Indico Announces Initial Results of Phase 3 Drill Programme at the Ocana Copper Porphyry Project
March 03 2014 - 7:00AM
Marketwired Canada
Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI) is pleased
to announce the initial drill results for the Phase 3 programme at Ocana, with
thirteen holes completed to date, totalling 1434 metres. Results for six of
these holes are tabulated below, including the results of sequential copper
leach tests that indicate how amenable the mineralization is to heap-leach
processing. These first six holes mainly tested the northern extents of the
supergene blanket, where it is thinner and eroded through in places.
Subsequently we have drilled thick intervals of mainly chalcocite mineralization
in the southeast corner and infill holes along the main ridge crest.
President & CEO Bob Baxter commented, "We are pleased to report the early
results of our current work program. This program started on the flanks of the
northern extremities of the oxide and enriched zone of mineralisation and
confirms our understanding of this mineralisation. The acid consumption and
recovery data generated from our analysis is also in keeping with our
expectations".
The Ocana Property consists of 22 concessions covering 110.24 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 100m and less. A Hydracore 4000 man-portable drill
rig is being operated by Geotec S.A., and should be able to complete the
programme by mid- to late April, 2014. Currently 32 holes are planned, totalling
3050 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.
Table 1. Significant Phase 3 intersections to date: ICP and AAS results.
----------------------------------------------------------------------------
From To Mo
Hole (m) (m) Interval Cu % (ppm) Au g/t Ag g/t Zone
----------------------------------------------------------------------------
OCA13DH001 0 46.8 46.8 0.388 45 0.16 1.4 mixed & enriched
----------------------------------------------------------------------------
OCA13DH002 0 12 12 0.187 85 0.137 0.7 mixed
----------------------------------------------------------------------------
OCA13DH003 35 50 15 0.211 71 0.053 0.7 mixed
----------------------------------------------------------------------------
OCA13DH004 10 29 19 0.294 284 0.091 1.2 mixed
29 73.65 44.65 0.471 207 0.131 1.5 hypogene
----------------------------------------------------------------------------
OCA13DH005 34.2 100.6 66.4 0.415 50 0.023 1.0 mixed & enriched
----------------------------------------------------------------------------
OCA13DH006 28.35 65.4 37.05 0.348 86 0.112 0.9 hypogene
----------------------------------------------------------------------------
Table 2. Sequential copper leach results from supergene zone - Phase 3.
----------------------------------------------------------------------------
Acid
From Soluble Cons.
Hole (m) To (m) Interval Tot. Cu% Cu% Recovery % (kg/T)
----------------------------------------------------------------------------
OCA13DH001 0 46.8 46.8 0.38 0.32 82% 10.41
----------------------------------------------------------------------------
OCA13DH002 0 12 12 0.18 0.15 80% 11.67
----------------------------------------------------------------------------
OCA13DH003 35 50 15 0.21 0.16 78% 16.32
----------------------------------------------------------------------------
OCA13DH004 10 29 19 0.28 0.25 87% 15.87
----------------------------------------------------------------------------
OCA13DH005 24 100.6 76.6 0.38 0.28 67% 19.98
including 24 81 57 0.41 0.33 77% 19.73
----------------------------------------------------------------------------
Note: Total Cu% is sum of acid, cyanide, and residual Cu 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.
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 highlights from this (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 larger hypogene mineralization,
bringing the total to 4650 metres.
To view Figure 1 please visit the following link:
http://media3.marketwire.com/docs/930712_image.jpg
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. 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,
including one standard certified for acid-soluble copper analysis.
Multi-elements were assayed using Acme's 1E 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. 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 G904, and acid consumption by
method G909. 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.
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
+1(604) 398-5387 (FAX)
dnenadic@indicoresources.com
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