November 10, 2010 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: 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”
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.
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