Pelangio Mines Inc.
TSX : PLG

Pelangio Mines Inc.

May 07, 2008 16:20 ET

Pelangio Initiates Diamond Drill Program in Ghana and Announces Results From Winter Drilling Program on the Seeley Lake and Black Township Properties in Ontario

TORONTO, ONTARIO--(Marketwire - May 7, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Pelangio Mines Inc. (TSX:PLG) ("Pelangio" or the "Company") has commenced a 2000 metre drilling program at its Obuasi property in Ghana. The 10-hole program will focus on the extension of the Obuasi mine trend (Anyinabrim target) where Pelangio has identified gold and copper soil anomalies and geophysical conductors from the 2007 survey. This program is the first part of a projected 10,000 metres to be completed in 2008.

Seeley Lake and Black Township Properties

The Company completed a drill program at its 100% owned Seeley Lake property in the Hemlo area of northwestern Ontario and at its 100% owned Black Township property located approximately 100 kilometres southwest of Timmins.

Seeley Lake Property

In February 2008, Pelangio completed 1,182 metres in six diamond drill holes on its Seeley Lake property. The drill program tested six induced polarization ("IP") chargeability anomalies outlined by Pelangio in 1998 and followed up on gold mineralization encountered in one hole in a 1999 drill program on the property.

Two of the six holes intersected gold mineralization:

- HEM08-02 intersected 1 metre of 1.24 g/t gold from 19 to 20 metres. The gold-bearing interval was hosted by a pyrrhotitic sulfidic felsic ash tuff.

- HEM08-03 intersected 2 metres of 1.10 g/t gold from 87 to 89 metres. Gold values are associated with quartz veining in carbonatized mafic volcanic rock.

The two holes were 50 metre north and south step-outs from the 1999 hole drilled by Pelangio, which encountered 2 metres averaging 2.55 g/t gold. Drill holes HEM08-01 and HEM08-04 were 50 metre step-out holes to the west and east of the earlier drill hole. Drill hole HEM08-06 was drilled directly beneath drill hole HEM08-03, but was abandoned before the intercept in drill hole HEM08-03 could be undercut.

All holes, except for HEM08-01, intersected sericite-altered rhyolite tuffs with anomalous zinc values ranging from 600 to 1000 ppm over 3 to 10 metre intervals, indicating the possibility of volcanogenic massive sulphide mineralization on the property.

The drill results indicate gold mineralization and warrant further exploration on the Company's ground position in the area (which now includes the recently acquired Page Lake property).

Diamond drilling was performed by Discovery Drilling of Timmins, Ontario, and samples were assayed by Accurassay Labs in Thunder Bay, Ontario. Core was transported by helicopter to a secure site in Marathon, Ontario, where it was sawn or split in half, on a metre by metre basis. Standard gold reference materials and sample blanks were inserted into the sample stream at an interval of one every seventeen samples. Accurassay Labs also performed duplicate pulp assays at a rate of one every 10 samples. Review of quality control samples showed no inconsistencies in the assaying program.

The program was supervised by Warren Bates, P.Geo. a qualified person under National Instrument 43-101 ("NI 43-101") guidelines.

Black Township Property

In February 2008, Pelangio completed 980 metres in eight diamond drill holes on its Black Township property.

The holes tested anomalies indicated by an IP and very low frequency survey completed by the Company in 2007. Holes BK08-02 and BK08-03 also tested existing gold showings.

The best results were obtained in Hole BK08-03, which intersected 1.5 metres of 0.52 g/t gold from 70.5 to 72 metres and 2 metres of 0.47 g/t gold from 80 to 82 metres. This intersection was hosted in a quartz stockwork system within altered mafic volcanics. The intersection correlates well with the surface showing. The other holes did not intersect any significant mineralization.

The drilling was conducted by Forages M. Lafreniere Inc. based out of Timmins, Ontario, and the samples were assayed by Swastika Laboratories Ltd. ("Swastika") at their lab in Swastika near Kirkland Lake, Ontario.

Samples were transported from the field to a secure logging facility by pickup truck where they were catalogued and split using a hydraulic core splitter. Standard gold reference materials and sample blanks were inserted into the sample stream at an interval of every 20 samples. Swastika also performed duplicate pulp assays on average every 10 to 20 samples. Review of quality control samples showed no inconsistencies in the assay program.

The program was overseen by Warren Bates, P.Geo. a qualified person under NI 43-101 guidelines.

Revision to terms of previously announced Pelangio Exploration Inc. financing

On March 25, 2008, Pelangio announced that its subsidiary, Pelangio Exploration Inc. ("Newco"), would be completing an offering of 10% promissory notes (the "Promissory Notes") in an aggregate principal amount of $3,000,000 through Bolder Investment Partners, Ltd., the agent, on a private placement basis and pursuant to applicable prospectus and registration exemptions. Pelangio has now determined that it will issue the Promissory Notes, rather than Newco, and that Newco will assume the obligations under the Promissory Notes in connection with the plan of arrangement (the "Arrangement") to be completed on or about June 14, 2008 (the "Effective Date"). The arrangement agreement and plan of arrangement relating to the Arrangement will be amended to effect the transfer of Pelangio's obligations under the Promissory Notes. The other terms of the offering and the Promissory Notes, as set out in Pelangio's management information circular (the "Circular") dated March 19, 2008, will remain unchanged. The proceeds from the offering will be used by Pelangio prior to, and Newco subsequent to, the Effective Date to fund exploration on Pelangio's Obuasi and Canadian properties and for general corporate purposes.

About Pelangio

Pelangio is a gold 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.

Pelangio also has a 44.6% equity interest in Detour Gold, which controls the Detour Lake advanced exploration project. The near-term objective of Detour Gold is to advance the Detour Lake project to development and production.

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

This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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. Forward-looking statements and information include statements regarding our exploration plans and exploration results with respect to our Obuasi, Seeley Lake and Black Township properties, the offering of Promissory Notes and the Arrangement 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, the ability to complete the offering of Promissory Notes, the failure to meet the conditions to implement the Arrangement and other risks involved in the gold exploration industry. See our annual information form, the Circular and our quarterly and annual 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 Pelangio and Newco. Accordingly, readers should not place undue reliance on forward-looking statements or information.

All forward-looking statement and information herein are qualified by this cautionary statement.

Contact Information

  • Pelangio Mines Inc.
    Ingrid Hibbard
    President & CEO
    (905) 875-3828 or Toll Free: 1-877-746-1632
    or
    Pelangio Mines Inc.
    Warren Bates
    Vice President Exploration
    (905) 875-3828 or Toll Free: 1-877-746-1632
    Email: info@pelangio.com
    Website: www.pelangio.com