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Pelangio controls three early-stage gold exploration concessions totaling 290 square kilometres on strike and adjacent to AngloGold Ashanti's world-class Obuasi gold mine, in Ghana, West Africa. The Obuasi mine has produced over 30 million ounces of gold since 1897 and hosts a further 30 million ounces in reserves and resources. Through prospecting, mapping, aerial surveying and drilling, Pelangio has confirmed to date that at least 15 kilometres of the structure that hosts gold mineralization at the Obuasi mine traverses Pelangio's concessions, with the potential for significantly further extensions to be recognized in the near future. Pelangio's aim is to focus on the extension of the mine trend closest to the Obuasi mine, with the goal of hitting near-surface Obuasi style gold mineralization.
About Ghana
Ghana - a stable, established, democratic system
- Ghana is Africa's second-largest gold producing country after South Africa
- Close to 60 million ounces of gold have been mined in Ghana over the last century
- Gold reserves and resources are estimated at well over 100 million ounces
- Mining industry contributes approximately 40% of Ghana's gross export earnings
- Government entitled to a free carried equity interest of 10% in mineral ventures with the option of purchasing an additional 20% at a fair market price.
- Government retains a 5% net smelter royalty on production.
- Some of the world's most senior gold producers have made large investments in Ghana:
- AngloGold Ashanti operates two producing mines: Obuasi and Iduapriem
- Gold Fields operates the Tarkwa and Damang mines
- Golden Star Resources operates the Bogoso/Prestea and Wassa mines
- Newmont started operations at the Ahafo mine in 2006 and is developing the Akyem project
Led by Warren Bates, SVP Exploration of Pelangio, our exploration team in Ghana has significant experience and depth. Sam Torkornoo, B.Sc., MBA, our Exploration Manager, has been working with us since 2006.
| Sam Torkornoo, Exploration Manager | Ben Pullinger, Project Geologist |
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| Edmund Agyei Efa, Geologist | Forson Karikari, Geologist |
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Our geologists are supported by a team of over 15 geotechnicians.
In Memoriam
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Chris Pegg was a key player in Pelangio's initial exploration of the Obuasi Property, from its acquisition in 2006 until January 2010 when, tragically, he passed away in his sleep at the far too young age of 54. Chris had over 30 years of international experience specializing in Pre-Cambrian gold deposits and had been working in Africa since 1992. He spent 17 years of his career with Lac Minerals and was awarded an NSR royalty in the Williams gold mine for his work leading to its discovery.
His love of geology was evident to all who met him, and he held a special place in his heart for Ghana. He will be missed by his family and his friends in Canada, Ghana and everywhere else there are interesting rocks to be found. Contact Pelangio for information on donating to a charitable trust for the education of Ghanaian youth in Chris' memory. |
Obuasi Property, Ghana
In November 2005, Pelangio acquired options on a major land position adjacent to AngloGold Ashanti's Obuasi gold mine in southwest Ghana, West Africa. The optioned property now comprises three land packages acquired from two private Ghanaian corporations. Each land package is subject to a 2% net smelter return and a 10% interest held by the government of Ghana. These land holdings, known as the Obuasi property, cover approximately 290 square kilometres and are located within the prolific 300-kilometre long Ashanti Gold Belt. The Obuasi property consists of three mineral concessions, the Meduma and Kyereboso 2 and 3 concessions.
On March 3, 2008, Pelangio made the final payments, totaling US$150,000 and 1,500,000 common shares, required to acquire a 51% interest in the Obuasi property.
To acquire the remaining 49% of the Obuasi property (subject to the Ghanaian government's 10% carried interest) Pelangio must pay a total of US$2.25 million and issue a total of six million common shares to the vendors. Pelangio has issued the six million common shares required and has paid US$1.5 million of the cash portion of the remaining payments. The final payment of US$750,000 will be made on or before June 19, 2011.
