Precious Metals Division - Masma

The Masma prospect is comprised of 10 contiguous concessions totaling 8,200 hectares, located northwest of the city of Huamachuco and about 30 kilometres north of Barrick’s Alto Chicama project. Elevation varies between 3,400 and 4,150 m asl.

The geological setting is described by Inca Gold as Lower Cretaceous arenaceous and carbonaceous sedimentary rocks (Carhuaz, Farrat, Inca Formations), folded into a series of synclines and anticlines, and overlain by Calipuy volcanics (lapilli tuff). Brecciation and siliceous stockworks are reported in Farrat sedimentary strata and Calipuy tuff. Mineralization is reported as in fractures in Lower Calipuy volcanics where in contact with arenaceous sediments of the Carhuaz and Farrat formations. Signs of epithermal systems are evident in the region. The Shahuindo gold deposit is located about 5 kilometres to the east of the Masma concessions; the Algamarca silver-gold mine is 2 kilometres to the east.

Sampling has identified two areas of potential interest, a large area of anomalous silver in the northern part (“Masma”) of the prospect and a gold anomaly in the southern part (“Cerro Negro”), plus other gold-silver anomalies.