Pelangio Exploration Inc.
TSX VENTURE : PX

Pelangio Exploration Inc.

November 18, 2008 09:00 ET

Pelangio Announces Encouraging Results From Its 2008 Drilling Program at Obuasi, Ghana

MILTON, ONTARIO--(Marketwire - Nov. 18, 2008) - Pelangio Exploration Inc. (TSX VENTURE:PX) ("Pelangio" or the "Company") is pleased to report the results of its 2008 drilling program on its Obuasi property in Ghana. Pelangio has a 51% interest in three early-stage gold exploration concessions totaling 290 square kilometres on strike and adjacent to AngloGold Ashanti's world-class Obuasi gold mine, in Ghana, West Africa. The Company completed 34 diamond drill holes totaling 6,951 metres testing seven gold targets, including the Company's first drilling program along the Main Obuasi Trend.

The best drill results were obtained from the Mount Kate and East Copper targets where shallow mineralization was intersected along structures forming part of the main Obuasi trend. Hole AMK-08-01 intersected 1.57 g/t gold over 1.0 metre, within a wider intercept of 0.3 g/t gold over 17.0 metres, while AMK-08-02 intersected 1.24 g/t gold over 4 metres within a wider zone of 0.78 g/t gold over 9.0 metres at Mount Kate. The best results from East Copper were in holes AEC-08-04 and AEC 08-03b which intersected 3.4 g/t gold over 2.0 metres and 0.8 g/t gold over 2.0 metres, respectively. The full results of the program are listed in the table below.

The Company is conducting an ongoing surface geological program on four target areas, which includes detailed mobile metal ion ("MMI") geochemistry surveys, and has led to the identification of the seven targets drilled this year, five of which were along the Main Obuasi Trend and the other two of which were along the Central Trend (a link to the property maps is available below).

The Company is also pleased to announce that it has received Condor Consulting, Inc.'s interpretation and analysis of the versatile time electromagnetic ("VTEM") survey flown along the Main Obuasi Trend extension. Condor Consulting concluded in its report that the conductors hosting the Obuasi deposit continue onto Pelangio's concessions and particularly highlighted two large high priority targets along strike with the Main Obuasi Trend as possible locations for Obuasi-style gold mineralization.

"Results at the Mount Kate, Giant Python and Copper West targets confirm that the VTEM geophysical technique is an excellent method for structural mapping in areas of cover and, coupled with MMI geochemistry, will identify gold bearing areas along these structures," commented Warren Bates, Vice President Exploration of the Company. "I am encouraged by these initial results along the Main Obuasi Trend. Approximately 3.5 kilometres of structure on the Main Obuasi Trend is coincident with MMI gold anomalies, which we intend to test further in the coming months. We now have recognized that the Main Obuasi Trend extends across approximately one third of the property and expect that further geophysical surveying will triple the known extent of the trend within the project boundaries."

Maps and further details on the 2008 drill results and VTEM Survey are available on the Company's website: www.pelangio.com/s/Obuasi.asp?ReportID=328373.

2008 Obuasi Drilling Program Highlights

Mount Kate Target

At Mount Kate, Pelangio drilled two holes from the same set-up at different azimuths totaling 548 metres to test the central portion of an 800 metre long MMI gold anomaly. The best results were in hole AMK-08-01, which intersected 1.57 g/t gold over 1.0 metre, within a wider intercept of 0.3 g/t gold over 17.0 metres, and in hole AMK-08-02, which intersected 1.24 g/t gold over 4.0 metres within a wider zone of 0.78 g/t gold over 9.0 metres. The mineralization is located at the contact between graphitic, sheared sediments and a package of altered mafic volcanics, which is typical of the geological setting for gold mineralization in the Obuasi mine. The Mount Kate target is the first test of MMI gold geochemistry on the property and demonstrates the efficacy of this particular surveying method. Prospecting in the south of the Main Obuasi Trend has also produced grab samples of up to 3.09 g/t gold approximately 450 metres southwest of the drilling station. Further work is planned in the area to follow up on these results.

Giant Python Target

Pelangio drilled one 250 metre hole at Giant Python to test a target outlined by the 2006 and 2007 field program and MMI geochemistry. The Giant Python target is located 800 metres to the northwest of the Mount Kate target on a separate structure forming part of the Main Obuasi Trend. The best result from hole AGP-08-01 was 1.2 g/t gold over 2.0 metres. The mineralization occurred within conductive graphitic schist.

