Indigo Options Moule Gold Permit in Burkina Faso
News Release 10-06
Indigo Options Moule Gold Permit in Burkina Faso
May 12, 2010 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI) reports that it has entered into an option agreement with Mr. Adama Sere, a Burkinabe National, to acquire a 100% interest, subject to a 1.5% Net Smelter Return (NSR) royalty, in the Moule Gold Permit in western Burkina Faso, West Africa. The 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. This property acquisition is in addition to the acquisition of the four Burkina Faso gold permits previously announced by the Company on April 7, 2010.
To date, there has been property wide mapping and sampling of quartz veining and quartz float. Previous explorers subsequently focussed their efforts in a 7 kilometre by 6 kilometre area with a soil grid, detailed mapping and local IP survey. 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. Multiple long and wide linear targets are evident within the grid. One target is 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. A second target is a 2.5 kilometre long linear gold soil anomaly with coincident quartz float, chargeability high and local artisanal workings. A third target is a 0.8 kilometre long trend of quartz veining which can swarm to at least 50 metres wide, where grab samples reached a high of 7 g/t Au. In addition, other quartz trends on the property with elevated gold values in soils and rocks and local artisanal workings are worthy of future attention.
Tim Henneberry, CEO of Indigo, stated: “We are excited about the Moule acquisition because it strengthens our focus in Burkina Faso with significant drill ready gold targets.”
The terms of the agreement are as follows:
On signing US$ 50,000 12 month anniversary US$ 60,000 24 month anniversary US$ 100,000 36 month anniversary US$ 200,000
Total US $410,000
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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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, 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.