TSX.V: IXI

March 14, 2011 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI) has completed airborne radiometric and magnetic surveys at its Kodyel, Loto and Moule Permits in Burkina Faso, West Africa. The objectives of the program were to identify additional potential gold bearing structures and enhance the geological interpretations of the permits. Aeroquest expects to complete interpretation of the data and delivery of the preliminary maps to Indigo within 6 weeks. 

Key points are: 

  • The radiometrics survey was designed to identify potential gold bearing structures through the concentration of potassium in the mica minerals associated with the hydrothermal alteration of these structures during mineralizing events.
  • The radiometric anomalies will be followed up with ground surveys in preparation for drilling in late May.
  • Indigo has secured a 15,000 metre drill contract for May. 

The airborne survey covered the entire Kodyel and Loto permits and the prospective eastern half of the Moule permit at 200 metre flight line spacing. 

The 238 sq. km Kodyel permit lies close to the Niger border approximately 300km east of Ouagadougou. Access is by paved road as far as Fada N’gourma about 200km east of Ouagadougou and then by gravel roads. The Kodyel permit covers an extension of the Sirba greenstone belt that hosts the Samira Hill gold mine just across the border in Niger. Several artisanal workings occur within the permit, with the most significant being the Kodyel 1, CFA workings and Tangounga. 

The Kodyel 1 and CFA sites were explored by SEMAFO in the mid-1990’s. They drilled over 493 RAB, 26 RC and 12 DD holes into the CFA prospect and outlined a preliminary resource. The best intersection was Hole 196 with 43m of 4.3 gpt Au. Highlights of grab samples of quartz from artisanal gold mining sites on veining, and alteration, within intermediate tuffs and highly altered, sheared and kaolinized felsic volcanics include 7 gpt Au and 9 gpt Au. 

The Tangounga workings were started in about 2004. They consist of a large open cut approximately 200 metres long by 30 metres wide by 30 metres deep and several additional smaller pits and trenches along strike, over a distance of 1500 metres. Multiple, massive, quartz veins 1-5m wide have been noted in the open cut. The Tangounga site is essentially unexplored, though it remains active with 400 artisanal miners working. 

The 249 sq. km Moule permit is located in the Boromo greenstone belt, near the town of Diebougou, approximately 270km by road from the capitol, Ouagadougou. Indigo geologists have identified multiple prospective targets for bulk tonnage gold systems, based on the artisanal workings combined with previous sampling programs. To date, there has been property-wide mapping and sampling of quartz veining and quartz float.  Efforts have been focused on the 7 kilometre by 6 kilometre Zelingpe area where a soil grid, detailed mapping and local induced polarization (IP) survey have identified multiple linear targets untested by drilling. Rock sampling on this grid returned 46 of 480 grab samples with gold values between 1 g/t Au and 16.5 g/t Au. The December 2010 – January 2011 drilling program tested three of the multiple targets: 

  • Zelingpe 1, a plus 1 kilometre long chargeability anomaly covered by laterite capping with associated fringe artisanal workings.
  • Zelingpe 2, a 500 metre wide northwest trending corridor, traceable for at least 1.6 kilometres, where multiple shear zones and parallel multiple quartz float trends have coincident chargeability, elevated gold soil anomalies and local artisanal workings.
  • Vein 3 has been traced in excess of 1500 metres by widely spaced soil geochemical lines. 500 artisanal miners are currently working a 400 metre long portion of this vein.  

Preliminary drill results for the first 27 of 44 holes were released on March 8, 2011 and included 5 metres of 4.53 gpt Au at Zelingpe 1 and 4.60 gpt Au over 3 metres, 3.57 gpt Au over 3 metres, 2.06 gpt Au over 3 metres and 1.82 gpt Au over 5 metres at Zelingpe 2. Assays from most of the Zelingpe 2 and all of the Vein 3 holes are pending. 

The Zelingpe grid has several other targets untested by drilling to date.  In addition, other kilometre long quartz trends on the property with elevated gold values in soils and rocks and local artisanal workings are worthy of future attention. 

The 93 sq. km Loto exploration permit is contiguous to the Moule permit to the south and has only seen limited exploration to date. Sampling has located strongly anomalous (1-2 gpt Au) quartz vein swarms in intermediate to mafic volcanics. A small soil grid located a strong gold-in-soil anomaly. 

Indigo’s President, Tim Henneberry, said: "Upon receipt of the results from the airborne geophysics survey, we intend to aggressively ground truth the anomalies to prepare for a 15,000 metre reverse circulation drill program commencing in May." 

Indigo holds the Loto and Kodyel permits outright from the Burkina Faso government. 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 Kodyel, Loto and Moule properties lie 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. Burkina Faso saw gold production double from 2008 to 2010 and is currently the 5th largest gold producing country in Africa. 

On Behalf of the Board of Directors,

“R. Tim Henneberry”

R.Tim Henneberry, P.Geo.

President and CEO 

For further information, please contact:

Tim Henneberry: (604) 681-3422 

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. 

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. 

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.