Thursday 20th October 2016

Resource Clips

Pelangio reports Ghana Gold Assays as high as 17.65 g/t over 3m

Resource Clips - essential news on junior gold mining and junior silver miningPelangio Exploration Inc TSXV:PX announced assays from its Manfo Property in Ghana, West Africa. Results include

1.88 g/t gold over 31 metres (including 17.65 g/t over 3 metres)
1.06 g/t over 20 metres
0.97 g/t over 47 metres (including 1.92 g/t over 14 metres)
1.41 g/t over 29 metres (including 3.05 g/t over 8 metres)
1.06 g/t over 63 metres (including 3.78 g/t over 8 metres)
0.96 g/t over 22 metres

VP Corporate Development Brendan Cahill tells, “Manfo consists of 100-square kilometres on Ghana’s Sefwi Belt. It is about 14 kilometres from Newmont’s [TSX:NMC] Ahafo Mine—that’s a 19-million ounce total-resource deposit, grading about 1.6 grams per tonne and producing up to 600,000 ounces a year at $550 per ounce. So it’s a huge deposit. We have very similar geology at Manfo and have made five discoveries since mid-2010.

That’s what the goal is at Manfo: find as many of these near-surface, open-pittable deposits as possible—Brendan Cahill

”The results we put out today [were from] 31 holes—about 7,500 metres—of mostly infill drilling on the zone. There was some high grade—17.5 grams over 3 metres—and we’re seeing a higher- to high-grade zone running through about 550 metres of the zone so far. The rest of the results [showed] more good, bulk-tonnage grades in the area of 1.5 g/t to 1.9 g/t over 15 to 30 metres and some broader widths up to 60 metres. The key thing about today’s news is looking forward. Pokukrom East is just one of the targets that we’re drilling right now. We did some IP surveying late last year, and we’re seeing a host of new targets based on that—20 new targets. We’ve drilled, or are drilling, nine of them so far. And that’s what the goal is at Manfo: find as many of these near-surface, open-pittable deposits as possible.

“We’re looking towards the end of the year for a resource,” Cahill continues. “That’s aimed to be on Pokukrom East and West and Nfante West. So three of the five targets. But by the time we get to the resource we hope to have another three to five new zones to be drilled going into 2013.” He adds, “We’re working on the metallurgy right now, but [a PEA] isn’t scheduled yet. But, obviously, you go down the path, and that would be the next step.”

Regarding infrastructure at the property, Cahill reports, “There are great roads running to the property, no problem with access to water. The hydro line goes to Ahafo and runs through the northeast corner of our property. So it has everything you need. And it’s just a fantastic place to work. There’s an educated local population, and you’ve got the labourers, engineers and geologist you need. We’ve got a great geological team over there.

“We have enough cash to carry us through to the end of the year. We’re being careful with it, obviously, as everyone is in this market. So we’re going to keep an eye on the budget and see how the market turns.”

Does Cahill think Pelangio is fairly valued? “In this market I don’t know what fair value is. There are companies that are worth less than us—companies that have been hit worse than we have. We’ve held in there, but that’s because we’ve got a quality asset. When the market turns we expect our asset to be better valued than other ones.”

He concludes, “We’re in Ghana; there have been more 5-million-ounce discoveries made, permitted, developed and gone into production in the last 15 years there than probably anywhere else in the world. The government is very supportive. All the majors—except perhaps African Barrick—are there. They’re there because they know they can produce at good costs, and they’re not going to have problems politically or, for that matter, geologically. Manfo’s on the Sefwi Belt, one of the up-and-coming gold belts in the world, just down the road from Ahafo, and we have very similar geology. We’ve got the infrastructure; we’ve got discoveries and lots of exploration potential going forward. It’s a great place to be.”

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