Indico Resources Ltd. (TSX VENTURE:IDI)(OTCQX:IDIFF) -
Highlights include:
Hole-001: 44m grading 0.73% copper, 0.03 g/t gold, 105ppm
molybdenum
Hole-003: 171m grading 0.33% copper, 0.19 g/t gold, 111ppm
molybdenum
Indico Resources Ltd. ("Indico" or the "Company") announces
receipt of positive results from its Phase I drill program at the
Ocana Copper Project.
The Ocana porphyry project covers 110 km2 located on the
northwest extension of the Southern Peru Porphyry Copper Belt
(Figure 1). The Toquepala, Quellaveco, Cuajone, and Cerro Verde
Mines are on regional trend to the southeast. Recent exploration in
the belt has also resulted in discovery of the Zafranal copper -
molybdenum - gold porphyry deposit (NI 43-101 compliant Measured
& Indicated resources of 301MT of 0.47% Cu, 0.08g/t Au),
located approximately 75km to the southeast of the Ocana Project.
The project is accessible by an 85km graded dirt road, an extension
of the paved Pan American Highway. The geology and mineralization
at Ocana is similar to that at the Zafranal.
Results are summarized in Table 1.
The first three drill holes contain strong mineralization over
significant thicknesses. Five drill holes have been completed in
Phase I, totaling 2,195 metres (Figure 2). Results from drill holes
4 and 5 are pending.
Table 1: Detailed Drill Results
---------------------------------------------------------------------------
Hole From To Inter- CuEq Cu Mo Au Ag
(m) (m) val (%)(i) (%) (ppm) (g/t) (g/t) Zone
---------------------------------------------------------------------------
OKA-001 oxide
130 degrees 2 46 44 0.824 0.734 105 0.032 1.3 supergene
/-70 ---------------------------------------------------------------
degrees 46 192 146 0.308 0.232 97 0.022 1.1 hypogene
---------------------------------------------------------------
192 447 255 0.217 0.153 98 0.014 0.6 hypogene
---------------------------------------------------------------
447 697.8 250.8 0.126 0.094 44 0.009 0.4 hypogene
---------------------------------------------------------------------------
OKA-002 4 24 20 0.776 0.183 742 0.254 3.6 oxide
120 degrees ---------------------------------------------------------------
/-70 24 38 14 1.607 1.290 511 0.057 1.9 supergene
degrees ---------------------------------------------------------------
38 150 112 0.334 0.209 136 0.057 1.5 hypogene
---------------------------------------------------------------
150 406.3 256.3 0.211 0.154 71 0.015 0.9 hypogene
---------------------------------------------------------------------------
OKA-003 2 150 148 0.285 0.134 98 0.132 0.6 hypogene
120 degrees ---------------------------------------------------------------
/-70 150 321 171 0.536 0.322 111 0.187 2.2 hypogene
degrees ---------------------------------------------------------------
including 219 270 51 0.706 0.424 187 0.206 3.8 hypogene
---------------------------------------------------------------
321 403.3 82.3 0.219 0.125 145 0.020 0.7 hypogene
---------------------------------------------------------------------------
(i) Copper equivalent calculations represent the total metal value for each
metal, multiplied by the conversion factor, summed and expressed in
equivalent copper percentage. These results are exploration results only
and no allowance is made from recovery losses that may occur should
mining eventually result. These equivalent grades should not be
interpreted as actual grades since the conversion rations vary with the
volatile prices of Cu and Mo and the economic recoveries of Cu and Mo
can vary significantly in actual extraction and processing. However, it
is the company's opinion that elements considered here have a reasonable
potential to be recovered. The three-year, moving-average metal prices
used for the purposes of the equivalency calculations are copper
$US3/pound, gold $US1200/ounce, molybdenum $US15/pound and silver
$US21/ounce.
Porphyry copper-gold-molybdenum mineralization was intersected
at surface and continues to depths of 400 metres or greater from
surface. The upper, high-grade portion of Hole OKA-001 grades
0.734% copper from 2 metres to 46 metres, hosted within an upper
weathered zone, where mineralization mostly occurs as copper
oxides. Underlying the weathered zone, hypogene copper
mineralization occurs as disseminated and blebby matrix-filling
chalcopyrite within potassic-altered, phreatic breccias and
adjacent dacite porphyry. Mineralization is less intense within
phyllic-altered zones.
The higher grade breccia system trends west-northwest and is
continuous for more than 1 kilometre, over a width of at least 200
metres within the concession, and extending for about another 200
metres to the north off the property. Indico is preparing an infill
drilling program to test this primary breccia target.
"We are delighted to have discovered such a strongly mineralized
porphyry system with the first three drill holes at Ocana," stated
Gary Freeman, President & CEO of Indico, "It is exceptional to
make a discovery of this nature with the first holes drilled in the
area. Our near-term focus is on the breccia-system discovery."
