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

Pelangio Exploration Inc.

February 01, 2011 06:01 ET

Pelangio Exploration Provides 2011 Exploration Outlook for the Manfo and Obuasi Properties

25,000+ Metre Drilling Program on Manfo and Obuasi Properties

Drilling Expected to Commence at Obuasi Property During Q1 2011

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2011) - Pelangio Exploration Inc. (TSX VENTURE:PX)(OTCBB:PGXPF) ("Pelangio" or the "Company") is pleased to provide an exploration outlook for its Manfo and Obuasi Properties in Ghana. Highlights of ongoing and intended 2011 exploration programs include:

Manfo Property – Sefwi Belt – 100 square kilometres

  • 15,000 metre diamond drilling program, including 5,000+ metre ongoing drilling program and 10,000 metre next phase program expected to commence in early summer;
  • Drill programs intended to expand and define four near-surface discoveries along strike and at depth and to test previously undrilled targets;
  • Property-wide geophysics and geochemistry programs to identify new targets beyond 10 square kilometre area prioritized to date;
  • Further drill rig(s) to be added at Manfo during second half of 2011.

To view a plan view of results and future plans on the Manfo Property, see: http://media3.marketwire.com/docs/Pelangio_image1.pdf.

Obuasi Property – Ashanti Belt – 290 square kilometres

  • 10,000 metre diamond drilling program, focusing on new priority targets at Ayaase and Bura and follow up targets at Mount Kate, Big Vein, Tikal, NT1 and Government Area;
  • Strong gold and arsenic geochemical anomalies identified at Ayaase target, characteristic of ore at the neighbouring Obuasi Mine;
  • Trenching at Ayaase confirms gold mineralization in anomalies, encountering up to 1.8 g/t gold over 13 metres (including 10.20 g/t gold over 2.0 metres) (cut to 20 g/t) and, 500 metres southwest, 1.47 g/t gold over 12 metres;
  • Trenching at Government Area encounters 1.03 g/t gold over 21 metres, 600 metres on strike from gold mineralization previously intersected by drilling at NT1;
  • Energold Drilling Corp. engaged to complete up to 20,000 metres of diamond drilling between Obuasi and Manfo, commencing at Obuasi during first quarter of 2011.

To view a plan view of geochemical and trenching results from the Obuasi Property, see: http://media3.marketwire.com/docs/Pelangio_image2.pdf.

"2011 promises to be a transformative year for Pelangio," stated Ingrid Hibbard, President and Chief Executive Officer. "We have only scratched the surface of our four near-surface discoveries on the Manfo Property, all of which remain open at depth and along strike. These discoveries demand significant further drilling, and we expect that extensive ongoing surface work will yield other targets for discovery on the property."

Ms. Hibbard continued, "On the Obuasi Property, we have discovered surface showings at Ayaase and Bura that offer the most compelling drill targets that we have yet seen on the property. We will also be advancing several areas drilled during previous programs at Obuasi. Between Manfo and Obuasi, we plan to be drilling throughout the year on two world-class exploration prospects totaling nearly 400 square kilometres on Ghana's premier gold belts."

Manfo Property Outlook

Since optioning the Manfo Property in August 2010, Pelangio has drilled 29 holes on four targets and has made four near-surface discoveries. Significant previously reported assay results include:

Area DHID From
(metre)
To
(metre)
Interval
(metres)1
Au
(g/t)
Hole Length
(metres)
Nfante West SFDD-079 16 77 61 1.50 2 141.1
      including 26 44 18 3.00  
  SFDD-082 12 52 40 0.91 127.0
  SFDD-096 64 107 43 1.11 141
      including 94 101 7 2.65  
  SFDD-100 25 48 23 1.05 149
      including 31 39 8 2.67  
Pokukrom West SPDD-083 16 44 28 4.18 96
      including 31 43 12 8.00  
  SPDD-084 27 39 12 8.60 90
  SPDD-090 14 23 9 36.21 3 51.5
  SPDD-091 140 148 8 2.27 218
  SPDD-092 11 20 9 8.68 77
Pokukrom East SPDD-085 98 131 33 1.64 246
      including 116 129 13 3.37  
  SPDD-086 2 59 57 0.60 180
      including 2 20 18 1.11  
  SPDD-088 1 54 53 1.39 4 144
      including 35 40 5 24.7 5  
  SPDD-089 56 102 46 1.03 141
  SPDD-106 2 54 52 1.36 103
      including 41 54 13 3.47  
  SPDD-107 63 135 72 1.13 222
      including 83 134 51 1.50  
      including 116 127 11 3.53  
Nfante East SFDD-094 53 86 33 0.95 198
 
