Indigo Exploration Inc.

Indigo Exploration Inc.

October 26, 2011 08:30 ET

Indigo Drills 6.16 gpt Au over 3.1 metres and 11.02 gpt Au over 1.77 metres at Moule

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2011) - Indigo Exploration Inc. (TSX VENTURE:IXI)(FRANKFURT:INE) provides results from the 13 hole July 2011 diamond drilling program on its Moule gold permit in Burkina Faso, West Africa. Drilling was focussed on Vein 3 and Vein 2.

Key points are:

  • Indigo intersected 11.02 gpt Au across 1.77 metres, approximately 40 metres below the previously reported drill intersection of 29.67 gpt Au across 7 metres, confirming continuity to depth.

  • Vein 3 shows lateral continuity for 350 metres and is open northward.

  • Indigo intersected 6.16 gpt Au across 3.10 metres at the southern end of Vein 3, approximately 1,400 metres south of the 1.77 metre intercept of 11.02 gpt Au.

  • Indigo intersected 0.47 gpt Au across 13.07 metres, including 1.12 gpt Au across 3.25 metres in one of the three holes completed on Vein 2.

  • The reverse circulation phase of the program is scheduled to commence in November to follow up on Vein 2, Vein 3 and Z1 results at Moule and initially test Prospect 1 at Lati.

  • Plans and selective sections can be found under the current exploration section on the Indigo Website:
Table 1. Moule July 2011 Diamond Drilling Highlights
Hole No. From (m) To (m) Length (m) gpt Au
MODD-01 59.74 62.58 2.84 1.78
and 83.30 87.56 4.26 0.65
MODD-02 129.64 131.41 1.77 11.02
and 142.46 145.47 3.01 1.25
MODD-03 151.37 151.84 0.47 1.08
MODD-04 119.65 121.27 1.62 1.34
MODD-07 102.81 104.20 1.39 0.54
MODD-08A 43.02 44.20 1.18 0.27
MODD-09 88.84 89.88 1.04 2.26
MODD-10 75.50 78.60 3.10 6.16
MODD-11 74.25 75.20 0.95 1.43
and 87.35 94.20 7.85 0.27
MODD-12 90.33 93.55 3.22 1.35
and 108.84 110.54 1.70 0.73
MODD-13 14.50 27.57 13.07 0.47
including 21.60 24.85 3.25 1.12
and 36.15 37.77 1.62 0.80
and 96.50 98.08 1.58 0.53
and 146.00 148.00 2.00 0.44

The July 2011 diamond drill program consisted of 10 holes at Vein 3 and 3 holes at Vein 2. Visible gold was noted in hole MODD-02.

The November 2011 RC program will focus on testing Vein 3 and Vein 2 along strike and testing Z1 (Zelingpe 1) along strike and at depth.

Initial drilling on Lati will focus on the two new soil anomalies discovered on Prospect 1. These anomalies are 4.75km long by 100-750m wide and 1.5km long by 250-350m wide respectively, with values generally between 25 and 5,000 ppb Au. The soil anomalies coincide with portions of the two known artisanal sites and a newly developing site lying on strike between the two known sites.

Indigo's President, Tim Henneberry, said: "The July 2011 diamond drilling program indicates continuity of gold mineralization to depth and along strike at Vein 3. The initial Vein 2 drilling results warrant a systematic reverse circulation program. Indigo management continues to be encouraged by exploration results and looks forward to further success in late 2011 and 2012."

Quality Control and Assurance

All samples were initially analyzed by 50 gram fire assay. The widths and grades reported are drill intercept widths and may not represent the true width of mineralization. Samples are from diamond drill core and sawn in half, with 1/2 of the core retained and the other half bagged and sent to the lab for analysis. The primary laboratory is ALS Chemex in Ouagadougou, an ISO 17025 certified laboratory. Standard, blank and duplicate samples were inserted throughout the sample sequence as quality control checks. Paul Cowley, P.Geo., director of Indigo, is the qualified person for the drilling campaign.

About Burkina Faso

The 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,

R. Tim Henneberry, P.Geo., President and CEO

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.

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, exploration 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.

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