Pelangio Exploration Inc.
TSX VENTURE : PX
OTC Bulletin Board : PGXPF

Pelangio Exploration Inc.

July 21, 2011 08:00 ET

Pelangio Exploration Adds Second Rig to Manfo Property

TORONTO, ONTARIO--(Marketwire - July 21, 2011) - Pelangio Exploration Inc. (TSX VENTURE:PX)(OTCBB:PGXPF) ("Pelangio" or the "Company") is pleased to announce that it has commenced drilling with a second rig and expanded the ongoing drilling program at the Company's Manfo Property in Ghana, the site of four near-surface discoveries since the property was optioned in September 2010.

"With four near surface discoveries at Manfo in less than a year that we continue to expand on strike and at depth, we are now moving to significantly expand our drilling program on the property," stated Warren Bates, Senior Vice President Exploration. "Recent geophysical surveying has also greatly increased the property's discovery potential by identifying priority drill-ready targets in areas where cover masks geochemical indicators. Going forward, we are focused on making more discoveries as we further define identified zones with the second drill, and we intend to add a third rig to the property in the coming months."

To view a plan view of drilling and exploration targets on the Manfo Property, see: http://media3.marketwire.com/docs/pgxpf0721fig1.pdf.

Details of the expanded diamond drilling program and its targets include:

  • planned second phase program expanded by an additional 55 drill holes totaling 12,000 metres (with a combined total of 75 holes totaling 12,539 metres completed in the first phase and ongoing second phase programs to date), with planning for a further 12,000+ metres of drilling underway;

Pokukrom East Bulk Tonnage Zone

  • previously reported drill results include 1.78 g/t gold over 53 metres (cut to 30 g/t) including 24.7 g/t gold over 5 metres (uncut); 1.50 g/t gold over 51 metres; 1.36 g/t gold over 33 metres; and 1.53 g/t gold over 42 metres;
  • only the northern half of 1,200 metre geochemical anomaly has been drilled;
  • open on strike and at depth – 660 metres strike and 175 metres depth;
  • drilling to test strike beyond geochemical anomaly and at 50 metre spacing to below 200 metres depth;

Pokukrom West High Grade Zone

  • previously reported drill results include 36.21 g/t gold over 9 metres; 8.6 g/t gold over 12 metres; and 14.10 g/t gold over 7 metres;
  • surface strike of over 150 metres and open at depth below 130 metres;
  • drilling to test strike at depth and to below 300 metres depth;

Nfante West Bulk Tonnage Zone

  • previously reported drill results include 1.50 g/t gold over 61 metres; 1.11 g/t gold over 43 metres; and 0.91 g/t gold over 40 metres;
  • open on strike and at depth – 280 metres strike and 76 metres depth;
  • drilling to test strike to the north east at 50 metres spacing to below 200 metres depth;

Nfante East Discovery

  • previously reported drill results include 0.95 g/t gold over 33 metres;
  • limited drilling to date on second largest geochemical anomaly on the property;
  • ongoing drilling to test potential zone identified in the discovery hole;

Newly Developing, Drill-Ready Targets

  • induced polarization surveying ("IP") coupled with magnetics along the Nfante-Pokukrom trend confirms continuation of structures hosting gold mineralization beyond the currently identified geochemical anomalies into areas of cover.
  • IP identifies parallel structures and further targets adjacent to mineralized zones;
  • drilling currently underway on these new targets;
  • IP to be extended beyond current work areas to identify yet further drill-ready targets.

Drilling Progress and Exploration Outlook

Pelangio completed 16 holes totaling 2,381 metres on the Manfo Property during the first phase drilling program completed in September 2010. To date, Pelangio has completed 59 drill holes totaling 10,158 metres (including two holes abandoned for 114 metres) in the ongoing second phase program, of which 48 drill holes have been reported to date. Drilling is currently ongoing at Pokukrom East and Nfante East. Assay results will be released in due course.

Pelangio has contracted Burwash Contract Drilling of British Columbia and Geodrill Limited of Ghana to conduct diamond-drilling program on the Manfo Property using portable drill rigs.

Pelangio's exploration focus on the Manfo Property is to identify near-surface, drill ready targets through geochemical sampling and to test and extend such targets with drilling and geophysical surveying. The Company's aim during 2011 is to discover and delineate as many gold mineralized zones on the Manfo Property as possible.

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. Company security is provided at the drill site. Contractors working for Pelangio conducted all logging and sampling. 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 Tepa, Ghana. The other half was sampled, placed into sealed bags and securely stored at the site until it was shipped to the ALS Chemex laboratory in Kumasi, Ghana. The core was dried and crushed by ALS Chemex and a 150 gram pulp was prepared from the coarse crushed material. ALS Chemex conducted routine gold analysis 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, ALS Chemex inserted one preparation blank and a certified reference sample in for every 20 samples, and ran one duplicate analysis every 20 samples.

The exploration program at the Manfo Property is overseen by Warren Bates, P. Geo. (Ontario), a Qualified Person within the meaning of National Instrument 43-101. Mr. Bates has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information.

About Pelangio

Pelangio successfully acquires and explores camp-sized land packages in world-class gold belts, while using innovative corporate restructuring to maximize shareholder value. Drilling is currently underway on two camp-sized properties in Ghana, West Africa: the company-making 100 square kilometre Manfo Property on the Sefwi greenstone belt between the Ahafo and Chirano mines, respectively operated by Newmont and Kinross, is the site of four recent near-surface, bulk tonnage and high grade, gold discoveries; and the potentially game-changing 290 square kilometre Obuasi Property on the Ashanti greenstone belt is located on strike and adjacent to AngloGold Ashanti's prolific, high-grade Obuasi Mine, which has produced over 30 million ounces of gold since 1897.

For additional information, please visit our website at www.pelangio.com or follow us on Twitter @PelangioEx.

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 the Company's exploration plans and exploration results with respect to the Obuasi Property and the Manfo Property, and are subject to forward-looking risks, uncertainties and other factors which may cause the Company's 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 Company's annual and quarterly financial statements and 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 the Company. 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

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

    Pelangio Exploration Inc.
    Warren Bates
    Senior Vice President Exploration
    905-875-3828 or Toll-free: 1-877-746-1632
    info@pelangio.com
    www.pelangio.com

    Proconsul Capital
    Martti Kangas
    Principal
    647-521-9261
    mkangas@proconsulcapital.com