PORPHYRY & SKARN COPPER-MOLYBDENUM-GOLD EXPLORATION. TSX-V: IDI OTCQX: IDIFF Nov 9, 2012

Transcription

1 PORPHYRY & SKARN COPPER-MOLYBDENUM-GOLD EXPLORATION OTCQX: IDIFF Nov 9, 2012

2 DISCLAIMER Certain statements contained in this document, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding metal prices and production, the completion and commencement of commercial operations of certain of Indico Resources Limited (IDI) projects, and its liquidity and capital resources and expenditure, contain certain forward-looking statements regarding IDI s economic performance and financial condition. Although IDI believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forwardlooking statements as a result of, among other factors, changes in economic and market conditions, success of business initiatives, changes in the regulatory environment and other government actions, fluctuations in metal prices and exchange rates, and business and operational risk management. IDI undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of the annual report. All subsequent written or oral forward-looking statements attributable to IDI or any person acting on its behalf are qualified by the cautionary statements herein. 2

3 Company structure contents Ocaña project Maria Reyna project Summary 3

4 COMPANY STRUCTURE 1 Year Chart November 2012 Shares Issued 56.1 million Options 5.5 million Warrants 15.0 million Fully Diluted 76.6 million 52 week high/low $0.30/$0.09 Market Cap $13 million Outstanding Incentive Stock Options Expiry Price Amount Proceeds 07/03/2013 $0.53 1,150,000 $ 675,000 03/08/2013 $ ,000 $ 38,500 02/05/2014 $0.21 1,200,000 $ 252,000 10/07/2014 $ ,000 $ 51,750 22/10/2014 $0.24 2,750,000 $ 660,000 Significant Shareholders Insiders 5,347, % $ 1,677,250 4

5 MANAGEMENT ROBERT BAXTER President, CEO & Director Mr. Baxter brings over 25 years of experience, principally in Latin America, in the mining industry. Mr. Baxter is the General Manager of Baxter Consultants Engineering, a consulting company located in Peru. From May 2000 to September 2000, he held the position of Business Development Coordinator Americas for North Limited, a senior Australian mining company acquired by Rio Tinto, PLC in October Also at North Limited, Mr. Baxter held the posts of Regional Geologist, Americas from June 1999 to May 2000 and Regional Manager (Chile/Argentina) from November 1996 to June Mr. Baxter was previously a Director of Petaquilla Minerals Ltd. and was also a director of Chariot Resources Ltd. which was sold to China Sci Tech, a Hong Kong listed company. Mr. Baxter was the Chairman of the Board of Marcobre S.A.C., a 100% fully owned subsidiary of China Sci Tech, until September He was President, Director and Chief Operating Officer of Norsemont Mining Inc. until March 2011 when the company was acquired by Hudbay Minerals. Mr. Baxter is also a director of Pan Global Resources Inc.. JOHN DROBE Chief Operating Officer John is a geologist with 25 years experience specializing in porphyry copper-gold, epithermal and skarn deposits throughout Latin America. Previously John held the position of Chief Geologist for Corriente Resources and was responsible over a 10-year period for all aspects of exploration and resource definition at the company's Mirador, Panantza, and San Carlos porphyry copper deposits. John is also currently the VP Exploration for Dorato Resources. PEGGY WU Chief Financial Officer Ms. Wu is a Chartered Accountant (2009) with strong working knowledge of International Financial Reporting Standards, Canadian and US Generally Accepted Accounting Principles and public company reporting requirements. She is currently the CFO for Corvus Gold Inc., Corporate controller for Cardero Resource Corp., as well as the Financial Reporting Specialist for the Cardero Group of Companies, which include Balmoral Resources Ltd. and Abzu Gold Ltd. Previously, she served as the Senior Staff Accountant and Supervisor at Smythe Ratcliffe LLP, Chartered Accountants, from 2007 to 2010, where she oversaw all aspects of financial reporting for several publicly traded companies. DEAN LINDEN Corporate Development Dean was the general manager of the Medicine Hat Blue Jays (the rookie-league affiliate of the Toronto Blue Jays) and, at age 19, the youngest GM in pro baseball at the time. In 1997 he joined ID Biomedical Corp., a start-up biotech company that became a global leader in flu-vaccine manufacturing, and was acquired by GlaxoSmithKline in 2005 for $1.7 billion. Currently Dean is on the foundation s advisory board of 100 Urban Entrepreneurs and is in charge of Corporate Development for Wealth Minerals. 5

