Indico Resources Ltd.: Final Drill Results From Phase 2 Drilling Campaign Ocana Porphyry Cu-Mo-Au Project
January 09 2013 - 12:17PM
Marketwired Canada
Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI)(OTCQX:IDIFF)
is pleased to provide the final encouraging drill results from the Phase 2
drilling campaign at the Ocana Cu-Au-Mo porphyry in Arequipa Region, Southern
Peru. In Phase 2, a total of 4733 metres were drilled in 19 holes; the
additional significant assay results from holes received since the last news
release are shown in Figure 1 and Table 1, and all significant intersections are
listed in Table 2.
The eastern-most hole drilled, OCA014, intersected additional high-grade primary
(hypogene) Cu-Au mineralization within the diorite breccia and, together with
hole OCA011, appears to have delimited the southern extent of the copper-gold
breccia zone. From 27 to 94 metres, this hole intersected 67 metres of 0.35%
copper and 0.27 g/t gold, or 0.59% CuEq(i), within diorite and diorite breccia.
Below this are 198 metres of 0.35% copper and 0.05 g/t gold within dacite and
dacite breccia (Figure 2). The diorite and diorite breccia with the higher-grade
copper and gold is open to the east and north along the concession boundary.
This mineralization will be drilled out in a future drill programme using a
man-portable drill rig capable of being installed on the steep rocky slopes in
this area. Mapping indicates the breccia extends for 200 metres east of the
high-grade mineralization in hole OCA010 (Figure 1). The current known extent of
the copper-gold zone is approximately 500 metres east-west by 200 metres north
south and truncated by the concession boundary; it is open at depth, but is
drill-tested to extend at least 300 metres vertically.
The remainder of the holes mostly tested the extent, thickness and grade of
sulphide and oxide supergene mineralization intersected by previous holes along
the main east-west ridge. These holes indicate the supergene blanket is
consistently approximately 50 metres thick, consisting 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. The
blanket 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. Near the base of this slope, the last vertical infill hole, OCA016,
intersected 33.6 metres of 0.80% copper, mostly as copper sulphate and
chalcocite (Figures 1 and 2).
Two holes drilled in the southeast corner of the supergene target intersected
weaker mineralization over wider widths, which will have to be followed up in
subsequent drilling. Hole OCA015 intersected strongly leached oxide material to
a depth of 88.5 metres, followed by a very thin (1.5 metre) chalcocite-enriched
layer, below which it intersected 90.4 metres of 0.19% copper in the hypogene
zone. Strong fracturing of the core and in adjacent outcrops suggest the hole is
within a fault zone that has seen higher-than-normal leaching of copper. Hole
OCA019, located almost 200 metres to the south and angled to the northeast
(Figures 1 and 2), has deep-penetrating (to 140 metres) but wider-spaced
fractures with pervasive leaching confined to narrow intercepts; from 47 to 147
metres it intersected 100 metres of 0.28% copper mostly as chalcocite on pyrite
and chalcopyrite. The hole crossed several highly fractured and leached fault
zones with neglible copper, similar to the material intersected by OCA015.
Table 1. Final Significant Phase 2 intersections.
---------------------------------------------------------------------------
From Inter- Mo CuEq
Drill Hole (m) To (m) val Cu% (ppm) Au g/t Ag g/t (i) Zone
---------------------------------------------------------------------------
OCADH014 27 292 265 0.349 141 0.104 2.1 0.517 Hypogene
including 27 94 67 0.349 41 0.266 2.2 0.586 diorite
hypogene
and 94 292 198 0.349 174 0.049 2.0 0.493 dacite
hypogene
---------------------------------------------------------------------------
OCADH015 88.5 178.85 90.35 0.190 50 0.015 1.6 0.243 Hypogene
---------------------------------------------------------------------------
OCADH016(ii) 28 61.55 33.55 0.803 146 0.229 1.8 1.062 Mixed
61.55 86.05 24.5 0.333 106 0.188 1.8 0.333 Hypogene
---------------------------------------------------------------------------
OCADH017 49 57 8 0.441 71 0.024 1.6 0.511 Mixed
57 84 27 0.214 93 0.023 1.6 0.294 Hypogene
---------------------------------------------------------------------------
OCADH018 34.55 50.45 15.9 0.302 62 0.007 1.3 0.352 Mixed
50.45 87.25 36.8 0.218 113 0.027 1.5 0.310 Hypogene
---------------------------------------------------------------------------
OCADH019 47 147 100 0.284 75 0.018 1.2 0.348 Mixed
including 47 59 12 0.253 183 0.021 1.8 0.378 Mixed
and 97 147 50 0.397 69 0.017 1.1 0.455 Mixed
---------------------------------------------------------------------------
(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.
(ii)Results preliminary pending QA/QC review of re-assayed interval.
Table 2. Significant Phase 2 intersections from previous news releases.
