Indico Announces Positive Results From Supergene Zone at Ocana
April 11 2014 - 9:00AM
Marketwired Canada
Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI) is pleased
to announce assay results for eight additional drill holes of the Phase 3
programme at Ocana. Twenty-four holes are now completed, totalling 2262 metres.
Sequential copper leach results for these eight holes are tabulated below (Table
1), with the results indicative of how amenable the mineralization is to
heap-leach processing. Three of these holes tested the outer extents of deep
chalcocite mineralization in the southeast portion of the prospect. The holes
intersected wide intervals of mainly chalcocite mineralization (see Figure 1)
and all ended in primary (hypogene) mineralization above 0.1% Cu, most above
0.2% Cu (Table 2) demonstrating that the sulphide mineralisation continues to
the north, south and east.
President and CEO, Bob Baxter, stated: "The recoveries, grades and thicknesses
are consistent with our expectations at this stage of the drilling program. We
are on track to deliver a PEA on the potential for an SX-EW project at Ocana by
early Q3 2014. The benefits of an SX-EW project being that copper metal can be
produced on site as cathodes with up to 99.9% or higher copper content, which
results in lower cost per pound of copper for transportation to market. This,
together with other positive aspects of our infrastructure, including
availability of power and water within a 10-15 km radius, is very positive. We
expect that, based on a positive result of our PEA, we will go on to complete a
feasibility study of the oxide project by Q1 2015 and make a decision on the
project development at that time."
The Ocana Property consists of 22 concessions covering 110 km2 and is located on
the northwest extension of the Southern Peru Porphyry Copper Belt, a trend
defined in part by the Toquepala, Quellaveco, Cuajone, and Cerro Verde Mines to
the southeast. Most recent exploration of the belt has resulted in discovery of
the Zafranal copper-porphyry deposit, located approximately 75 km to the
southeast of the Ocana Property.
The current drill programme is primarily an infill programme to define a
horizontal layer of near surface, supergene mineralization, and is designed to
tighten the drill spacing to less than 100 metres. A Hydracore 4000 man-portable
drill rig is being operated by Geotec S.A., and should be able to complete the
programme by early May, 2014. Currently 33 holes are planned, totalling 3150
metres, and comprising mostly short, vertical holes to infill and further
delimit near-surface, flat-lying supergene mineralization. Indico has recently
signed a contract with Mining Plus Pty Ltd. to conduct a NI 43-101 compliant
maiden resource estimate for Ocana upon completion of this drill phase. As well,
SGS Laboratories, under the direction of veteran metallurgist Joseph Keane, will
be contracted to perform the column leach tests as the current programme wraps
up.
The recent drilling completed along the southwest side of the main ridge, where
most holes intersected the bottom of the supergene at greater than expected
depths. The supergene blanket extends under the alluvial gravel cover. One
additional hole, OCA13-24, was added to test the limits of the blanket 100m out
in the alluvial valley, and intersected 20 metres of mixed zone supergene
(copper oxides and secondary sulphides).
Table 1: Additional sequential copper leach results from supergene zone -
Phase 3.
---------------------------------------------------------------------------
Acid
From To Tot. Soluble Recovery Cons.
Hole (m) (m) Interval Cu% Cu% % (kg/T)
---------------------------------------------------------------------------
OCA13DH007 28 70.5 42.5 0.32 0.26 77% 13.51
---------------------------------------------------------------------------
OCA13DH008 43 87.5 44.5 0.40 0.29 70% 19.00
---------------------------------------------------------------------------
OCA13DH009 48 101.2 53.2 0.16 0.13 73% 13.48
---------------------------------------------------------------------------
OCA13DH010 84 130 46 0.45 0.38 84% 15.74
---------------------------------------------------------------------------
including 88 108 20 0.55 0.50 90% 14.90
---------------------------------------------------------------------------
OCA13DH011 92 169.2 77.2 0.24 0.18 74% 16.88
---------------------------------------------------------------------------
including 152 169.2 17.2 0.44 0.37 84% 17.98
---------------------------------------------------------------------------
OCA13DH012 74 119.8 45.8 0.48 0.39 78% 14.55
OCA13DH013 42 82 40 0.42 0.32 77% 15.20
OCA13DH014 33 45.75 12.75 0.24 0.19 75% 13.98
---------------------------------------------------------------------------
Note: Total Cu% is sum of acid, cyanide, and residual Cu AAS assays;
Soluble Cu is the sum of acid and cyanide soluble assays; Recovery % is the
soluble copper divided by the total copper; Acid consumption is kilograms
of sulfuric acid per tonne of material. Intervals are based on a 0.1% total
soluble Cu cut-off.
