|June 27, 2013|
Indico Announces Alliance and Shift in Focus to Development and Production
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 27, 2013) - Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI) announces that, further to its news releases May 22, 2013 and June 26, 2013, wherein it was announced the proposed Alliance and $1.5 million investment by Singapore-based Stonehouse Construction Private Limited ("Stonehouse"), the Company also wishes to announce the closing of the initial tranche of $575,000 and the finalization of the Project Development Plan and Alliance Agreement among Stonehouse and the Company which will shift the Company's focus from solely exploration to development and production of its copper projects in Peru.
The establishment of the Project Development Plan and Alliance Agreement for the Ocaña and Maria Reyna projects in Peru are a significant step in the process of developing commercial operations. The Development Plan focuses primarily on establishing an SX/EW copper project on the Ocaña Property firstly by completion of a Preliminary Economic Assessment and then fast tracking the project through to production. The Alliance Agreement establishes the terms and criteria as to how Indico and Stonehouse will work together to develop copper projects in Peru. Depending on the ultimate scale of the Project, it is envisaged that the Alliance may seek appropriate development partners.
The Company also wishes to announce that it is compliant with all payments to underlying owners and has also paid concession fees maintaining the Ocaña and Maria Reyna projects in good standing through 2014.
President and CEO Bob Baxter stated "We are very pleased to have closed our first tranche with Stonehouse and welcome two new directors, Eric Wardle and Tareq Damerji to the board of Indico. We believe that this Alliance is not only timely given the financing market at this time but also confirms our assessment of our Ocaña and Maria Reyna properties as being properties which can be fast tracked to early production. Indico have very strong geological and administrative strengths in Peru and Stonehouse have the engineering and financial resources that combined will result in a focused path to production on these projects."
The Ocaña 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, Quellavaca, 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 Ocaña Property.
Indico has completed 6828m of drilling on the main Jimena porphyry target initially identified by remote sensing, mapping, and geochemical sampling in 2010. Drilling in late 2012 defined shallow, flat-lying supergene copper oxides and secondary copper sulphides overlying higher-grade (>0.35% Cu & 0.1 g/t Au) hypogene Cu-Au mineralization hosted by breccia and diorite, and open to the east, north, and at depth. The supergene mineralization is amenable to low-cost SX/EW heap-leach mining, which can be fast-tracked to produce on the order of 12 - 15,000 tonnes per year of copper cathode.
A 4650m Phase 3 drill programme will infill drill the supergene soluble copper resource to allow for preliminary resource estimation, and define the eastern extent of the hypogene. Results of Indico's Phase 2 drilling program at the Ocaña Property were announced in the Company's news release dated January 9, 2013, a copy of which can be found on the Company's website at www.indicoresources.com or under the Company's corporate profile on SEDAR at www.sedar.com.
Maria Reyna Project
The Maria Reyna property is 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, which is currently under construction. The 3164 hectare concession block covers at least four significant Skarn-Porphyry systems along 10 kilometres of a northeast-trending structure, only one of which has been partially drill-tested. Mineralization is related to the regionally significant Andahuaylas batholith and later subvolcanic intrusions, which intrude carbonate rocks of the Ferrobamba Formation. 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.
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 Ocaña 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. For more information, please visit our website at www.indicoresources.com; follow us on Twitter: @indicoresources and Facebook: Indico Resources Ltd.
About Stonehouse Construction Private Limited
Stonehouse is an international EPCM company working in the minerals, oil and gas and civil infrastructure sectors. Stonehouse is headquartered in Kuala Lumpur, Malaysia with offices in Vancouver, Singapore, Accra and Astana. Current operations include the development of the Lomonosovskoye Iron deposit in Kazakhstan, an offshore gas pipeline construction project for Malaysia's national oil and gas company Petronas and the development of a gold project in Ghana. Stonehouse was formed by a team of experienced senior executives from the construction and mining sectors who have worked in developed and emerging markets for major companies such as The Leighton Group, Jacobs and Chevron. The executives of Stonehouse have mine development and operations experience in such locations as Peru, Vietnam, Indonesia, Papua New Guinea, Kazakhstan and several countries in Africa.
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
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.
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