August 15th, 2012 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI, FSE:INE) would like to provide an update on its Burkina Faso exploration activities. The Company conducted two large soil sampling programs this spring that have identified new kilometre-scale drill targets on its Kodyel and Moule/Loto Permits.
The 48 square kilometres soil grid on its flagship Kodyel permit was conducted over the 15 kilometre stretch of favourable geology and artisanal workings between the Tangounga pit and the CFA Zone drilled by Semafo in 1997. Results have been received for 65% of the grid. Multiple gold soil anomalies were identified. The most significant anomaly measures 1.5 kilometres long by 1 kilometre wide and corresponds with an interpreted structural dilation zone related to a regional right lateral fault. The structural interpretation was performed by Dr. Demetrius Pohl, advisor to the Company, from the 2011 airborne magnetic survey data. The structural interpretation and soil anomalies will be posted on the Company website. During the soil sampling program, geologists also mapped numerous artisanal workings and zones of substantial quartz float strung along a 15 kilometre stretch overlying the interpreted regional right lateral fault. The soil anomalies to date constitute new drill targets and confirm the sizeable potential of our flagship project. Approximately 35% of the soil results for this grid are pending, corresponding to an area 3 kilometre long series of substantial artisanal workings.
The 19 square kilometre soil grid on the Moule and Loto Permits covered the large Radiometric target identified from the 2011 airborne geophysical survey. The soil grid has produced two kilometre-scale gold anomalies generating new drill targets. One anomaly is 2.2 kilometres long by up to 350 metres wide and corresponds to an interpreted magnetic intrusion. This anomaly trends towards the V-3 target on Moule where the Company intercepted 7 metres of 29.67 g/t Au in 2011 drilling, approximately 5.5 kilometres to the north of the soil anomaly. The second soil anomaly measures 1.5 kilometres long by up to 350 metres wide and corresponds to an area where limited prospecting of quartz float has returned four grab samples that ranged between 4.5 g/t Au and 21.9 g/t Au.
In addition, the Company signed an option agreement for 100% interest in the Bada Permit. The 244 square kilometre Bada Permit lies 8 kilometres southwest of Roxgold’s Solna Project in the Sebba Greenstone Belt, northeast Burkina Faso. The terms of the deal are for cash payments totaling US$90,000 over 3 years, subject to a 1% NSR. The NSR can be bought out for US$500,000.
Indigo’s Interim President, Keir Reynolds, said: “We have kept our spring 2012 exploration activities to low cost generative work. This work has generated an exciting number of new and sizeable drill targets on two of our 3 main projects including the first sampling work that we’ve ever been able to complete on our flagship Kodyel project. We’re well positioned for the next exploration season and continue our efforts to secure a new management team to advance the exploration for gold in Burkina Faso.”
About Burkina Faso
The Kodyel, Loto, Lati, 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,
“Keir Reynolds”
Keir Reynolds
Interim President
For further information, please contact:
Paul Cowley: (604) 340-7711 or Keir Reynolds: (778) 998-9242
Website: www.indigoexploration.com
Paul Cowley, P.Geo., Interim CEO and 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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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, planned exploration programs 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.