June 30, 2010 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI) reports that it has closed the Share Purchase Agreement and has acquired all of the issued and outstanding shares of Sanu Resources Burkina Faso SARL, (“Sanu Burkina”) formerly an indirectly owned subsidiary of NGEx Resources Inc. NGEx is a mineral exploration company listed on the TSX and which trades under the symbol “NGQ”. The primary assets of Sanu Burkina consist of four gold mineral exploration permits in the Republic of Burkina Faso, West Africa. The consideration for the Acquisition was Cdn$65,000 and 3,000,000 common shares of Indigo. The $65,000 has been paid and the Company has issued the 3,000,000 shares to NGEx. The shares are subject to a four month hold until October 31, 2010.
The Burkina Faso property package consists of four exploration permits in greenstone belts that contain significant gold discoveries: Kodyel, Tordo, Lati and Loto. The four permits held by Sanu Burkina are government granted licenses. The following description of the four permits is summarized from the individual 43-101 Technical Reports by Christopher J. Wild, P.Eng., an independent Qualified Person as defined in National Instrument 43-101. Technical reports on each of the four permits can be found under the Company’s profile on SEDAR.
Kodyel Exploration Permit
The 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 thence by laterite 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. The Kodyel permit is traversed by a regional northeast-trending fault that stretches from Ghana to Niger and separates the mafic and felsic volcanics and metasedimentary rocks of the Fada belt from the migmatites and granites to the northwest. There are several active artisanal workings within the permit, including: Hantekoura (CFA), Kodyel 1, Tangounga and Songonduari.
The Hantekoura orpaillage consists of a series of pits and cuts oriented at 060o over 550 metres strike. Mineralization consists of quartz veins, 5 – 25 centimetres thick, hosted in intermediate tuffs near the granite contact. The Kodyel 1 site consists of a large cut 70 metres long and up to 40 metres wide, exploiting strongly kaolinitized and sheared rocks hosting white and rose quartz veins in a zone striking to the northeast and dipping to the northwest and southeast. Tangounga hosts multiple massive quartz veins 1-5 metres wide outcropping over more than 400 metres. Local miners have been working at to a depth of over 7 metres. Songonduari is located near the Niger border and was the site of a recent gold rush involving up to 10,000 artisanal miners. 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. A large part of the permit including the major Tangounga artisanal mining site remains unexplored.
The permit was held from 1995-1997 by SEMAFO who drilled over 493 RAB, 26 RC and 12 DD holes into the CFA prospect and outlined a small resource. The best intersection was Hole 196 with 43m of 4.3 gpt Au.
The permit is 100% owned by Sanu Burkina.
Tordo Exploration Permit
The 143 sq. km Tordo permit lies about 150km east of Ouagadougou and is 100% owned by Sanu Burkina. The permit covers a portion of the Fada N’gourma greenstone belt which consists of meta-tuff, meta-sediment and mafic metavolcanic rocks and has never been previously explored. A dilational fault splay is focused near the contact of the greenstone belt and enclosing granites. Quartz float debris fields and a number of artisanal workings are associated with these structures. Quartz veins are most numerous in the central part of the mapped area displaying variable orientations including 070o, 110o, and 130o. In the metasedimentary rocks in the centre of the permit, mineralization consists of relatively narrow quartz veining and associated silicification. A regional and locally detailed soil geochemistry program has defined a 1300x 300m soil gold anomaly in saprolite with peak values to 3000 ppb gold. Trenching of the anomaly by Sanu Burkina suggests these stockworks may host significant gold mineralization but more work is required to determine controls and extent. The trenching returned 8 metres of 1.175 gpt Au, 70 metres of 0.525 gpt Au, 22 metres of 0.405 gpt Au and 38 metres of 0.278 gpt Au.
Lati Exploration Permit
The 246 sq. km Lati Permit, located in the Boromo greenstone belt, covers a major north-south shear zone and a number of known but under-explored prospects as well as an active artisanal mining area. The Lati permit is about 150 km by road, of which about 100 km is paved, west of Ouagadougou. Lati was previously explored by the UNDP (United Nations Development Program) and BUMIGEB (Burkina Faso Office of Mines and Geology) for volcanic-hosted massive sulfides (VHMS) similar to the Perkoa zinc deposit, as well as by Carlin Resources and Incanore Resources.
Prior exploration included airborne geophysics, soil geochemistry, trenching, and drilling. Several anomalous areas that were not followed up include a gold-in-soil anomaly (1000m by 200m) in the northern part of the permit in which three samples yielded over 1 gpt Au with a peak value of 6.5 gpt Au; a UNDP prospect that reported 12m of 2.45 gpt Au in a diamond drill hole; and the Kwademen artisanal mining area where reported gold mineralization over an area of 1250m x 250m with isolated values up to 65 gpt Au occurs in quartz veins and veinlets in a sheared granites and felsic volcanics.
Sanu Burkina has completed a detailed mapping and soil and trench sampling program at Kwademen to verify and better understand the extent of the reported gold anomalies before embarking on a program of RC drilling in the most prospective areas of the permit. The preliminary results show a significant gold and base metal anomaly approximately 1.5km x 300m near a sediment volcanic contact in the Kwademen prospect.
Sanu Burkina has also concentrated on relocating previously discovered anomalies in the northern part of the permit since there appeared to significant positional errors in the earlier work. Grab sampling of quartz lag and veining within the basalt rocks in this area has identified a series of plus one gram per tonne values to a maximum of 11 gpt Au.
Loto Exploration Permit
The 93 sq. km Loto exploration permit is located in the Boromo greenstone belt. The Loto permit lies near the town of Diebougou, approximately 270km by road from Ouagadougou of which 250km is paved. The area is intensely farmed and it has taken time to establish a working relationship with the local community.
Attention was first drawn to this area by outcrops of strongly anomalous (1-2 gpt Au) quartz vein swarms in intermediate to mafic volcanics. Sanu Burkina has covered the areas of quartz veining by a 200 x 100m soil geochemistry, rock chip and lag sampling and geological mapping. Eight of the ninety soil samples analyzed returned values greater than 50 ppb Au with a high value of 226 ppb Five of the 167 grab rock chip and lag quartz samples collected assayed greater than 1 gpt, including values of 22.15 gpt Au, 4.49 gpt Au, 8.08 gpt Au, 11.15 gpt Au and 14.55 gpt Au.
Indigo plans programs of concurrent soil geochemistry and air core drilling on the Lati and Tordo permits and a program of concurrent soil geochemistry and reverse circulation drilling on the Kodyel permit.
About Burkina Faso
The property package lies in the West African nation of Burkina Faso. West Africa is underlain by the Birimian Greenstone Belt, one of the most prolific gold producing areas in the world. A number 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 considered to be relatively stable, both politically and economically and relies primarily on farming and mining as it main sources of revenue.
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
Christopher J .Wild, P.Eng., is the independent 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.
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 Indigo believes, expects or anticipates will or may occur in the future including Indigo’s strategy, 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 Indigo’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 Indigo 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: inability to enter into a final binding agreement with respect to Sanu Burkina, risks related to the exploration and potential development of Indigo’s projects, risks related to international operations, the conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, as well as risk factors discussed in certain of Indigo’s continuous disclosure documents 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, Indigo 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.