Indigo Signs Drill Contract for Moule Gold Permit in Burkina Faso
November 10 2010 - 8:30AM
Marketwired
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.
Neither the TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this release.
Contacts: Indigo Exploration Inc. Tim Henneberry (604)
681-3422
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