VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/01/13 -- Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE: IDI)(OTCQX: IDIFF) is pleased to announce the extension of the closing date of a binding Memorandum of Understanding ("MOU") with the Peruvian owners of Cia Minera Maria Reyna S.A. of Lima, Peru (the "Vendors") wherein Indico will acquire an indirect 51% interest and further be granted an exclusive option to acquire the remaining indirect interest in the Maria Reyna Co-Mo porphyry project in southern Peru. The date for the closing is now set at August 1st 2013. The project consists of a 3164 hectare group of mining titles located in the Andahuaylas-Yauri Belt of skarn-porphyry deposits in Cusco Region, Southern Peru, 100km south of Cusco and within 10km of Hudbay's Constancia Cu-Mo-Ag project (ex-Norsemont sold to Hudbay in Q2 2011 for $520 million) which is currently under construction (Figure 1).
The Maria Reyna concession block covers at least three significant skarn +/- porphyry systems along 10 kilometres of a northeast-trending structure. Mineralization is related to the regionally significant Andahuaylas batholith and later subvolcanic intrusions. This igneous suite has intruded extensive marine sedimentary rocks of the Yura Group, which in the project area are mainly complexly folded carbonate rocks. Skarn Cu-Mo+/-Au mineralization is common along the contact zones, and porphyry mineralization occurs within and adjacent to some of the subvolcanic dacitic intrusions. The same geology is present at several significant deposits in the Belt, including the Las Bambas skarn-porphyry cluster (1.7 billion tonnes of 0.60% Cu), Haquira (690 million tonnes at 0.59% Cu), and the Constancia porphyry deposit (reserves of 450 million tonnes at 0.36% Cu), located only 10 kilometres southeast of Maria Reyna.
In 2010, following geophysical and geochemical surveys consisting of 433 rock and 165 soil samples covering a little less than a third of the property, Vale completed 11 diamond drill holes (5585 metres), targeting skarn and porphyry mineralization at the Southwest Zone (Figure 2 and 3). The drilling intersected both high-grade, shallow Cu-Mo skarn and breccia mineralization, and low-grade disseminated porphyry mineralization beneath. Intercepts greater than 0.2% and 0.3% Cu are summarized below in Table 1 and 2. Highlighted in the tables are intersections of shallow mineralization with grades greater than 0.4% CuEq, which will be targeted by future in-fill drilling to generate a near-surface resource. The Company cautions that it has not had the chance to fully verify the quality and accuracy of the relevant historic sampling and drilling results reported in this news release. The historic figures were generated from sources believed to be reliable, based on limited review of the drill core and outcrops in the field, but they have not been confirmed by a Qualified Person, as defined by NI-43-101.
Table 1: Vale Drill Intersections at 0.2% CuEq(i) Cut-off.------------------------------------------------------------------- Ag Cu Mo CuEqHole_ID from to (ppm) (ppm) (ppm) % Interval-------------------------------------------------------------------DH-001 206 256 1.5 1956 113 0.27 50-------------------------------------------------------------------DH-002 0 136 4.1 5251 78 0.61 136-------------------------------------------------------------------DH-003 226 256 1.7 2365 122 0.31 30DH-003 460 480 0.3 1871 62 0.22 20-------------------------------------------------------------------DH-004 10 240 3.0 2616 124 0.35 230DH-004 336 486 1.5 1839 147 0.27 150DH-004 502 522 0.8 1914 87 0.24 20-------------------------------------------------------------------DH-005 10 76 4.8 6277 122 0.74 66-------------------------------------------------------------------DH-006 0 114 4.0 3179 112 0.41 114-------------------------------------------------------------------DH-007 0 106 2.5 3882 267 0.55 106DH-007 176 216 1.7 2546 280 0.41 40DH-007 232 310 1.0 1657 272 0.31 78-------------------------------------------------------------------DH-008 256 394 1.4 2764 130 0.36 138DH-008 432 519.85 1.7 2345 209 0.36 87.85-------------------------------------------------------------------DH-009 18 90 1.7 2815 335 0.47 72DH-009 110 172 0.7 1358 184 0.24 62DH-009 196 256 0.9 1793 106 0.24 60-------------------------------------------------------------------DH-010 262 314 1.7 3036 204 0.42 52DH-010 344 406 2.1 3429 641 0.68 62-------------------------------------------------------------------DH-011 18 178 2.9 4970 998 1.03 160DH-011 374 406 1.1 1448 175 0.24 32-------------------------------------------------------------------Intervals were calculated with maximum of 10m of 0.1% CuEq internaldilution, 0.2% CuEq edge grade, minimum length of 15m. For CuEq calculationsthe following variables were used: $3.00/lb Cu, $15.00/lb Mo, $21.00/oz Ag;no allowances for metallurgical recoveries were made. Table 2: Vale Drill Intersections at 0.3% CuEq(i) Cut-off.------------------------------------------------------------------- Ag Cu Mo CuEqHole_ID from to (ppm) (ppm) (ppm) % Interval-------------------------------------------------------------------DH-001 222 246 1.8 2442 141 0.33 24-------------------------------------------------------------------DH-002 0 62 4.5 5789 63 0.66 62DH-002 74 136 4.3 5510 103 0.65 62-------------------------------------------------------------------DH-003 232 254 1.7 2504 130 0.33 22-------------------------------------------------------------------DH-004 10 62 7.2 5122 56 0.61 52DH-004 108 142 1.7 1663 380 0.37 34DH-004 364 408 2.4 2547 169 0.36 44-------------------------------------------------------------------DH-005 10 74 5.0 6455 116 0.75 64-------------------------------------------------------------------DH-006 0 24 7.9 5501 265 0.76 24DH-006 56 78 4.8 5551 93 0.65 22-------------------------------------------------------------------DH-007 2 102 2.6 4002 282 0.57 100DH-007 176 212 2.0 2670 304 0.44 36DH-007 244 290 1.2 1962 335 0.38 46-------------------------------------------------------------------DH-008 270 296 3.1 5162 193 0.64 26DH-008 322 344 2.0 3435 238 0.48 22DH-008 438 482 2.0 2632 286 0.43 44DH-008 504 519.85 2.9 3389 133 0.43 15.85-------------------------------------------------------------------DH-009 18 76 2.0 3153 371 0.52 58-------------------------------------------------------------------DH-010 262 314 1.7 3036 204 0.42 52DH-010 344 406 2.1 3429 641 0.68 62-------------------------------------------------------------------DH-011 20 82 1.4 2153 328 0.39 62DH-011 98 178 4.6 8025 1711 1.71 80-------------------------------------------------------------------Intervals were calculated with maximum of 10m of 0.1% CuEq internaldilution, 0.2% CuEq edge grade, minimum length of 15m. For CuEq calculationsthe following variables were used: $3.00/lb Cu, $15.00/lb Mo, $21.00/oz Ag;no allowances for metallurgical recoveries were made.
