In the heart of West Africa, a promising gold project is gaining momentum, signaling a new chapter for one of the region’s most compelling untapped resources.
A recently completed feasibility study update has reaffirmed the project’s strong fundamentals while uncovering fresh opportunities to enhance its economic appeal. With a clear roadmap for optimization and a strategic focus on sustainability, infrastructure, and operational efficiency, this development could mark a turning point for investors seeking exposure to the continent’s emerging gold frontier.
Pasofino Gold Ltd. (TSXV:VEIN) has taken a significant step forward in its journey to unlock the full potential of the Dugbe Gold Project in Liberia. The company recently completed Phase One of its feasibility study update, a milestone that not only validates the robustness of the 2022 feasibility study but also sets the stage for a comprehensive optimization process aimed at enhancing the project’s economics and attractiveness to investors.
This article is disseminated in partnership with Pasofino Gold Ltd. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Why this update matters
The Dugbe Gold Project, located in Sinoe County, Liberia, is one of the most promising undeveloped gold assets in West Africa. With a previously reported post-tax net present value (NPV) of US$524 million at a gold price of $1,700/oz and a projected mine life of 14 years, the project already demonstrated strong fundamentals. However, Pasofino’s Phase One update—conducted by MineScope Services Pty Ltd.—has revealed opportunities to further refine and improve the project’s viability.
Importantly, the gap analysis confirmed no fatal flaws in the 2022 feasibility study. Instead, it identified key areas for enhancement, including resource validation, mine planning, infrastructure, and environmental compliance. This positions Pasofino to deliver a more robust and finance-ready feasibility study within the next 12 months.
Key highlights of the Phase One update
- Geology and resource validation: A proposed 16,000-metre drill program will improve confidence in the resource model, targeting infill, step-out, and definition drilling.
- Mining optimization: Updates to pit shell designs, mine sequencing, and cost modeling will refine operational efficiency.
- Metallurgical testing: Stored samples in Perth will undergo comprehensive testing to improve recovery rates and potentially reduce capital costs.
- Processing trade-off study: A comparative analysis between flotation and Carbon-in-Leach (CIL) methods will determine the most cost-effective and efficient processing route.
- Power generation strategy: With oil prices lower than in 2022 and LNG not viable in Liberia, alternative energy sources like solar, bio-fuel, and hydro will be evaluated.
- Infrastructure and logistics: Reviews of tailings storage, road and bridge construction, port rehabilitation, and water management aim to reduce costs and environmental impact.
- Environmental and Social Governance (ESG): Finalization of the ESIA and Resettlement Action Plan (RAP) will be submitted to Liberia’s EPA, aligning the project with international financing standards.
- Cost and timeline: The feasibility update is expected to cost between $6.0–$8.0 million and be completed within 12 months, with parallel work streams to accelerate progress.
Navigating challenges
Pasofino is currently negotiating with the Liberian government regarding overdue payments totalling $3.5 million under the Mineral Development Agreement (MDA). While this presents a short-term risk, the company is actively pursuing a flexible payment plan to avoid default and maintain its rights to the project.
“I am pleased to announce the result of the MineScope gap analysis, so as we can present a clear and defined path to the market of completing the update to the feasibility study, and show visibility towards project financing, final investment decision, and eventually project construction,” the company’s CEO, Brett Richards stated in a news release on these results. “With a strategically aligned shareholder group, focused management team and supportive host stakeholder group, we can rapidly emerge as one of the premier gold investments in the market today.”
Investment proposition
Pasofino Gold offers a compelling investment thesis:
- Undervalued asset: CEO Richards describes Dugbe as “one of the strongest late-stage gold projects in Africa today” and Pasofino as “one of the most under-valued gold developers in the capital markets”.
- Strategic alignment: With support from major shareholders and a focused management team, the company is well-positioned to advance toward project financing and construction.
- Gold market tailwinds: With gold prices remaining strong and long-term bullish sentiment, Dugbe could become a significant cash-flow generator upon entering production.
- Stable jurisdiction: Liberia is considered one of the more geopolitically stable countries in Africa, enhancing the project’s risk profile.
A golden opportunity
Pasofino Gold’s Phase One feasibility update marks a pivotal moment in the company’s evolution. With a clear roadmap to optimize the Dugbe Gold Project and a management team committed to execution, investors should take a closer look. The next 12 months could unlock substantial value, making now an opportune time to deepen due diligence into this engaging story.
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