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Indico Resources Ltd.: Final Drill Results From Phase 2 Drilling Campaign Ocana Porphyry Cu-Mo-Au Project

Jan 9 2013 12:00AM

Marketwire

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/09/13 -- 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 CuEqDrill 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 Hypogeneincluding 27 94 67 0.349 41 0.266 2.2 0.586 diorite hypogeneand 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 Mixedincluding 47 59 12 0.253 183 0.021 1.8 0.378 Mixedand 97 147 50 0.397 69 0.017 1.1 0.455 Mixed---------------------------------------------------------------------------(i)Copper equivalent calculations represent the total metal value for eachmetal, multiplied by the conversion factor, summed and expressed inequivalent copper percentage. These results are exploration results onlyand no allowance is made from recovery losses that may occur should miningeventually result. These equivalent grades should not be interpreted asactual grades since the conversion rations vary with the volatile prices ofCu and Mo and the economic recoveries of Cu and Mo can vary significantlyin actual extraction and processing. However, it is the company's opinionthat elements considered here have a reasonable potential to be recovered.The three-year, moving-average metal prices used for the purposes of theequivalency 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 CuEqDrill 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 hypogeneincluding 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 hypogeneincluding 168 195 27 0.291 557 0.083 1.6 0.645 hypogeneand 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 hypogeneincluding 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 mixedincluding 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 hypogeneincluding 94 133 39 0.689 160 0.198 2.9 0.943 hypogeneand 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 hypogeneincluding 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 mixedincluding 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 hypogeneincluding 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 hypogeneincluding 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 hypogeneincluding 54 63.8 9.8 1.438 79 0.054 1.8 1.536 mixedand 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 hypogeneincluding 13.2 29.5 16.3 0.474 86 0.099 2.0 0.609 mixedand 146.5 176.5 30 1.688 393 0.321 7.8 2.198 hypogeneor 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 hypogeneincluding 25 128 103 0.527 110 0.279 2.3 0.809 hypogeneincluding 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 eachmetal, multiplied by the conversion factor, summed and expressed inequivalent copper percentage. These results are exploration results onlyand no allowance is made from recovery losses that may occur should miningeventually result. These equivalent grades should not be interpreted asactual grades since the conversion rations vary with the volatile prices ofCu and Mo and the economic recoveries of Cu and Mo can vary significantlyin actual extraction and processing. However, it is the company's opinionthat elements considered here have a reasonable potential to be recovered.The three-year, moving-average metal prices used for the purposes of theequivalency 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; Recoverypercentage 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.

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.,
Dean Linden
Corporate Development
+1(604) 638-1429
+1(604) 408-7499 (FAX)
dlinden@indicoresources.com
www.indicoresources.com





Source: Marketwire


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