Toronto, Ontario--(Newsfile Corp. - September 24, 2020) - Pasofino Gold
Limited (TSXV: VEIN) (FSE: N07) ("Pasofino" the "Company") is pleased to
announce that it has awarded the initial drilling contract to Cestos
Investments Incorporated ("Cestos Drilling"), for an initial 15,000 metres on
the Dugbe Gold Project ('the Project') in Liberia. DRA Global have been
awarded the Feasibility Study (FS) lead consultancy role and SRK (UK) have
been awarded the Environmental and Social Impact Assessment (ESIA) Study.
Project Development Highlights
* Management and technical team are in-country and preparing for
* Selected Drill contractors Cestos Drilling are in country, with rigs,
carrying out final preparations for the program.
* Company aims to increase the current 2.3 Moz Indicated and 1.3 Moz
Inferred Mineral Resources.
* The FS has commenced and is planned for completion in Q3 2021 targeting a
production rate of between 200,000oz pa and 250,000oz pa.
* Road contractor mobilised for the rehabilitation of the access road to
* Camp infrastructure has been ordered and is on route to site.
Ian Stalker, CEO - Africa Operations, commented; "Building on the momentum of
our recent news, our management and technical teams are now on the ground in
Liberia. In addition, we have commissioned key contractors, to match our
timetable of having drills turning at the project by the end of the last
Quarter 2020. Furthermore, the FS and ESIA consultancy contracts have been
awarded to DRA Global and SRK (UK) respectively, both highly regarded
Engineering Consultants in their respective fields We have identified where
additional ounces are expected to be found, and the initial resource expansion
and infill drilling will be focused on the Tuzon and Dugbe F deposits which
are both 'open' on strike. It is also noted that there is a wealth of drill
ready targets that require drilling on the property.
We have a great platform of quality work completed by our partners Hummingbird
Resources historically on the project, which will allow us to accelerate work
and unlock the value of the Dugbe Gold Project".
Drill Program and Exploration targets
Cestos Drilling have four track-mounted rigs in country and were selected
based on the suitability of their equipment and services. The initial contract
is for 15,000 metres. A second contract is planned to be issued in Q2 2021 for
follow-up drilling. The aims of the drilling program are as follows:
* Expand the Tuzon deposit on strike focussing on the 'high grade zone B'
which is open. This zone already hosts an Indicated resource 1.05 Moz gold
with an average grade of 1.72 g/t Au^.
* Infill drilling at the Dugbe F deposit to convert the bulk of the Inferred
resources to Indicated. The Inferred resource grades 1.57 g/t Au and host
0.82 Moz of gold^1.
* Coring at the 'drill-ready' targets of Tiehnpo and Sackor where gold has
been identified in existing trench and limited drilling respectively^1.
* Drilling at new targets prioritized following a rigorous target generative
exercise using all available geochemical, geophysical and satellite data.
Drilling at these targets is planned for 2021.
Mobilisation of the first two drilling rigs will commence in October 2020; one
to begin the infill drilling program at the Dugbe F deposit and the other to
carry out the first drilling at the Tiehnpo target (figure 1) where trenches
completed by Hummingbird in 2012 returned significant gold-anomalous
intervals. Rigs 3 and 4 will mobilize in January 2020 by which time the
improvements to the access road to the Tuzon deposit from Greenville is
planned to be completed. The rigs will then begin the drilling at Tuzon while
completing the program at Dugbe F. Initial drilling at Tuzon will target the
potential extension of the 'high-grade zone B' and then switch to infill
drilling with the aim of defining a portion of Measured Mineral Resources. In
addition, drilling at the Sackor target is planned during H1 2021 to step out
on previous gold bearing intersections and potentially provide sufficient data
for resource estimation.
The Company believes that additional gold deposits may be present on the
underexplored 2,355 km^2 project area which is predominantly underlain by
prospective 'Birimian' rocks or their equivalents. To provide a 'pipeline' of
new drill targets Pasofino has completed an interpretation of all exploration
and remotely sensed data and has prioritized four new target areas all of
which have artisanal gold workings recognizable in satellite data. These are
the Gmayenken, DSZ East, Perluken and Nemo Creek South targets (please see
Figure 1). Soil sampling totaling 3500 samples will start in October to define
areas for trenching and drilling during 2021.
Cannot view this image? Visit:
Figure 1. Map showing the Dugbe Gold Project area and the location of the
deposits and targets
To view an enhanced version of this graphic, please visit:
The Company has awarded the lead engineering and design contract to DRA Global
for the completion of a FS on the Project. SRK has been awarded the lead
consultancy for the ESIA. The FS will investigate the potential to produce
between 200 and 250 thousand ounces of gold per annum. The Company plans to
complete the FS during Q3 of 2021.
