Indiana Resources Limited (ASX: IDA) ('Indiana' or 'the Company') is pleased to provide an update on its due diligence activities for the proposed joint venture agreement with Altus Strategies Plc ('Altus') (AIM: ALS; TSX-V: ALTS) for the Lakanfla and Tabakorole Gold Projects in Mali.
As announced to the ASX on 8 February 2019, the Company has entered into a non-binding term sheet ('Term Sheet') for a joint venture ('JV') with Altus where Indiana will have the option to earn up to an 85% interest in Legend Gold Mali Inc. ('Legend Gold '), a wholly owned subsidiary of Altus, which holds a 100% interest in the Lakanfla and Tabakorole Gold Projects ('Projects'). Entry into the JV Agreement is subject to satisfactory completion of due diligence, receipt of requisite regulatory approvals and the Company providing notice to Altus that it has raised at least A$1 million prior to completion of the due diligence period ('Due Diligence Period').
Following Indiana's initial review of historic technical information, the Company has agreed with Altus that based on the complexity of compiling and verifying the large volume of historical data, a 30-day extension to the Due Diligence Period is required. The Due Diligence period will now close on 6 May 2019.
Analysis and verification of geophysical data, including Ground Gravity and IP data, pertaining to the Lakanfla licence, has now been completed. The results show a strong gravity low which corresponds with the mapped edges of a granodiorite body which has intruded sediments of the Kofi formation; the same host rocks as the nearby Sadiola FE3 and FE4 pits. This gravity low is hypothesised to indicate a substantial karst collapse structure which may host mineralisation in a setting analogous to the nearby Sadiola FE3 and FE4 pits which are located approximately 6.5km to the north-west of the Lakanfla anomaly.
Historical exploration at Lakanfla has included soil sampling across the entire licence area, on a 500m x 250m (and in places 250m x 100m) sample grid. The programme defined a number of anomalies which were further refined by shallow auger drilling. Follow up diamond, RC and RAB drilling programmes primarily targeted shallow gold mineralised breccias. The breccias are also the primary target for artisanal gold miners, the workings of which extend for approximately 2.5km of strike length. From 2001 to 2011 over 29,000 metres of drilling was completed at Lakanfla including RAB, aircore, Reverse Circulation and Diamond drilling.
The 100km2 Tabakorole Project is located in southern Mali, approximately 280km south of the capital Bamako. The project sits on the Massagui Belt which hosts the 7.0Moz Morila gold mine operated by Anglogold Ashanti and Barrick Gold. Since 2003, a significant amount of diamond, reverse circulation, auger and air core drilling has reportedly been completed, in addition to 1,400 line km of airborne geophysics.
Indiana is collating and reviewing all of the information above to verify the results of previous exploration as part of the due diligence process and in order to enable the Company to announce the findings of its due diligence work. Altus is sourcing historic assay and exploration results, the majority of which is in hard copy, to support the technical due diligence review.
The Karst Model and its applicability to Lakanfla
The geology at the Yatela gold deposit (1.8Moz at start of operations, jointly owned by Anglogold Ashanti and IAMGOLD1) is characterised by felsic intrusions (Diorite) intruding metasediments of the Kofi formation, in particular, impure carbonates. The primary mineralisation, where encountered is low-grade and sub-economic (Masurel et al., 20162). The oxide resource exploited at Yatela is formed through karstic dissolution of the mineralised and hydrothermally altered carbonates which leads to supergene gold enrichment in the basal ferruginous residuum within weathering troughs surrounding the more resistant felsic intrusions.
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About Indiana Resources Limited
Indiana Resources (ASX: IDA) is a gold-focused Australian exploration company with a strategic position in western Mali consisting of the Koussikoto, Koussikoto Ouest, Kossanto and Kenieko Nord licences which are located in the well-endowed Kenieba Province of western Mali, approximately 550 km west of the capital city of Bamako. Indiana is looking to aggressively grow and explore its Malian portfolio going forward.