Inca One produces 22,050 oz Au in 2018

2019-01-22 06:03 ET 

Mr. Edward Kelly reports
INCA ONE PRODUCES A RECORD 22,050 OZ OF GOLD IN 2018
Inca One Gold Corp. has released consolidated gold production results for December, 2018, from its Chala One plant and its recently acquired Koricancha plant, and full-year 2018 production results. All comparative year over year (YOY) production numbers relate only to Chala One in 2017. Consolidated production in 2018 is on a 100-per-cent basis and includes Kori One for the period of Aug. 21 to Dec. 31.

December, 2018, production results
The company's gold production this past December, 2018, reached a new all-time monthly high of 3,436 ounces as compared with 753 ounces in December, 2017, an increase of 356 per cent year over year.

Material processed in December also reached a new all-time monthly high, as the combined plants handled 6,581 tonnes of gold-bearing material, an increase of 321 per cent year over year. Throughput in December averaged a combined 212 tonnes per day (tpd).
Deliveries in December also reached a new all-time high in a month, totalling 6,111 tonnes, an increase of 293 per cent year over year and consistent with the 6,012 tonnes delivered the previous month of November, 2018.

Review of 2018 production highlights
Gross sales were approximately $26.4-million (U.S.), up from $13.0-million (U.S.) in 2017, an increase of 103 per cent year over year. During 2018 Inca One had deliveries to both plants of 45,527 tonnes, up from 22,921 tonnes in 2017, an increase of 99 per cent. Consolidated production increased as both plants processed 45,482 tonnes of material in this year, up from 21,313 tonnes in 2017, an increase of 113 per cent. Gold production for the year reached 22,050 ounces, up from 9,926 ounces produced in 2017, representing a 122-per-cent increase.

                CONSOLIDATED OPERATIONS           
              
Year-over-year results            2018           2017

Deliveries (tonnes)             45,527         22,921
Production (tonnes)             45,482         21,313
Throughput (tonnes)            125 tpd         58 tpd
Gold produced (ounces)          22,050          9,926
  

The most significant milestone achieved in 2018 was the company's purchase of a second processing plant, the Koricancha ore processing facility in Peru. It instantly increased Inca One's permitted operating capacity to 450 tpd from 100 tpd. The acquisition immediately doubled throughput and diversified the company's operating platform, adding over 200 tpd of available throughput. Additionally, the transaction added economies of scale opportunities allowing for centralized purchasing, crushing, desorption and smelting activities. Full integration of Kori One with Chala One continued through to the end of the year with a specific emphasis on improving Kori One's cost-efficiency and optimizing operating synergies between the two facilities.
Chala One summary
Deliveries, processing and gold production consistently grew on a month-over-month and year-over-year (YOY) basis, highlighted in June, 2018, as Chala reached full production over the quarter. Deliveries averaged approximately 2,700 tonnes per month an increase of 41 per cent, YOY processing averaged 2,600 tonnes per month, an increase of 47 per cent YOY and gold production averaged 1,336 ounces per month, an increase of 61 per cent YOY.

                   CHALA ONE OPERATIONS    
                                
Year over year (full year)               2018              2017

Deliveries                             32,379            22,921
Production                             31,230            21,313
Throughput                          85.48 tpd         58.34 tpd
Gold produced                          16,026             9,926

Edward Kelly, president, and chief executive officer, commented: "Two thousand eighteen was a transformational year for Inca One highlighted by production records, operational profitability and a major acquisition. In our fourth and most productive year of commercial operations, we focused on growth while maintaining a vigilant eye on costs. Inca One was able to validate its business model and align its objectives to become a leading commercial gold processor in Peru."
Looking ahead to 2019, the company anticipates further production growth given the available capacity. The purchase of a second processing facility was aligned with Inca One's growth objectives and allows for immediate scaling the production profile. Inca One intends to build a significant cash flowing business that will benefit our shareholders in the future.
About Inca One Gold Corp.
Inca One is a Canada-based mineral processing company. The company's activities consist of the production of gold and silver from the processing of purchased minerals located in Peru. The company purchases its minerals from government-registered small-scale mining producers from various regions and processes them at its 100-per-cent-owned Chala One and 90-per-cent-owned Kori One milling facilities located in Arequipa, southern Peru.
We seek Safe Harbor.