January 30, 2012 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI, FSE: INE) announces that the Company has received a renewed and revised Kodyel permit covering approximately 80% of the previous permit size. This renewed permit excludes a 5 kilometre wide strip adjacent to the Niger border that had been part of the original permit. The terms of the renewed permit provide the Company with a right of first refusal to add this excluded area to the area covered by the renewed permit, once the World Court has finalized the border location. The temporary suspension on the Kodyel permit has been lifted and the Company is planning to commence grid based soil sampling on the renewed Kodyel permit shortly.
The soil sampling program on Kodyel will be conducted over approximately 43 square kilometres to cover an area of anomalous stream sediment samples and radiometric anomalies suggestive of hydrothermal alteration.
The Company would also like to provide an update on the ongoing drilling program at its Lati gold project in Burkina Faso, West Africa. The 5,800-metre reverse circulation drilling program commenced on November 27, 2011 and to date, 34 holes totaling 3,939 metres reaching an average depth of 120 metres, have been completed. The program has been increased to 6,400 metres to include additional target testing after a recent site visit documented new and expanding artisanal workings. Assays are pending.
The 191-square-kilometre revised Kodyel permit lies close to the Niger border, approximately 300 km east of Ouagadougou. Access is good with paved road as far as Fada N'gourma about 200 km east of Ouagadougou and then by gravel roads to the permit. The Kodyel permit covers an extension of the Sirba greenstone belt that hosts the Samira Hill gold mine just across the border in Niger. Several artisanal workings occur within the permit, with the most significant being the Kodyel 1 and CFA workings. The Tangounga workings occur in the 5 kilometre wide excluded portion of the original 238 square kilometre permit.
The Kodyel 1 and CFA sites were explored by Semafo in the mid-1990s. It drilled over 493 rotary air blast, 26 reverse circulation and 12 DD holes into the CFA prospect and outlined a preliminary resource. The best intersection was hole 196 with 43 metres of 4.3 grams per tonne gold. 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 seven gpt Au and nine gpt Au.
About Burkina Faso
The Lati , 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 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,
Paul Cowley, P.Geo.
For further information, please contact:
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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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 drill program 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.