TSX-V: IDI
Jimena Target
DDH4
DDH5
PHASE 1 DRILLING SUCCESSFULLY INTERCEPTS PORPHYRY DEPOSIT
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DDH1
DDH2
DDH3
Hole DDH-01: 44m grading 0.73% copper, 0.03 g/t gold, 105ppm molybdenum starting at surface
Hole DDH-03: 171m grading 0.33% copper, 0.19 g/t gold, 111ppm molybdenum
Hole DDH-02: 14m grading 1.29% copper, 0.06 g/t gold, 511ppm molybdenum starting at 24m depth
TSX-V: IDI 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 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.
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TSX-V: IDI COMPANY STRUCTURE
June 2011
Shares Issued 22.7 million
Options 0.7 million
Warrants 6.9 million
Fully Diluted 30.3million
52 week high/low $0.95/$0.35
Cash Position $1.5 million
Outstanding Warrants Expiry Price Amount Proceeds
12/10/2011 $0.25 1,500,000 $375,000
19/10/2011 $0.60 5,000,000 $3,000,000
19/10/2011 $0.65 350,000 $227,500
$3,602,500
Outstanding Incentive Stock Options Expiry Price Amount Proceeds
08/12/2012 $0.55 625,000 $343,750
02/12/2010 $0.84 100,000 $84,000
$427,750
Significant Shareholders Insiders 2,083,750 6.8%
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TSX-V: IDI
GARY FREEMAN President, CEO & Director Mr. Freeman is a Vancouver based entrepreneur and financier who has held a number of executive positions and been instrumental in financing, marketing and shareholder relations' capacities with several junior exploration companies. Mr. Freeman has over 23 years of valuable experience in the industry, including a number of years in the brokerage industry. Most recently, Mr. Freeman was President and CEO of Pediment Gold Corp and is currently President & CEO of Ethos Capital Corp.
DANIEL MARINOV Chief Geologist Daniel has 22 years’ experience as an exploration geologist including work with Rio Tinto and a decade with Anglo American. He has significant experience in precious and base metal exploration having worked throughout eastern Europe, Asia, Australia, as well as Central and South America. His skill base includes carbonate-hosted zinc-lead, broken hill type, iron ore and most critically copper-gold porphyry-epithermal deposits. Most recently, Daniel was the exploration manager at Anglo’s Michiquillay porphyry copper-gold-moly deposit in Peru.
WILLIAM ESPINOZA Project Geologist William is a geologist who graduated from the Universidad Nacional de Cajamarca, Peru. He is an experienced exploration geologist specializing in epithermal and porphyry environments. William was previously employed by Newmont Peru Limited (Minera Yanacocha SRL) working on regional exploration throughout Peru as well as the Yanacocha Mine. Most recently, William was employed by Anglo American, working chiefly at the Michiquillay porphyry development project in Peru. William brings considerable porphyry exploration and project generation experience to Indico and in particular, his experience throughout Peru will be invaluable as Indico seeks to acquire additional porphyry targets.
MANAGEMENT & STAFF
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TSX-V: IDI
GARY FREEMAN President, CEO & Director
KEITH HENDERSON Director Keith is a mining industry executive with almost 20 years global experience in Africa, Europe, and the Americas. He has extensive knowledge of the exploration and mining business from both a Major and Junior public company perspective. He is currently President & CEO of Dorato Resources, Vice-President Exploration at Cardero Resource Corp. and a director for Coalhunter Mining.
COILLE VAN ALPHEN Director Susannah Coille Van Alphen is currently working with Cardero Resource Group in their corporate development team. She has industry and investment banking experience through working with a leading public institution and one of Canada’s largest independent investment dealers. In these roles, Ms. Van Alphen was involved in public and private equity transactions and negotiating mergers and acquisitions. Ms. Van Alphen holds a Masters in Business Administration from the Richard Ivey School of Business at the University of Western Ontario, graduating with distinction.
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 Yanalocha South America. It was under Len's leadership that Yanacocha became South America's most successful gold mine.
MIKE KINLEY Director Mike possesses extensive public company experience and, the financial qualifications to play an important roll as the Company continues to rapidly expand. Mike received his Chartered Accountant designation in 1973, was admitted to the Chartered Accountants of Nova Scotia in 1980 and the Chartered Accountants of British Columbia in 2003 and was a partner for a large national accounting firm.
BOARD OF DIRECTORS
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TSX-V: IDI PERU INVESTMENT & MINING
Country Morgan Stanley
Rating*
Chile 77
Peru 74
Mexico 71
Brasil 66
Argentina 65 *Attractiveness of mining policies and mining
potential in Latin America (top 5 jurisdictions). Scores out of 100.
Peru Production World Ranking
Silver 1
Zinc 2
Copper 2
Lead 4
Gold 6
PERU MINING
• Extractive industries equal 15% of GDP
• Stable mining administration – ranked 2nd
in Latin America (source: Morgan Stanley 2010)
• >100 mining companies active in Peru
• Mining products = almost 2/3 of Peru’s
good exports (source: IMF 2010)
ANNUAL EXPLORATION EXPENDITURE
• 2009 – Peru grew to 3rd largest
exploration expenditure globally (MEG 2010)
COPPER RESERVES & PRODUCTION
• Current reserves: 90 million tonnes copper
• Copper production – 1.29 million tonnes of
copper concentrate per year
Mining Regulations 2010
Production Levels 2010
Exploration Expenditure
Annual Investment
Canada 2,394 M
Australia 1,764 M
USA 882 M
Mexico 756 M
Peru 630 M
Exploration Expenditures 2008
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TSX-V: IDI
Copper Operating Costs in Peru Below Global Average
#2 In terms of operating mines and funded projects Ranked #2 Globally In Annual Production
8% of Global Production
PERU COPPER PRODUCTION
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TSX-V: IDI SOUTHERN PERU PORPHYRY COPPER BELT
TOQUEPALA MINE
3,734 million tonnes @ 0.46% copper
0.46%Cu = $US 26 per tonne value*
Total value of $US 97 billion
CUAJONE MINE
2,765 million tonnes @ 0.47% copper
0.47%Cu = $US 27 per tonne value
Total value: $US 73 billion
CERRO VERDE MINE
3,000 million tonnes @ 0.41% copper
0.41%Cu = $US 24 per tonne value
Total value: $US 69 billion
QUELLAVECO PROJECT
947 million tonnes @ 0.8% copper
0.8%Cu = $US 45 per tonne value
Total value: $US 43 billion
• Copper metal price used: $US 3/lb (current $4.40/lb). • Assumed metal recovery of copper: 85% • Total value: contained product In-situ Not all tonnage will be recovered in mining, nor will all metal be recovered in milling and processing.
