Irmin

Supergene Resource Estimate

In July 2014, Indico announced the maiden resource estimate for the supergene portion of the Irmin project (under the previous name "Ocaña") based on 9903 metres of drilling in 57 holes. The technical report for this estimate has been filed on SEDAR and can also be downloaded HERE. Table 1 lists the estimated resources following Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") classification definitions at the cut-off grade of 0.1% recoverable (acid and cyanide soluble) copper. The recoverable copper cut-off, using sequential copper leach analysis, is used because it is a more conservative limit of economically extractable material.

Table 1. Irmin Supergene Resource Estimate
Classification Millions of Tonnes Total Cu % Million Lbs of Cu Tonnes of Cu
Indicated 13.7 0.46 139 63,000
Inferred 36.1 0.34 270 122,000


Table 2 below summarizes the resource estimate in over a range of recoverable copper (Rec Cu%) cut-off grades.

Table 2. Grade and Tonnages of Indicated1 and Inferred2 Resources by Copper Cut-off Grade
Indicated Inferred
Rec Cu % Cut-off Cumulative Tonnes (millions) Tot Cu % Cumulative Tonnes (millions) Tot Cu %
0.10 13.7 0.46 36.1 0.34
0.20 12.7 0.47 30.0 0.39
0.30 8.2 0.52 17.1 0.44
0.40 4.2 0.61 7.1 0.52

1 An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

2 An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure.

Recoverable copper cut-off grades are based on sequential copper leach tests on sample pulps by Acme Laboratories in Santiago, Chile. Based on average soluble copper recoveries of 77%, together with sulphuric acid consumption tests that indicate low acid consumption, we believe the supergene mineralization should be amenable to low-cost, SX/EW heap-leach processing. Metallurgical samples (750kg) are now at SGS Laboratories in Arizona, where they will undergo column leach testing under the direction of veteran metallurgist Joseph Keane.

Estimation Methods

The resource estimate was completed by Marek Mroczek, P.Geo. of Mining Plus Canada Consultants Ltd. ("Mining Plus"), an Independent Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") in accordance with CIM Standards on Mineral Resources and Mineral Reserves. Estimation methods are summarized below and additional details of the estimation methods and procedures will be available in a NI 43-101 technical report to be co-authored and released by Mining Plus, and filed on SEDAR (www.sedar.com) within 45 days from the date of this news release.

The resources estimate is based on results from 9,903 metres of drilling in 57 diamond drillholes. Quality control data generated during the various drill programs conducted at Indico Resources were independently verified by Mining Plus as part of the project review. The resource model consists of a detailed three dimensional deposit model interpreted for cut off 0.1% recoverable copper, different mineralogical zones and lithology. The interpreted three dimensional deposit model was used to estimate total copper and recoverable copper grades. The recoverable copper grade is based on sequential leaching lab analyses and consists of sum cyanide leachable copper and acid soluble copper. All recoverable copper values exceeding total copper were capped to the total copper values. The block model grades were estimated by ordinary kriging in cells measuring 15 x 10 x 6 metres. In total 1,278 assays for total copper and recoverable copper were composited to 872 composites of 2 metre length. The basic statistics analyses showed that capping of high assay values was not necessary.


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Supergene Mineralization

The sulphide and oxide supergene mineralization intersected in the first two drill programmes outlined a significant exploration target. Phase 3 drilling then converted this target to the Indicated and Inferred resources described above, with significant potential for expansion to the east. The supergene forms a blanket of varying thickness extending south from the concession boundary to underneath the gravel covered valley south of the main east-west ridge. Under this southern ridge, the supergene blanket is consistently approximately 50 metres thick, dips to the west subparallel to the ridge crest, and has been intersected in holes across an east-west distance of at least 700 metres, across a width of at least 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 apparently thickens to the east (up to 100 metres) as the slope steepens; however, the eastern extents are covered by up to 40 metres of very weakly mineralized leached material, and the overall grade decreases. The blanket consists 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.

Sequential copper leach tests performed on drill core sample pulps test work confirm the supergene mineralization is amenable to low-cost, acid heap-leaching. Results for these tests are summarized in Table 3. The recoveries average about 77% for those drill intercepts assaying >0.1% soluble copper.

