Pelangio Exploration (TSXV:PX) is a Canadian-based exploration company focusing its efforts in Ghana and Canada.
In Ghana, the Toronto-based company is advancing its Manfo and Obuasi projects while in Canada, Pelangio Exploration is focused on the Kenogaming, Gowan and Mann projects.
Thanks to its presence in West Africa and Canada, Pelangio Exploration has exposure to a diversified portfolio in two world-class gold-mining jurisdictions.
Exploration update
In early September, the company provided an update on recent activities and plans for its projects in Ghana and Canada.
Some of Pelangio’s recent highlights include:
- The Obuasi Project will benefit from an agreement with TuNya Mineral Resources to provide exploration expenditures and access to technical expertise
- TuNya will be earning into the TuNya Earn-In Property (the southern portions of the Kyereboso 2 and 3 licenses of Pelangio’s Obuasi Property, covering principally Tarkwaian geology), to explore for extensions to or additional discoveries complementary to TuNya’s Kyereboso project.
- The recently completed Manfo drill program extended mineralization in the Pokukrom East and West deposits, demonstrating resource growth potential with continued step-out drilling
“Firstly, our agreement with TuNya provides a catalyst for exploration success at our Obuasi Project, a district-scale land package adjacent to the giant high-grade Obuasi mine. The agreement provides both exploration funding and access to a technical team with over 125 years of expertise on the extremely prolific Ashanti gold belt, including significant experience at the Obuasi mine itself,” Ingrid Hibbard, CEO of Pelangio Exploration, said in a statement. “Secondly, our Manfo drill program extended known mineralization at the southern ends of both the Pokukrom East and West deposits.”
The Obuasi project
Pelangio Exploration owns 100 per cent interest in the Obuasi project, which spans 284 square kilometres and is adjacent to TuNya’s property, which is host to the Kyereboso deposit. The project is also next to and on strike with AngloGold-Ashanti’s 30 million-ounce Obuasi mine.
Between 2007 and 2011, Pelangio Exploration conducted work on the project, including two airborne VTEM/magnetic surveys, geological and geochemical surveys and trenching, as well as diamond drilling.
In total, the company has drilled 129 diamond drill holes for a total of 27,883 metres ranging in length up to 602 metres and averaging approximately 200 metres. Broadly speaking, drilling has lightly tested targets in eight general areas, with more than 85 per cent of the drilling in the western half of the property.
The early exploration activity plus subsequent and more recent data reanalysis, prospectivity and targeting exercises prioritized two large principal target areas for follow-up exploration situated in the southwestern corner of the property closest to the Obuasi Mine property.
Moving forward, additional work on the Obuasi project will continue the desktop target development and ranking exercise, augmented by fieldwork to include a comprehensive review of the drill core, detailed field mapping and a structural study.
TuNya’s “Obuasi experts” will conduct the work, while Pelangio Exploration recently entered into a letter of intent where TuNya has the option to earn into an 80 per cent interest on the southern portion of the Obuasi project covering principally Tarkwaian geology.
The deal
As Pelangio Exploration gears up to unlock the potential of the Obuasi project and beyond, the company is also eager to provide investors with the same opportunities through a non-brokered private placement valued at C$500,000.
Under the offering, the company is issuing each unit at a price of $0.03 and will consist of one common share of Pelangio Exploration and one common share purchase warrant.
Each whole warrant offers the holder the opportunity to purchase one common share at a price of $0.05 for a period of five years from the initial closing date of the offering.
Pelangio Exploration will use the funds for working capital and general corporate costs, which include land maintenance costs.
The initial offering is expected to close around Sept. 25 but could occur in one more tranches.
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