Table 2: Additional ICP-MS and AAS results(i) from supergene & hypogene
zones - Phase 3.
---------------------------------------------------------------------------
From To Cu Mo Au Ag
Hole (m) (m) Interval % (ppm) g/t g/t Zone
---------------------------------------------------------------------------
OCA13DH007 2 70.5 68.5 0.270 82 0.026 1.5 mixed
including 28 70.5 42.5 0.351 85 0.019 1.2 mixed
70.5 100.95 30.45 0.224 112 0.013 1.8 hypogene
---------------------------------------------------------------------------
OCA13DH008 43 87.5 44.5 0.402 267 0.051 2.1 mixed
including 57 87.5 30.5 0.512 321 0.057 2.1 mixed
87.5 126.8 39.3 0.291 171 0.032 1.6 hypogene
---------------------------------------------------------------------------
OCA13DH009 48 101.2 53.2 0.162 54 0.028 1.6 mixed
---------------------------------------------------------------------------
OCA13DH010 80 140 60 0.364 27 0.021 0.9 mixed
including 88 108 20 0.512 37 0.027 1.0 mixed
140 179.2 39.2 0.104 28 0.015 0.7 hypogene
---------------------------------------------------------------------------
OCA13DH011 50 169.2 119.2 0.191 51 0.021 2.1 mixed
including 152 169.2 17.2 0.420 46 0.021 1.1 mixed
169.2 183.5 14.3 0.208 36 0.020 1.2 hypogene
---------------------------------------------------------------------------
OCA13DH012 38 119.8 81.8 0.302 33 0.021 1.3 mixed
including 74 119.8 45.8 0.455 38 0.021 1.1 mixed
119.8 126.2 6.4 0.228 18 0.021 2.1 hypogene
---------------------------------------------------------------------------
OCA13DH013 16 83.7 67.7 0.293 53 0.027 1.4 oxide & mixed
including 42 83.7 41.7 0.407 47 0.035 1.5 mixed
83.7 97.25 13.55 0.178 37 0.018 0.6 hypogene
---------------------------------------------------------------------------
OCA13DH014 33 45.75 12.75 0.245 30 0.022 1.1 mixed
45.75 64.6 18.85 0.150 29 0.019 1.1 hypogene
---------------------------------------------------------------------------
OCA13DH015 22.2 50 27.8 0.317 96 0.025 1.7 mixed
50 62.2 12.2 0.210 41 0.016 0.8 hypogene
---------------------------------------------------------------------------
(i)see analytical methods description below
Soluble copper and acid consumption tests from these and previous results
indicate the supergene mineralization should be amenable to low-cost, SX/EW
heap-leach processing. Figure 1 shows the layout/density of the planned holes
and assay highlights from current (in black) and Phase 2 (in grey) drilling.
Additional maps and cross sections, as well as previous drill results, are
available at http://www.indicoresources.com/s/Ocana.asp.
To close the programme, four additional longer holes (400 metres each) are
planned to test the eastern limits of the extensive hypogene mineralization,
bringing the total to 4650 metres.
To view Figure 1 accompanying this press release, please visit the following
link: http://media3.marketwire.com/docs/939173.png
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. Whole core was split in
half with a manual core splitter for intervals of brittle copper oxides, and the
remainder with a diamond saw. One half is collected for sample preparation and
analysis, and the other half retained for future reference. Samples were
collected on a 2.0m (leached, mixed and enriched zones) and 3.0m (hypogene zone)
sample intervals. 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 of both regular assays and acid-soluble
copper analysis. 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). Multi-elements were assayed using Acme's
M300 package, which includes 4-acid digestion and ICP-ES finish; samples with
greater than 0.5% copper are reassayed using an atomic absorption (AAS) finish
(MA402). Lower detection limits are as follows: Cu greater than 0.001%, Mo
greater than 0.001%, Ag greater than 0.5g/t. Sequential copper leach tests are
done by method LHSEQ, and acid consumption by method (GC850). Gold is assayed by
fire assay (FA430), in which fusion of a 30-gram aliquot 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.
Qualified Person
John Drobe, P.Geo., Indico's Chief Operating 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.
On behalf of Indico Resources Ltd.
Robert Baxter, President and Chief Executive Officer
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.
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.
Dennis Nenadic
IR/Corporate Communications
604-398-5379
604-398-5387 (FAX)
dnenadic@indicoresources.com
www.indicoresources.com
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