Pelangio Exploration Inc.
TSX VENTURE : PX
OTCBB : PGXPF

Pelangio Exploration Inc.

July 09, 2012 08:00 ET

Pelangio Receives Positive Preliminary Metallurgical Test Results at Pokukrom East on Manfo Property

TORONTO, ONTARIO--(Marketwire - July 9, 2012) - Pelangio Exploration Inc. (TSX VENTURE:PX)(OTCBB:PGXPF) ("Pelangio" or the "Company") is pleased to announce preliminary scoping metallurgical test results from four composite samples taken primarily from the Pokukrom East gold zone at the Manfo Property in Ghana.

Full elemental head assays, gravity separation tests, preg robbing tests, sequential diagnostic leach tests, and cyanide leaching tests on both whole ore and gravity tail samples were undertaken on the samples. In addition to the gold recovery testwork, comminution testwork was undertaken to characterize the crushing and grinding requirements when treating the ore. The testwork was undertaken by SGS Mineral Services in Lakefield, Ontario, in the first quarter of 2012.

Highlights of the Metallurgical Testwork Report from the Pokukrom East zone today include:

  • Composite samples present mineralization that is expected to achieve 84% to 94% gold recovery by means of a conventional free milling gold circuit at a grind size of 80% passing 75 micron as determined by 48 hour leach tests with the recovery of 21% to 50% through gravity separation alone.
  • The metallurgy of the material appears amenable to a standard free milling gold flowsheet and is similar to some deposits in the region currently in production.
  • All four metallurgical sample types submitted for testing demonstrated a variance in the measured gold grade compared to the exploration half core assays for the same intervals. The Sericite Low-Grade Sulphide metallurgical sample increased by 51.4% to 2.71 g/t Au, Sericite High-Grade Sulphide increased by 77.8% to 12.5 g/t Au, Oxidized Zone increased by 25.8 % to 1.22 g/t Au, while Hematite Low-Grade Sulphide decreased by 18% to 1.32 g/t Au.

"We are pleased with the very good conventional metallurgical profile of the samples," stated Warren Bates, Senior Vice President Exploration. "While not affecting initial observations regarding the metallurgical characterization of the types of mineralization, the reason for the variations between the metallurgical sample assay head grades and calculated head grades will require investigation during future test work programs."

Metallurgical Testing

The four samples submitted for metallurgical analyses were composites made up from quartered one metre HQ diamond drill core intervals. The source of the half core was previously sampled exploration drill core. The samples are from over a strike length of 700 metres at the Pokukrom East gold zone, with the saprolite (weathered) sample containing about 20% of its weight from the Pokukrom West zone, 600 metres to the west. Sample weights averaged 70 kilograms and were taken from the four main types of mineralization: hematitic granitoid (sulphide), weathered granitoid, and both high grade sulphide and low grade sulphide sericitic granitoid. The average actual head assay for each sample was 1.32 g/t, 1.22 g/t, 12.5 g/t and 2.71 g/t respectively.

Orway Mineral Consultants of Mississauga (a subsidiary of Lycopodium Ltd.), the author of the test work report, notes that the "composite samples present mineralization that is amenable to processing by means of a conventional free milling gold circuit to achieve recoveries of 84% to 94% when ground to 80% passing 75 micron. The mineralization is not preg robbing, and has quite low concentrations of elements that have a deleterious effect on economic gold recovery. The metallurgy of the material appears amenable to a standard free milling gold flowsheet and is similar to some deposits in the region currently in production."

Gravity separation tests of the samples show recovery of 21% to 50% of the total gold. Given these initial results, Orway suggests that gravity separation should be considered in the flow sheet development. In addition, the possibility of achieving comparable recoveries with an optimized whole ore cyanide leaching circuit which includes oxygen injection to increase leach kinetics should be investigated as it would provide a simpler flow sheet.

Sequential diagnostic leach tests determined a combined gravity and cyanide recoverable gold content of 84% to 94% for the samples tested. The remaining 6% to 16% of the total gold, which is resident in the cyanide leached residue, was leached with aqua regia to determine the amount of gold associated with sulphides and is assumed to be locked in silicates. These results indicated that 0.2% to 1.9% of the gold in the original head sample may be locked in silicates with the remaining gold associated with sulphides. Studies of ore mineralogy are expected to provide information to assist in the determination of optimal grind size, and could provide guidance to increase the recovery of the 6% to 16% of the gold which predominately appears to be associated with sulphides and may be refractory.

The unoxidized mineralization hosted by the fresh granitoid rock is, as expected, highly competent, has above average Bond ball mill work indices, and is highly abrasive. This is in contrast with the sample from the weathered granitoid surface layer, which is incompetent and has low indices. Grind size versus recovery testing is yet to be undertaken and is required to optimize the primary grind size to be adopted for the project.

Sample Names, Mineralized Area, Metallurgic Type, Sample Mass, Aggregate Core Length, Previous 1/2 Core Assay Average, Metallurgic Head Analysis, Overall Recovery and Gravity Recovery are summarized in the tables below. Samples are listed from top to bottom in order of their relative importance in East Pokukrom mineralization.

Table 1 Manfo Metallurgic Testing Sample Summary
Sample Name Mineralized Area Metallurgic Type Sample Mass
(Kg)
Aggregate Core Length
(meters)
Overall Recovery
Gravity + 48hr Leach (%)
Gravity Recovery
(%)
SGD Yellow Pokukrom East Sericite Low-Grade Sulphide 70.5 67 85.0 47.7
SGD Red Pokukrom East Sericite
High-Grade Sulphide
51.9 48 86.0 49.8
HGD Pokukrom East Hematite Low-Grade Sulphide 69.1 66 85.5 33.6
WGD Pokukrom East &West Oxidized Zone 87.3 105 93.8 21.1
Table 2 Manfo Samples; Head Analysis and Exploration Core Average Grades (g/t Au)
Sample Name Previous
1/2 Core Assay
Average
(g/t Au)
Head Analysis
(g/t Au)
Change in Grade
(%)
SGD Yellow 1.79 2.71 + 51.4
SGD Red 7.03 12.5 +77.8
HGD 1.61 1.32 -18.0
WGD 0.97 1.22 +25.8

The exploration program for the Manfo Property is overseen and approved by Warren Bates, P. Geo. (Ontario), a Qualified Person within the meaning of National Instrument 43-101 ("NI 43-101"), and Senior Vice President Exploration of Pelangio. Mr. Bates and the Company's geologic staff in Ghana conducted the sample selection referred to herein.

The Qualified Person who is responsible within the meaning of NI 43-101 for the information contained herein is Christopher G Waller, MAusIMM(CP), Manager of Studies for Lycopodium Minerals Pty Ltd.

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. The Company is exploring two 100%-owned camp-sized properties: the 100 km2 Manfo Property, the site of five recent near-surface, high grade and bulk tonnage, gold discoveries, and the 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 and such statements and information may be based on numerous assumptions. Forward-looking statements and information include statements regarding the Company's exploration plans and exploration results with respect to the Manfo Property, the Obuasi Property and the Akroma 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. Accordingly, readers should not place undue reliance on forward-looking statements or information. See the Company's annual information form, 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. The Company undertakes 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