ADVANCING TOWARDS COPPER CATHODE PRODUCTION IN SOUTHERN PERU - FAST TRACK P E R U LIMA Irmin Arequipa TSX-V: IDI September 14, 2015 tel: +1.604.638.5938 ▐ email: info@indicoresources.com ▐ www.indicoresources.com
DISCLAIMER TSX-V: IDI 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 forward- looking 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
TSX-V: IDI COMPANY STRUCTURE 1 Year Chart Sept 10, 2015 Shares Issued 147.0 million Options 8.1 million Warrants 47.3 million Fully Diluted 202.5 million 52 week high/low $0.16/$0.02 Market Cap $13.2 million Outstanding Incentive Stock Options Expiry Price Amount Proceeds 24/09/2015 $0.10 1,720,000 $ 172,000 Insiders: 74.4 million shares 50.3% 6/08/2020 $0.10 6,440,000 $ 644,000 TOTAL $ 816,000 Aruntani 27.2% Stonehouse 19.6% 3
ARUNTANI PARTNERSHIP HIGHLIGHTS TSX-V: IDI • Aruntani to make expenditures of US$18.7 million • Aruntani to earn 70% in the Irmin project • Aruntani to manage the activities of the JV project • The partnership has a 25 year lease over infrastructure areas which can be extended another 25 years. • The partnership is concluding an agreement to purchase the operations area. • The partnership is well advanced with discussions on power supply • The partnership has agreed on a program of drilling to complete the PEA • Metallurgical program to be amplified • New road access underway About Aruntani Aruntani is majority owned by Mr. Del Castillo who has more than 35 years’ experience in open pit and underground mining operations and is a prominent and highly respected personality in Peruvian mining. He began his long and illustrious career in mineral engineering having graduated from the Escuela Nacional Ingenieros in Lima followed by graduate studies at the Colorado School of Mines. Mr. Del Castillo is currently President and CEO of Aruntani and President of MDH S.A.C. and Bradley-MDH S.A.C., a joint venture with Bradley Brothers of Rouyn-Noranda of Quebec, Canada. 4
SOUTHERN PERU PORPHYRY COPPER BELT TSX-V: IDI MORE THAN 40 YEARS OF COPPER PRODUCTION NEWEST COPPER DISCOVERY IN PERU FAST TRACK DEVELOPMENT TOQUEPALA MINE (Southern Copper) 3,398 million tonnes @ 0.47% copper Proven & Probable CUAJONE MINE (Southern Copper) 2,626 million tonnes @ 0.47% copper Proven & Probable 50 km CERRO VERDE (Freeport – Cerro Verde) 3,571 million tonnes @ 0.40% copper Proven & Probable QUELLAVECO PROJECT (Anglo American) 916 million tonnes @ 0.65% copper Proven & Probable ZAFRANAL PROJECT (AQM - Teck) 557 million tonnes @ 0.36% copper Measured & Indicated 5
LOCATION AND INFRASTRUCTURE TSX-V: IDI Transmission Lines Irmin 500 kv Chuquibamba Substation (tendered) Zafranal 220 kv 138 kv Ocoña 60 kv Substation Cerro Verde Substations Chuquibamba Los Calatos 41km to east Evaluating shared Cuajone Matarani Quellaveco power with other Port 50km local companies Toquepala Ilo Port Power : National Grid lines, or Rio Ocoña Run of River 100MW project (2015?) Port: ~180km from Matarani deep port 6
PROPOSED LOCAL POWER GRID TSX-V: IDI MULTIPLE POWER OPTIONS share Chuquibamba Intake sub-station Irmin use Hydro Ocoña Hydro 6MW Ocoña once constructed: Project 45 – 100MW (100MW) capacity Chuquibamba Substation Penstock San Juan La Barrera 4MW 138kv line 7
TSX-V: IDI IRMIN PROPERTY OPTION AGREEMENT (REVISED) Year Cash USD Shares TSX-V Approval $387,272 2011 (April 20 th ) $322,727 200,000 2012 $451,818 300,000 2013 $516,364 500,000 2014 $580,909 1,000,000 2015 $1,500,000 6,500,000 } $6,000,000 2016 - 2018 $14M over 4 years 2019 $7,990,000 TOTAL $17,750,000 8,500,000 BARRENO CLAIMS (TRAFIGURA) Located in centre of Indico block Pembrook Mining holds current option to INDICO CLAIMS earn 80%; drilled ~12,000m in 2014 123 sq. km. option package Trafigura drilled 11 holes in 2010 (3450m), 100% ownership, less 1% NSR at mostly along the property boundary completion of option 8
IRMIN PROPERTY - OVERVIEW TSX-V: IDI Looking Northeast Irmin Pecoy Pembrook’s drill road As of April 6, 2014 Camp Good Logistics Low elevation, between 1700 and 2200 m.a.s.l. Broad gently sloping areas suitable for mine infrastructure (heap leach pad, plant) Desert environment allows for low-maintenance roads & infrastructure Water for drilling 10 km by dirt road from the large Rio Ocoña 9
TSX-V: IDI IRMIN - 25 YEAR COMMUNITY LEASE ISPACAS COMMUNITY LEASE Tororume Main 25 year term for surface rights, renewable Tororume East for another 25 years terms are S/.100,000 per year (approx. USD$35,000) covers area of infrastructure for proposed SX/EW project covers proposed improved access corridor along Rio Ocoña and east tributary (route to project) 10
SATELLITE IMAGE - CLAY ALTERATION INTENSITY TSX-V: IDI CLAY INTENSITY Pembrook Drill Holes Jimena Prospect Indico Drill Holes Waka Waka Prospect CLAY ALTERATION INTENSITY Red colors indicate most intense clay alteration – effectively outline the porphyry system Drilling on both sides of concession boundary has not tested east limits of the anomaly The large Jimena Prospect is the main drill target; Waka Waka is a satellite system 11
CLAY ALTERATION INTENSITY + TALUS FILES MOLY TSX-V: IDI Indico Drill Holes Jimena Prospect Waka Waka Prospect TALUS FINES MOLYBDENUM Jimena Prospect has good correlation of molybdenum (Mo) and clay alteration (red colour) Drilling has only tested 2/3 to 1/2 the Mo – clay anomaly Same size anomaly on north side of concession limit Waka Waka clay and Mo anomaly are offset: different style? Needs more work 12
CLAY ALTERATION INTENSITY + TALUS FILES COPPER TSX-V: IDI Indico Drill Holes Jimena Prospect Waka Waka Prospect TALUS FINES COPPER Jimena Prospect has uneven correlation of Cu and clay alteration: expected in leached setting High Cu values from east of drilling suggest supergene copper oxides are near or at-surface 13
IRMIN GEOLOGY AND PHASE 1 DRILL RESULTS TSX-V: IDI Phase 1 Drilling (2011) 2200 m in 5 holes Mineralization intersected near surface Significant copper enrichment in shallow supergene zone along south margin (OKA01 & 02) Significant Au credits in NE sector: open to east *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. 14
IRMIN GEOLOGY AND PHASE 2 DRILL RESULTS TSX-V: IDI Phase 2: late-2012 4733 m in 19 holes Outlined supergene blanket with soluble Cu mineralization Intersected highest- grade breccia-hosted hypogene mineralization, still open to east *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. 15
VIEW TO EAST - PHASE 2 DRILL RESULTS TSX-V: IDI OCA13 High-grade Cu-Au OCA07 Hypogene Zone OCA15 ? 16m of 225m of OCA03 OPEN OCA10 0.47% Cu 0.35% Cu 300m of OCA11&14 OCA18 54m of 0.15g/t Au 51m of 51m of 0.48% Cu 0.81% Cu 0.56% Cu 0.49% Cu 0.17g/t Au OCA16 OKA-2 ? OCA02 OKA-3 OCA06 OKA-1 Supergene Cu oxide 14m of OCA12 OCA09 1.29% Cu 50m of and sulphide Zone 44m of 48m of 0.65% Cu OCA01 0.73% Cu OCA04&5 0.68% Cu OCA008 264m of 0.36% Cu 0.15g/t Au OKA-4 OKA-5 OCA04: chalcopyrite matrix in breccia OCA05 at 12m: CuOx/SO4 in oxide zone 16
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