Inca Minerals Limited reported assay results from the first reconnaissance diamond drill-hole (FW220007) completed at the Mount Lamb NE prospect, part of its Frewena Group Project in the Northern Territory. The hole returned broad zones of elevated geochemistry, demonstrating a positive correlation to the strong IOCG-style haematite and magnetite alteration logged over a down-hole width of >500m within the hole. The assay results are in-line with the Company's expecations for the variable, rare-trace levels of copper, zinc and lead sulphides observed during logging and core processing.

FW220007 was designed to test strong, semi-coincident magnetic and gravity features lying in the north-east portion of the extensive Mount Lamb trend. The hole was collared approximately 3km north-east of government drill-hole NDIBK04, which also demonstrated widespread geochemical anomalism and alteration assemblages typically associated with a mineralised system. Inca's hole FW220007 was drilled to a total depth of 990.3m comprising a Reverse Circulation (RC) pre-collar of 150m and a diamond tail of 840.3m.

The RC pre-collar penetrated through the Georgina Basin sedimentary units and into the Helen Springs Volcanics that occur above the Proterozoic basement. Two metre composite RC samples of the cover sequence rocks were collected during drilling but have yet to be submitted for multi-element analysis. The unconformity between the overlying Helen Springs Volcanics and underlying Proterozoic aged lithologies was intersected at 212m, with the basement showing strong haematite-quartz veining and brecciation in its upper levels transitioning to quartz-carbonate-haematite veining and brecciation to approximately 280m.

Rare-trace pyrite and chalcopyrite are observed within this zone along with rare galena, sphalerite and arsenopyrite associated with the veining and brecciation. Below the haematite-rich zone, intermittent galena veinlets with pyrite-pyrrhotite and trace chalcopyrite are observed in silicified and brecciated quartzite and siltstone that continues from c. 300m-550m, with a slow increase in magnetite and locally massive pyrrhotite occurring. From c. 550m-700m, strong magnetite alteration occurs within the laminated, silicified, crackle brecciated siltstone, with this zone hosting disseminated pyrite-pyrrhotite and rare-trace chalcopyrite and sphalerite.

Notably, this magnetite alteration correlates strongly with the higher tenor zone of the modelled magnetic feature. Magnetite content decreases from c. 700m-800m in pyritic and silicified shale, siltstone, and marble lithologies hosting variable, rare-trace chalcopyrite-sphalerite that continues before dropping out below 800m. This zone also hosts sodic alteration.

Pyrite-pyrrhotite content increases again from c. 950m to end-of-hole at 990.3m with intermittent chalcopyrite overprinting cross-cutting veins. At 974m, a major fault zone occurs over a >10m down-hole width with the broken, foliated graphitic shale showing strong argillaceous alteration and patchy silicification. The fault zone is variably mineralised in pyrrhotite, pyrite and rare-trace chalcopyrite.

With the receipt of diamond core assays ­ undertaken as 2m composite samples down the entire length of core ­ broad zones of elevated Au, Cu, Ag, Pb, Zn, iron (Fe), arsenic (As), bismuth (Bi) and molybdenum (Mo) have been recognised. In the upper portions of FW220007, spotty, low-level copper-silver enrichment occurs within the Helen Springs Volcanic between 157-179m, while the haematite alteration zone occurring in the upper levels of the basement rocks shows Cu-Ag-Pb-Zn-As-Mo enrichment between 210-269m, with a notable correlation to Fe relating to haematite. Further down FW220007, strong correlation occurs between elevated Au-Cu-Fe and magnetic susceptibility within the interval 525-800m, which coincides with the strongest zones of magnetite alteration.

Interestingly, below 800m depth where magnetite content drops, geochemical anomalism continues with further broad zones of elevated gold occurring with low level copper. Gold enrichment within the deeper levels of FW220007 corresponds with a marked increase in Ag-Mo-As-Bi compared with higher in the hole, and likely relates to pyrite-pyrrhotite bearing quartz veining and proximity of large-scale faults, such as that intersected at 974m, which could have acted as hydrothermal fluid pathways. While the elevated geochemistry encountered FW220007 is not of economic grade, confirmation of polymetallic enrichment occurring over broad intervals of the drill-hole is considered to be a highly significant result that confirms metallic endowment fertility at Mount Lamb North-East and the discovery of a large-scale IOCG mineralising system.

Such a result is considered by Inca as a major technical success that strongly validates both the IOCG exploration model being used at the Greater Frewena Project and the Company's decision to be a first mover in to the region by acquiring a large land package boasting exceptional discovery potential. The confirmation of IOCG fertile geochemistry in FW220007 ­ in addition to the geological observations from other Mount Lamb drill holes ­ also strongly endorses Inca's exploration process at Frewena with the use of robust magnetic and gravity modelling to identify the most prospective areas and `zoom-in' to focus its first-pass drilling activities. To achieve such a major technical success ­ the discovery of a blind, large-scale IOCG system ­ in a greenfield, frontier terrane through the use of geophysics is an outstanding achievement at such an early stage of the Project's evolution.

The hydrothermal system identified at Mount Lamb bears strong resemblance to the IOCG model including zonation of haematite, magnetite, and sodic alteration, enrichment of Au-Ag-Cu-Fe and associated metals Bi-Mo-As, and significant veining, brecciation, and faulting of Proterozoic host lithologies. Pleasingly, the scale of magnetic and gravity anomalies at Mount Lamb compares favourably to those at known Tier-1 IOCG deposits including Prominent Hill, Carrapateena and Ernest Henry. The combined data from FW220007 confirms the discovery of an IOCG mineralising system and the next challenge will be successfully vectoring within this system to identify zones of higher-grade mineralisation.

To facilitate this, a comprehensive review of the project will be undertaken once all assay results are received. At the time of writing, approximately 60% of the diamond core has been geologically logged with samples submitted for assaying.