Free Submission Public Relations & NewsPR-inside.com
Home
Deutsch English

Business

Indico Resources Ltd.: Final Drill Results From Phase 2 Drilling Campaign Ocana Porphyry Cu-Mo-Au Project 80% Average Leach Recovery From Supergene Zone 265 Metres at 0.52% Cu Eq in Sulphide Zone


Print article Print article
© Marketwire 2013
2013-01-09 19:18:32 -

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                 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.

###PRECONTENT2###

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: media3.marketwire.com/docs/IDIFigs1-3.pdf : 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 : 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



Press Information:




Contact Person:


Disclaimer: (c) 2014 Market Wire. All of the press releases contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Market Wire's, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.
Latest News
Read the Latest News
www.newsenvoy.com

 


Terms & Conditions | Privacy | About us | Contact PR-inside.com