Inca Minerals Ltd: +20% Zinc as Second Project Expands

Perth, Australia - Inca Minerals Ltd. (ASX:ICG) (Inca or the Company) wishes to update the market on developments at its Cerro Rayas Project. Reconnaissance mapping and sampling has identified further very high-grade zinc (Zn), silver (Ag) and lead (Pb) mineralisation along extensions of a major NW-SE trending mineral belt. Three additional concession applications have been lodged covering these mineralised areas. These three new concessions are in addition to the five concession applications now nearing approval and the two original concessions.

HIGHLIGHTS

- Further high-grade mineralisation in reconnaissance samples at Cerro Rayas Project:

o Sample IM-001328: 20.96% Zn, 174g/t Ag, 17.27% Pb

o Sample IM-001369: 14.16% Zn, 150g/t Ag, 36.45% Pb

o Sample IM-001327: 10.27% Zn, 13.3g/t Ag, 4.66% Pb

- Applications for additional concessions lodged

- First round of concession applications nearing approval

New Mineralisation on New Concessions at Cerro Rayas

The Company has lodged applications for three additional concessions: Yacuna (200ha), Intihuañunan (100ha) and Huaytapata Sur (100ha) covering very high-grade mineralisation and important extensions of the NW-SE mineral belt (see Figure 2 in link below). The Cerro Rayas Project area (granted and pending) stands at 3,000ha.

At Yacuna very high-grade mineralisation is associated with a brecciated structure bearing NE-SW within dolomitised limestone. Three channel samples were taken from visible mineralisation (gossan with smithsonite and galena) in outcrop (see Figure 1 in link below), IM-001367 (channel length: 0.70m), IM-001368 (channel length: 0.40m), IM-001369 (channel length: 0.50m). Sample IM-001369 contains 14.16% Zn, 150g/t Ag and 36.45% Pb and sample IM-001368 contains 4.08% Zn, 25g/t Ag and 4.31% Pb.

Like at Yacuna, high-grade mineralisation at Huaytapata Sur is associated with a brecciated structure within dolomitised limestone. In this instance, mineralisation is exposed in a historic shallow mine working called Irapata. Sample IM-001328 contains 20.96% Zn, 174g/t Ag and 17.27% Pb; sample IM-001327 contains 10.27% Zn, 13.3g/t Ag and 4.66% Pb; and sample IM-001331 contains 3.5% Zn, 166g/t Ag and 10.37% Pb.

Previous Concession Applications Nearing Approval - Strong Mineralisation Early Exploration Focus

The Company's five previous concession applications, namely Vicuña Puquio, Vicuña Puquio II, Puyuhuan, Tablamachay and Huaytapata, are nearing approval. As previously released (ASX announcement 7 February 2018), these concessions host strong Zn-Ag-Pb mineralisation at a number of historic mine workings and also host very significant extensions of the parallel NW-SE mineralised corridors (see Figure 3 in link below) (see Tables 1, 2, 3 in link below). All five applications are due to be granted in September.

The early exploration on these five concessions will focus on the seven new historic mine workings occurring on this ground. Like the mine workings at La Elegida (Vilcapuquio, Torrepata and Wari), the Company will undertake detailed mapping and channel-sampling to understand the nature of the Zn-Ag-Pb mineralisation. Exploration will also focus on the NW-SE trending structures (mineralised corridors) believed to be importation conduits for mineralisation. Results of this work would be used to design a drilling program to test high priority targets.

New Mineralised Belt Parallel to the Chonta Mineral Belt at Riqueza

Including granted and soon to be granted concession areas, Cerro Rayas now hosts an eight-kilometre strike length of an important Zn-Ag-Pb mineral belt comprising many more kilometres of mineralised structures and faults. This mineral belt is parallel to the Chonta Fault System which controls regional basin development and basin compression (see Figure 5 in link below) as well as porphyry, skarn and carbonate replacement mineralisation. The Company believes the extensive fault system at Cerro Rayas has the same potential as the Chonta Fault System for hosting mineralisation. Indeed, numerous Tertiary-aged intrusions and mines (operating and historic) are known along its course (see Figure 6 in link below).

"The Cerro Rayas Fault System is believed to be a repeat of the Chonta Fault System" says Inca's Managing Director, Mr Ross Brown. "As such, the NW-SE and SW-NE trending structures at Cerro Rayas are important conduits for mineralisation and a focal point for exploration.".

To view tables and figures, please visit:
http://abnnewswire.net/lnk/L07Z49EL

About Inca Minerals Limited:

Inca Minerals Ltd. (ASX:ICG) is currently undertaking a maiden drilling campaign at its Riqueza Zn-Ag-Pb project in Peru. The campaign comprises three phases of drilling for a total of approximately 48 holes and 14,000 metres of drilling (which can be extended to 16,800m automatically under the conditions of the granted DIA drill permit).

Source:

Inca Minerals Ltd.

Contact:

Inca Minerals Ltd. Phone: +61-8-6145-0300 Fax: +61-8-6145-0301 Email: info@incaminerals.com.au WWW: www.incaminerals.com.au