Inca Pacific Seeks Construction Firm for Peruvian Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--Inca Pacific Resources Incorporated (CVE:IPR) (Vancouver, Canada) is seeking a construction firm for the $402 million Magistral project in the city of Conchucos about 450 kilometers northwest of Peru's capital, Lima. The company expects to receive permits for the project and an approval to the environmental impact study in the last quarter of the year. Construction kickoff is targeted for January 2009.

The project entails the excavation of a 7 million-ton-per-year open pit mine and the construction of a processing plant, planned to produce 34,100 tons per year of cooper concentrate, 2,860 tons per year of molybdenum concentrate and 380,000 ounces per year of silver concentrate. According to the final feasibility study, the proven and probable reserves are about 114 million tons, with the grade of copper at .49% and 0.05% for molybdenum. The project is expected to have a life of 15 years. Samuel Engineering Incorporated (Greenwood Village, Colorado) is providing engineering services for this project.

The project also includes the improvement and construction of roads to allow for the transportation of concentrate ore to the Salaverry seaport about 260 kilometers from the project site. Another road between the mine and the town of Conchucos will be constructed to allow for the movement of mine and plant workers. About 1,200 temporary jobs will be created during construction, and 231 permanent jobs will be created after the project is operational.

Inca Pacific Resources, a mine-exploration company, is operating the Magistral project through its Peruvian subsidiary, Inca Pacific S.A.

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