1. Intervals are core lengths. True widths will be determined with further drilling.
2. Weight-averaged results of fire assay and metallic screen analyses.
3. 19.54 g/t gold if higher grade intervals are cut to 30 g/t.
4. Higher grade intervals cut to 20 g/t.
5. 13.24 g/t gold if higher grade intervals are cut to 30 g/t.

The gold mineralization encountered at Manfo to date is similar to that of granitoid-hosted deposits in Ghana, including those at Ahafo (Newmont) and Chirano (Kinross) on the Sefwi greenstone belt. These deposits host multi-million ounce, near-surface, bulk tonnage gold mineralization in a series of pits at grades between 1 g/t and 2.5 g/t, but also host higher grade underground deposits at depth. The bulk tonnage grades and widths that Pelangio has encountered at Manfo to date compare very favourably with these deposits, while certain of the results encountered at Pokukrom West and East also demonstrate potential for high grade gold mineralization similar to underground deposits found at Ahafo and Chirano.

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.

Obuasi Property Outlook

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 (the "Obuasi Resource Report")).

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 Obuasi Mine trend, with the goal of intersecting previously undiscovered Obuasi-style ore shoots relatively near surface.

Recent exploration efforts have primarily focused on the Ayaase and Bura targets, at each of which a series of contourable 40 ppb, 70ppb and 100 ppb gold anomalies ranging between 100 and 400 metres in strike length have been identified.

At Ayaase, in particular, these anomalies are associated with contourable 100 ppb and 200 ppb arsenic anomalies. The association of significant gold and arsenic anomalies had previously not been encountered on the Obuasi Property and represents an important exploration success, as higher gold grades at the Obuasi Mine tend to be associated with finer grained arsenopyrite crystals (an iron arsenic sulphide) (refer to the "Obuasi Resource Report").

Subsequent trenching at Ayaase and Bura encountered the following significant assay results in bedrock, providing strong evidence that the anomalies are associated with in situ gold mineralization:


Area
TID Interval
(metres)
Au
(g/t)
Ayaase AY-10-03 13 2.70 1
      including 2 16.00 2
  AY-10-01 12 1.47
Bura BT-TR10-01 4 1.05
  BU-TR-02 33 0.50
  BSE-10-06 4 1.95
 
1. 1.8 g/t gold if higher grade intervals are cut to 20 g/t.
2. 10.2 g/t gold if higher grade intervals are cut to 20 g/t.

The Company has also recently encountered significant gold mineralization in trench GA-08 at the Government Area, a Tarkwaian-style target on the contact between the Birimian and Tarkwaian, approximately 600 metres from previous drill holes at the NT1 target, which included 1.10 g/t gold over 13.95 metres (PG07NT1-3) and 0.26 g/t gold over 78 metres (PG10-NT1-81). Trench results include: 

Area TID Interval
(metres)
Au
(g/t)
Government Area GA-08 21 1.03
      including 1 10.80
      and 1 8.20

The trench and drilling both tested Tarkwaian sediments and are in the same geological setting. Two additional trenches are underway in the area to explore the mineralization further prior to upcoming drill programs.