To view Figures 1-7 please visit the following link:
http://media3.marketwire.com/docs/IndicoFigs1-7.pdf
Qualified Person
EurGeol Keith J. Henderson, P.Geo., Indico's Chief Scientific
Officer, a Director, and a qualified person as defined by National
Instrument 43-101, has reviewed and takes responsibility for the
scientific and technical information that forms the basis for this
news release. Mr. Henderson is not independent of the Company as he
is an officer and a shareholder.
Diamond Drilling and Sampling Procedures
The diamond drilling was completed using an HQ and NQ core size.
Core recovery was estimated to be greater than 95%. After cutting
with a diamond saw, one half of the core was collected for sample
preparation and analysis and the other half is retained for future
reference. Samples were collected on a 2.0m and 3.0m sample
interval. Sample preparation and analyses was completed by
ALS-Chemex ("ALS") Lima, Peru.
The geochemical results were reviewed by Tansy O'Connor-Parsons,
Senior Geochemist. Indico on-site personnel rigorously collect and
track samples which are then security sealed and shipped to ALS,
Lima, Peru for assay. Analytical accuracy and precision are
monitored by the analysis of reagent blanks, reference material and
replicate samples. Quality control is further assured by the use of
international and in-house standards. Blind certified reference
material is inserted at regular intervals into the sample sequence
by field personnel in order to independently assess analytical
accuracy. In addition, representative blind duplicate samples are
routinely forwarded to ALS and an ISO-compliant third party
laboratory for additional quality control. Multi-elements were
assayed using the ALS's ME-ICP61 package which includes 4-acid
digestion and ICP-ES finish. Lower detection limits are as follows:
Cu greater than 0.001%, Mo greater than 0.001%, Ag greater than
0.5g/t. Gold is assayed by the Au-AA23 fire assay package - fusion
of a 30-gram followed by AA finish; with a lower detection limit of
0.005 g/t. ALS has an 9001:2008 and 17025 International Standard
Organization rating.
New Company Website & Investor Relations
The Company is pleased to announce the launch of its new website
found at http://www.indicoresources.com. "Although this website is
merely a window on what we do, considerable thought has gone into
the design of our web presence such that investors and prospective
investors can find information on the Company without being
inundated with technical information," stated Gary Freeman, Chief
Executive Officer of Indico Resources.
In addition, the Company has strengthened its corporate team by
retaining the services of Michael Pound to head Investor Relations.
Mr. Pound brings 16 years of marketing, finance and client
management experience to the team. He most recently served as
Investor Relations for Platinum Group Metals and currently manages
Investor Relations for Dorato Resources Inc. (TSX:DRI). He will
oversee development of the Company's investor relations strategy
and will focus on increasing the Company's exposure in the
financial community.
Mr. Pound will be retained on an ongoing basis and will be paid
a fee of $6,000 per month for providing investor relations services
to the Company. Mr. Pound currently holds 31,500 common shares of
the Company and has been granted incentive stock options to
purchase up to 100,000 shares of the Company at a price of $0.53
per share, exercisable until March 7, 2013.
About Indico Resources Ltd.
Indico Resources Ltd. is a resource exploration company focused
in the discovery and exploration of porphyry copper-gold deposits
in South America. The Ocana Porphyry Project is the Company's
primary exploration project and is currently the main focus of
exploration activities. In addition, the Company has reviewed
multiple additional porphyry exploration projects and is in
negotiation to acquire interests in additional porphyry exploration
projects. The company's senior technical staff has a cumulative 40
years of porphyry exploration and resource definition
experience.
On behalf of Indico Resources Ltd.
Gary Freeman, President and Chief Executive Officer
Cautionary Statement
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward looking information" within the
meaning of the British Columbia Securities Act and the Alberta
Securities Act. Generally, the words "expect", "intend",
"estimate", "will" and similar expressions identify forward-looking
information. By their very nature, forward-looking statements are
subject to known and unknown risks and uncertainties that may cause
our actual results, performance or achievements, or that of our
industry, to differ materially from those expressed or implied in
any of our forward looking information. Statements in this press
release regarding Indico's business or proposed business, which are
not historical facts, are forward-looking information that involve
risks and uncertainties, such as estimates and statements that
describe Indico's future plans, objectives or goals, including
words to the effect that Indico or management expects a stated
condition or result to occur. Since forward-looking statements
address events and conditions, by their very nature, they involve
inherent risks and uncertainties. Actual results in each case could
differ materially from those currently anticipated in such
statements. Investors are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made. All of the Company's Canadian public disclosure filings
may be accessed via www.sedar.com and readers are urged to review
these materials, including the technical reports filed with respect
to the Company's mineral properties. The foregoing commentary is
based on the beliefs, expectations and opinions of management on
the date the statements are made. The Company disclaims any
intention or obligation to update or revise forward-looking
information, whether as a result of new information, future events
or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Indico Resources Ltd. Michael Pound Investor Relations
1-888-638-5942 (Toll Free) or (604) 638-5938 (604) 408-7499
(FAX)mpound@indicoresources.comwww.indicoresources.com
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