6 BOARD OF DIRECTORS HENK VAN ALPHEN Director Mr. van Alphen has been in the mining business for 24 years. He began his career as a successful exploration/drilling contractor, and then became the President of Pacific Rim Mining Corp. ("Pacific Rim") where he laid the foundation for Pacific Rim to become a successful South American based resource company. He served as Vice-President of Corriente Resources Inc. from 1994 to 1999, following which he became the President of Cardero Resource Corp. ("Cardero") in 1999, the cornerstone of the Cardero Group of companies which currently includes 9 publically listed resource companies. Mr. van Alphen also holds directorships with the following companies; International Tower Hills Mines Ltd., Ethos Capital Corp. and Wealth Minerals Ltd. PATRICK EVANS Director Mr. Evans is the President and CEO of Mountain Province Diamonds Inc. and Kennady Diamonds Inc. Between 1999 and 2006, he held senior management positions with several exploration companies, including SouthernEra Resources Ltd., Messina Limited., Southern Platinum Corp (acquired by Lonmin Plc. in June 2005), and Weda Bay Minerals Inc. (acquired by Eramet S.A. in 2006). Mr. Evans was also the CEO and a director of Norsemont Mining Inc., which was acquired by HudBay Minerals Inc. in He was non-executive director of Anvil Mining Ltd. acquired by Minmetals in He was a career diplomat from 1979 to 1998 and is currently a non-executive director of Pan Global Resources. DAVID SAVAGE Director Mr. Savage has held senior executive roles in the construction industry in Australia, Asia and the Middle East for more than 25 years. From 1988 until March 2011, Mr. Savage was a senior executive with the Leighton Group of Companies, Australia's largest construction and project development group. Mr. Savage is Chairman of Stonehouse Construction Limited, a project development company based out of Singapore. He holds non-executive Director positions with both Keller Group PLC, a ground engineering company listed on the London Stock Exchange and Mudajaya Corporation Berhad, a Malaysian construction conglomerate, listed on the Kuala Lumpur Stock Exchange. 6

7 BOARD OF DIRECTORS BOB PARSONS Director Mr. Parsons is a Chartered Accountant and retired PricewaterhouseCoopers partner after a career spanning 34 years. He currently serves on the Advisory Board of the Indonesian Mining Association and the International Affairs Committee of the Prospectors and developers Association of Canada. He has served on the boards of the PDAC ( ), the Indonesian Mining Association, the Canada Indonesia Chamber of Commerce, the World Mines Ministries Forum, the Canadian Minerals Industry Federation, the Advisory Council of the Centre for Resource Studies at Queens University, and the Professional Advisory Board of the Government of Canada s Petroleum Monitoring Agency. He has previously served on the boards of several listed exploration companies. Mr. Parsons is an active independent consultant in developing countries, where he has advised nineteen governments on mineral policy matters. BRIAN KERZNER Director Mr. Kerzner has over 23 years of experience as a successful entrepreneur in retailing and real estate. Mr. Kerzner is the Founder and President of Rocky Mountain Chocolate Factory Canada Inc., which operates retail chocolate stores from coast to coast in Canada. He has also founded several other private companies that have completed extensive residential and commercial development in Toronto, Phoenix, Whistler and Vancouver. Mr. Kerzner has been extensively involved in providing seed capital for many successful public and private companies in the resources, environmental and technology sectors. He was recently a director of Norsemont Mining Inc. LEN HARRIS Director Leonard Harris is a metallurgist who has had a long and successful career in the mining industry. Of particular importance is Len's career in Peru, where he was President of Newmont Peru Limited and General Manager of Minera Yanacocha South America. It was under Len's leadership that Yanacocha became South America's most successful gold mine. 7

