The evaluation of near-surface gold resources could capitalize on record high gold prices, positioning Pelangio for accelerated growth.
TORONTO, ON / ACCESSWIRE / August 15, 2024 / Pelangio Exploration Inc. (PX:TSX-V)(OTC PINK:PGXPF) (“Pelangio” or the “Company”) is pleased to announce that it is currently evaluating the potential for near-term production at its Manfo Gold Project in south-west Ghana. A review of the resource models of the three deposits at Manfo to determine gold grade and mineralization at shallow depths that could be mined by open pit mining is ongoing and will lead to a formal study of possible near-term production scenarios that could be economic given the current record high gold price.
Ingrid Hibbard, President and CEO, commented:
“The maiden NI43-101 compliant Mineral Resource Estimate (“MRE”) for the Manfo Gold Project was completed eleven years ago at a gold price of US$1,450 and estimated 195,000 oz Au indicated and 298,000 oz Au inferred.¹ We believe the 70% increase in the gold price over the value used for the 2013 MRE has significantly improved the gold production economics for the Manfo Project. As such, we are evaluating opportunities for smaller scale near-term production at Manfo and have commenced a review of the near-surface gold resource grade to be followed by an economic assessment of potential development and production plans. Ongoing drilling continues and there is potential for successful results that will complement profitable near-term production that could serve as a basis for funding a future larger scale operation.”
About the Manfo Project
The 96 km² Manfo project is located in the Paleoproterozoic Birimian Sefwi-Bibiani greenstone belts of southwest Ghana, 15 km southeast of Newmont’s Ahafo gold mine and 40 km north of Asante Gold’s Bibiani gold mine. Pelangio acquired the property in 2010 and conducted extensive exploration resulting in seven significant gold discoveries, three of which were drilled to resource level. In 2013, SRK Consulting (Canada) estimated that the project hosts a gold mineral resource of 195,000 ounces (at 1.5 g/t Au) in the indicated category and 298,000 ounces (at 1.0 g/t Au) in the inferred category, with the majority of the resource contained in the adjacent Pokukrom East and West deposits.¹ SRK used a gold price of US$1,450 per ounce Au and a cut-off grade of 0.5 g/t Au for its MRE. For further information, see SRK’s NI43-101 report “Mineral Resource Evaluation Technical Report, Manfo Gold Project, Ghana” dated June 21, 2013.
In 2021, Pelangio identified opportunities to expand the project through step-out drill testing of open mineralization in the known deposits, as well as drill testing several exploration targets along and near the 9 km long mineralized structures within the property. Pelangio completed diamond drilling programs in 2021 and 2023, with a total of 1,423 metres drilled at the Pokukrom East and West deposits. These drill programs and their results are detailed in Pelangio’s news releases dated November 16, 2021 and July 24, 2023.
The results were encouraging, demonstrating extensions to known mineralization in both deposits and concluded that further drilling around the deposits is warranted for potential resource expansion. Significant intercepts from the 2021 and 2023 drill programs included:
A number of resource expansion targets surrounding the Pokukrom deposits remain to be drill tested. Successful infill drilling could expand the two Pokukrom deposits. Planned property-wide exploration drilling to test over 20 targets remains to be completed. These targets consist primarily of untested favourable geological and structural settings with an anomaly in gold grade in lower order soils that could yield one or more satellite deposits if successfully drilled.
While the long-term objective is to develop Manfo into a significantly larger project through continued resource and exploration drilling programs, it is recognized that Manfo’s substantial resources may provide a near-term opportunity for a smaller “starter” mining project exploiting a less deep portion of the gold resources, which could later fund a larger project. Mineralization at Manfo is surfacing and some of the best gold grades are near surface. With the increase in the gold price from $1,450 in 2013 to $2,400 today, the economics of gold production at Manfo should improve significantly. A review of resource models at Manfo to determine gold grade and ore layering at shallow depths that could be exploited by one or more smaller open pits has already commenced and will progress to a formal study of possible near-term production scenarios that could be economic given the current record gold price.
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The Manfo mineral resource estimate was prepared by SRK Consulting and released in June 2013. (See the Mineral Resource Evaluation Technical Report, Manfo Gold Project, by SRK Consulting (Canada) Inc., released June 21, 2013 and available on Pelangio’s website.) The resource estimate was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects at the time of the mineral resource estimate in 2013. The NI 43-101 disclosure standards have been amended several times since 2013 and as a result, Pelangio’s 2013 resource estimate no longer complies with NI 43-101 under current standards.
Figure 1. Location of the Manfo Project in South West Ghana – Geology and Gold Mines
Figure 2. Manfo Project – Resource Areas and Exploration Targets
Qualified expert
Mr. Kevin Thomson, P.Geo. (Ontario, #0191), is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Thomson has approved the technical information disclosed in this news release.
About Pelangio
Pelangio acquires and explores prospective land packages in world-class gold belts in Ghana, West Africa and Canada. In Ghana, the Company is focused on its two 100% owned, camp-sized properties: the 100 km 2 The Manfo property, where eight near-surface gold discoveries were made, and the 284 km 2 The Obuasi property is located 4km along strike and is adjacent to AngloGold Ashanti’s prolific, high-grade Obuasi mine and the Dankran property which is adjacent to the Obuasi property. For further details of all of Pelangio’s properties, please visit www.pelangio.com.
For further information please visit our website at www.pelangio.comor contact:
Ingrid Hibbard, President and CEO
Tel: 905-336-3828 / Toll Free: 1-877-746-1632 / Email: (email protected)
Forward-looking statements
Certain statements contained herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements or information appear in a number of places and can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information include statements regarding the Company’s strategy to acquire large land packages in areas of significant gold mineralization and the Company’s ability to complete its planned exploration programs. In relation to the forward-looking statements and information contained herein, we have made many assumptions, including about the state of the equity markets. Such forward-looking statements and information are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These risks include changes in equity markets, equity price volatility, global and local economic climate volatility, gold price volatility, political developments in Ghana and Canada, cost increases, exchange rate fluctuations, the speculative nature of gold exploration including the risk of failure to obtain favorable exploration results, production not being profitable in the near future, delays due to COVID-19 or other safety protocols and other risks inherent in the gold exploration industry. Please refer to the Company’s annual and quarterly financial statements and management’s discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statements and information. There can be no assurance that any forward-looking statement or information referred to herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Moreover, many of these factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to republish or update any forward-looking statements or information, except as required by law. All forward-looking statements and information contained herein are qualified by this cautionary statement.
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SOURCE:Pelangio Exploration Inc.
