VANCOUVER, Jan. 10, 2018 /CNW/ - INCA ONE GOLD
CORP. (TSXV: IO, Frankfurt: SU9.F, SSEV:
IOCL) ("Inca One" or the "Company") is
pleased to provide a report on the milestones achieved in 2017 and
our primary goal of profitability for 2018.
The year 2017 was a turnaround year for Inca One with
significant milestones accomplished as we continued towards our
pursuit of profitability and our vision of becoming a leading
commercial gold processor in Peru. In our third year of
commercial operations, we focused on operating cost reductions,
infrastructure upgrades and internal controls.
During 2017, the Chala One plant "Chala One" operated at an
average throughput of 65 tonnes per day ("TPD"). Deliveries
to Chala One were 22,921 tonnes, up from 15,447 tonnes in 2016, an
increase of 48%. Chala processed 23,708 tonnes of
material in this year, up from 14,447 tonnes in 2016, an increase
of 64%. Gold production for the year was 9,927 ounces, up from
6,682 ounces produced in 2016, representing a 49% increase.
Gross sales were approximately US$13
million, up from US$9.0
million in 2016, an increase of 44% year over year. The
increase in production can be attributed to our skilled operators
and having sufficient working capital to purchase ore and pay our
miners in a timely manner. This working capital was lacking in 2016
due to IGV (Value Added Tax) audits.
The year's first milestone occurred in early January 2017 with the receipt of our Beneficial
Permit, making Chala One one of the few companies in Peru to complete the Formalization
Process. The receipt of the Beneficial Permits allowed for
the successful permitting of our first major infrastructure
project: the construction of our electrical power line. The
power line was completed in July, and Chala One was connected to
the Peruvian National Power Grid in August. As a result, electrical
and power cost savings to Chala One are approximately US$18,000 per month with this conversion.
Another key infrastructure component was the expansion and
upgrading of our tailing facilities to increase capacity by
approximately 90,000 cubic meters. The capital cost was
approximately US$313,000 and, at
current throughput levels, our tailing capacity will last
approximately 5 years. Future expansion maybe required sooner as
throughput rates increase.
Additionally, to ensure a consistent supply of quality mineral
to the processing plant, it was necessary to develop a
comprehensive infrastructure of mineral buyers in each gold-rich
area of Peru. Our network of
mineral buyers had been using a fleet of leased vehicles to service
existing zones and for exploring new zones to determine the
viability of mineral supply. During the fourth quarter of 2017, we
negotiated the purchase of a fleet of well-maintained, used
vehicles for our team on the ground, reducing monthly lease costs
by approximately US$22,000,
contributing to improved cost savings.
While infrastructure was a focus last year, we also had a
noteworthy improvement in production on a year-over-year
basis. Ore purchasing, ore processing and gold production
were consistent throughout the year and ore purchasing margins were
maintained over comparable periods on a year over year basis.
We were able to improve production despite an extraordinary rainy
season in February, March and April due to the impact of El
Nino.
Due to investment in infrastructure, our business cycle has now
been reduced from the 45-day turnaround in our first year to our
current 21-day operating cycle of ore delivery to gold export. This
represents a significant improvement as our working capital will no
longer be tied up for extended periods of time. Additionally,
our back office in Peru is to be
congratulated as they have been able to keep our monthly IGV
submissions and refunds current.
Looking ahead to 2018, we anticipate further production growth
and cost reductions. We have emerged from our recent improvements
and investments, following three years of consecutive commercial
production, right-sized and with a fully integrated gold ore
processing plant. We are optimistic about our future and
trust that our foundation is strong and ready for growth.
Results of 2018 Annual General Meeting
On December 13, 2017, the Company
held its annual general meeting (the "Meeting") in Vancouver, British Columbia. All
resolutions were passed by the requisite majority. Grant Thornton
LLP, Chartered Professional Accountants were re-appointed as
auditors of the Company for the ensuing year and shareholders
confirmed the Company's stock option plan.
Shareholders voted in favour of setting the number of directors
at four and the following incumbent directors were re-elected:
Edward Kelly, Bruce Bragagnolo, Rodney
Stevens and Adrian
Morger.
About Inca One
Inca One is a Canadian-based mineral processing company.
The Company's activities consist of the production of gold and
silver from the processing of purchased minerals located in
Peru. Peru is the 6th largest producer of gold in
the world and the Peruvian government estimates the small-scale
mining sector accounts for a significant portion of all Peruvian
gold production, estimated to be valued at approximately
US$3 billion annually. The
Company purchases its mineral from government registered
small-scale mining producers from various regions and processes it
at the Chala One milling facility located in Chala, Southern Peru.
On behalf of the Board,
Edward Kelly,
President and CEO
INCA ONE GOLD CORP.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS NEWS RELEASE.
Statements regarding the Company which are not historical facts
are "forward-looking statements" that involve risks and
uncertainties. Such information can generally be identified by the
use of forwarding-looking wording such as "may", "expect",
"estimate", "anticipate", "intend", "believe" and "continue" or the
negative thereof or similar variations. Since forward-looking
statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual
results in each case could differ materially from those currently
anticipated in such statements due to factors such as: (i)
fluctuation of mineral prices; (ii) a change in market conditions;
and (iii) the fact that future operational results may not be
accurately predicted based on this limited information to
date. Except as required by law, the Company does not intend
to update any changes to such statements. Inca One believes
the expectations reflected in those forward-looking statements are
reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements
included herein should not be unduly relied upon.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation, or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state.
SOURCE Inca One Gold Corp.