Inca Minerals : Drilling at Roadhouse Target Confirms IOCG Credentials

Targeting a new generation of Tier-1 mineral discoveries in Peru and Australia

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ASX Announcement │ 26 May 2022 │ ASX: ICG
		DRILLING AT ROADHOUSE TARGET CONFIRMS IOCG CREDENTIALS
		Inca's initial drill-hole at Frewena intersects quartz, haematite and carbonate veining with sulphides (pyrite-
		chalcopyrite) within granitic rocks - significantly enhancing the IOCG prospectivty of the Roadhouse Target
use		Highlights
	• Iron Oxide-Copper-Gold (IOCG) style alteration and sulphide occurrences (pyrite, chalcopyrite, galena) recorded
		in first hole drilled at the Roadhouse Target (FW220001) at the Frewena Group Project
		• FW220001 intersects Alroy Formation sediments lying above foliated metavolcanics and granitic rocks, with
		granitic rocks increasingly altered and veined with depth
		• Host rock alteration minerals observed include varying levels of chlorite, epidote, haematite, potassium feldspar
		(kspar), quartz and carbonates
personal		• Multiple, overprinting vein types - and rarer breccia zones - include but are not limited to: quartz, quartz-
(RC) drilling and a lower interval of 751.5m of diamond core drilling (Table 1).
		carbonate, quartz-carbonate-K-spar-chalcopyrite,quartz-pyritequartz-pyrite-chalcopyrite and quartz-fluorite-
		sulphide
		• Rare to trace levels of copper, and lesser lead, sulphide minerals (chalcopyrite and galena, respectively) observed
		and are vein-hosted
		• The alteration and vein varieties are considered to be indicators of IOCG-stylehydrothermal activity with a strong
		correlation seen between vein frequency/intensity and a large-modelled gravity anomaly, supporting the
		exploration model at the Roadhouse Target
		• Detailed logging and assay results, once completed and received, will be incorporated with geophysical modelling
		to define the next steps at Roadhouse

Further to its ASX announcement of 9 May 2022, Inca Minerals Limited (ASX: ICG) is pleased to advise that the initial review of the diamond drill-hole (FW220001) drilled at the Roadhouse Target, as part of its reconnaissance drill program at the Frewena Group Project in the Northern Territory, is now complete.

FW220001 was drilled to a total depth of 961.1m, comprising an upper (pre-collar) interval of 209.6m of Reverse Circulation

For

Hole

Pre-Drill

Target

Hole Location

Planned

Actual

RC

Diamond

Target Description

Depth

Core

Number

Hole ID

Name

Depth (m)

Metres

Easting

Northing

Elevation

(m)

Metres

Moderate gravity anomaly

W220001

RHDDP001

Roadhouse

high within major NE-SW

598714mE

7808682mN

265m ASL

1000

961.1

209.6

751.5

structural corridor and

proximal to MDI Crosswinds

Table 1: Drill hole parameters of FW220001 drilled at the Roadhouse Target. FW220001 commenced on 12 April and was completed on 11

May 2022.

The purpose of FW220001 was to test a large gravity anomaly that defines the Roadhouse Target, with this feature lying approximately 5km to the SSE of Middle Island Resources' (Middle Island) Crosswinds Target, where remobilised copper occurs in calcrete.

Suite 1/16 Nicholson Road, Subiaco, WA 6008

Telephone: [phone]

Website: www.incaminerals.com.au │ ABN: 36 128 512 907

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Figure 1: FW220001 location plan in relation to the gravity feature (also refer to Figures 2 and 3). Insert

showing the location of the drilling in relation to Inca's tenure and the MDI Crosswinds Target.

Desert Creek

Mount Lamb NE

Current hole
		Plains
FW220007

Drill hole FW220002

NDIBK04

Drill hole FW220006

Mount Lamb SW

South West

Roadhouse

Drill hole	Jumping Spider
FW220001

Drill hole FW220003,4,5

RC collars only

Current hole

FW220004

Figure 2: Filtered magnetic anomaly image (tmi-rtp transparent colour intensity image on tmi-rtp-2vd-agc greyscale background) showing planned and completed drillhole locations within the Frewena Project. Modified form original presented in ASX announcement dated 28 March 2022.

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RC Portion of FW220001

The RC portion of FW220001 penetrated Georgina Basin sedimentary and Helen Springs volcanic (cover) rocks that occur above the Proterozoic basement below. Two metre composite RC samples have been submitted for multi-element analysis. Whilst

onlythe geology and geochemistry is important, the hole target lies below the cover.

Diamond Core Portion of FW220001

The gravity anomaly that was targeted in FW220001 was projected to commence at a down-hole depth of approximately 650m, with the 1,000m hole planned to drill through a shallower portion of the anomaly as a first-pass test of the target (Figure 5).



Gravity is a rock property relating to rock density, in simple terms, its weight. For the purpose of graphic presentations of geophysics anomalies "shapes" (or shells) are used. In reality, such rock properties are gradual. Therefore, in the strictest sense, a gravity target

usedoes not commence at the certain depth. That a gravity high exists is real, where it "begins" is not as certain.

In its upper levels, the diamond core portion of F W220001 intersected sedimentary units of the Alroy Formation (Alroy Fm) that are variably veined and altered down to approximately 250m, with alteration species including quartz, haematite, chlorite and kspar (photos A and B in Figure 3), with rare to trace occurrences of pyrite.