8 company structure contents Ocaña project Maria Reyna project Summary 8

9 SOUTHERN PERU PORPHYRY COPPER BELT TOQUEPALA MINE (Southern Copper) 3,734 million 0.46% copper 0.46%Cu = $US 26 per tonne value* Total value of $US 97 billion QUELLAVECO PROJECT (Anglo American) 947 million 0.8% copper 0.8%Cu = $US 45 per tonne value* Total value: $US 43 billion CUAJONE MINE (Southern Copper) 2,765 million 0.47% copper 0.47%Cu = $US 27 per tonne value* Total value: $US 73 billion CERRO VERDE (Freeport Cerro Verde) 3,000 million 0.41% copper 0.41%Cu = $US 24 per tonne value* Total value: $US 69 billion 9 50 km ZAFRANAL PROJECT (AQM - Teck) 511 million 0.36% copper (April, 2012) 0.36%Cu = $US 24 per tonne value* Total value of $US 12 billion * Total in situ value: Copper metal price used: $US 3/lb (current ~ $3.80/lb). Assumed metal recovery of copper: 85% Not all tonnage will be recovered in mining, nor will all metal be recovered in milling and processing.

10 LOCATION AND INFRASTRUCTURE Ocaña 50km Zafranal Cerro Verde Transmission Lines 500 kv 220 kv 138 kv 60 kv Matarani Port Cuajone Quellaveco Toquepala Water : Power : Port: Rio Ocoña (10 km away) or water- saturated gravels within the property National Grid + 160Mw hydroelectric plant under construction ~180km from Matarani deep port 10 Ilo Port

11 OCAÑA PROPERTY OPTION AGREEMENT Year Cash Shares TSX-V Approval $387,272 Year 1 $322, ,000 Year 2 (paid) $451, ,000 Year 3 $516, ,000 Year 4 $580,909 1,000,000 Year 5 $15,490,909 6,500,000 TOTAL $17,750,000 8,500,000 Currently operating within Year 2 INDICO CLAIMS 110 sq. km. option package Significant copper porphyry potential BARRENO CLAIMS 40 sq. km. located in centre of block held by third-party mining company field investigation revealed 12 holes drilled in

12 OCAÑA PROPERTY - OVERVIEW Looking Northeast Trafigura drill road Camp Good Logistics Low elevation: between 1700 and 2200 m.a.s.l. Desert environment allows for easy road-making & construction of drill platforms Water for drilling 10km away in the Rio Ocoña 12

13 SATELLITE IMAGE - CLAY ALTERATION INTENSITY Phase 1 Drill Holes (2011) Concession limit Jimena Prospect Waka Waka Prospect CLAY ALTERATION INTENSITY Red colors indicate most intense clay alteration effectively outline the porphyry system Intense anomalies are coincident with surface geochemical anomalies The large Jimena Prospect is the main drill target; Waka Waka is a satellite system 13

14 CLAY ALTERATION INTENSITY + TALUS FILES MOLY CLAY ALTERATION INTENSITY Phase 1 Drill Holes (2011) Jimena Prospect Concession limit Waka Waka Prospect TALUS FINES MOLYBDENUM Jimena Prospect has good correlation of Mo and clay alteration Note that Phase 1 drilling only tested half the anomaly Waka Waka clay and Mo anomaly are offset: different style? Needs more work 14

15 CLAY ALTERATION INTENSITY + TALUS FILES COPPER Phase 1 Drill Holes (2011) Concession limit Jimena Prospect Waka Waka Prospect TALUS FINES COPPER Jimena Prospect has uneven correlation of Cu and clay alteration: expected in leached setting Note high Cu values from east of Phase 1 drilling: evidence for weakly leached supergene Cu at limits of clay alteration 15

