Pelangio Mines Inc.
TSX : PLG

Pelangio Mines Inc.

November 12, 2007 08:45 ET

Pelangio Announces Results From its First Drilling Program at Obuasi Property in Ghana

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2007) - Pelangio Mines Inc. (TSX:PLG) ("Pelangio" or the "Company") is pleased to report the results from its first drilling program at the Obuasi property in Ghana. Pelangio completed 19 core holes totaling 2,038 metres testing four gold targets. The best results were obtained at the Kusa Centracor target where two drill holes intersected 1.29 g/t over 12 metres and 1.08 g/t over 12 metres, respectively. On the Gyabunsu trend, a subsidiary trend of the Obuasi mine, one hole intersected 1.10 g/t over 13.95 metres.

Pelangio controls three early-stage gold exploration concessions totaling 290 sq. kilometres on strike and adjacent to the AngloGold Ashanti's world-class Obuasi gold mine, in Ghana, West Africa. The Company's surface geological program conducted in 2006 and early 2007 led to the identification of four initial gold targets, which were drill tested this summer. At this time, the Company is working on five other target areas, including the extension of the Obuasi mine onto Pelangio's ground. Pelangio just completed a detailed airborne geophysical survey covering both the Obuasi mine and Pelangio's ground and will proceed with field work to define additional drill targets for 2008.

Warren Bates, Vice President Exploration for Pelangio remarked: "The results obtained at the Kusa Centracor and New Trench 1 areas are encouraging and will require additional follow up work in early 2008. This drilling program was our initial pass and we will continue our surface work to develop new quality targets. Currently, we are investigating five new target areas. Furthermore, with the data from the airborne program now ready, we will focus our efforts along the Obuasi mine extension and define new drill targets for 2008. The Obuasi property is still at an early stage of exploration and we have only begun to scratch the surface."

Further details on the drilling program are described below.

Abomposo Target

Pelangio drilled seven holes totaling 753 metres to test the extension of Trench 15, which had returned the best trench results to date with 1.93 g/t over 17 metres. Additional trenching along a strike length of 475 metres had defined a strongly anomalous zone of 100 metres with values ranging from 1.05 g/t to 2.43 g/t over widths of 2 to 11 metres.

The best results were encountered in holes PG07-AB-3 with 9.84 g/t gold over 1 metre (11 metres from surface), and PG07-AB-4 with 4.23 g/t over 1 metre (10 metres from surface). These holes are located 25 metres and 50 metres west of Trench 15, respectively. Visible gold was noted in two other holes PG07-AB-1 and PG07-AB-6 but did not return any significant values. The Company will conduct some re-assaying on these samples.

The Abomposo gold mineralization is hosted by quartz carbonate veins in sheared argillite. The zone strikes at an azimuth of 110 degrees and dips steeply to the north-northeast.

Kusa Centracor Target

The Kusa Centracor gold target area is located 6.3 kilometres east of the Abomposo Trench 15 area. The anomalous gold zone was defined over a strike length of 250 metres by trenching and past drilling by Centracor Mining Ltd in 1993 (total of seven holes). Six drill holes were completed over a strike length of 125 metres, within 120 metres west of the past drilling area.

The mineralized zone lies within a sheared silicified and pyritic felsic intrusive with 1-5% pyrite in contact with graphitic phyllites to the south. The best gold intercepts were 1.08 g/t over 12 metres in hole PG07-KU-1 and 1.29 g/t over 12 metres in hole PG07-KU-4, both within the intrusive rocks and separated by 80 meters.

Holes PG07KU-4 and PGKU07-5 were stopped before they reached the contact with the graphitic phyllites and might have missed some mineralized zones. The zone remains open to the west and east.

Gyabunsu Mampawhe Area

New Trench 1 Target

Pelangio completed three drill holes at the New Trench 1 area located on the Gyabunsu trend, approximately 9.5 kilometres southwest of the Kusa Centracor area.

The holes, drilled on 25 meters intervals, tested the anomalous trench results obtained in New Trench1 and Randgold Trench 10. Hole PG07NT1-3 intersected 1.10 g/t over 13.95 metres, just below three metres of overburden. Gold values are associated with silicified and veined Tarkwaian sandstones above the Birimian argillites. The orientation of mineralization remains uncertain.

This drill hole intercept is encouraging as mineralization was found near surface where there was no soil anomaly. Further work is warranted and will include additional trenching and drilling program.

New Trench 3 Target

New Trench 3 target is approximately 1.3 kilometres southwest of the New Trench 1. Two drill holes targeted anomalous gold values encountered in four trenches. One gold value of 5.85 g/t over 1 metre was obtained in hole PG07NT3-2. No further work is planned in this area.

Airborne Survey & Current Exploration Activities

The airborne survey covering the Obuasi mine trend and its extension onto Pelangio's property is now completed. Preliminary plots are confirming that the major structures of AngloGold Ashanti's Obuasi mine continue into the northwest corner of Pelangio's Kyereboso 2 concession. The results will be a focus for targeting drill holes in 2008.

On the extension of the Obuasi mine trend, within the area of the airborne geophysical survey, Pelangio is conducting a prospecting and trenching program to follow up on the Mobile Metal Ion soil geochemistry program completed this summer.

