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

Pelangio Exploration Inc.

October 31, 2011 08:00 ET

Pelangio Exploration Intersects 2.24 g/t Gold Over 19 Metres at Pokukrom East Zone on the Manfo Property

TORONTO, ONTARIO--(Marketwire - Oct. 31, 2011) - Pelangio Exploration Inc. (TSX VENTURE:PX)(OTCBB:PGXPF) ("Pelangio" or the "Company") is pleased to announce results from 21 additional diamond drill holes totaling 4,627 metres on the Manfo Property in Ghana. Highlights of the results reported today include:

Pokukrom East Gold Zone

  • 1.06 grams per tonne (g/t) gold over 22 metres in SPDD-156 from surface;
  • 1.00 g/t gold over 60 metres in SPDD-157 from 163 metres down-hole;
  • 2.48 g/t gold over 9 metres in SPDD-159 from surface;
  • 2.47 g/t gold over 9 metres in SPDD-164 from 123 metres down-hole;
  • 2.24 g/t gold over 19 metres in SPDD-166 from 263 metres down-hole, confirming the zone to 277 metres depth;
  • 1.03 g/t gold over 23 metres in SPDD-172 from surface.

Nfante East Gold Zone

  • 1.07 g/t gold over 19 metres in SFDD-150 from 48 metres down-hole;

"Infill drilling at Pokukrom East continues to confirm a consistent bulk tonnage gold zone from section to section and down dip extension beyond 250 metres depth," stated Warren Bates, Senior Vice President Exploration. "We continue to encounter higher grades (2+ g/t) along the footwall of the mineralization, as seen in SPDD-166, and excellent potential for the zone to continue to depth beyond the northern end of the defined geochemical anomaly. We are now well on our way to drilling out Pokukrom East on 50 metre centres as we move towards an initial resource by mid next year."

Geological Setting

The following table summarizes significant assay results reported herein:

Area DHID From
(metre)
To
(metre)
Core Length
(metres)1
Au
(g/t)
Hole Length
(metres)
Pokukrom East SPDD-156 0 22 22 1.06 57
SPDD-157 163 223 60 1.00 287
SPDD-164 74 133 59 0.69 174
including 123 132 9 2.47
SPDD-166 263 282 19 2.24 295
SPDD-170 185 207 22 0.94 330
SPDD-172 0 23 23 1.03 159
Nfante East SFDD-150 48 67 19 1.07 176

1 Intervals are core length. Unless otherwise indicated, a cut-off grade of 0.2 g/t gold was used in calculating intervals with allowance for up to five metres of internal dilution.

The Pokukrom East geochemical anomaly is approximately 1,200 metres in length. To date, Pelangio has confirmed a gold zone at Pokukrom East measuring 850 metres in strike that is open along strike and at depth. Gold mineralization is generally associated with a sericite-pyrite altered metagranitoid hosted shear, with higher grade zones of quartz-pyrite veining. Lower grade mineralization occurs in hematite altered metagranitoid, which is a peripheral alteration to the sericite hosted mineralization. The results announced today from Pokukrom East are step-back or infill holes on or between previously drilled sections.

To view a plan view of drilling at Pokukrom East to date, see: http://media3.marketwire.com/docs/pe10311.pdf.

SPDD-159 was drilled on section 49250 in front of SPDD-143 (0.58 g/t gold over 57 metres including 1.11 g/t gold over 16 metres) and successfully intersected the oxidized portion of the zone near surface.

SPDD-161 was a step-back hole drilled on section 49350 behind SPDD-087 (0.55 g/t gold over 44 metres). The hole intersected zones of anomalous hematite hosted gold mineralization, likely representing the periphery of the mineralized zone on the section.

SPDD-164 and -166 were drilled as step-back holes from the same collar on section 49450 behind SPDD-106 (0.84 g/t gold over 29 metres and 3.47 g/t gold over 13 metres). Both holes intersected wide zones of hematite altered rock and confirmed a higher grade (2+ g/t) footwall zone, with -166 confirming this higher grade zone to 277 metres depth, which represents the deepest interval yet encountered on the Manfo Property.

To view section 49450 at Pokukrom East, see: http://media3.marketwire.com/docs/pe10312.pdf.

SPDD-168 was drilled on section 49500 from the same collar as, and behind, SPDD-107 (1.37 g/t gold over 57 metres including 3.53 g/t gold over 11 metres). The hole was highly anomalous, intersecting 0.42 g/t gold over 83 metres, dominated by hematite altered rock. Further drilling is required to determine whether the hole was drilled on the periphery or in a lower grade area of the zone.

To view section 49500 at Pokukrom East, see: http://media3.marketwire.com/docs/pe10313.pdf.

SPDD-156 was drilled on section 49550 in front of -086 (0.60 g/t gold over 57 metres) and successfully intersected the oxidized mineralized zone near surface.

To view section 49550 at Pokukrom East, see: http://media3.marketwire.com/docs/pe10314.pdf.

SPDD-157 was a step-back hole on section 49650 behind SPDD-110 (2.14 g/t gold over 16 metres). Significantly, SPDD-157 intersected broader and more consistent sericite hosted mineralization than the other holes drilled on the section, in addition to confirming the zone to 170 metres depth on the section.