Ridge Top Target

Pelangio drilled two holes on the Ridge Top target based on good MMI results. The best results were obtained in hole ART-08-01 which hit multiple anomalous low grade intersections, the best of which assayed 0.95 g/t gold over 1.0 metre.

School House Target

The School House target is located 0.5 kilometres northwest of the Giant Python target on another parallel structure forming part of the Main Obuasi Trend. Pelangio drilled three holes totaling 651 metres at the School House and intercepted mineralization in two of three holes, the best of which assayed 1.2 g/t gold over 1.0 metre in hole ASW-08-03.

East Copper and West Copper Targets

The Company drilled nine holes totaling 2,393 metres at East and West Copper (four holes and five holes, respectively). These holes were drilled after encouraging MMI geochemistry as well as a VLF (very low frequency) survey. East and West Copper are located on the same structure as the School House target and are part of the Main Obuasi Trend. The best results were intersected in holes AEC-08-3b, which returned 0.8 g/t gold over 2.0 metres, and AEC-08-04, which returned 3.4 g/t gold over 2.0 metres.

Brofoyedru East and Brofoyedru South

Brofoyedru East and South occur along the Central Trend, which also hosts the Chireboso deposit located approximately 4.7 kilometres to the southwest of Brofoyedru South. Brofoyedru East occurs 5.0 kilometres to the northeast of the Chireboso deposit. Pelangio drilled 12 holes at Brofoyedru East totaling 1,884 metres and four holes at Brofoyedru South totaling 843 metres. The best results were intersected in holes BE-08-02, which had multiple intersections of 2.0 metres of 1.6 g/t gold, 4.0 metres of 0.51 g/t gold and 1.0 metre of 3.39 g/t gold, and holes BSD-08-01, BSD-08-06 and BSD-08-08, which intersected 1.0 metre of 0.9 g/t gold, 1.0 metre of 3.4 g/t gold and 2.0 metres of 0.9 g/t gold, respectively.

VTEM Survey of Main Obuasi Trend

Pelangio has now received the analysis and interpretation of the VTEM survey flown by Pelangio Mines Inc. in the fourth quarter of 2007. The analysis corresponds well with the MMI surveying conducted on the Main Obuasi Trend by the Company and, more importantly, confirms the presence on the Company's concessions of conductors that are also seen in the Obuasi mine. The analysis identified two high priority, large single peak response targets, indicating the presence of structures consistent with the ore bodies currently being mined at the Obuasi mine. These anomalies, both in excess of 2.5 kilometres in length along strike, are located on the Anyinabirim and Mount Kate targets.

Current Exploration Activities

Pelangio is currently conducting the following exploration programs:

- Detailed prospecting and mapping along the Main Obuasi Trend, particularly the Mount Kate and Giant Python areas, with the objective of better understanding the size and structure of the contact between the mafic volcanic bodies and the sheared sediments in these areas.

- The MMI survey at Dinkyie produced promising results and a hand-augering program is currently underway to test the anomalies pinpointed by the survey. Other promising targets in the area are being trenched.

- New showings have been discovered along the Gyabunsu trend and are being investigated, particularly around NT 1 and NT 3. Detailed geochemistry and prospecting are planned for these areas.

- A detailed geochemistry program is planned for the Old Akrofoum area to follow up on mapping and reconnaissance work.

- A surface program is planned to trace the structure between Brofoyedru South and Brofoyedru East and to determine the extent of mineralization along this part of the Central Trend.



