Zinc miner Inca Minerals has told investors recent large share trading volumes were due to its biggest shareholder selling down its stock.

There have been 38 million Inca shares (ASX:ICG) traded in the past two days, significantly higher than the preceding days and comfortably the highest volume since late May.

Shareholder Resource Capital Fund (RCF) had been selling shares “for reasons related to the management of its funds”, Inca told investors.

RCF held 8.2 per cent or 216 million shares before the trades, according to Blooomberg.

“RCF indicated they regretted the timing and no suggestion was made that RCF’s decision is an indication or assessment of the possible future performance of the company’s projects or indeed the company,” the company said.

Inca has been approached for comment.

Inca shares have dropped 20 per cent over the past week from 0.5c to 0.4c.

The company found high-grade zinc in Peru earlier this year.

The South American country has been a happy hunting ground for the miner, after Peruvian authorities introduced new exploration regulations.

Inca Minerals (ASX:ICG) share prices and volumes over the past month.