MALI – Canada’s Indigo Exploration has signed an option agreement with Desert Gold Ventures and its subsidiary Desert Gold Mali SARL, to acquire up to a 100% interest in the Djimbala permit in southern Mali, West Africa.
In a press release, the companies said that under the four-year option agreement, Indigo can acquire a minimum 51% interest in the Djimbala permit by completing $400,000 in expenditures by or before Apr. 30, 2022.
To acquire 100% interest, the Vancouver-based miner must have earned the minimum interest and is required to make additional work expenditures of $600,000 prior to Apr. 30, 2024. The 100% interest is subject to a 2% net smelter royalty in favour of Desert Gold.
Indigo would also have to make a share issuance to Desert Gold for a total amount of $350,000 in different installments.
The Djimbala permit is located in the Yanfolila Gold Belt and is surrounded by a number of gold deposits, mines and prospecting permits. The property lies immediately east of Hummingbird Resources’ 700,000-oz. Komana gold mine, 21 km north, along strike, of the Kodieran gold mine and 28 km north, along strike, from Endeavour’s high grade 3.3 million-oz. Kalana project.
According to Indigo, 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 gold anomalies coinciding with interpreted favourable mineralized structures,” the media brief states.
“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 immediately north of the Djimbala permit.”