Below the Alroy Fm, FW220001 intersected a series of weakly to strongly foliated metavolcanics, which in the upper intervals showed minor quartz-chlorite-epidote veining (photos C and D in Figure 3), before transitioning into a series of granite to

granodiorite lithologies below approximately 650m, with these units continuing to the end-of-hole (EOH) at 961.1m. personalDespite the hole deviating and lifting from its planned azimuth and dip (Figures 1 and 5), FW220001 resulted in a sufficient -

nd positive - test of the Roadhouse Target given the strong correlation seen between the modelled gravity anomaly and the increase in frequency and intensity of veining and rarer zones of brecciation.

The lift in dip from -70° at the start of hole to -39° by the EOH (Figure 5) was likely caused by the hardness of the lithologies intersected in the lower half of the FW220001, with this change in dip resulting in the EOH being approximately 800m vertically below the land surface. It has also meant that the hole has intersected the target at higher and outer levels. Taking this into account the results are even more salient.

Host rocks within the drilled portion of the gravity anomaly display varying degrees of alteration that include chlorite, epidote, haematite, kspar, quartz, and carbonates. This alteration associates with a weak to moderate series of veins that are widespread throughout the lower portion of FW220001 and displayed a complex paragenesis of overprinting, suggesting an volving hydrothermal system of IOCG affinity.

The wide variety of vein mineralogy (and therefore chemistry) includes, but is not limited to: quartz, quartz-carbonate, quartz- carbonate-Kspar-chalcopyrite,quartz-pyrite,quartz-pyrite-chalcopyrite and quartz-fluorite-sulphide vein types (various photos in Figures 3 and 4).

While sulphide occurrences are dominated by pyrite, chalcopyrite was commonly observed at rare to trace levels in veins and Foroccasionally increases in abundance locally to trace to minor levels. Rare galena was also observed in some veins.

The alteration and vein varieties are considered by Inca to be indicators of IOCG-style hydrothermal activity with the strong correlation seen between vein frequency/intensity and the large-modelled gravity anomaly supporting the exploration model at the Roadhouse Target.

Interestingly, the closest hole with a similar depth to FW220001 is government hole NDIBK10 (with a depth of 765.67m), drilled approximately 7.5km WNW of FW220001. NDIBK10 intersected Mesoproterozoic-aged South Nicholson Group sediments from approximately 300m depth to EOH.

The metavolcanic-intrusive sequence intersected by Inca in FW220001 represents a progressively hydrothermally altered, sulphidated and structurally affected suite of intrusive and sub-intrusive rocks that are entirely different to the rock package intersected in NDIBK10.

Notably, the higher tenor - though deeper - portion of the Roadhouse Target is yet to be tested.

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Future Work at Roadhouse

FW220001 is considered by the Company as a positive result that serves as an encouraging "proof-of-concept" hole for the

Roadhouse IOCG Target. Accordingly, it is considered that the Roadhouse IOCG Target warrants follow-up drill testing. Detailed onlycore logging and RC and diamond sampling will be completed with results reviewed in conjunction with geophysical data to

assist in future hole design.

For usepersonal

Figure 3: Core photo collage showing the progression of geology, alteration and veins down the hole, including: A) quartz-chlorite-kspar-haematite veining in sediments at 211m, B) quartz-haematite-chlorite veining in sediments at 215m, C) weak quartz-chlorite veinlet in volcanics at 280m, D) quartz-epidote-haematite-chlorite veining in volcanics at 307m, E) quartz-chlorite veining in weakly haematite-kspar altered granite at 745m, F) quartz-haematite-pyrite-chlorite vein at 783m, G) strongly fractured and haematite overprinted granite with quartz-epidote-chlorite veinlets at 830m, H) haematite altered granite with older quartz-carbonate veins cut by younger haematite-quartz- pyrite veins at 832m, I) chlorite-epidote-haematite altered granite cut by a kspar-haematite rich vein at 833m, J) quartz-haematite-pyrite clasts in a breccia zone at 836m, K) haematite and quartz-haematite veinlets at 837m, and L) quartz-pyrite-chlorite veining at 838m.

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For personal use only

Figure 4: Core photo collage showing the progression of geology, alteration and veins down the hole, including: A) quartz-fluorite-sulphide veinlet at 839m, B) quartz-carbonate-(chalcopyrite) veining at 843m, C) fracture face showing pyrite-chalcopyrite in a quartz-chlorite veinlet at 847m, D) pyrite-chalcopyrite-quartz veinlet at 847.5m, E) quartz-(chlorite) vein with haematite or kspar reddening and thin chalcopyrite- galena lamellae at 863m, F) faulted quartz-carbonate veining at 868m, G) disseminated chalcopyrite in quartz-haematite-chlorite

veinlet 871m, H) chalcopyrite in quartz vein at 871.5m, I) 50cm wide breccia zone at 872m with quartz-kspar-carbonate infill,

chlorite altered host rock clasts and trace-minor disseminated chalcopyrite that associates with

haematite in pore spaces, J) pyrite-(chalcopyrite) disseminated within quartz-chlorite veining at 897m, K) haematite-quartz-(sulphide)

veinlet at 912m, and L) chalcopyrite in quartz-carbonate-(haematite) veinlet at 934m.

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