Table 3: Detailed Significant Drill Results from Phase 3 to Date
Hole From (m) To (m) Interval Cu % Mo (ppm) Au g/t Ag g/t Zone
OCA13DH001 0 46.8 46.8 0.388 45 0.159 1.4 mixed & enriched
  46.8 100 53.2 0.245 84 0.208 1.2 hypogene
OCA13DH002 0 12 12 0.187 85 0.137 0.7 mixed
OCA13DH003 35 50 15 0.211 71 0.053 0.7 mixed
  50 88.8 38.8 0.186 50 0.059 0.8 hypogene
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
  100.6 143.7 43.1 0.208 41 0.018 0.6 hypogene
OCA13DH006 28.35 65.4 37.05 0.348 86 0.112 0.9 hypogene
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 51.9 29.7 0.326 92 0.025 1.6 mixed
  51.9 62.2 10.3 0.164 34 0.015 0.8 hypogene
OCA13DH016 17 49.4 32.4 0.364 78 0.016 1.2 mixed
  49.4 59 9.6 0.165 38 0.017 1.2 hypogene
OCA13DH017 38 91.2 53.2 0.435 80 0.026 1.1 mixed
OCA13DH018 28 52 24 0.457 52 0.038 1.6 mixed
  52 62.15 10.15 0.295 68 0.026 1.2 mixed
  62.15 72.2 10.05 0.312 252 0.034 2.3 hypogene
OCA13DH019 5.4 52.1 46.7 0.468 66 0.042 2.1 mixed
  52.1 63.2 11.1 0.471 65 0.046 2.0 hypogene
OCA13DH020 43 53 10 0.279 65 0.025 1.2 mixed
  53 71.8 18.8 0.187 52 0.021 1.0 hypogene
OCA13DH021 50.25 88.5 38.25 0.447 37 0.021 0.8 mixed
  88.5 96.75 8.25 0.325 79 0.027 1.4 hypogene
OCA13DH022 21.1 58.35 37.25 0.346 72 0.027 1.7 mixed
  58.35 72.1 13.75 0.232 61 0.017 1.6 hypogene
OCA13DH023 45 55.3 10.3 0.333 38 0.028 1.2 oxide & mixed
  55.3 66.7 11.4 0.299 43 0.025 2.2 hypogene
OCA13DH024 71.4 106.9 35.5 0.222 40 0.022 1.0 oxide & mixed
  106.9 109.6 2.7 0.245 26 0.026 1.5 hypogene
OCA13DH025 72 109.6 37.6 0.307 91 0.030 1.2 mixed
  109.6 121.7 12.1 0.171 53 0.027 0.8 hypogene
OCA13DH026 28 49.5 21.5 0.773 118 0.035 1.3 mixed
  49.5 55.1 5.6 0.189 47 0.030 0.9 hypogene
OCA13DH027 30.6 123.5 92.9 0.345 114 0.026 1.3 mixed
including 30.6 92 61.4 0.168 120 0.027 1.4 mixed
and 92 123.5 31.5 0.689 103 0.023 1.2 mixed
  123.5 125.6 2.1 0.131 67 0.02 0.7 hypogene
OCA13DH028 35.3 71.55 36.25 0.679 70 0.027 1.3 mixed
  71.55 84.0 12.45 0.207 56 0.025 1.0 hypogene
OCA13DH029 46 89 43 0.378 116 0.024 1.4 mixed
  89 100.5 11.5 0.146 160 0.012 0.7 hypogene
OCA13DH030 24.3 52.45 28.15 0.200 300 0.070 1.3 mixed
  52.45 66.65 14.2 0.284 298 0.044 1.4 hypogene
OCA13DH031 28 41.5 13.5 0.348 67 0.021 1.1 mixed
  41.5 55.4 13.9 0.145 80 0.020 0.6 hypogene
OCA13DH032 47 48.7 1.7 0.570 >4000 0.043 2.0 mixed
48.7 53.1 4.4 0.243 3762 0.033 0.6 hypogene
OCA13DH033 29.6 42 12.4 0.301 129 0.081 0.8 mixed
  42 50.4 8.4 0.217 206 0.060 0.6 hypogene

Note: Cu, Mo and Ag are determined by 4-acid digestion, ICP-ES and AAS finish (where Cu>0.5%); Au is by FA-30g. Mixed Zone = mixed copper oxides and secondary sulphide (chalcocite), Hypogene Zone = primary copper sulphide (chalcopyrite).