Following from the detailed soil surveys carried out earlier this year, prospecting and trenching is underway at a further four target areas: Brofoyeduru South and East, Dinkyie and Gyabunsu.

Maps and more details on the Obuasi property drill results are posted on the Company's website: www.pelangio.com/s/Obuasi.asp?ReportID=174353.



Obuasi Project - Highlights of Drill Results

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Hole Depth Dip From To Width Au Grade
Number (m) (m) (m) (m) (g/t)
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Abomposo
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PG07AB-1 100.26 -45 92.42 92.43 0.01 Visible Gold
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PG07AB-2 100.58 -50 No significant results
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PG07AB-3 100.58 -50 13 18 5 2.14
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Inc. 16 17 1 9.84
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PG07AB-4 100.58 -55 14 20 6 1.09
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Inc. 14 15 1 4.23
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PG07AB-5 99.67 -45 No significant results
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PG07AB-6 100.58 -55 36 37 1 1.08
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71.67 71.69 0.02 Visible Gold
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PG07AB-7 150.88 -45 No significant results
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Kusa Centracor
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PG07KU-1 150.88 -45 15 56 41 0.54
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Inc. 41 53 12 1.08
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PG07KU-2 150.88 -45 32 34 2 1.15
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50 61 11 0.55
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PG07KU-3 100.89 -50 51 66 15 0.49
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PG07KU-4 99.36 -50 45 57 12 1.29
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PG07KU-5 100.58 -55 85 95 10 0.44
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PG07KU-6 150.27 -45 96 101 5 0.66
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New trench 1
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PG07NT1-1 30.98 -45 16 28 12 0.29
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PG07NT1-2 100.28 -45 13 23 10 0.23
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PG07NT1-3 99.67 -45 3.05 17 13.95 1.10
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PG07NT1-4 100.58 -45 8 9 1 1.01
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41 47 6 0.48
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53 63 10 0.38
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80 84 4 0.47
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New trench 3
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PG07NT3-1 100.58 -45 No significant results
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PG07NT3-2 100.58 -45 119 120 1 5.85
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Note: True width is estimated to be 65 to 75% of the drilled length.


Quality Assurance/Quality Control and Qualified Person

The drill holes reported in this press release were drilled using HQ (63.5 mm) and NQ (47.6 mm) sized core. All logging and sampling was conducted by contractors working for Pelangio.

The core was logged and then marked up for sampling using standard lengths of one metre. The core was then split into two equal halves using a diamond saw. One half of the core was left in the original core box and stored in a secure location at the Pelangio Exploration compound in Brofoyeduru, Ghana. The other half was sampled, placed into sealed bags and stored at the site until being shipped to Transworld Labs located in Tarkwa, Ghana. At the Transworld laboratory facility in Tarkwa, the core was dried and crushed, and a 150 gram pulp prepared from the coarse crushed material. Routine gold analysis was conducted by Transworld, using a 50 gram charge, fire assaying with atomic absorption finish. Quality control procedures included the systematic insertion of blanks, and duplicates to the sample stream by Pelangio at the rate of one per every 50 samples. In addition, Transworld inserted one preparation blank and certified reference material for every 20 samples and one duplicate analysis every 20 samples.

The Pelangio exploration program at the Obuasi property is being managed by Mr. Chris Pegg, P. Geo., a Qualified Person within the meaning of National Instrument 43-101. Mr. Pegg has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information.

About Pelangio

Pelangio is a gold exploration company active in the top-ranked mining jurisdictions in the world, Canada and Ghana. The Company's main focus is to advance its exploration programs on its premier land position in Ghana totaling 290 square kilometres, located on strike and adjacent to AngloGold Ashanti's Obuasi gold mine.

Pelangio also has a 49.5% equity interest in Detour Gold, which controls the Detour Lake advanced exploration project. The near-term objective of Detour Gold is to advance the Detour Lake project to development and production.

Forward Looking Statements

Certain statements 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 our exploration plans and exploration results with respect to our Obuasi gold property, the estimation of mineral resources, the sale of the Detour Lake Property and the issuance of shares in connection with the sale and are subject to such forward-looking risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Such risks include gold price volatility, change in equity markets, political developments in Ghana, the uncertainties involved in interpreting trenching and channel sampling results and other geological data, increase in costs and exchange rate fluctuations, failure to satisfy the conditions of closing and other risks involved in the gold exploration and development industry. See our management information circular dated September 25, 2006, our 43-101Technical Report dated September 21, 2006, our annual information form and our quarterly and annual management's discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statement and information. There can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of Pelangio. Accordingly, readers should not place undue reliance on forward-looking statements or information. All forward-looking statement and information herein are qualified by this cautionary statement.

Contact Information

  • Pelangio Mines Inc.
    Ingrid Hibbard
    President & CEO
    (905) 875-3828 or Toll Free: 1-877-746-1632
    (905) 875-3829 (FAX)
    or
    Pelangio Mines Inc.
    Warren Bates
    Vice President Exploration
    (905) 875-3828 or Toll Free: 1-877-746-1632
    (905) 875-3829 (FAX)
    Email: info@pelangio.com
    Website: www.pelangio.com