IGC Resources Inc.

IGC Resources Inc.

June 04, 2007 09:24 ET

IGC Resources Discovers New Parallel Gold Zone at Blackburn Gold Property in Western Australia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2007) - IGC Resources Inc. ("IGC" or the "Company") (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) is pleased to announce that recent broad-spaced soil sampling taken at the Company's Blackburn Gold Project has identified a previously unknown 10 kilometer (km) long north-northwest trending gold anomaly in soils. The soil sampling, completed on a 1 km spaced off-set grid, included anomalous values of up to 445 parts per billion gold as shown in the Soil Anomaly Map attached.

This new anomaly runs parallel to the main soil trend at Blackburn, and further sampling to the north will determine if the newly-discovered gold zone continues along strike. The anomaly and trend line suggest that a previously unidentified central zone of up to 3 km by 2 km is situated along a 10 km trend line of anomalous gold, with strong similarities to the main trend zone soil anomalies.

Whilst the geology of the anomaly is not well understood at present, previous interpretations of the area's aeromagnetics suggest it may be primarily late-stage granites within remnant archaen greenstone, which have subsequently metamorphosed to granulite facies (high grade) rocks. Surface rocks collected from within the ploughed field show predominantly mafic granulites are present in the area, similar to the host rocks at the Jinkas Hill deposit.

To date the Blackburn Gold Project has a resource base of 51,300 tonnes @ 5.92 grams per ton (g/t) measured resource; 328,900 tonnes @ 1.47 g/t indicated resource; and 6,244,600 tonnes @1.06 g/t inferred resource; as described in the NI 43-101 technical report dated 2004 compiled by M. Castle and lodged on SEDAR.

IGC will embark upon an infill and resource definition drilling campaign, including RC (reverse circulation) drilling, to test the newly discovered Blackburn West gold anomaly as well as a number of electromagnetic targets highlighted in the previous geophysical survey along the main corridor (To see Map 1 please click on: http://www.ccnmatthews.com/docs/IGCmap1.jpg). Suitable drilling contractors have already been sourced with contracts expected to be signed before the end of the month. Drilling is anticipated to commence soon thereafter subject to rig availability and weather conditions.

Survey samples were collected via a tractor-mounted auger rig, which is capable of sampling below the agriculturally-disturbed ground of between 1-2 metres. 200-500 gram samples were sieved through a -80 micron mesh for subsequent laboratory analysis. The elements, methods and detection limits are outlined in the table below. A multi-element analysis was completed. Evaluation of all the analytical data is still continuing with specific reference to copper, molybdenum and tungsten distribution.

Results of multi-element analysis of Blackburn sample soils
Ele- Au-
ment Au Rp1 Ag Bi Cu Mo Ni Pb Th U W Zn
ppb ppb ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
tion 1 1 0.01 0.01 1 0.1 1 2 0.01 0.01 0.05 1
OES - Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry
MS - Inductively Coupled Plasma Mass Spectrometry
B/ - Aqua regia digest

Standards and checks as per the laboratory procedures. Analytical work by
Genalysis laboratories Pty Ltd, NATA accredited, Perth, Western Australia.

Information in this announcement was compiled by Mr. Dave Holden, a director of IGC, who is a Member of the AusIMM and a "Qualified Person" under Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About IGC Resources Inc.: IGC Resources Inc.'s principal business activities are the exploration, development and mining of gold and copper prospects within Australia, while continuing to investigate other mineral resource prospects for potential acquisition globally. IGC also holds an IOCG exploration project in the southern Fraser Range proterozoic mobile belt.

Statements in this release may constitute forward-looking statements which involve known and unknown inherent risks and uncertainties that are detailed in IGC's periodic filings with Canadian securities regulators. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Actual events or results could differ materially from IGC's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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