Precious Metals Investing: Small-cap gold producer Inca One Gold launches the first comprehensive database of Artisanal Gold Mining operations in Peru: XplorTracker

The dollar’s woes have been gold’s gain and the precious metal ended last week just shy of a one week high. This alone is reason for investors to look at gold stocks but today there was another piece of news that investors should keep an eye on. Small cap gold producer Inca One Gold Corp. (TSXV: IO.V, OTC: INCAF, FRA: SU92.F) announced the creation of XplorTracker, the first comprehensive data-base of Peruvian small-scale & artisanal gold mining operations. To understand why this opportunity is important investors need to understand the potential of Peru’s gold mining sector. 

Why is Peru so important 

Predictions about the price of gold is generally the first thing most precious metal investors think about, but this approach risks missing out on some big opportunities. Looking into the medium-longterm Peru is set to become one of the most important countries in the world of gold. 

Gold mining is the cornerstone on which the Peruvian economy is founded. Officially the gold mining sector makes up 14% of Peru’s GDP and 60% of the nation’s exports. Unofficially there is a thriving grey and black gold market, with over 333,000 Peruvians making their living through undocumented mining operations. In fact if unofficial mining operations were taken into account Peru would likely be the biggest gold producer in the world. 

This disconnect is what spurred the Peruvian government’s formalization process. The aim of this project is to bring the Peruvian gold mining sector into the light and get a handle on illegal mining operations. This has created a unique opportunity for Inca One Gold Corp. (TSXV: IO.V, OTC: INCAF, FRA: SU92.F) who have set themselves up as the best way investors can capitalize on the Peruvian gold market. 

Data is knowledge and knowledge is power 

Inca One Gold has had a long history of supporting Peru’s growing mining sector. The company has two milling operations in the country and has actively opted to target the nation’s booming artisanal mining sector. Inca One Gold has processed 24,850 oz (0.94 ton) of gold in 2019 and that figure is expected to grow in 2020. This means that the company is currently using just 35% of its capacity, leaving a lot of room to grow. This is where XplorTracker comes into play. 

Peru has vast untapped gold deposits but the fractured nature of the mining industry in the country means that until now nobody has been able to build a comprehensive mining database. Inca One has cultivated close relationships with many artisanal miners in the nation and this has allowed it to build a unique data-base that currently no other company can match. This effort has helped Inca One Gold position itself as the premier mining company in Peru and will undoubtedly provide a big boost to its efforts over the coming months and years. 

How does the XplorTracker work? 

The company has built the XplorTracker by drawing on 20,000 samples collected over 6 years in peru. This has allowed the company to create an extensive database that includes a breakdown of grade, type, quality, and concession coordinates. The company has also nurtured relationships with artisanal and small-scale miners which has enabled the company to map these mines, typically overlooked in analysis projects. 

Inca One’s strategy is to use this data to identify and test high potential gold hotspots. It will then carry out limited exploration programs to identify viable projects. This will enable Inca One to act as a facilitator in creating partnerships in the region and helping the Peruvian mining sector grow using Inca One’s unique XplorTracker project. This will in turn allow the company to secure more gold to be processed in its two processing facilities, fuelling the company’s growth. 

Taking advantage of Peru’s potential 

Investor’s are often faced with a choice between smaller short-term gains and long-term plays with the potential for a higher payoff down the line. The problem with many of these proposals is the perceived risk involved. Inca One Gold Corp. (TSXV: IO.V, OTC: INCAF, FRA: SU92.F) has a number of key advantages that we would argue make it a low-risk, high-potential investment opportunity 

Four key reasons investors are looking at Inca One Gold

• The small-scale Peruvian mining sector has grown 80% since 2011 and is worth over $1 billion
• Via XplorTracker Inca One Gold has access to a wealth of data that no other company can match. This gives it a significant competitive advantage in Peru 
• Inca One Gold is the best way for investors to take advantage of one of the world’s most important gold mining nations 
• The company has plans to sell gold directly to consumers via an online Bullion store, enabling it to take advantage of a better spot price than selling gold wholesale.

For these reasons, and more, Inca One Gold is well-positioned to become an integral component of the Peruvian gold mining ecosystem. This represents a unique opportunity for investors who are looking for a safe harbor investment with the potential to grow significantly over time, regardless of wider stock market instability. 

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(Featured image by jmarti20 via Pixabay)

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