Through a geophysics report, Inca Minerals (ASX:ICG) has found that a large- to giant-sized carbonate replacement deposit could occur at the Great Riqueza project’s Yanacolipa target.

Yanacolipa, located in the project’s northeast area, is one of three large target centers at Riqueza and contains four high-priority targets that span 4.42 square kilometers in total.

The zinc-silver–lead project itself is located within Peru’s polymetallic belt, which is known to host a number of porphyry-copper–gold deposits.

Major miner South32 (ASX:S32) exercised its option to earn a 60-percent stake in Riqueza in August, agreeing to spend US$8 to US$10 million on phase one exploration. Upon fulfilling those obligations, the company will have the option to acquire an additional 10-percent interest in phase two.

“I’m excited by this partnership. South32 is a globally recognised sector leader and provides a clear advantage and capacity in the development of Riqueza,” said Inca Managing Director Ross Brown in a press release at the time.

After a surface geophysics interpretation was completed, 3D modeling was used to better define targets at the project and covered the entire survey area. Brown referred to the modeling as critical, highlighting the benefits of using the method.

“Three-dimensional modelling is critical to exploration planning. It provides an indication of the potential size, shape and depth of each and every target,” he said in a statement.

Brown added, “[t]hrough this knowledge, budgets and logistics for sampling programs, ground geophysics and drilling programs may be constructed. This is a vital aspect of earn-in agreement negotiations.”

According to Inca, discussions between the company and South32 regarding phase one exploration have progressed well, with a contractual 90-day timeframe now ticking down upon the completion of the geophysics report. The company expects negotiations to be completed within the allotted time.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.