Why is the Inca Minerals (ASX:ICG) share price up 8% today and 430% this year?

The Inca share price has risen 8% today and is up 430% this year after the company's sixth mineral and drilling update this month.

| More on:
Young girl wearing a suit and tie with rocket wings looks to the sky representing the highest traded stocks today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Inca Minerals Ltd (ASX: ICG) share price has risen 8% today and is up 430% this year after the company released its sixth mineral and drilling update this month.

Inca's gains today are based on a new report showing that the potential worth of its recent minerals project acquisition in the Northern Territory, titled Frewena Project, have been upgraded.

Inca share price rises as reports enhance Frewena prospectivity 

Inca announced today that additional data  from a recent drill program has considerably enhanced the prospectivity of iron oxide copper gold ore (IOCG) deposits in the Northern Territory area fully enclosed by Frewena's exploration licences. 

Geological, structural, alteration and mineralisation indicators in one of the holes that Inca operates in the area suggest the presence of IOCG-style mineralisation. Copper mineralisation, (chalcopyrite and bornite), increases from 250 metre depth and is open at the end of one of these holes.

The recent high-resolution core photography performed in the area further reveals the widespread nature of alteration, structural deformation, veining, haematite and sulphides in the same drill hole. 

The company outlined why these results, partly exposed due to government logging of the area, are so encouraging from an exploration standpoint.

The occurrence of hydrothermal alteration and sulphides, especially ore-forming copper sulphides, over a 326.8m down-hole interval is very encouraging. Importantly, the visually government-logged copper mineralisation remains strong at EOH, meaning the mineralisation as it is currently understood is open in all directions," its ASX announcement read.

It is also most encouraging seeing bornite in the core and noting that its abundance appears to increase with depth. Bornite is a high-grade copper sulphide and generally forms in the hotter parts of a mineralised system and towards where one would expect to find potential higher grade ore.

Inca share price gains reflect breakthrough month

The Inca share price's 430% rise over the past year has beaten the basic materials sector by 379% and the S&P/ASX 200 Index (ASX: XJO) by 390% after positive developments in its drilling programs in Peru and its acquisition of iron-copper-gold mineralisation project Frewena in the Northern Territory.

The small-cap company has a current market capitalisation of $41 million and a share price of 10 cents, ranking it 337 in the basic materials sector.

Its plethora of announcements this month signpost a breakthrough period for the company, which was only valued at 0.019 cents per share in July 2020. Inca's focus remains the exploration at its flagship Riqueza Project in Peru. 

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Miner holding cash which represents dividends.
Dividend Investing

Invested $8,000 in Fortescue shares 5 years ago? Guess how much passive income you've banked!

Fortescue is popular among passive income investors for paying two fully franked dividends per year, even during COVID.

Read more »

Miner looking at a tablet.
Resources Shares

BHP shares are up 9% in a month. Are they still good value?

Is Australia’s largest miner a big opportunity?

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »