IrminLocation - The Irmin project lies along the northern extension of the Southern Peru Porphyry Copper Belt, in the districts of Yanaquihua and Chicas in the province of Condesuyos, Department of Arequipa of southern Peru. The Toquepala, Quellaveco, Cuajone, and Cerro Verde Mines are on regional trend to the southeast. Recent exploration in the belt has also resulted in discovery of the Zafranal copper - molybdenum - gold porphyry deposit (Measured & Indicated resources of 301MT of 0.47% Cu, 0.08g/t Au), located approximately 75km to the southeast of the Irmin Project.
Elevation ranges from 700m at the Rio Ocoña to approximately 1,500m - 2000m around the areas of current exploration.
Access - The Irmin project is accessible from the regional centre of Arequipa via 220 km of the coastal paved Pan American Highway, followed by 85km of graded dirt road running along the east side of the Rio Ocoña, starting in the village of Ocoña. The nearest settlements to the concessions are the small villages of La Barrera, located 24 km to the southwest along the Rio Ocoña, and Soledad, located 5 km east of the deposit, and which is populated by the informal miners currently mining distal gold veins immediately east of the Irmin concessions.
Concessions - Indico's 23 concessions cover an area of 122.55 km2. Two concessions held by Berteus Resources Peru S.A, totalling an area of 40 km2, known as Barreno 1 and Barreno 2, lie within the centre block of Indico Resources' concessions as seen in the map below.
Terms of Agreement - The concessions covering the Irmin project are owned by three Peruvian companies: Minera Andina de Exploraciones S.A.A., Mines Representaciones S.A.C. and S.M.R.L. Rosita No.1 de Arequipa. These companies have entered into a Mining Assignment and Option Agreement with Inversiones Minerals S.A.C. (IM) with a right to acquire a 100% interest in the Mining Concessions.
Indico Resources has the exclusive option to acquire all of the issued and outstanding shares of Inversiones Minerals S.A.C. with a cash and share payment agreement made over a 10 year period ending April 20, 2019 (renegotiated Sept/2014). The total schedules of payments are listed below:
|Schedule of Property Option Payments|
|2016 - 2018||$6,000,000||-|
There are no exploration expenditure commitments, no royalties, back-in rights and no finder's fee in connection with the transaction. Should the company wish to walk away from the deal part way into the agreement, the remaining balance will not be owed and no applicable termination payment.
Drilling - Indico has diamond drilled a total of 9903 metres in 57 holes at the project. The initial five wide-spaced holes totaling 2195 metres drilled in mid-2011 (Phase 1) successfully identified a significant porphyry copper-molybdenum-gold deposit on the Jimena target. All drill holes intersected strong mineralization over significant thicknesses and a follow-up Phase 2 programme was completed in late 2012. This second programme totaled 4733 metres and consisted of 19 holes drilled mostly within the area of the Phase 1 programme, with a few holes drilled to the south and to the east expanding the area of known mineralization. Phase 3 drilling, totaling 2975 metres, was designed to support a maiden supergene resource estimate, and was completed in May 2014.
The mineralized system has dimensions of at least 1000 metres east-west and up to 700 metres north-south. It extends significantly to the north onto the neighbouring property. The two targets of interest for on-going drilling are 1) the eastern extension of the shallow, flat-lying supergene blanket that is part copper oxide and part copper sulphide (chalcocite), and is amenable to low-cost, acid heap-leaching, based on sequential copper leach tests on core samples; and 2) higher-grade portions of the hypogene copper-gold-molybdenum mineralization within the central and eastern portions of the breccia that underlies most of the mineralized area.