Mali-focussed junior gold explorer Indiana Resources is looking at jumping into a joint venture over two gold projects in Mali, but it can’t report previous exploration results due to “reliability issues”.

If Indiana (ASX:IDA) signs on the dotted line it could earn up to an 85 per cent in Legend Mali — a subsidiary of London and Toronto listed company Altus — which owns the Lakanfla and Tabakarole gold projects.

Lakanfla, home to a lot of artisanal workings (small scale mining) is right next door to the multi-million ounce Sadiola gold mine in western Mali.

Based on a review of historical data, Indiana believes Lakanfla hosts a “potentially substantial” gold target, similar to the adjacent  Sadiola mine, chief executive Chris van Wijk says.

But the explorer also has reason to believe that there may be “reliability issues” with those exploration results – which means it can’t report them yet.

However, a quick visit to the Altus website will tell you that historical drilling returned “encouraging” (but unreliable)  intersections including 9.78 grams per tonne gold over 12m and 5.20 grams per tonne gold over 16m.

“Investors who become aware of historical exploration results are therefore cautioned not to rely on such exploration results until the Company confirms their reliability and compliance with the JORC Code 2012,” Indiana told shareholders.

Artisanal workings at Lakanfla. Pic: Altus
Artisanal workings at Lakanfla. Pic: Altus


The Company also proposes to place up to 12 million shares at $0.05 per share to sophisticated investors to raise $600,000.

At the end of December, the company had cash at bank of just $270,000.