Indigo Signs Drill Contract for Moule Gold Permit in Burkina Faso
November 10 2010 - 7:30AM
Marketwired Canada
Indigo Exploration Inc. (TSX VENTURE:IXI) reports that it has signed a contract
for up to 5,000 metres of air core and reverse circulation drilling with West
African Drilling Services (WADS) for Indigo's Moule Gold Permit. The drill rig
is expected on site to begin drilling shallow oxide targets by late November.
Multiple gold anomalies have been identified to date on Moule based on a
multi-disciplinary approach including mapping, soil and rock sampling and
Induced Potential (IP) geophysical ground surveys. Sampling on the permit has
encountered mineralization as high as 16.5 g/t Au to date. The Company believes
the Moule permit has the potential to host a large near-surface, bulk tonnage
gold deposit. After beginning field work last month, the first ever drill
campaign to be conducted on Moule will be focused on two high priority
anomalies: Zelingpe 1 and Zelingpe 2, within the large 5 kilometre by 2.5
kilometre Zelingpe grid.
The 1.0 kilometre long by 120 metre wide Zelingpe 1 anomaly is covered by a
resistant laterite plateau. The IP Survey penetrated the hardcap plateau and
identified a strong coincident IP chargeability high and resistivity low, a
geophysical signature suggestive of disseminated sulfide and quartz veins. The
edges of the laterite plateau have eroded near the fringes of the anomaly,
casting anomalous gold values into soils to the east, west and south. An area of
eluvial workings and artisanal pits is located immediately west and on the
southwest fringe of the Zelingpe 1 anomaly. There are also soil values to the
east and south of the plateau edge with anomalous values to 1,865 ppb Au.
The Zelingpe 2 anomaly lies approximately 500 metres southeast of the Zelingpe 1
anomaly and and consists of two parallel northeast-trending quartz vein swarms
500 metres apart, both with associated strong coincident IP chargeability high
and resistivity low geophysical signatures. Each trend is traceable for 1.4
kilometres by elevated gold values in soils, rock sampling and geophysical
anomalies. Recent artisanal workings have appeared on one trend. Indigo crews
are currently in the field, sampling the artisanal workings and quartz float
along the strike length of the trends.
Once the first pass drilling is completed on Zelingpe 1 and 2 anomalies, field
crews will commence a soil grid over additional quartz trends. The soil grid
sampling is planned to generate additional drill targets for continuation of
drilling on the Moule permit in early 2011.
Indigo is earning a 100% interest, subject to a 1.5% Net Smelter Return (NSR)
royalty in the Moule Gold Permit by making cash payments totalling US$410,000
over 3 years. Indigo retains the right to purchase the entire 1.5% NSR for
US$1,800,000.
About Burkina Faso
The Moule property lies in the West African nation of Burkina Faso. Much of West
Africa is underlain by the Birimian Greenstone Belt, one of the most prolific
gold producing areas in the world. Many of the world's major gold companies are
active in West Africa, several with producing mines, including: IAMGOLD
Corporation, AngloGold Ashanti Limited, Randgold Resources Limited, Gold Fields
Limited and Newmont Mining Corporation. Burkina Faso is politically and
economically stable and relies on farming and mining as it primary sources of
revenue.
On Behalf of the Board of Directors,
R.Tim Henneberry, P.Geo., President and CEO
Paul Cowley, P.Geo., Director of Indigo Exploration Inc., is the Qualified
Person as defined in National Instrument 43-101, who has reviewed and approved
the technical content of this news release.
Forward-Looking Statements
This press release contains forward-looking statements. All statements, other
than statements of historical fact, constitute "forward-looking statements" and
include any information that addresses activities, events or developments that
the Company believes, expects or anticipates will or may occur in the future
including the Company's strategy, exploration plans or future financial or
operating performance and other statements that express management's
expectations or estimates of future performance.
Forward-looking statements are generally identifiable by the use of the words
"may", "will", "should", "continue", "expect", "anticipate", "estimate",
"believe", "intend", "plan" or "project" or the negative of these words or other
variations on these words or comparable terminology. All such forward-looking
information and statements are based on certain assumptions and analyses made by
the Company's management in light of their experience and perception of
historical trends, current conditions and expected future developments, as well
as other factors management believes are appropriate in the circumstances. These
statements, however, are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity, performance
or achievements of the Company to be materially different from those expressed,
implied by or projected in the forward-looking information or statements.
Important factors that could cause actual results to differ from these
forward-looking statements include but are not limited to: risks related to the
exploration and potential development of the Company's projects, risks related
to international operations, the actual results of current exploration
activities, conclusions of economic evaluations, changes in project parameters
as plans continue to be refined, future prices of gold, as well as those factors
discussed in the sections relating to risk factors of the Company set out in the
Company's MD&A filed on SEDAR.
There can be no assurance that any forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader should not place any
undue reliance on forward-looking information or statements. Except as required
by law, the Company does not intend to revise or update these forward-looking
statements after the date of this document or to revise them to reflect the
occurrence of future unanticipated events.
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