16 0.2 km OCAÑA SCHEMATIC SECTION A A West A Waka Waka Target A Supergene oxide & Thin argillic cap sulphide at surface Exotic Cu? Jimena Target East Highgrade at Depth? Gravels Drill holes Phreatic Breccia Porphyritic Dacite 1 km Tiabaya Granodiorite Diorite, diabase, gneiss NOTE: vertically exaggerated section based on both drilling at Jimena and surface geological/alteration mapping and ground magnetic geophysical data interpretation at Waka Waka. 16

17 OCAÑA GEOLOGY AND PHASE 1 DRILL RESULTS Phase 1 Drilling 2200 m in 5 holes Mineralization starts near surface Significant copper oxide in shallow supergene zone along south margin Phase 2 Proposed 5000 m in holes Begin with near surface supergene target End with deep hypogene target *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. The three-year, moving-average metal prices used for the purposes of the equivalency calculations are copper $US3/pound, gold $US1200/ounce, molybdenum $US15/pound and silver $US21/ounce. 17

18 OCAÑA SECTIONS INCREASING GRADE AT EOH *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. The three-year, moving-average metal prices used for the purposes of the equivalency calculations are copper $US3/pound, gold $US1200/ounce, molybdenum $US15/pound and silver $US21/ounce. 18

19 DRILLING UNDERWAY 8 HOLES COMPLETED Supergene Cu oxide and sulphide zone OCA02 OCA01 OCA008 OKA-5 D1 E1 D2 OKA-3 OCA04&5 OCA06 OKA-4 E2 OKA-2 14m of Cu enrichment F OKA-1 44m of Cu enrichment G H OCA007 OCA003 OCA04: chalcopyrite matrix in breccia OCA05 at 12m: CuOx/SO4 in oxide zone 19

20 OCAÑA SECTIONS PHASE 2 TARGETS *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. The three-year, moving-average metal prices used for the purposes of the equivalency calculations are copper $US3/pound, gold $US1200/ounce, molybdenum $US15/pound and silver $US21/ounce. 20

21 SUPERGENE TARGET Waka Waka Analogue to Zafranal Supergene Mineralization Jimena oxide OKA-3 OKA-1 OKA-4 OKA-5 OKA-2 100m thick % Cu hypogene From OKA-2 platform: phyllic alteration with Malachite + Jarosite + Goethite ± Hematite ± Chalcosite 21

22 SUPERGENE TARGET 5 HOLES COMPLETED H OCA07 View to SW over central ridge from near platform D1 note drill rigs OCA04 & 5 Supergene Cu oxide and sulphide zone OCA06 OCA03 OCA07: Significant CuOx at 87m depth View to NE showing platforms on east face D1 D2 H G F OCA07 OCA04&5 OCA06 OCA08 OKA02 14m of 1.29% Cu OKA01 44m of 0.73% Cu OCA03 OCA05 at 12m: CuOx & CuSO4 near surface 22

23 company structure contents Ocaña project Maria Reyna project Summary 23

24 MARIA REYNA PROPERTY LOCATION AND NEIGHBOURING DEPOSITS LIMA Andahuaylas-Yauri Belt Southern Peru Huancayo Modified after Weise (2007) Players Cusco Constancia 100km Eocene Tintaya Oligocene Antapaccay Belt Coroccohuayco Las Bambas: 0.60% Cu, 166 ppm Mo Haquira: 0.59% Cu, 120 ppm Mo *Constancia: 0.36% Cu, 102 ppm Mo Tintaya: 0.56% Cu, Arequipa Antapaccay: 0.49% Cu *reserves only Las Bambas Haquira Xstrata: Las Bambas (23 billion pounds copper) Tintaya District (26 billion pounds copper) First Quantum: Haquira (12 billion pounds copper) Hudbay: Constancia (5.7 billion pounds copper) Maria Reyna H MR C H = Haquira C = Constancia MR = Maria Reyna 24