Access Road Rehabilitation
A 48 kilometer section of the Greenville to Tuzon road requires rehabilitation
and replacement of some of the bridges. The road contractor Westwood
International has been awarded the work and has already mobilized to site to
start preparation for this work. The completion of this road construction is
key to allowing access to the Tuzon deposit and is planned for access by the
end of December 2020. This however will not slow down the work program as
drilling on the Dugbe F deposit is planned for start in early November 2020
and the first round of drilling at the Thienpo prospect is also to start in
Qualified Persons Statements
Scientific or technical information in this disclosure that relates to the
Company's exploration activities and Mineral Resources estimates is based on
information compiled or approved by Mr. Andrew Pedley. Mr. Pedley is a
full-time consultant of Pasofino Gold Ltd. He is a member in good standing
with the South African Council for Natural Scientific Professions (SACNASP)
and has sufficient experience which is relevant to the commodity, style of
mineralisation under consideration and activity which he is undertaking to
qualify as a Qualified Person under National Instrument 43-101. Mr. Pedley
consents to the inclusion in this disclosure of the information, in the form
and context in which it appears.
About the Dugbe Gold Project
The Dugbe Project is located in southern Liberia and situated within
'Birimian' aged rocks which are host to the majority of West African gold
deposits. To date two gold deposits have been identified; Dugbe F and Tuzon.
The deposits are located within 4 km of the Dugbe Shear Zone which is thought
to have played a role in large scale gold mineralisation in the area. The
Project comprises an area of 2,355 km2. A large amount of exploration in the
area was conducted by Hummingbird including 74,497 m of diamond coring. 70,700
m of this was at the Dugbe F and Tuzon deposits, discovered by Hummingbird in
2009 and 2011 respectively. Both deposits outcrop at surface and may be
amenable to open-cut mining. A Preliminary Economic Assessment ("PEA") was
carried out for the Dugbe F and Tuzon deposits by WAI in 2013 for Hummingbird
PLC and with further work carried out subsequently including metallurgical,
geotechnical and hydrological work, which will provide a foundation for the
In addition, there are a number of prospects within the Project, including
'Sackor' where gold mineralisation has been intersected in drill-holes and
where additional drilling is planned. No other prospects have been
drill-tested to date. At some prospects extensive trenching identified
anomalous levels of gold that require drill-testing. An aggressive exploration
programme to test the prospects is planned by the Company. In 2019,
Hummingbird signed a 25-year Mineral Development Agreement ("MDA") with the
Government of Liberia providing the necessary long-term framework and
stabilization of taxes and duties. Under the terms of the MDA, the royalty
rate on gold production is 3%, the income tax rate payable is 25% (with credit
given for historic exploration expenditures), the fuel duty is reduced by 50%
and the Government of Liberia is granted a free carried interest of 10% in the
Project. Over $70 million has been spent by Hummingbird on the Project.
About Pasofino Gold Ltd.
Pasofino Gold Ltd. is a Canadian-based mineral exploration company listed on
the TSX-V (VEIN) and FSE (N07). Pasofino is earning a 50% interest in the
advanced-stage Roger Gold-Copper Project located in Quebec's prolific Abitibi
Through its recently announced acquisition of ARX Resources Limited, Pasofino
has an option to earn a 49% economic interest (net of the Government of
Liberia's carried interest) in the Dugbe Gold Project.
For further information, please visit www.pasofinogold.com or contact:
Steve Dunn, President & CEO
T: (416) 361-2827
E: [email protected]
Cautionary Statements Regarding Forward-Looking Statements.
This news release contains "forward-looking statements" that are based on
expectations, estimates, projections and interpretations as at the date of
this news release. Forward-looking statements are frequently characterized by
words such as "plan", "expect", "project", "seek", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar words or
statements that certain events or conditions "may" or "will" occur, and
include, without limitation, statements regarding the timing for filing and
final clearance of the Qualifying Prospectus, the use of proceeds of the
Offering, the ability to raise the funds to finance its ongoing business
activities including the acquisition of mineral projects and the exploration
and development of its projects. Such forward looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such risks and other factors may include, but
are not limited to, the ability to successfully file and obtain approval for
the Qualifying Prospectus, the ability to obtain all requisite regulatory
approvals in respect of the Qualifying Prospectus, the ability to apply the
proceeds of the Offering as intended, the results of exploration activities;
the ability of the Company to complete further exploration activities; timing
and availability of external financing on acceptable terms and those risk
factors outlined in the Company's Management Discussion and Analysis as filed
on SEDAR. The Company does not undertake to update any forward-looking
information except in accordance with applicable securities laws.
^ Dugbe Gold Project, Liberia NI 43-101 Technical Report dated 19 September
2020, a report by SRK Consulting.
To view the source version of this press release, please visit
(c) Copyright Newsfile Corp. 2020