Indico Enters Into Letter of Intent for Joint Venture With Qatar Mining on the Ocaña Project

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Indico Resources Ltd. ("Indico" or the "Company") (TSX VENTURE:IDI) is pleased
to announce that it has entered into a non-binding letter of intent (the "LOI")
with Qatar Mining ("QM") with respect to the development of the Ocana Copper
Project, located in the Arequipa region of Peru.


Pursuant to the terms of the LOI, it is expected that QM will own 51% of the JV
Company after completion of the initial earn in payment, with Indico owning the
remaining 49%. It is also expected that the board of directors of the JV Company
will consist of five members, three of which will be appointed by QM and two of
which will be nominees of Indico.


Robert Baxter, Indico's CEO and President, comments: "We are extremely pleased
to have Qatar Mining enter into a Letter of Intent with Indico Resources to
potentially develop the Ocana Cu-Au-Mo project. Together with our major
shareholder Stonehouse Constructions, we welcome the positive outcome of our
discussions and negotiations that will allow us to develop the Ocana project in
a timely manner. The skill set of Stonehouse Constructions has been an important
factor in Qatar Mining's decision to enter into discussions and negotiations on
the Ocana project. Stonehouse Director Carlos Ballon has taken a lead role in
the discussions to date and deserves a special mention."


The LOI is intended to serve as a basis for the negotiation and execution of a
definitive joint venture agreement. The completion of the joint venture is
subject to a number of customary conditions precedent, including completion of
due diligence, as well as the approval of the TSX Venture Exchange and all other
required regulatory, corporate and security holder approvals.


The Ocana 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, Quellaveco, 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 Ocana 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. This mineralization overlies higher-grade
(greater than 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 processing. Highlights
from the last drill campaign included hole OCA010, which intersected the
highest-grade primary (hypogene) mineralization yet encountered. This hole
assayed 300 metres of 0.49% copper and 0.17 g/t gold, and included 57 metres of
1.11% copper and 0.21 g/t gold. The hole ended at 300.5 metres within
mineralization grading greater than 0.3% copper.


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
Ocana 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.


About Qatar Mining

Qatar Mining is a subsidiary of Qatar Holdings, the Sovereign Wealth Fund of
Qatar. Qatar Holdings is invested across a wide range of industries and in some
of the world's top companies and brands. This includes investments in Banking,
Retail Goods, Real Estate, Oil and Gas, Sports, Media, Entertainment and Mining,
where they are large shareholders of Glencore Xstrata. In February 2013, Qatar
signed agreements with Peru for bilateral cooperation across several sectors,
including an agreement between Qatar Mining and Peru's Ministry of Energy and
Mines for investment cooperation. A natural fit for Qatar's investment
diversification, mining in Peru offers excellent long-term investment potential.


About Indico Resources Ltd.

Indico is a mineral resource exploration company focused in the discovery and
exploration of porphyry copper- gold deposits in South America. The Ocana
Porphyry Project, located in the Arequipa Region of Peru, is the Company's
primary exploration project and is currently the main focus of exploration
activities. In addition, the Company has entered into a Memorandum of
Understanding to acquire up to a 100% interest in the Maria Reyna Cu-Mo
porphyry-skarn project in the Andahuaylas-Yauri Belt, Cusco Region, of Peru. For
more information, please visit our website at www.indicoresources.com.


The technical information provided in this news release was reviewed and
approved by Robert W. Baxter (FAusIMM), the CEO, President and 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. Specifically, there can be no assurance that the
transaction will be completed as proposed or at all. 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Indico Resources Ltd.
Dan McIntyre
IR
(604) 398-5377
+1(604) 398-5387 (FAX)
dmcintyre@indicoresources.com


Indico Resources Ltd.
Dennis Nenadic
Corporate Communications
(604) 398-5379
+1(604) 398-5387 (FAX)
dnenadic@indicoresources.com
www.indicoresources.com
Indico Resources (TSXV:IDI)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024