ZAFRANAL PROJECT
300 million tonnes @ 0.45% copper
0.45%Cu = $US 25 per tonne value*
Total value of $US 8 billion
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TSX-V: IDI
OPTION AGREEMENT
Currently operating within Year 1
INDICO CLAIMS
110 sq. km. option package
Significant copper porphyry potential
BARRENO CLAIMS
40 sq. km. – located in centre of block
held by third part mining company
field investigation revealed 12 holes drilled in 2010
Year Cash Shares
TSX-V Approval $387,272
Year 1 $322,727 200,000
Year 2 $451,818 300,000
Year 3 $516,364 500,000
Year 4 $580,909 1,000,000
Year 5 $15,490,909 6,500,000
TOTAL $17,750,000 8,500,000
OCAÑA PROPERTY
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TSX-V: IDI
Phyllic Alteration / Malachite + Jarosite + Goethite ± Hematite ± Chalcosite
INITIAL MAPPING RESULTS
Focused on the core area south of the
Barreno Claims
Encouraging results:
multiple intrusive events indicate
large porphyry system
potassic alteration (biotite-magnetite)
various types of quartz veinlets and
stockworks
overprinting phyllic
(quartz-sericite- pyrite) alteration
peripheral base metal-gold veining
~4 km long mineralized corridor
SAMPLING COMPLETED
166 rock samples
139 trench samples
365 talus fines samples
EXPLORATION
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TSX-V: IDI ALTERATION & MINERALIZATION
sheeted D-type veins
molybdenite vein
disseminated chalcopyrite in dacite porphyry
phreatic breccia
potassic alteration magnetite veinlets
2cm 1cm
2cm
malachite and neotosite
1cm
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TSX-V: IDI
Detail mapped area & area of
Phase 1 Drilling
Jimena Prospect
Waka Waka Prospect
CLAY ALTERATION INTENSITY
Red colors indicate most intense clay alteration
Intense anomalies are coincident with mapped porphyry & geochemical anomalies
Two porphyry centers (potentially connected at depth)
SATELLITE IMAGE - CLAY ALTERATION INTENSITY
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TSX-V: IDI
365 talus fines samples collected to date with program ongoing
Copper Moly
Gold
PRELIMINARY TALUS FINES SAMPLING
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TSX-V: IDI
SOUTHERN HALF OF TRAFIGURA’S
PECOY PORHYRY TARGET
Target Criteria – coincident:
Intense clay & iron alteration
Positive magnetic anomalies
Solid geochemical anomalies
Porphyry alteration mapped
Mineralization in rock samples
INITIAL DRILL TARGET - JIMENA
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Jimena Porphyry
Satellite Image - Iron Alteration
TSX-V: IDI
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Jimena Porphyry
Ground Magnetics (TMF)
GROUND MAGNETICS
Ground magnetic survey
completed in 2011
Anomaly coincides with
geochemical & alteration anomalies
GROUND MAGNETIC DATA
TSX-V: IDI OCAÑA GEOLOGY AND DRILL RESULTS
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2200 m in 5 holes
Mineralization starts
near surface
Significant copper
oxide in shallow
supergene zone
TSX-V: IDI OCAÑA SCHEMATIC SECTION A – A’
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Detail mapped area & area of
Phase 1 Drilling
Jimena Prospect
Waka Waka Prospect
TSX-V: IDI
NOTE: vertically exaggerated section based on both drilling at Jimena and surface geological/alteration mapping and ground magnetic geophysical data interpretation at Waka Waka.
Jimena Target
Waka Waka Target
West East
Supergene oxide & sulphide at surface
mhvb
Porphyritic Tonalite
Tiabaya Granodiorite
Metamorphic Complex
Phreatic Breccia Gravels
0.2
km
A A’
OCAÑA SCHEMATIC SECTION A – A’
25
1 km
Argillic cap Exotic Cu ?
Drill holes
TSX-V: IDI
PROJECT PIPELINE
Company intends to focus on porphyry copper
exploration in Peru
Eight moderately advanced porphyry copper projects
have been reviewed in Peru
Negotiations are in progress to secure rights on three
highest priority projects – aiming for Q2 acquisitions
PROJECT GENERATION
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TSX-V: IDI SUMMARY
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OCAÑA ACQUISITION
• Prospective location on extension of known porphyry belt
• 110 sq.km project size with significant outcropping porphyry
• Excellent deal structure – 76% shares and 87% cash paid in year 5
• Right to ultimately earn 100% interest in prospective area
OCAÑA EXPLORATION
• Geochemical sampling and mapping identified 2 targets
• IP and ground magnetic geophysical surveys completed
• Phase 1 drilling completed: successful discovery of porphyry 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