25 MARIA REYNA PROPERTY OPTION AGREEMENT Date Cash Shares TSX-V Approval $2,000,000 - On the Drilling Date - 1,000,000 6 months after Drilling Date - 1,000,000 12, 18, 24, & 30 months after - 2,000, & 48 months after - 5,000,000 Cu Rock Grid 60 months after $20,000,000 10,000,000 TOTAL $22,000,000 30,000,000 Upon exercise the Option, the parties have agreed to establish a 1% NSR Royalty (without cap) in favor of the Seller. MARIA REYNA CLAIMS 3164 hectare option package Three identified Cu skarn zones One drill-confirmed Cu-Mo porphyry under SW Zone; two others probable Located on all-season dirt road, about 4.5 hours from regional capital of Cusco Less than a third of the concessions are covered by geochemical and geophysical surveys 25

26 MARIA REYNA PROPERTY SOUTHWEST ZONE SW Zone looking NE DH-010 DH-009 DH-011 DH-004 DH-001 behind ridge DH-003 Road to Constancia project Successful Initial Drill Programme by Vale Eleven hole, 5585m programme tested skarn and underlying porphyry potential Best grades encountered close or at surface, in breccia, skarn and mixed endoskarn-porphyry mineralization 26

27 SW ZONE HISTORICAL DRILL RESULTS (2011) VALE 2010 DRILLING Breccia, DH-011 Concession limit completed 11 holes totaling 5585 metres mostly targeted highest Cu anomaly in surface outcrops Several intersections of shallow skarn and minor endoskarn Weak moderate porphyry mineralization at depth Strongest mineralization is within breccia with semimassive sulphides: 80m of 1.71% CuEq, within 160m of 1.03% CuEq 27

28 MARIA REYNA PROPERTY SW & NE ZONES Rock Geochemistry Cu-Mo Moly Copper NE Zone NE Zone SW Zone SW Zone 28

29 MARIA REYNA PROPERTY NORTHEAST ZONE Porphyry Centre? Gold Skarn Working Strong circular feature Could be actual centre of the SW and NE zones, if skarns are interpreted as peripheral deposits Larger porphyry centre? Looking East Alternate interpretation SW Zone is dominated by skarn 29

30 MARIA REYNA PROPERTY NORTHEAST ZONE Moly K/Th Ratio Porphyry Centre? Alternate interpretation SW Zone is dominated by skarn 30

31 MARIA REYNA PROPERTY NORTH SKARN Skarn Workings over 300m area Jasper float Trenching Looking East SW Zone is dominated by skarn Large Skarn Field 300 X 300 metres Trenched by Phelps Dodge in late 1990s Mainly Garnet skarn: analogous to Katanga skarn adjacent to Constancia Jasper subcrop 500m north of skarn: more potential 31

32 PROJECT GENERATION PROJECT PIPELINE Company intends to focus on porphyry copper exploration in Peru Continual review of copper projects, mostly within the coastal porphyry belt 32

33 SUMMARY MARIA REYNA ACQUISITION Prospective location within well-known porphyry-skarn belt 3164 hectare project with significant porphyry-skarn mineralization One porphyry-skarn system proven with historic drilling: 2 more possible beneath skarn mineralization OCAÑA EXPLORATION Geochemical sampling, mapping and remote sensing outline 2 targets Phase 1 drilling completed: successful discovery of porphyry mineralization Phase 2 drilling underway: 4400m to define supergene and higher-grade hypogene mineralization PROJECT GENERATION Continual project generation and submittal review process Negotiations ongoing for acquisition of additional properties Continued focus on copper and copper-gold porphyry systems Adding value through acquisition and discovery 33

34 CONTACT INFORMATION Corporate Development: Dean Linden 34