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Inca secures silver-lead-zinc prospective Santa Rita project in Peru for US$1.8M

After 12 months of negotiation, said April 4 thatit is acquiring the Santa Rita project — prospective for silver, lead and zincmineralization — in Peru through a five-year mining option and assignmentagreement.

Past extensive rock chip sampling at Santa Rita hasidentified six high-grade veins with average grades of 165.56 g/t of silver,9.30% lead and 7.11% zinc and one high-grade manto deposit with average grades of227.12 g/t of silver, 11.56% lead and 7.38% zinc.

The total consideration for the project is nearly US$1.8million, less 2% net smelter return royalty.

Inca, which has a 20-year option to buy back half of theSanta Rita royalty for US$1 million, can fully acquire the project and/orwithdraw without penalty at any time.

Drilling at Santa Rita will start in the soonest possibletime, subject to the granting of an "early stage" drill permit. Aphase one drill program of around 3,000 meters is envisaged.