Friday 9th December 2016

Resource Clips


The Beverly Hills of West Africa

Pelangio is Surrounded by Gold Coast Giants

By Ted Niles

Brendan Cahill can’t think of a better place to be. “Ghana is kind of the Beverly Hills of gold exploration,” declares the VP of Corporate Development for Pelangio Exploration. “It’s all big players and stars out there.” Among them: Kinross, AngloGold Ashanti, Newmont, Gold Fields and Golden Star. Cahill says, “Those guys are there because it’s the best place in the world to work, and we’re lucky to have over 500 square kilometres. The combination of potential for massive deposits and a really supportive government and a well-trained workforce—I don’t think there’s a place in the world like it.”

Of its three properties in the West African nation—Obuasi, Manfo and Akroma—Pelangio’s Manfo property has received the lion’s share of attention so far. Manfo comprises 100 square kilometres and is located on the Sefwi Greenstone Belt. Cahill refers to it as a “company-making property,” and there might be something to that, given that Kinross’s Chirano Mine is located a mere 14 kilometres to the southwest, and Newmont’s Ahafo Mine is 50 kilometres to the north. Cahill remarks, “[Manfo] is one that people can invest in and be sure that there’s something there.”

Pelangio is Surrounded by Gold Coast Giants

Pelangio reported its first drill results from Manfo as recently as September 2010, so a date for a resource estimate hasn’t yet been decided, although Cahill estimates that it will likely be sometime in 2012. He explains, “When we got on the property, it was about trying to understand the geology, trying to understand exactly what we have. We’re at the stage now where we can start trying to prove up and grow the ounces as we work towards getting a resource together.”

Pelangio in currently in the middle of a 25,000-metre drill program at Manfo, focusing on four targets there: Pokukrom East, Pokukrom West, Nfante East and Nfante West. “We’ve got bulk tonnage and high grade, and there’s lots of room for other discoveries that we’re working on as well,” Cahill says. “So the aim is to have another drill on the property within the next few weeks, and that’ll give us quicker turnaround time in terms of results and also let us grow ounces quicker.”

July 11 Manfo assays include 1 gram per tonne gold over 50 metres, 1.12 g/t over 23 metres, 1.85 g/t over 17 metres (including 7 g/t over 4 metres) and 0.81 g/t over 54 metres (including 1.01 g/t over 38 metres). May 24 assays included 2.6 g/t gold over 19 metres (including 5.79 g/t over 8 metres), 14.1 g/t over 7 metres and 0.99 g/t over 22 metres (including 2.95 g/t over 6 metres). Cahill comments, “We are putting together some great strike at Pokukrom East, Pokukrom West and at Nfante West. It’s a matter of drilling them up to resource standard over the next year or so.”

A 5,000-metre drill program is also underway at Pelangio’s Obuasi property, adjacent to and on-strike with AngloGold’s Obuasi Mine, which produced 317,000 ounces gold in 2010. Cahill is optimistic about its prospects: “We have some really good targets there. If we don’t hit on the first go around, then we’ll go back and drill them again, because some of the targets warrant it.” He adds, “[Obuasi] is a potential game-changer. If we hit there, all bets are off.”

Between the company-maker and the game-changer, Pelangio has much to consider. But, insists Cahill, “All we can do is focus on what we can control right now. That’s putting together a really solid resource.”

We think we’re on to the next big gold deposit there; it’s just going to take work to get it together —Brendan Cahill

He continues, “We have a team that can go well beyond that stage, but once we get the resource done, then we’ll look about ourselves and see whether going to production is the way to do it.” He suggests the possibility, for instance, of Pelangio spinning the project out into another company—as it did in 2007 with its Detour Lake project in Ontario. “The wild card is always whether you get taken out along the way. But that’s not something we can control.”

In addition to its Ghana properties, Pelangio has several in Canada, including Ontario’s Birch Lake and Poirier properties. At press time, the company has 138.1 million shares trading at $0.57 for a market cap of $78.7 million.

“Everything we get continues to underline the fact that we’re on to something really significant,” Cahill concludes. “We think we’re on to the next big gold deposit there; it’s just going to take work to get it together.”


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