Indigo Exploration Closes Djimbala Property Transaction, Mali
News Release
Indigo Exploration Closes Djimbala Property Transaction, Mali
June 1, 2020 - Vancouver, British Columbia. Indigo Exploration Inc. (the “Company”) (TSX-
V: IXI, FSE: INE) announces that it has finalized the Option Agreement with Desert Gold Ventures
Inc. (“Desert Gold”) and its local Mali subsidiary, Desert Gold Mali SARL (“DGM”), to acquire
up to a 100% interest in the Djimbala Permit in southern Mali, West Africa.
The Djimbala Permit lies immediately east of Hummingbird Resources’ 0.7 million oz Au Komana
gold mine1, 21 kilometres north, along strike, of the Kodieran gold Mine and 28 kilometres north,
along strike, from Endeavour Mining Corporation’s high grade 3.3 million oz Au Kalana project2.
Paul Cowley, President and CEO of the Company, states: “We are very pleased to move forward
on the Djimbala option and with our recent financing, will initiate field work this month with
mapping, prospecting and sampling of artisanal mine workings. We look forward to working with
the Desert Gold team. The Djimbala Permit will complement the Company’s West African gold-
focused portfolio.”
Under the terms of the four-year Option Agreement, the Company can acquire up to 100% interest
in the Djimbala Permit by the issuance of shares and completing work. The Company has met and
removed pre-conditions of the Option Agreement, including: a financing, the consolidation of the
Company’s shares and technical and title due diligence, setting a Commencement Date of May 29,
2020 for the Option Agreement, by the issuance of 1,000,000 shares to Desert Gold . The shares
are subject to a four-month hold period that expires September 30, 2020. Three subsequent share
issuances will be required over three years totalling $300,000 at a deemed price equal to the
volume weighted average price (“VWAP”) for the prior 10-day trading period. With work
expenditures of CAD $400,000, the Company would earn a 51% interest in the permit, and with
an additional CAD $600,000 in work expenditures, the Company would earn a 100% interest in
the permit, subject to a 2% net smelter royalty (“NSR”) in favour of Desert Gold, where 1% NSR
could be bought out at any time for USD $1 million by the Company.
The Djimbala Permit is located in southern Mali, West Africa, 220 km south of the capital of
Bamako and covers a 100 km2 area. The permit is situated in the Yanfolila G old Belt and is
surrounded by a significant number of gold deposits, mines and prospecting permits. The bulk of
the permit has not been explored. Two small soil sampling campaigns and a limited artisanal pit
sampling program were completed by Desert Gold over parts of the permit with positive Au
anomalies coinciding with interpreted favourable mineralized structures. Four north -south
trending gold soil anomalies were defined, reflecting the regional structural trend. These soil
anomalies also appear to correspond to the southern extension of the Faliko Fodela mineralized
zones drilled by Gold Fields Limited immediately north of the Djimbala Permit. To date, several
active artisanal workings were located during the limited soil campaigns, confirming Au
mineralization.
On Behalf of the Board of Directors,
“Paul Cowley”
President and CEO
For further information, please contact Paul Cowley: (604) 340-7711
Website: indigoexploration.com
Paul Cowley, P.Geo., President, CEO and Director of Indigo Exploration Inc., is the Qualified Person as
defined in National Instrument 43 -101, who has read and approved the technical content of this news
release.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains forward-looking statements entail various risks and uncertainties that could cause actual
results to differ materially from those reflected in these forward -looking statements. Such statements are based on
current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from
those contained in such statements . These uncertainties and risks include, but are not limited to, the strength of the
capital markets, the price of gold; operational, funding, and liquidity risks . Risks and uncertainties about the
Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory
authorities in Canada and available at www.sedar.com and readers are urged to read these materials. The Company
assumes no obligation to update any forward- looking statement or to update the reasons why actual results could
differ from such statements unless required by law.
1. Hummingbird Komana gold res erve ; 7.9Mt proven and probable @ 2.66 g/t for 676,000 oz Au
(20 20) https://hummingbirdresources.co.uk/operations -projects/mali/
2. Endeavour Mining Corporation’s Kalana gold resource; 3.3 million oz Au measured & indicated
(2020) https://www.endeavourmining.com/our -portfolio/Kalana -Project/default.aspx