Table 4: Sequential Copper Leach Results Phase 3 to Date
Hole From (m) To (m) Interval Tot. Cu% Soluble Cu% Recov. % Acid_kg/T
OCA13DH001 0 46.8 46.8 0.378 0.324 82% 10.41
OCA13DH002 0 12 12 0.179 0.147 80% 11.67
OCA13DH003 35 50 15 0.209 0.157 78% 16.32
OCA13DH004 10 29 19 0.276 0.247 87% 15.87
OCA13DH005 24 100.6 76.6 0.379 0.277 67% 19.98
including 24 81 57 0.410 0.332 77% 19.73
OCA13DH007 28 70.5 42.5 0.324 0.258 77% 13.51
OCA13DH008 43 87.5 44.5 0.404 0.294 70% 19.00
OCA13DH009 48 101.2 53.2 0.165 0.130 73% 13.48
OCA13DH010 84 130 46 0.449 0.383 84% 15.74
including 88 108 20 0.555 0.502 90% 14.90
OCA13DH011 92 169.2 77.2 0.237 0.183 74% 16.88
including 152 169.2 17.2 0.436 0.370 84% 17.98
OCA13DH012 74 119.8 45.8 0.483 0.390 78% 14.55
OCA13DH013 42 82 40 0.420 0.323 77% 15.20
OCA13DH014 33 45.75 12.75 0.241 0.191 75% 13.98
OCA13DH015 22.2 51.9 29.7 0.283 0.228 77% 14.28
OCA13DH016 17 49.4 32.4 0.369 0.286 76% 22.73
OCA13DH017 38 91.2 53.2 0.456 0.349 68% 20.86
OCA13DH018 28 52 24 0.444 0.236 51% 21.92
OCA13DH019 5.4 52.1 46.7 0.475 0.316 66% 12.51
OCA13DH020 43 53 10 0.291 0.219 72% 12.50
OCA13DH021 50.25 88.5 38.25 0.472 0.367 72% 9.30
OCA13DH022 21.1 58.35 37.25 0.345 0.233 63% 15.70
OCA13DH023 45 55.3 10.3 0.312 0.240 76% 19.23
OCA13DH024 75 106.9 31.9 0.224 0.153 67% 25.01
OCA13DH025 72 109.6 37.6 0.327 0.290 86% 12.4
OCA13DH026 20 49.5 29.5 0.606 0.553 87% 18.6
including 28 49.5 21.5 0.775 0.714 92% 19.7
OCA13DH027 30.6 123.5 92.9 0.341 0.284 69% 18.0
including 30.6 92 61.4 0.155 0.109 60% 14.7
and 92 123.5 31.5 0.703 0.626 85% 24.4
OCA13DH028 35.3 71.55 36.25 0.683 0.540 64% 18.0
OCA13DH029 46 89 43 0.375 0.285 79% 18.5
OCA13DH030 24.3 52.45 28.15 0.208 0.158 71% 21.1
OCA13DH031 28 41.5 13.5 0.360 0.297 80% 26.5
OCA13DH032 47 48.7 1.7 0.559 0.487 87% 14.0
OCA13DH033 29.6 42 12.4 0.316 0.270 85% 14.9
Note: Total Cu% is sum of acid, cyanide, and residual Cu assays by 3-acid digestion, AAS finish; 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.

Table 5: Sequential Copper Leach Results Phase 2 (2012)
Hole From (m) To (m) Interval Tot. Cu% Tot. Sol. Cu% Recov. % Acid_kg/T
OKA-001 2 46 44 0.73 0.64 78% -
OKA-002 20 38 18 0.62 0.55 86% -
OKA-005 63 81 18 0.58 0.39 59% -
OCA12DH003 1.3 59.9 58.6 0.32 0.23 64% 13.80
including 27 59.9 32.9 0.43 0.34 77% 13.80
OCA12DH004 4 37.5 33.5 0.49 0.47 91% 14.66
OCA12DH005 5 37 32 0.54 0.50 93% 14.45
OCA12DH006 11 61 50 0.61 0.53 80% 12.71
OCA12DH007 30 87.6 57.6 0.72 0.66 89% 16.62
OCA12DH009 54 63.8 9.8 1.36 1.32 94% 18.43
OCA12DH010 13.2 29.5 16.3 0.40 0.32 78% 22.38
OCA12DH012 22 69.5 47.5 0.63 0.50 76% 19.27
OCA12DH013 32 83 51 0.53 0.48 90% 16.00
OCA12DH016 28 55 27 0.85 0.81 96% 19.94
OCA12DH017 49 55 6 0.45 0.36 80% 12.51
OCA12DH018 34.55 50.45 15.9 0.26 0.23 86% 12.21
OCA12DH019 47 59 12 0.23 0.18 75% 14.70
OCA12DH019 97 147 50 0.34 0.27 78% 14.80
Total Cu% is sum of acid, cyanide, and residual Cu assays; Total Soluble Copper is sum of acid and cyanide soluble assays; all determinations by AAS method.

Significant Intercepts from Initial Phase 3 Supergene Drilling.



Soluble Copper (Phase 2 and 3)


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