Indiana Resources Limited (ASX: IDA) is involved in the exploration of gold. The firm holds exploration properties in Western Mali and a significant development asset in the Ntaka Hill deposit.
The company today, on 6th May 2019, announced that Mukuyu Resources Limited, its wholly owned subsidiary, has entered into an Option Agreement related to the Saboussire License in Western Mali.
The company entered in an agreement with FIMOCO SARL, where it has the option to acquire a stake of 85% in the Saboussire license through an exploration earn-in Joint Venture, subject to the satisfaction of certain conditions within the next 30 days due diligence period. However, there are no issues anticipated related to the satisfaction of those conditions.
An area of 100 square-km is covered by the Saboussire license, the maximum size for a single license in Mali and is located on the Main Transcurrent Zone, immediately north of the Kossanto West license, held in a joint venture with Cradle Arc Plc. The option increases the land available for Indiana’s exploration activities by 100 square kms, which brings the total exploration area in Mali for the company to 363 square kms.
The Main Transcurrent Zone is an excellent geological and structural location within the highly prospective Kenieba Inlier of Western Mali and is interpreted to control mineralisation in Western Mali and Eastern Senegal. It is known to host several very large gold deposits, including the Loulou 12.5 Moz deposit (Barrick Gold) and the Sabodala 6 Moz deposit (Teranga Gold).
The Chair of the company, Bronwyn Barnes said that the company is pleased to have completed the Option Agreement with FIMOCO, as it helps in providing a further low-cost, non-dilutive entry into a highly prospective license that is not yet explored to its full capacity till date.
The option is consistent with the company’s strategy to increase its land holdings in Mali and allows the group to methodically continue its exploration in the area. The review of the area by the company hinted a strong potential for the results returned from Koussikoto and Kossanto West to extend further north into the Saboussire license. And the company is looking forward to starting the initial exploration program within the first 90 days.
The key conditions of the proposed joint venture include Stage 1, consisting of US$50k minimum spend. The work program will include Soil Geochemistry, Geological Mapping and Geophysics and Stage 2 consists of minimum spending of US$250k, along with minimum drilling of 10,000 metres to earn 51%. After the completion of Stage 2, the companies will form a new company to hold the respective party’s equity stakes in the joint venture.
On the price-performance front, the stock of Indiana Resources Limited was trading at $0.035, a decrease of 10.25% during the day’s trade with a market capitalisation of ~$4.13 million as on 6 May 2019, AEST 02:00 PM. The stock has yielded a negative YTD return of 22.0% with negative returns of 31.58%, 13.33% and 15.22% over the past six months, three months and one-month period, respectively. Its 52-week high price stands at $0.080 and a 52-week low price at $0.035, with an average trading volume of 49,887.
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