Today, on May 31, 2019, Indiana Resources Limited (ASX: IDA) announced that it has completed technical, legal, and financial due diligence for the Saboussire License in Western Mali. The company is now working in tandem with its proposed partner, FIMOCO SARL, (‘FIMOCO’) on finalising legal agreements to confirm exercise of the option to an eventual 85% stake in Saboussire through its wholly-owned subsidiary Mukuyu Resources Limited (‘Mukuyu’). The license covers the full scope for a single license in Mali, which is around 100 sq. kms. It is situated on the, north to the Kossanto West license, main transcurrent zone. The option increases the company’s landholding to 363 square kilometres in West Mali.
Bronwyn Barnes, Indiana’s Chairman, stated that the management is pleased to have successfully concluded the due diligence activities for this highly prospective license that has seen a very little modern exploration to-date. IDA will move immediately to commence exploration activities on the licence, which will provide key information to support the commencement of Stage 1 of the proposed Joint Venture terms. The review work at the area indicates that there is a strong potential to extend further north into the Saboussire license.
Exploration activities will commence on the licence shortly, with a field crew already in place nearby completing soil sampling programs at the nearby Koussikoto licence. Proposed activities for Saboussire include soil sampling to test and extend existing government soils sample anomalies on the licence, extend soil sampling from the adjacent Kossanto West licence, rock chip sampling, and mapping of all outcrop and existing artisanal activity on the licence.
Strong results were obtained from the previous reconnaissance drilling at Kossanto West (immediately south of the Saboussire licence area) and include:
- 15m @ 10.12 g/t Au, from 14m;
- 6m @ 7.84 g/t Au, from 24m;
- 2m @ 2.50 g/t Au, from 38.8m; and
- 17m @ 1.69 g/t Au, from 34m.
The soil sampling program at Saboussire is designed to test the strike extent of the strong mineralised trend identified at Kossanto and further south at Koussikoto.
As per the proposed Joint Venture, the work program will include Geological Mapping, Geophysics, and Soil Geochemistry. Indiana Resources will have around 90 days to start the work and 12 months to complete the initial stage. In Stage 1, the minimum spending would be close to US$250K, and the minimum 10K metre would be spudded to earn 51%. Upon conclusion of Stage 1, the entities will form a NewCo to hold equity stakes in the JV. In Stage 2, Indiana Resources can earn up to 85% by completing pre-feasibility study within two years of completion of the first stage. In Stage 3, the parties will work to complete a definitive feasibility study. In the event of a sale, both the parties have the right of first refusal.
On the stock information front, at market close on May 31, 2019, the stock of Indiana Resources was trading at $0.033, with a market capitalisation of ~$3.18 million. Today, it reached day’s high at $0.033 and day’s low at $0.030, with a daily volume of 82,760. Its 52 weeks high and low price stands at $0.073 and $0.030, with an average volume of 60,303 (yearly). Its absolute returns for the past one year, six months and three months are -56.63%, -45.45%, and -40%, respectively.
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