IGC Resources ties into Blackburn high-grade (March 28, 2005)

Vancouver — Drilling by IGC Resources (IGC-V) on the Blackburn project in Western Australia has intersected significant gold values.

The initial, reverse-circulation program of 1,200 metres is focused on the Jinka’s Hill deposit. Highlights include hole 57, which cut 8 metres (from a depth of 98 metres) grading 14.5 grams gold per tonne, including a couple of 1-metre intercepts averaging 41.6 grams and 27.6 grams gold. Hole 59 cut 4 metres (from the same depth) of 8.8 grams gold, including 1 metre assaying 16.9 grams gold.

More than half of the first 12 holes returned intercepts greater than 5 grams gold over 2-metre widths. In the process, the northern shoot of the Jinka’s Hill deposit has been traced continuously for more than 200 metres beyond the northern end of the past-producing pit.

IGC intends to drill a further 3,800 metres in the Jinka’s Hill area.

The inferred resource, calculated in compliance with National Instrument 43-101, is pegged at 240,000 oz. gold. Most of that is in the Jinka’s Hill and Dingo Hill deposits, which, in the 1990s, were mined using open-pit methods.

The company is considering using underground methods to mine the high-grade shoots. A processing plant exists on site, though this would require refurbishment and upgrading if it is to be used. Metallurgical tests are planned.

Blackburn is in a highly metamorphosed gneissic terrain of the Yilgarn block, in the Badgebup greenstone belt. Mineralization is hosted in a suite of mafic-felsic granulites.

Jinka’s Hill mineralization occurs as a series of high-grade northeast-trending silica-rich shoots in a 20-km northwest-orientated corridor known as the Badgebup trend. The shoots remain open on strike and at depth. Further drilling will try to identify additional shoots along the corridor.

The geologic setting of the project area, coupled with the presence of a quartz monzonite intrusion, provides a target for possible gold-copper porphyry mineralization similar to the Boddington deposit, a past producer.

The 11-million-oz. Boddington project, which is held 44.4% by Newmont Mining (NEM-N), 33.3% by AngloGold Ashanti (AU-N) and 22.2% by Newcrest Mining (NCMGF-Q), occurs in a similar greenstone environment 140 km west-northwest of Blackburn. Production is expected to resume in 2008 at the annual rate of 600,000 oz. gold, and the projected mine life is 15 years. The deposit also contains more than 210,000 tonnes of copper. Mining of oxide ore at the open-pit mine concluded in 2001; by that time, almost 5 million oz. had been mined.

IGC has acquired a 21-year lease to explore and develop Blackburn, as well as the Fraser Range gold project, 500 km to the east, from privately held Great Southern Resources. GSR received an initial payment of A$750,000 on signing and will receive A$500,000 on the second anniversary and A$750,000 on the third. GSR is a non-arms-length company controlled by a director of IGC Resources.

IGC recently applied for two uranium exploration licence tenements in Western Australia. The applications cover an area of Proterozoic sandstones and Late Cretaceous sediments in a region known for having uranium mineralization.

With 12.5-million shares outstanding, IGC Resources has a market capitalization of $5.4 million at its recent trading level of 43 per share. The trading range over the past year was 30-65.