Indico Resources Ltd.: Initial Drill Results From Phase 2 Drilling Campaign Ocana Porphyry Cu-Mo-Au Project
December 10 2012 - 9:23AM
Marketwired Canada
Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI)(OTCQX:IDIFF)
is pleased to provide initial drill results from the Phase 2 drilling campaign
at the Ocana Cu-Au-Mo porphyry in Arequipa Region, Southern Peru. The Phase 2
programme, now complete, tested the thickness and grade of sulphide and oxide
supergene mineralization intersected by two holes in Phase 1, delineated
higher-grade hypogene zones that occur mainly within the breccia target at the
centre of the system, and extended the southern and eastern edges of both
hypogene and supergene mineralization. The supergene mineralization is the main
target, as it is amenable to low-cost, acid heap leaching, based on soluble
copper tests on core samples from two Phase 1 drill holes.
All 19 holes of Phase 2 have been completed, with assay results received for the
first 7 holes (Table 1). A total of 4733 metres were drilled (Figure 1). The
supergene target was successfully tested by six vertical holes along the crest
of the southern ridge and expanded into the centre of the system by three angled
holes (OCA004, 5 & 6. Under the southern ridge, the supergene blanket is
consistently approximately 50 metres thick, dips to the west subparallel to the
ridge crest, and has an east-west dimension of over 700 metres, with a width
over 200 metres at the west end, increasing to 400 metres on the east end. Under
the central part of the system the blanket averages about 30-45 metres thick and
thins to the east as the slope steepens. The blanket consists of copper oxide
and sulphate minerals near the top, grading down into dominantly chalcocite at
the base, where it transitions sharply to hypogene chalcopyrite mineralization
(Figure 2).
This programme also intersected the strongest hypogene grades yet encountered on
the property, with the highest grades occurring in the eastern half within the
east-west trending breccia. The breccia comprises mostly fine diorite (diabase)
fragments with dacite fragments increasing toward the contact with the main
dacite host rock. The highest copper grades are within strong potassic
alteration with a weak to moderate quartz-sericite overprint. Significant gold
grades accompany the copper within the breccia (see Table 1), for example,
OCA004 which intersected 264 metres of 0.36% copper and 0.15 g/t gold, including
39 metres of 0.69% copper and 0.20 g/t gold. Hole OCA005 intersected 111.5
metres of 0.5% Cu and 0.12 g/t gold, or 0.67% Cu Eq.
Bob Baxter, President and CEO commented, "We are extremely pleased to have seen
the high grade copper results in the oxide and supergene enriched zones
overlying the sulphide mineralization at our Ocana project. Oxide copper
discoveries have not been common in recent years. We believe it is important
that additional drilling be undertaken in 2013 to further delineate the high
grade zones and define a resource that is amenable to SXEW processing. We are
also delighted to see the consistency of the gold credit along with good copper
mineralisation in the sulphide mineralisation. Further drilling of the sulphide
mineralisation will allow for definition and proper modeling of the higher and
lower grade mineralisation in order to calculate a NI 43-101 compliant
resource."
Based on the successful Phase 2 results, Indico plans to continue with a Phase 3
program of about 30 short (100 metre) infill drill holes at about 100-metre
spacing to further delineate the supergene blanket. This programme is expected
to start in early 2013.
