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

Pelangio Exploration Inc.

March 22, 2011 08:01 ET

Pelangio Exploration Commences Drilling on the Obuasi Property

TORONTO, ONTARIO--(Marketwire - March 22, 2011) - Pelangio Exploration Inc. (TSX VENTURE:PX)(OTCBB:PGXPF) ("Pelangio" or the "Company") is pleased to announce that it has commenced diamond drilling on its Obuasi Property, which is located immediately adjacent to AngloGold Ashanti Limited's Obuasi Mine. Highlights of the proposed drilling program include:

  • Approximately 5,000 metre diamond drilling program in up to 36 drill holes;
  • Priority targets on the Main Obuasi Mine Trend include:
    • Ayaase, where concurrent gold and arsenic soil anomalies have been confirmed with trenching to bedrock, including one metre channel samples up to 31.5 g/t gold;
    • Bura, where one metre channel samples from outcrop have assayed up to 15 g/t gold;
    • Mount Kate South, where new BLEG geochemical sampling has confirmed a significant gold soil anomaly;
    • Tikal, where previous drilling intersected intense sericitic alteration, quartz veining and visible gold on a key structural target;
    • Big Vein, where previous drilling intersected anomalous gold mineralization on a key structure.
  • Secondary targets include NT1, Government Area, Kusa and Dinkyie.
  • Further drilling program to be planned and conducted later in 2011 following receipt of results.

To view the locations of planned drill targets on the Obuasi Property, see: http://media3.marketwire.com/docs/ccnmwebNreUpload1300718754993-PX_Mar22_image1.pdf.

"Our Obuasi Property holds great potential for significant gold discoveries," stated Warren Bates, Senior Vice President Exploration. "The property's location alone, immediately beside the prolific Obuasi Mine, is significant, but our work over the past year to identify drill ready targets on the property has prepared us well for this drill program. Last spring's drilling provided us with essential geological information necessary to plan the program and further prospecting and surveying has also generated new priority targets at Ayaase and Bura. We hope that the Obuasi Property will soon join our Manfo Property as one of Ghana's latest gold discoveries."

The Obuasi Property is located immediately adjacent to and on strike with AngloGold Ashanti's Obuasi Mine, which has produced over 30 million ounces of gold since 1897 and currently holds a further 29.50 million ounces of gold in reserves and resources (9.65 million ounces of proven and probable reserves grading 7.14 g/t gold in a global resource grading 6.41 g/t comprising 18 million ounces of measured and indicated resources and 11.5 million ounces of inferred resources – refer to AngloGold Ashanti's Mineral Resource and Ore Reserve Report 2009).

Gold mineralization at the Obuasi Mine is shear zone related and hosted in a series of ore shoots. The shoots have approximate strike lengths of 80 to 200 metres, widths of three to 20 metres, plunge lengths of up to 2,500 metres and are being mined at depths of 1,500 metres with further high grade resources being added below current mining infrastructure. The shoots average between three and five million ounces of gold each and have been explored or mined to within a few kilometres of the Obuasi Property's borders (refer to Allibone, A.H. et al. 2002. Structural Controls on Gold Mineralisation at the Ashanti Deposit, Obuasi, Ghana. Society of Economic Geologists, Special Publication 9, p. 65-93).

Pelangio's exploration focus on the Obuasi Property is the extension of the Main Obuasi Mine Trend, with the goal of intersecting previously undiscovered Obuasi-style ore shoots relatively near surface.

Pelangio Finalizes New Obuasi Property Animation

Pelangio is also pleased to announce that it has posted a new animation of the Obuasi Property in the Multimedia section of the Company's website at www.pelangio.com. Pelangio expects to update this animation from time to time to reflect the progress of exploration on the Obuasi Property.

Quality Assurance/Quality Control and Qualified Person

All trench and soil samples were collected by contractors working for Pelangio. Trench samples were collected through the length of each trench. The average dimensions of the samples were 4 cm deep by 5 cm wide and 1 metre long with an average weight of roughly two kilograms. The samples were then taken to a secure storage facility at the Pelangio compound in Brofoyedru and subsequently dispatched in sealed bags to ALS Chemex Laboratories in Kumasi, Ghana. The samples were dried and crushed by ALS Chemex and a 150-gram pulp was prepared from the coarse crushed material. Routine gold analysis was conducted by ALS Chemex 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 25 samples. In addition, ALS Chemex inserted one preparation blank and a certified reference sample in every 20 samples and ran one duplicate analysis every 20 samples.

In respect of soil samples, roughly two kilograms of sample material was collected at each location and sent to SGS Laboratories in Tarkwa where it was dried, crushed and separated for analysis. Two types of analysis were conducted on the samples: a one-kilogram cyanide leach and a 50-gram fire assay with atomic absorption finish. A certified lab blank was inserted into the sample stream every 25 samples as part of Pelangio's quality control procedure, while SGS completed a duplicate assay every 20 samples.

The exploration programs at the Obuasi Property are 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 is a junior gold exploration company that acquires and explores camp-sized land packages in world-class gold belts, while using innovative corporate restructuring to maximize shareholder value. Pelangio's 100 square kilometre Manfo Property, which lies on Ghana's Sefwi greenstone belt between the Ahafo and Chirano mines, respectively operated by Newmont and Kinross, is the site of recent near-surface discoveries on four separate targets, including 36.21 g/t gold over 9 metres, 24.70 g/t gold over 5 metres, 1.50 g/t gold over 61 metres and 0.95 g/t gold over 33 metres. The Company is also actively exploring its 290 square kilometre Obuasi Property, located on strike and adjacent to AngloGold Ashanti's Obuasi Mine, which has produced over 30 million ounces of gold since 1897.

For additional information, please visit our website at www.pelangio.com.

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 / Toll-free: 1-877-746-1632
    or
    Pelangio Exploration Inc.
    Warren Bates
    Senior Vice President Exploration
    905-875-3828 / Toll-free: 1-877-746-1632
    info@pelangio.com
    www.pelangio.com
    or
    Proconsul Capital
    Martti Kangas
    Principal
    647-521-9261
    mkangas@proconsulcapital.com