Ann: More Than 40 Geophysics Targets at Greater Riqueza, page-22

WOW!!!!! This ASX release could not be any better and the promise for the future has significantly improved based on this.

A couple of stand outs for me in this announcement. Based on today's announcement I would think that it is extremely likely that S32 would choose to enter into JV negotiations, and the fact that they are now in Peru with ICG ground truthing the results would tend to support this view. Second, I am amazed at both the number and the quality of the targets identified so far and I am hopeful that this puts Inca in a good position for negotiating the JV specifics, including trying to secure an upfront cash payment (for part reimbursement of past expenditure) and of course negotiating a largish exploration budget for the first year of any JV.

One of the things that I really like, apart from the sheer number and quality of targets/anomalies, is that many of them are overlaid on each other. The survey also showed up a lot more structural detail of the project area and the relationship of this with the anomalies is also instructive and encouraging.

It's probably too early to delve into an attempt to rank or prioritise targets based on the details released, however, it's difficult to go past Alteration Ridge as being the primary candidate to host a potential Tier 1 deposit. That being said, the biggest positive is that Riqueza looks confirmed to host a fully preserved and very large system that boasts not just the (multiple cluster) porphyry potential but also the proximal and distal related deposit types (typical with metal zoning around such large mineralised systems). It really is a plethora of targets which is the type of system big porphyries lurk in, and made even better given its regional setting.

One thing that we need to keep in mind as we get excited about the sheer number and quality of the anomalies, is that whilst 40 targets are identified not all of these will necessarily host mineralisation and that the next exploration step is to rank and prioritise, plan how to advance the best, and then carry out set programs. I'm sure there will be much talk of drilling rapidly but now is the time to carefully target drilling and not rush in. I have spoken to Bornite about today's ASX release and many of you will recall that it was Bornite who drew the company's attention to the prospectivity of Alteration Ridge some time ago. Bornite indicated that he wouldn't be surprised if S32 (if they exercise the JV) look to undertake a follow up airborne EM survey (and possibly followed by a IP survey depending on accessibility) before launching into a serious drill program, although they may throw in an early hole or two depending on their budget.

So a really good result and, I think, as good as we could have possibly hoped for for the survey. Now we need to see the JV exercised and ICG to secure some really good JV outcomes, including an upfront cash payment. Then I would look forward to a continuous flow of hopefully really game changing exploration news. That wish is not so outlandish, given the neighborhood we are in and the size of some of the nearby deposits. As we all know these monsters repeat!!