---------------------------------------------------------------------------
From Inter- Mo Ag CuEq
Drill Hole (m) To (m) val Cu% (ppm) Au g/t g/t (i) Zone
---------------------------------------------------------------------------
OCADH001 0 27.4 27.4 - - - - - overburden
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 0 18 18 - - - - - overburden
87 294 207 0.220 151 0.091 0.9 0.371 hypogene
including 168 195 27 0.291 557 0.083 1.6 0.645 hypogene
and 234 294 60 0.351 102 0.157 1.3 0.530 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 0.199 80 0.020 1.0 0.263 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
---------------------------------------------------------------------------
OCADH008 0 68.65 68.65 - - - - - overburden
71.5 355 283.5 0.263 62 0.024 1.4 0.326 hypogene
including 163 241 78 0.376 70 0.030 1.9 0.452 hypogene
---------------------------------------------------------------------------
OCADH009 54 295 241 0.325 97 0.058 1.3 0.428 mostly
hypogene
including 54 63.8 9.8 1.438 79 0.054 1.8 1.536 mixed
and 112 295 183 0.317 104 0.060 1.5 0.427 hypogene
---------------------------------------------------------------------------
OCADH010 0.5 300.5 300 0.483 117 0.168 2.9 0.694 mostly
hypogene
including 13.2 29.5 16.3 0.474 86 0.099 2.0 0.609 mixed
and 146.5 176.5 30 1.688 393 0.321 7.8 2.198 hypogene
or 146.5 203.5 57 1.119 418 0.213 5.7 1.542 hypogene
---------------------------------------------------------------------------
OCADH011 25 250.3 225.3 0.352 182 0.148 1.8 0.569 hypogene
including 25 128 103 0.527 110 0.279 2.3 0.809 hypogene
including 128 250.3 122.3 0.205 243 0.038 1.3 0.367 hypogene
---------------------------------------------------------------------------
OCADH012 22 69.5 47.5 0.678 61 0.022 1.6 0.741 mixed
69.5 80.35 10.85 0.325 49 0.019 1.8 0.382 hypogene
---------------------------------------------------------------------------
OCADH013(ii) 32 83 51 0.569 147 0.022 1.4 0.673 mixed
83 201.1 118.1 0.237 93 0.020 1.2 0.311 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.
(ii)Results preliminary pending QA/QC review of re-assayed interval.
The supergene mineralization will be the initial focus for resource definition,
as preliminary laboratory test work confirms it is amenable to low-cost, acid
heap-leaching. Most of the results for sequential copper leaching tests
performed on core sample pulps have been received and are summarized in Table 3.
The recoveries average about 80% for supergene mineralization averaging about
0.6% copper.
Table 3. Sequential copper leach results - Phase 1 and 2.
---------------------------------------------------------------------------
Hole From (m) To (m) Interval Total Cu% Recovery %
---------------------------------------------------------------------------
OKA-001 2 46 44 0.73 78%
---------------------------------------------------------------------------
OKA-002 20 38 18 1.10 86%
---------------------------------------------------------------------------
OKA-005 63 81 18 0.58 59%
---------------------------------------------------------------------------
---------------------------------------------------------------------------
OCA12DH003 1.3 78 76.7 0.35 55%
including 27 59.9 32.9 0.44 77%
---------------------------------------------------------------------------
OCA12DH004 4 37.5 33.5 0.49 91%
---------------------------------------------------------------------------
OCA12DH005 5 37 32 0.54 92%
---------------------------------------------------------------------------
OCA12DH006 11 61 50 0.60 80%
---------------------------------------------------------------------------
OCA12DH007 30 87.6 57.6 0.71 89%
---------------------------------------------------------------------------
OCA12DH009 54 63.8 9.8 1.44 94%
---------------------------------------------------------------------------
OCA12DH010 pending
---------------------------------------------------------------------------
OCA12DH012 22 69.5 47.5 0.64 76%
---------------------------------------------------------------------------
OCA12DH013 32 83 51 0.54 90%
---------------------------------------------------------------------------
OCA12DH016 pending
---------------------------------------------------------------------------
OCA12DH017 49 55 6 0.45 80%
---------------------------------------------------------------------------
OCA12DH018 34.55 50.45 15.9 0.26 86%
---------------------------------------------------------------------------
OCA12DH019 pending
---------------------------------------------------------------------------
Total Cu% is sum of acid, cyanide, and residual Cu assays; Recovery
percentage is the total copper leached by both acid and cyanide divided by
the total copper
The climate and geography of the project site make it ideal for a heap-leach
operation. Indico will prepare composites for initial metallurgical test work
once the sequential leach data is complete. 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.
Bob Baxter, President and CEO commented, "We are very pleased with our Phase 2
drilling program at Ocana. In this last phase we have defined the footprint for
an SX-EW copper project and early success in defining a higher grade portion of
the Cu-Au sulphide mineralization which is open to the east, at depth and to the
north of our concession boundary into that of Trafigura. We expect to focus on
the supergene zone in the near term with infill drilling and metallurgical work.
We also plan to further define the eastern limit of the higher grade sulphide
resource and its depth extent".
To view Figures 1-3 please click on the following link:
http://media3.marketwire.com/docs/IDIFigs1-3.pdf
Qualified Person
John Drobe, P.Geo., Indico's Chief Operations Officer and a qualified person as
defined by National Instrument 43-101, has assembled 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. 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)
dlinden@indicoresources.com
www.indicoresources.com
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