-- Posted Monday, 16 December 2013 | | Disqus
P. ZIHLMANN INVESTMENT · MANAGEMENT AG
Your independent SWISS asset manager
THE TIMELESS PRECIOUS METAL FUND
THE TIMELESS ENERGY FUND (SOON TO BE RENAMED TIMELESS URANIUM FUND)
THE SIERRA MADRE GOLD & SILVER VENTURE CAPITAL FUND
Home page of IO
Chart years 2
INCA ONE RESOURCES.: RETURN ON CAD 10,000 INVESTMENT | |
Purchase Date | No. of Shares | Purchase Price | Cost (CAD) | Price Today | Value Today |
December 13, 2103 | 100'000 | 0.11 | 10'500.00 | | |
Total | 100'000 | 0.11 | 10'500.00 | 0.11 | 11'000.00 |
Profit | | | | | 500.00 |
Profit (in %) | | | | | 5% |
SHARES ISSUED AND OUTSTANDING / FULLY DILUTED | MARKET CAP |
43,489,174 / 66,054,317 | CAD 4.46M |
52 WEEK LOW / HIGH | CVE |
CAD 0.06 to 0.13 | 86,137 (200-day) |
RECOMMENDATION | RISK RATING |
BUY | HIGH |
Custom gold ore processor in Peru
Business Summary
Inca One Resources Corp. is a Canadian-based mineral resource company with a newly acquired gold milling facility (Chala One) and an advanced-stage project (Corizona) in Peru, which was home to the Inca Empire.
Inca One intends to become the “processor of choice” by offering superior service and conditions amenable to North American standards.
Peru Formalization
The Government of Peru was losing tax and royalty revenues from small mines exporting “under the radar screen”.
- Recently instituted “formalization” process will require all mines to process ores through a recognized, permitted, mill facility. Inca One has identified mills to acquire whose owners cannot navigate the permitting process.
- Many “small miners” have been identified and have applied for “formalization”, and will need to ship their ores to an approved mill, presenting an outstanding opportunity for Inca One’s shareholders.
Top 6 Regions For Mines Applying for Formalization
Toll milling of the high grade ores is quite lucrative.
Chala One Processing Plant: Newly acquired gold ore processing plant
· Upgrades underway to improve ore processing efficiency
· Currently operating at 25 TPD, ramping up to 50 TPD with proceeds of current financing; can be permitted for up to 350 TPD
· 620km south of Lima, Peru, in the mining intensive region of Chala
· Provides capacity for immediate cash flow & growth, irrespective of gold prices. 45 acres of land for ample growth opportunities
· At 50 TPD, Chala One would generate ≈$4.3M* in gross operating profit
*corresponding to today’s market capitalization.
Chala One Mill Feed
Local and regional small miners consistently produce ores grading in excess of 1 ounce of gold per ton.
· Processing terms give Inca One a minimum $250/ton operating margin at the mill with ore grades over 0.8 ounces per ton
· Inca One intends to become the “processor of choice” by offering superior service and conditions amenable to North American standards
· Reduce payment to ore providers from 20 days to 3 days with professional ore testing practices
· Offer additional services such as technical (geology) and legal (formalization process) in turn for off take contracts
· Help increase their production through modern mining methods
Chala One Metallurgy
Mill feed is “easy and clean” containing free gold
- Simple crushing, coarse grinding, vat leaching and CIL processing produces ~90-92% recovery and allows flexible scheduling options
- Any high grade tailings can be stored separately in the tailings pond for later re-processing for Inca One’s account
INCA ONE PARTNERSHIP DEAL
On October 23, 2013 Orovero Resources signed an LOI with Inca One to partner on an ore processing facility.
- Orovero will provide the funding and Inca One will provide expertise.
- Inca One will have an option to acquire 20% of the new subsidiary for 24 months post commissioning.
- Inca One Resources operates the Chala One plant, an ore processing facility in Southern Peru, that was acquired on July 1, 2013. It was refurbished and is in production today.