----------------------------------------------------------------------------
From To Mo Au Ag CuEq
Hole (m) (m) Interval Cu% (ppm) g/t g/t (i) Zone
----------------------------------------------------------------------------
OCADH001 27.4 56.3 28.9 0.187 20 0.021 0.6 0.217 mixed
89 440 351 0.231 83 0.030 1.0 0.304 hypogene
including 89 146 57 0.240 190 0.032 0.8 0.366 hypogene
----------------------------------------------------------------------------
OCADH002 87 294 207 0.219 151 0.091 0.9 0.370 hypogene
including 168 195 27 0.291 557 0.083 1.6 0.645 hypogene
and 234 294 60 0.348 102 0.157 1.3 0.528 hypogene
----------------------------------------------------------------------------
OCADH003 1.3 27 25.7 0.207 79 0.051 1.5 0.299 oxide
27 78 51 0.491 71 0.049 1.9 0.582 mixed
78 366.1 288.1 0.226 68 0.026 1.1 0.290 hypogene
including 200 272 72 0.297 95 0.031 1.3 0.380 hypogene
----------------------------------------------------------------------------
OCADH004 4 37.5 33.5 0.509 121 0.115 1.1 0.665 mixed
including 4 24 20 0.694 124 0.087 1.1 0.831 oxide
37.5 301.45 263.95 0.360 112 0.153 1.8 0.546 hypogene
including 94 133 39 0.689 160 0.198 2.9 0.943 hypogene
and 184 301.45 117.45 0.400 120 0.149 2.3 0.569 hypogene
----------------------------------------------------------------------------
OCADH005 7 33.5 26.5 0.626 130 0.104 1.2 0.779 mixed
33.5 145 111.5 0.501 118 0.121 2.6 0.675 hypogene
including 59 94.8 35.8 0.659 101 0.177 3.3 0.872 hypogene
145 300.25 155.25 0.203 80 0.020 1.0 0.267 hypogene
----------------------------------------------------------------------------
OCADH006 11 61 50 0.646 115 0.171 2.7 0.856 mixed
including 26 44 18 1.211 199 0.224 3.6 1.511 mixed
114 299 185 0.251 67 0.076 0.9 0.349 hypogene
including 114 177 63 0.356 71 0.183 1.0 0.535 hypogene
----------------------------------------------------------------------------
OCADH007 34 87.6 53.6 0.809 108 0.046 1.9 0.916 mixed
108 250.05 142.05 0.151 103 0.014 0.7 0.220 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 $US1500/ounce, molybdenum $US15/pound and silver
$US21/ounce.
To view Figure 1 please click on the following link:
http://media3.marketwire.com/docs/1210idi.jpg
To view Figure 2 please click on the following link:
http://media3.marketwire.com/docs/1210idi1.jpg
Qualified Person
John Drobe, P.Geo., Indico's Chief Operations Officer and a qualified person as
defined by National Instrument 43-101, has reviewed the scientific and technical
information that forms the basis for this news release. Mr. Drobe 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 exclusively HQ core size. Core recovery
was estimated to be greater than 95% for any given hole. Core was evenly split
with a diamond saw, with one half collected for sample preparation and analysis,
and the other half retained for future reference. Samples were collected on a
2.0m and 3.0m sample interval. Indico on-site personnel rigorously mark,
collect, and track samples which are then security sealed and shipped to Acme,
Lima, Peru for preparation. Pulps are then forwarded to Acme's analytical lab in
Santiago, Chile.
Analytical accuracy and precision are monitored by the analysis of reagent
blanks, certified reference material, and duplicate (coarse rejects and quarter
core) samples. Indico inserts blind certified reference material at regular
intervals (1 in 20) into the sample sequence by field personnel in order to
independently assess analytical accuracy. In addition, representative blind
duplicate samples are routinely forwarded to Acme for additional quality control
(1 in 20 coarse rejects, and 1 in 40 quarter core). Quality control is further
assured by the use of certified reference material inserted 1 in 20 samples.
Multi-elements were assayed using Acme's 1E package which includes 4-acid
digestion and ICP-ES finish; samples with greater than 1% copper are reassayed
using an atomic asorption (AA) 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 fire assay, in which fusion of a 30-gram aliquote is followed by AA
finish; with a lower detection limit of 0.005 g/t. Acme has an 9001:2008 and
17025 International Standard Organization rating.
The geochemical results were compiled and reviewed by John Drobe.
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. Recently, the Company entered into a
Memorandum of Understanding to acquire 51% initially and up to 100% eventually
by fulfilling the conditions set out in the press release dated 22 October, 2012
of the Maria Reyna Cu-Mo porphyry-skarn project in the Andahuaylas-Yauri Belt,
Cusco Region. This belt hosts several significant deposits, including the Las
Bambas porphyry-skarn cluster (1.7 billion tonnes of 0.60% Cu), Haquira (690
million tonnes at 0.59% Cu), and the neighbouring Constancia porphyry deposit
(reserves of 450 million tonnes at 0.36% Cu). For more information, please visit
our website at www.indicoresources.com; follow us on Twitter: @indicoresources
and Facebook: Indico Resources Ltd.
The technical information provided in this news release was reviewed and
approved by Robert. W. Baxter (FAusIMM), a director of the Company and a
qualified person for the purposes of National Instrument 43-101.
On behalf of Indico Resources Ltd.,
Robert Baxter, President and Chief Executive Officer
Cautionary Statement Regarding Forward-Looking Statements
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. There can be no assurance that the Private
Placement will be completed as proposed. 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Indico Resources Ltd.
Dean Linden
Corporate Development
+1(604) 638-1429
+1(604) 408-7499 (FAX)
dean@indicoresources.com
www.indicoresources.com
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