Proposed Drilling Programs

At Manfo, Pelangio is currently conducting a 5,000+ metre program at the Nfante West and Pokukrom West and East Zones, as well as at targets located outside of these discovery zones, which is expected to be completed during the first quarter of 2011. Drilling at Manfo is being conducted by Burwash Contract Drilling of British Columbia. A next phase program totaling approximately 10,000 metres of diamond drilling is expected to commence early in the third quarter of 2011, which will further define the gold mineralized zones at Nfante West and Pokukrom East and West, as well as following up on the previously reported discovery at Nfante East, strong anomalies identified at Sika North, and other anomalies and targets currently being identified through ongoing surface work.

Pelangio has commissioned E Global Drilling Corp., a subsidiary of Energold Drilling Corp. of British Columbia, to provide 20,000 metres of diamond drilling, which will be divided between the Manfo and Obuasi Properties. The Company is currently planning an initial drill program of approximately 5,000 metres for the Obuasi Property, which will focus on the Ayaase, Bura, Tikal, Mount Kate, Big Vein, NT1 and Government Area targets. The program is expected to commence during the first quarter of 2011. A second program of up to 10,000 metres at Obuasi is expected to commence during the third quarter of 2011.

Addition to Pelangio's Exploration Team

Pelangio is pleased to announce that Francis Duku, B.Sc., M.B.A. has been added to the Company's exploration team on the Manfo Property as Project Geologist, Manfo. Mr. Duku was Chief Geologist and subsequently Project Manager on the nearby Chirano gold deposit for Red Back Mining and its predecessors, where he worked from early exploration, through discovery and feasibility. He has mineral exploration experience in a number of other African countries, including Mali, Burkina Faso, Liberia and the Democratic Republic of Congo (where he worked for Banro Corporation) and production experience at the Tarkwa Mine in Ghana. Mr. Duku holds a B.Sc. (Geological Engineering, Ghana) and an M.B.A. (Ghana) and is a member of the Australian Institute of Mining & Metallurgy.

Mr. Duku joins Pelangio's strong Ghanaian exploration team, which also includes Forson Kari Kari, B.Sc., M.Sc., Project Geologist, Obuasi. Mr. Kari Kari has been working with Pelangio since initial due diligence was conducted on the Obuasi property in 2005 and was promoted to the position of Project Geologist, Obuasi in 2010. He has exploration experience in Ghana and Burkina Faso, as well as production experience in Ghana from the Ahafo and Konongo mines. Mr. Kari Kari holds a B.Sc. (Hons. Geology, Ghana) and a M.Sc. (Mineral Exploration and Evaluation, Netherlands) and is currently a Ph.D. candidate at the University of Vienna, Austria. He is a member of the Ghana Institution of Geoscientists.

Pelangio's exploration team in Ghana is led by Sam Torkornoo, B.Sc., M.B.A., Exploration Manager. Mr. Torkornoo has worked with Pelangio since 2006 and was appointed Exploration Manager in 2010. He has provided consulting services to Perseus Mining (Central Ashanti Gold Project) and Xtra-Gold Resources (Kibi Project). Mr. Torkornoo also conducted early due diligence on the Esaase gold project, now held by Keegan Resources, and was a member of the team that discovered the Abore North gold deposit (now held by PMI Gold). He holds a B.Sc. (Geological Engineering, Ghana) and an M.B.A. (International Resources and Environmental Management, Germany) and is a member of the Australian Institute of Mining & Metallurgy, the Ghana Institute of Geoscientists and the Canadian Institute of Mining, Metallurgy and Petroleum.

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 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 every 20 samples, and ran one duplicate analysis every 20 samples.

In respect of SFDD-079, every sample returning more than 100 ppb gold was subsequently sent for follow-up metallic screening analysis, in which a 1000 gram pulp was analyzed. The screening of samples produced two size fractions – less than 75 micrometres (um) and greater than 75 um. These fractions were then analyzed independently by fire assay and atomic absorption.

All trench and soil samples were collected by contractors working for Pelangio. The trench samples were collected starting at the western end of the trench and working towards the east. 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 Tepa 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 Manfo and Obuasi Properties 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, 24.7 g/t gold over 5 metres; 1.5 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