades. They include:

• Hole 61 — 188 metres grading 0.7% copper and 0.17% molybdenum from 16 metres down-hole;
• Hole 63 — 126 metres grading 0.4% copper and 0.07% molybdenum from 24 metres down-hole;
• Hole 64 — 168 metres grading 0.75% copper and 0.03% molybdenum from 256 metres down-hole;
• Hole 66 — 100 metres grading 0.95% copper and 0.02% molybdenum from 214 metres down-hole;
• Hole 68 — 84 metres grading 1.72% copper and 0.02% molybdenum from 136 metres down-hole;
• Hole 70 — 68 metres grading 1.35% copper and 0.02% molybdenum from 68 metres down-hole;
• Hole 71 — 60 metres grading 0.85% copper and 0.03% molybdenum from 404 metres down-hole; and
• Hole 75 — 146 metres grading 1.45% copper and 0.05% molybdenum from 54 metres down-hole.

Holes 62, 65, 67, 69, and 72 were all collared in the eastern portion of the intrusive complex and returned only low-grade values.

Holes 73, 74, and 76 were collared on the periphery of the mineralization and failed to return any significant values.

Since 1999, 76 holes have been drilled on the property.

Last Year, Anaconda tabled an inferred resource of 190 million tonnes grading 0.83% copper and 0.06% molybdenum. The resource lies in a saddle-shaped body of mineralization that measures 1.2 km long by 125 metres wide and extends to a depth of at least 350 metres.

Along with an updated drill-indicated geological survey, engineering studies and metallurgical work are under way.

Through Anaconda, Antofagasta can earn a 51% interest in the project by spending US$2.9 million this year. Antofagasta can then increase its ownership to 65% by advancing the property to the feasibility stage within two years.

Once vested, Inca Pacific will have seven years in which to complete a feasibility study and develop the project. The government will retain a net profit royalty.