Canada’s Indigo Exploration (TSXV: IXI) signed an option agreement with Desert Gold Ventures (TSXV: DAU) 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 explained 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 April 30, 2022. To acquire the maximum 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 April 30, 2024. Such 100% interest, however, is subject to a 2% net smelter royalty in favour of Desert Gold.
Indigo says the Djimbala permit will complement its West African gold-focused portfolio, which also includes the Hantoukoura and Lati 2 permits in Burkina Faso
Indigo would also have to make a share issuance to Desert Gold for a total amount of $350,000 in different instalments.
The Djimbala permit is located in the Yanfolila Gold Belt and is surrounded by a number of gold deposits, mines and prospecting permits. In detail, the property lies immediately east of Hummingbird Resources’ 0.7 million-ounces Komana gold mine, 21 kilometres north, along strike, of the Kodieran gold Mine and 28 kilometres north, along strike, from Endeavour’s high grade 3.3 million-ounces 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 Au 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.”