Inca One announced its consolidated gold production for full year 2018 from its Chala One plant and its recently acquired Koricancha plant.
Inca One Gold (TSXV:IO, Frankfurt:SU9.F, SSEV: IOCL) announced its consolidated gold production for December 2018 from its Chala One plant and its recently acquired Koricancha plant, and full year 2018 production results.
As quoted in the press release:
The company’s gold production this past December 2018 reached a new all-time monthly high of 3,436 ounces as compared to 753 ounces in December 2017, an increase of 356 percent year-on-year (YOY).
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 percent YOY. Throughput in December averaged a combined 212 tonnes per day (TPD).
Deliveries in December also reached a new all-time high in a month, totaling 6,111 tonnes, an increase of 293 percent YOY and consistent with the 6,012 tonnes delivered the previous month of November 2018.
Review of 2018 Production Highlights
Gross sales were approximately US$26.4 million, up from US$13.0 million in 2017, an increase of 103 percent 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 percent. 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 percent. Gold production for the year reached 22,050 ounces, up from 9,926 ounces produced in 2017, representing a 122 percent increase.
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 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 percent, YOY processing averaged 2,600 tonnes per month, an increase of 47 percent YOY and gold production averaged 1,336 ounces per month, an increase of 61 percent YOY.
Edward Kelly, president and CEO, commented:
2018 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.