Table 1. Drilling Results for 2008 Obuasi Drill Program

-------------------------------------------------------------------------
-------------------------------------------------------------------------
Dip From To Width Grade
Hole No. (degrees) (m) (m) (m) (g/t gold) Target
-------------------------------------------------------------------------
-------------------------------------------------------------------------
no
significant
AEC-08-01 -50 results East Copper
-------------------------------------------------------------------------
AEC-08-02 -50 62 63 1.0 0.49 East Copper
-------------------------------------------------------------------------
no
significant
AEC-08-03a -50 results East Copper
-------------------------------------------------------------------------
AEC-08-03b -70 8 10 2.0 0.83 East Copper
-------------------------------------------------------------------------
AEC-08-03b -70 185 186 1.0 0.39 East Copper
-------------------------------------------------------------------------
AEC-08-04 -60 122 124 2.0 3.38 East Copper
-------------------------------------------------------------------------
no
significant
ASW-08-01 -50 results School House
-------------------------------------------------------------------------
ASW-08-02 -50 161 162 1.0 0.34 School House
-------------------------------------------------------------------------
ASW-08-03 -50 89 90 1.0 1.19 School House
-------------------------------------------------------------------------
AMK-08-01 -50 98 115 17.0 0.30 Mount Kate
-------------------------------------------------------------------------
including -50 98 99 1.0 1.57 Mount Kate
-------------------------------------------------------------------------
-50 113 115 2.0 0.31 Mount Kate
-------------------------------------------------------------------------
-50 156 157 1.0 0.50 Mount Kate
-------------------------------------------------------------------------
AMK-08-02 -50 90 99 9.0 0.78 Mount Kate
-------------------------------------------------------------------------
including -50 90 94 4.0 1.24 Mount Kate
-------------------------------------------------------------------------
no
significant
BE-08-01 -50 results Brofoyedru East
-------------------------------------------------------------------------
BE-08-02 -50 6 8 2.0 1.61 Brofoyedru East
-------------------------------------------------------------------------
BE-08-02 -50 17 21 4.0 0.51 Brofoyedru East
-------------------------------------------------------------------------
BE-08-02 -50 39 40 1.0 3.39 Brofoyedru East
-------------------------------------------------------------------------
BE-08-02 -50 41 42 1.0 0.42 Brofoyedru East
-------------------------------------------------------------------------
BE-08-03 -50 3 4 1.0 0.35 Brofoyedru East
-------------------------------------------------------------------------
BE-08-03 -50 6 9 3.0 0.34 Brofoyedru East
-------------------------------------------------------------------------
BE-08-03 -50 24 33 9.0 0.50 Brofoyedru East
-------------------------------------------------------------------------
BE-08-04 -50 62 63 1.0 0.70 Brofoyedru East
-------------------------------------------------------------------------
BE-08-04 -50 184 185 1.0 0.44 Brofoyedru East
-------------------------------------------------------------------------
BSD-08-01 -50 30 31 1.0 0.43 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-01 -50 39 40 1.0 0.94 Brofoyedru South
-------------------------------------------------------------------------
no
significant
BSD-08-02 -50 results Brofoyedru South
-------------------------------------------------------------------------
BSD-08-03 -50 53 54 1.0 0.35 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-03 -50 148 149 1.0 0.42 Brofoyedru South
-------------------------------------------------------------------------
no
significant
BSD-08-04 -50 results Brofoyedru South
-------------------------------------------------------------------------
no
significant
BSD-08-05 -60 results Brofoyedru South
-------------------------------------------------------------------------
BSD-08-06 -50 18 19 1.0 3.40 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-06 -50 143 144 1.0 0.47 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-07 -50 15 19 4.0 0.77 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-08 -70 17 21 4.0 0.68 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-08 -70 40 42 2.0 0.92 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-09 -90 10 11 1.0 0.33 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-09 -90 21 24 3.0 0.79 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-10 -50 16 17 1.0 0.80 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-10 -50 31 32 1.0 0.40 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-10 -50 43 44 1.0 0.46 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-10 -50 152 153 1.0 0.45 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-11 -90 23 25 2.0 0.77 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-11 -90 45 46 1.0 0.29 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-12 -50 3 4 1.0 0.45 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-12 -50 128 129 1.0 0.41 Brofoyedru South
-------------------------------------------------------------------------
BSD-08-12 -50 149 150 1.0 0.44 Brofoyedru South
-------------------------------------------------------------------------
no
significant
AWC-08-04 -50 results West Copper
-------------------------------------------------------------------------
no
significant
AWC-08-05 -50 results West Copper
-------------------------------------------------------------------------
AWC-08-06 -50 3 4 1.0 0.85 West Copper
-------------------------------------------------------------------------
AWC-08-06 -50 27 28 1.0 2.02 West Copper
-------------------------------------------------------------------------
AWC-08-06 -50 265 266 1.0 0.60 West Copper
-------------------------------------------------------------------------
ART-08-01 -50 20 21 1.0 0.42 Ridge Top
-------------------------------------------------------------------------
ART-08-01 -50 81 83 2.0 0.44 Ridge Top
-------------------------------------------------------------------------
ART-08-01 -50 86 87 1.0 0.54 Ridge Top
-------------------------------------------------------------------------
ART-08-01 -50 132 133 1.0 0.83 Ridge Top
-------------------------------------------------------------------------
ART-08-01 -50 187 188 1.0 0.95 Ridge Top
-------------------------------------------------------------------------
ART-08-01 -50 197 198 1.0 0.32 Ridge Top
-------------------------------------------------------------------------
no
significant
ART-08-02 -50 results Ridge Top
-------------------------------------------------------------------------
AGP-08-01 -50 51 52 1.0 0.35 Giant Python
-------------------------------------------------------------------------
AGP-08-01 -50 53 55 2.0 1.17 Giant Python
-------------------------------------------------------------------------

