Monday, November 3, 2008

IGC Progresses Copper and Gold Project in Zambia, Africa

IGC Resources Inc. (TSX VENTURE:IGC)(PINK SHEETS:IGCGF)(FRANKFURT:I6G)(WKN:A0HGX4) ("IGC" or the "Company") is pleased to announce that the Company has proceeded to the next step in the acquisition of the gold and copper concessions in Zambia and has paid $40,000 on completion of a shareholder's deed and share purchase agreement to secure 90% of a local company, TransAfrican Limited Zambia.

The Zambia Project provides the Company with a highly prospective exploration opportunity within a known geological domain with previous historical data. The concept target generation provides the Company with opportunities for a copper and gold discovery where high-grade rock chips and drilling reported in previous reports indicates copper and gold are present.

The general region has not previously attracted the level of exploration the rest of the copper belt has, however Phelps Dodge and Anglo American have in the past explored the area primarily for copper. The gold potential has had little work completed to date. During the mid 1950s to mid 1970s regional exploration of the area by Roan Selection Trust and Anglo American identified anomalous copper workings in the district. De Beers and Cogema have both explored for diamonds and uranium, respectively; however, no additional information of their activities is currently available.

The Zambia project comprises two concessions (Kalengwa South and Kasempa East) in northwest Zambia, totalling approximately 3,500 square kilometres. Both concessions are underlain by undifferentiated sediments of the Katanga supergroup dominated by argillites, siltstones and carbonates with occasional conglomerates. Low-grade metamorphism of the sediments is present as are a number of later stage intrusions. Small copper, gold and artisanal workings are reported in the area but until field checking is carried out this cannot be verified. Immediately to the south of Kasempa East are a number of other small mines that have successfully produced copper for a number of years. Details on the mines, their production and previous ownership are to be further documented during the initial field surveys.

To view the map accompanying this press release please click on the following link.

Phelps Dodge undertook a suite of airborne and ground based surveys and 14 drill holes in the SW corner of the Kasempa East concession. They considered the region to be prospective for iron-oxide-copper-gold (IOCG) type targets and thought the brecciation and metasomatism seen was reminiscent of such targets.

The Kalengwa South area is considered prospective following the main discovery in the region (50 kilometres away) of the Kalengwa Copper Mine. Other companies that have been active in the area of the concessions include Phelps Dodge, First Quantum and Gencor during the 1990s to 2000.

Kalengwa South has been more extensively explored. A number of copper showings flanking the nose of the Syenite intrusive at Dongwe have been prospected since the 1920s and have been documented by the Zambian geological survey. In the 1950s to 1970s, Anglo undertook extensive systematic prospecting over large areas of the Kalengwa district. The original data has not yet been cited. Again, First Quantum and Phelps Dodge also have performed exploration in the area. Known prospects within the area include Karibarembi, Shirembwe and Chimena. The remainder of the prospects originally cited in the initial geological report of the area given to IGC by the vendors have not as yet been geographically located.

At Karibarembi, Anglo completed extensive geophysical surveys including drilling (13 diamond drill holes) with the best intersection of 0.75 meters at 22% copper reported. No analysis for gold seems to have been completed however there is scheelite, copper and pyrite and refractured quartz veining within breccias in the area.

Shirembwe hosts numerous malachite stained boulders. Some trenching has been completed but results are not known at this stage. Further investigation is continuing.

Chimena has over 140 wagon wheel drillholes and three diamond drillholes with copper mineralisation visible. In 1991 Watts Griffis McOuat, an independent firm of consulting geologists and engineers, considered in an independent review that the area may have potential for Carlin-style gold mineralisation based upon the widespread hydrothermal silicification and sulphide mineralisation. Additionally the carbonate rocks in Kundelungu, with high levels of sulphidation and late tectonic acid intrusive may lead to high grade skarn mineralisation not yet explored for.

A work program has commenced on the project areas with a consulting geologist due on site before the end of the month. This program will see all the historical data compiled, reference maps drawn and the historical geophysical data located. This is seen as both an immediate and imperative first step. Field mapping of historical workings, location of the drilling and locating the accompanying results will assist us in identifying further drill targets for testing. It is anticipated that drill targets could be identified before the end of the current drilling season.