To view section 49650 at Pokukrom East, see: http://media3.marketwire.com/docs/pe10315.pdf.

SPDD-170 and -172 were infill holes on section 49850. SPDD-170 was drilled from the same collar as SPDD-127 (1.53 g/t gold over 42 metres), which was terminated in mineralization, to infill the section. SPDD-172 was drilled between SPDD-128 (1.59 g/t gold over 16 metres) and SPDD-089 (1.03 g/t gold over 46 metres) and appears to have intersected the main Pokukrom East zone (also encountered in SPDD-089, -127 and -170 on the section).

To view section 49850 at Pokukrom East, see: http://media3.marketwire.com/docs/pe10316.pdf.

At Nfante East, SFDD-150 was drilled on section 45800, 100 metres north of and on strike with the discovery hole on the target, SFDD-094 (0.87 g/t gold over 38 metres). The drill hole returned 15 metres at 0.62 g/t gold in oxide mineralization from surface to 15 metres down-hole and a second hematite altered zone from 48 metres to 67 metres down-hole of 1.06 g/t gold over 19 metres. Further drilling is required at Nfante East to locate higher grade sericite-style mineralization as intersected at Pokukrom East.

Drilling at the Nfante West and Nfante Central zones returned mainly anomalous results, with the exception of SFDD-171 at Nfante West, which returned 0.91 g/t gold over 19 metres from 123 metres down-hole. The Company plans to further review geophysical and geochemical information prior to planning further infill and step-out holes on these two targets.

Drilling Progress and Exploration Outlook

Including the 21 holes totaling 4,627 metres reported today, Pelangio has completed 99 drill holes totaling 19,541 metres (including two holes abandoned for 134 metres) in its second phase program on the Manfo Property, of which 78 drill holes have been reported. Further assay results will be released in due course.

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 divided 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. The Company primarily operates in Ghana, West Africa, an English-speaking, common law jurisdiction that is consistently ranked amongst the most favourable mining jurisdictions in Africa. Drilling is currently underway on two 100%-owned camp-sized properties: the company-making 100 km2 Manfo Property, the site of four recent near-surface, high grade and bulk tonnage, gold discoveries, and the potentially game-changing 290 km2 Obuasi Property, located four kilometres 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, 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.

Manfo Gold Project – Drill Results (Pokukrom East and Nfante West, Central and East)
Section DHID From
(metre)
To
(metre)
Core
Length
(metres)1
Au
(g/t)
Hole
Length
(metres)
Az
(°)
Dip
(
°)

Pokukrom East Gold Zone
49550 SPDD-156 0 22 22 1.06 57 117 -45
including 14 21 7 2.66
49650 SPDD-157 36 48 12 0.20 287 117 -50
107 115 8 0.26
133 141 8 0.72
163 223 60 1.00
including 210 217 7 2.58
49250 SPDD-159 0 9 9 2.48 108 117 -50
16 48 32 0.49
49350 SPDD-161 84 92 8 0.29 264 117 -50
106 112 6 0.87
126 149 23 0.36
156 186 30 0.31
49450 SPDD-164 16 25 9 0.41 174 117 -45
31 52 21 0.37
74 133 59 0.69
including 123 132 9 2.47
49450 SPDD-166 199 235 36 0.59 295 117 -80
263 282 19 2.24
49500 SPDD-168 52 65 13 0.36 213 117 -66
73 156 83 0.42
49850 SPDD-170 135 151 16 0.69 330 117 -48
175 209 34 0.75
including 185 207 22 0.94
49850 SPDD-172 0 23 23 1.03 159 117 -45
119 128 9 0.82

Nfante West Gold Zone
45400 SFDD-158 No Significant Results 289 117 -45
45500 SFDD-160 189 216 27 0.36 264 117 -50
45600 SFDD-162 134 141 7 0.95 216 117 -50
45300 SFDD-163 221 267 46 0.36 306 117 -70
including 223 241 18 0.62
45300 SFDD-171 123 142 19 0.91 291 117 -50
182 199 17 0.27

Nfante Central Gold Zone
45400 SFDD-165 100 113 13 0.27 198 117 -50
45250 SFDD-167 4 26 22 0.23 219 117 -50
45300 SFDD-169 No Significant Results 123 117 -50

Nfante East Gold Zone
45800 SFDD-150 48 67 19 1.07 176 117 -50
45500 SFDD-151 No Significant Results 204 117 -50
45600 SFDD-154 214 222 8 0.47 275 117 -75
240 246 6 0.48
45700 SFDD-155 7 21 14 0.49 179 117 -50
102 112 10 0.81

1 Intervals are core length. At Pokukrom East, true width of holes drilled at -45° and -50° is estimated to be approximately core length, while true width of holes drilled at -65° is estimated to be approximately 90% of core length. At the Nfante Zones, true widths will be defined with further drilling. Unless otherwise indicated, a cut-off grade of 0.2 g/t gold was used in calculating intervals with allowance for up to five metres of internal dilution.

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