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 diamond drill bits. All logging and sampling was conducted by contractors working for Pelangio. The core was logged, marked up for sampling using standard lengths of one metre, then split into 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 compound in Brofoyeduru, Ghana. The other half was sampled, placed into sealed bags and stored at the site until it was shipped to Transworld Laboratories in Tarkwa, Ghana and ALS Chemex in Kumasi, Ghana. The core was dried and crushed by Transworld and a 150 gram pulp was prepared from the coarse crushed material. Routine gold analysis was conducted by Transworld, using a 50 gram charge and fire assaying with atomic absorption finish. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream at the rate of one per every 20 samples. In addition, Transworld inserted one preparation blank and certified reference material for every 20 samples and one duplicate analysis every 20 samples.

The exploration program at the Obuasi property is 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.

Expiration of Trade Winds Ventures Inc.'s Option on Birch Lake Property

On September 30, 2008, Trade Winds Ventures Inc.'s ("Trade Winds") option in respect of Pelangio's Birch Lake property expired and, consequently, Pelangio continues to hold a 100% interest in the property. Pelangio Mines Inc. (Pelangio's predecessor) entered into an option agreement with Trade Winds in July 2003, and extended the option to September 30, 2008 in July 2007. Pursuant to the agreement, Trade Winds had been entitled to earn a 60% interest in the property by, among other things, spending $1,700,000 in exploration expenditures on the property. Trade Winds spent approximately $1.2 million on the property during the term of the option.

The Birch Lake Property comprises 28 contiguous unpatented mining claims (1,120 acres) located in the Keigat Lake area, approximately 120 kilometres northeast of Red Lake, Ontario. The property is subject to an underlying agreement whereby Goldcorp retains a 2% NSR on all of the claims. There are currently no obligations to Goldcorp other than payment of the royalty on production.

Trade Winds completed its most recent drilling activities on High Grade Island at the Birch Lake Property during winter 2005. The previous 2004 drilling program consisted of four holes, TWBL-094/095/096/097, totaling 1,102.60 metres, testing the continuity and down-dip extension of the central gold zone located on High Grade Island. Trade Winds reported multiple occurrences of visible and coarse gold, with the best assay results reported from the 2004 drilling program being: 115.89 g/t gold over 2.90 metres (est. true width 1.86 metres) from 239.35 to 242.10 metres (TWBL-096); and 21.22 g/t gold over 2.35 metres (est. true width 1.51 metres) and 229.96 g/t gold over 2.45 metres (est. true width 1.58 metres) between 300 and 360 metres (TWBL-097).

Trade Winds 2005 drilling program consisted of three holes, TWBL-098/099/100. Coarse and visible gold was reported in holes TWBL-098 and -100, with the best results from those holes being: 14.7 g/t gold over 1.2 metres contained within a broader zone of mineralization of 4.8 g/t gold over 4.4 metres (TWBL-098); and 11.8 g/t gold over 0.5 metres and 19.7 g/t gold over 1.0 metre (TWBL-100).

Sale of Detour Gold Corporation Shares

Pelangio disposed of 640,100 common shares ("Detour Shares") of Detour Gold Corporation ("Detour") during October and November 2008 and currently holds a further 359,900 Detour Shares for investment purposes. The Company sold Detour Shares during this period to fund the repayment of $3.15 million owing under the terms of an aggregate principal amount of $3 million 10% promissory notes (the "Notes") issued on May 21, 2008, which are due for repayment on November 21, 2008. The board and management remain otherwise satisfied with the Company's investment in Detour.

About Exploration

Exploration is a mineral 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.

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. With respect to forward-looking statements and information contained herein, we have made numerous assumptions. Forward-looking statements and information include statements regarding our exploration plans and exploration results with respect to our Obuasi and Birch Lake properties, and are subject to 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, changes in equity markets, political developments in Ghana, increases in costs, exchange rate fluctuations and other risks involved in the gold exploration industry. See the annual information form, management information circular dated March 19, 2008 and quarterly and annual management's discussion and analysis of PDX Resources Inc. 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 Exploration. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update any forward looking statements or information except as required by law. All forward-looking statements and information herein are qualified by this cautionary statement.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Contact Information

  • Pelangio Exploration Inc.
    Ingrid Hibbard
    President & CEO
    (905) 875-3828 or Toll Free: 1-877-746-1632
    or
    Pelangio Exploration 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