- Quote from Inca One’s President and CEO Edward Kelly:
“After selecting, acquiring, expanding, refurbishing and commissioning our first mill, on time and on budget, we feel confident that we can be of great benefit to our partnership. Both companies recognize the emergence of toll milling in Peru as a great opportunity and we see this partnership as a way of refining our proprietary processes for acquiring mills and procuring steady ore feed. In addition, we see multiple operational synergies that can be exploited to benefit both companies.”
WHY GOLD AND SILVER?
According to Michael Belkin, leading hedge fund consultant and author of the Belkin Report: “gold-related investments have passed a significant bottom and this is the beginning of a sustainable rally”.
According to Casey Research: Right now, gold stocks are like a rubber band that's being stretched to an extreme. As all rubber bands do, it will snap back. And not just that; based on how extreme the undervaluation has become, they're bound to be among the most profitable investments of this generation.
The investment Policy of the Sierra Madre Gold & Silver Venture Capital Fund
The Fund will seek to achieve its investment objective by investing at least eighty-five per cent (85%) of its assets in securities, issued by junior precious metal exploration, development and production companies operating in Latin American.
The remaining fifteen per cent (15%) of the Fund’s assets may be invested in securities issued by gold and silver exploration, mining and production companies listed on a stock exchange anywhere in the world.
Mexico, as one of the most prolific mining countries of the world, will be one of the main targets of investment where not less than forty per cent (40%) of the Fund’s assets will be invested.
Capital gains may also be achieved by investing up to twenty-five per cent (25%) of the assets of the Fund in Private Placements of listed companies provided that the shares will be freely tradable within six (6) months from the date of placement.
Capital gains may also be achieved by investing up to fifteen per cent (15%) of the assets in companies which are conducting an IPO (initial public offering) with the intention to list the shares within three (3) months.
The Fund also retains the right to invest in Time/Cash deposits as circumstances may dictate.
Borrowing may be affected to satisfy short-term liquidity requirements.
www.timeless-funds.com
Recent News: Chala One Produces 111 Ounces of Gold in November
INCA ONE RESOURCES CORP. announced production results for the month of November, 2013 at its newly upgraded Chala One gold milling facility located in the Region of Arequipa, Chala, Peru.
During this month the mill processed 205 dry metric tons of ore with an average grade of 16.94 g/t Au with recoveries of 92.6% for gold production of 111.5 ounces.
The Company continues to source high-grade ore from artisanal miners in an effort to ramp up to a full 25 TPD capacity in the New Year and intends to then commence plant upgrades to increase capacity to 50 TPD by the 2nd quarter of 2014.
Commenting on the above, Mr. Edward Kelly, President and CEO, stated, "Completing the Chala One upgrade and commencing production has been a major focus for Inca One and a stepping stone for further growth. The plant is operating smoothly, is easily scalable and there is an abundance of high-grade gold mill feed to support increasing production in the coming months.”
Inca One, practicing North American mining standards, intends to become a “toll milling company of choice” for artisanal miners in Peru.
The Company will provide a more detailed analysis of Chala One production results in its future quarterly filings.
Fundamental Considerations
Market Cap. today:
CAD 4.4M
Long Term Objectives
- Raise $15M in equity/debt financing to increase capacity at Chala One and Future Plants 2 & 3 to 100TPD, as well secure mill feed taking company wide operations to 300TPD.
- Continue the growth profile by acquiring & upgrading 5 producing toll milling facilities within 5 years and increase production to over 1000 TPD
- At 1000 TPD, generate $30 - $50 million in Net Income
- Eventually, with increasing milling capacity, become the small-scale miner’s company of choice for legal, environmental, and technical guidance for partnerships and guaranteed ore supply
- Become the “processor of choice” by offering superior service and conditions amenable to North American standards
- Become the “investment of choice” for Peruvian pension funds
Technical Considerations
Peter Zihlmann
www.pzim.com www.timeless-funds.com
invest@pzim.ch
Telephone +41 44 268 51 10
CH Mobile +41 79 379 51 57
MT Mobile +356 79 79 00 91
***********************************************************************************
Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company’s share price.
Disclaimer: The author’s objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information, nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.
***********************************************************************************
-- Posted Monday, 16 December 2013 | Digg This Article
| Source: GoldSeek.com
