TSX.V: IXI

March 29, 2011 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI) has received assay results from a further six holes of the 44 hole preliminary reverse circulation drilling program at its Moule Permit, Burkina Faso, West Africa. The latest six holes focused on the Zelingpe 1 target.   Results of the initial 27 holes were previously reported in a news release dated March 8, 2011.  Highlights from the latest holes in the Zelingpe 1 drill testing include:  1.12 gpt Au over 28 metres, 0.24 gpt Au over 32 metres and 0.24 gpt Au across 30 metres. 

Key points are: 

  • Discovery of a new mineralized gold system at Zelingpe 1, traceable for 500 metres and open in both directions.
  • Zelingpe 1 drill intercepts include:  1.12 gpt Au over 28 metres; 0.47 gpt Au over 11 metres;, 0.24 gpt Au over 30 metres; 0.24 gpt Au over 32 metres and 0.20 gpt Au over 35 metres, as well as the  previously reported 4.53 gpt Au over 5 metres.
  • The three drill transects that crossed the Zelingpe 1 target are spaced 200m apart.  Zelingpe 1 is a plus 1 kilometre long chargeability anomaly, covered by laterite capping with associated fringe artisanal workings. 

Drill plans and hole by hole details can be found on the current exploration page on the Company’s website at www.indigoexploration.com

Indigo’s President, Tim Henneberry, said: "The 28 metre drill intersection of 1.12 gpt Au at Zelingpe 1 is a new gold system discovery. We continue to see gold mineralization in a large percentage of the drill holes.  We eagerly await the resumption of Moule drilling scheduled for May." 

Quality Control and Assurance

All samples were initially analyzed by 50 gram fire assay. The widths and grades reported are drill intercept widths and may not represent the true width of mineralization. Samples are reverse circulation cuttings collected using a cyclone in 1 metre intervals that are riffle split at the drill site. The primary laboratory is ALS Chemex in Ouagadougou, an ISO 17025 certified laboratory. Standard, blank and duplicate samples were inserted throughout the sample sequence as quality control checks. Paul Cowley, P.Geo., director of Indigo, is the qualified person for the drilling campaign. 

Moule Permit

The Moule Gold Permit covers 249 square kilometres of prospective Birimian greenstone geology. Much of West Africa is underlain by the Birimian Greenstone Belt, one of the most prolific gold producing areas in the world. 

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.  

The Moule Permit 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.   

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 its 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.