Precious Metals Division - Huamachuco

The Huamachuco prospect comprises four concessions: Elmer 70A and 70B, about 5 kilometres south-southeast of the town of Huamachuco and Gianderi XXI, about 10 kilometres to the southeast, south of the village of Curgos.

Elmer 70A and 70B are located one to two kilometres south of Cambior’s El Toro mine. Though not being operated by Cambior, El Toro is currently being actively exploited by numerous “informal” adits. El Toro is said to contain 750,000 ounces of gold in open pittable material grading 0.5 g/t.

The area in and around the property is underlain by sandstones of the Chimu, Farrat, Santa-Carhuaz and Inca Formations, intruded by adamellite bodies. Inca Gold reports results from preliminary surface rock sampling (41 samples) that include gold values as high as 1.4 g/t in Chimu Formation and 2.9 g/t in Farrat Formation. A silver value of 508 g/t (about 16 oz/t) also is reported by Inca Gold, but could not be confirmed by Micon from the list of assay results in the property report (although one sample is reported as “greater than 100 ppm Ag”).