THE BOURSE WHISPERER: Indiana Resources (ASX: IDA) has entered a joint venture agreement via the company’s wholly owned subsidiary Mukuyu Resources Limited.
Indiana Resources has struck the JV with Caracal Gold Mali SARL, a wholly owned subsidiary of Cradle Arc plc.
The JV covers the Kossanto West gold project in western Mali, located immediately adjacent to Indiana’s Koussikoto Ouest gold project.
Indiana Resources indicated the JV effectively doubles the land available for exploration activities, bringing the company’s total exploration area in Mali to 263 square kilometres.
Kossanto West comprises two permits, the Kobokoto Est and Koussikoto exploration permits, which cover a total area of 137sqkm, located on the Main Transcurrent Zone, which is interpreted to be one of the structures which controls mineralisation in Western Mali.
Indiana said it is considered an excellent geological and structural location, located within the Kenieba Inlier of Western Mali, which is known to host a number of very large gold deposits, including the Loulou 12.5 million ounce deposit of Randgold Resources and the Sabodala 2 million ounce deposit of Teranga Gold.
“Indiana is pleased to have concluded the JV with Cradle Arc as it provides a low-cost option that is non-dilutive to Indiana shareholders and involves no cash payment, with all expenditure to be committed to exploration,” Indiana Resources CEO Chris van Wijk said in the company’s announcement to the Australian Securities Exchange.
“It is consistent with the company’s stated strategy to increase our interests in Mali and allows Indiana to methodically continue its exploration in the area.
“Our review of the area has indicated that there is strong potential for the results recently returned from Koussikoto to extend further north into the Kossanto West tenement and we are keen to commence activities on the ground next month.”