Delta, British Columbia--(Newsfile Corp. - April 13, 2020) - Desert Gold Ventures Inc. (TSXV: DAU) (FSE: QXR2) (OTC Pink: DAUGF) (the "Company") announces that it has signed an Option Agreement with Indigo Exploration Inc. for a 100% interest in its 100 square kilometre Djimbala Permit in southern Mali, West Africa. The Djimbala Permit lies immediately east of Hummingbird's 0.7 million oz Au Komana gold mine1, 21 kilometres north, along strike, of the Kodieran Mine and 28 kilometres north, along strike, from Endeavour's high grade 3.3 million oz Au Kalana gold project2.
Djimbala Permit is located in southern Mali, West Africa, 220 km south of the capital of Bamako and covers a 100 km2 area. The permit is situated in the Yanfolila gold belt and is surrounded by a significant number of gold deposits, mines and prospecting permits. 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 possible favourable mineralized structures. 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 mineralized zones drilled by Gold Fields immediately north of the Djimbala Permit. To date, several active artisanal workings were located during the soil campaigns, confirming Au mineralization.
Jared Scharf, President & CEO states, "With Desert Gold's primary focus on its flagship Senegal Mali Shear Zone Project, we feel it's a sensible decision to option out the Djimbala Property to Indigo. This allows us to focus our resources on the SMSZ Project. At the same time, it is important for exploration to scale up at Djimbala on a timely basis. This transaction will ensure that this happens. Desert Gold looks forward to becoming an Indigo shareholder, and by proxy, realize additional potential value for our shareholders via this transaction and also through their exploration properties in Burkina Faso. We look forward to Indigo advancing the potential of the Djimbala Property for the benefit of both our shareholders and the country of Mali."
The Company has signed a four-year Option Agreement with Indigo, whereby the Indigo can acquire up to 100% interest in the Djimbala Permit by the issuance of shares and completing work. Upon completing a positive title opinion and financing of at least $500,000, the Indigo would make a share issuance to Desert Gold equivalent of $50,000 of Indigo common shares at a deemed price of 5 cents per share, and three subsequent share issuances over three years totalling $300,000 at a deemed price equal to the volume weighted average price ("VWAP") for the prior 10 day trading period. With work expenditures of CAD $400,000, Indigo would earn 51% in the permit and with an additional CAD $600,000 work expenditure, Indigo would earn 100% interest in the permit, subject to a 2% net smelter royalty ("NSR") in favour of Desert Gold, where 1% NSR could be bought out at any time for USD $1 million by Indigo.
This press release contains certain scientific and technical information. The Company is solely responsible for the contents and accuracy of any scientific and technical information related to it. Don Dudek, P.Geo a director of Desert Gold and a Qualified Person under National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this press release.
1 Hummingbird Komana gold resource; 0.7 million oz Au probable reserves category (2015) https://hummingbirdresources.co.uk/operations-projects/mali/
2 Endeavour Kalana gold resource; 3.3 million oz Au measured & indicated (2020) https://www.endeavourmining.com/our-portfolio/Kalana-Project/default.aspx
About Desert Gold
Desert Gold Ventures Inc. is a gold exploration and development company that holds 2 gold exploration projects in Western Mali (SMSZ and Djimbala) and its Rutare gold project in central Rwanda. The Company's current focus is its 391 km2 SMSZ Project that spans approximately 38 km of the prolific Senegal Mali Shear Zone.
ON BEHALF OF THE BOARD
President & Director
About Desert Gold
Desert Gold Ventures Inc. is a gold exploration and development company which holds 2 gold exploration permits in Western Mali (SMSZ Project and Djimbala) and its Rutare gold project in central Rwanda. For further information please visit www.SEDAR.com under the company's profile. Website: www.desertgold.ca
This news release contains forward-looking statements respecting the Company's ability to successfully complete the Offering. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements, including the inability of the Company to successfully complete the Offering. These uncertainties and risks include, but are not limited to, the strength of the capital markets, the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. The Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the united states securities act of 1933, as amended, and may not be offered or sold in the united states or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such act.