Exploration History
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Minimal surface exploration work was carried out on the property prior to the involvement of Randgold Resources Limited ("Randgold") in 2004. On the Kyereboso No.2 and No.3 concessions, Randgold completed reconnaissance geological mapping, prospecting, soil sampling and trenching to investigate the projected strike extension of the main trend of the Obuasi mine onto the property. In 1991-92, at the Meduma concession, Centracor Mining Ltd. carried out ground geophysical surveys, soil sampling, and trenching, and completed seven shallow drill holes. The best reported assays were 1.7 g/t gold over 6 metres and 1.5 g/t gold over 4 metres. Subsequent work on the Meduma concession was minimal. Geology and Mineralization
The Kyereboso No.2 and No.3 and Meduma concessions straddle the northwest contact of the Ashanti Volcanic Belt and are underlain by alternating bands of Tarkwaian and Birimian sedimentary rocks separated by narrow belts of Birimian volcanic rocks or dolerite intrusions. A belt-type felsic pluton intrudes the Birimian sedimentary and volcanic rocks in the northern portion of the concessions. Work by Pelangio and reconnaissance mapping by Randgold indicate the presence of discontinuous graphitic shear zones in the western parts of the Kyereboso No.2 concession. This geological and structural setting is similar to that at Anglogold Ashanti's Obuasi mine (over 30 million ounces of gold produced).
At the Obuasi Mine, gold mineralization is associated with major northeast striking, five to forty metre wide graphite-chlorite-sericite fault zones and commonly associated with pervasive silica, carbonate and sulphide hydrothermal alteration. On a broad regional scale, left stepping flexures along northeast striking fault zones are important for the localization of gold mineralization. Two distinct types of gold mineralization are recognized: quartz vein free-milling gold lodes and sulphide-rich (arsenopyrite) disseminated refractory gold lodes which are interpreted to form alteration haloes around the quartz vein lodes.
Exploration of the Obuasi Property
We have been working on the Obuasi Property since its acquisition in spring 2006, but it was only in late 2008 that we obtained sufficient information to conduct extensive drilling on the Main Obuasi Trend. Our exploration on the property to date includes:
- 2,038 metres of drilling in 2007;
- 6,965 metres of drilling in 2008;
- 9,160 metres of drilling during our first phase drill program in late 2009 and early 2010;
- bulk leach extractable gold (BLEG) geochemical surveying throughout the property;
- mobile metal ion (MMI) geochemical surveying on the Main Obuasi Trend;
- versatile time electromagnetic (VTEM) airborne geophysical surveying in 2007 and 2009; and
- mapping and prospecting.
The ore shoots are hosted in graphitic shear zones and are spatially associated with a mafic volcanic package, generally occurring within 400 metres northwest of the package. We have used the VTEM surveys as a structural mapping tool to trace the fault structures at the Mine through at least approximately 15 kilometres of our property. Additionally, through prospecting and drilling, we have traced the mafic package through the western portion of our property. The faults and mafic package are important structural indicators of potential gold mineralization and have been used in conjunction with (primarily) MMI surveying to locate prospective drill targets during our late-2009-2010 first phase drill program.
We are now relying primarily on MMI surveying as a geochemical tool, as we have concluded that it is more effective at seeing through cover than conventional techniques such as BLEG. The Obuasi Property is a "cover play" in that it is predominantly covered in between 5-20 metres of overburden, with very little outcropping. Additionally, due to the local topography, much of this overburden is subject to transport, which makes BLEG particularly ineffective in locating mineralization. MMI is a partial extraction technique that is significantly less affected by overburden transport.
We have been working on 16 primary target areas on the three main trends traversing the project:
- Main Obuasi Trend;
- Gyabunsu Trend; and
- Central Trend.
During 2009, we located 10 priority drill targets on the Main Obuasi Trend using geochemical, geophysical and prospecting information. Our independent structural consultants also referenced these targets, as well as noting four other structural targets of interest. In October 2009, we commenced a two-phase 30,000+ metre diamond drilling program, which will focus primarily on the Main Obuasi Mine Trend. We have now completed the first phase of the program, totaling 9,160 metres of drilling in 32 holes:
The second phase of the program, which expect to commence in the latter half of 2010, will be planned based on the knowledge gained during the first phase and ongoing field work on the property.
The first phase drill program on the Obuasi Property successfully provided the geological data necessary to mount effective future drill programs as it:
- encountered the graphitic structures (including the Obuasi and Cote D'Or fissures) and mafic contact associated with gold mineralization at the Obuasi mine (key features for orienting future drill programs);
- intersected broad zones of alteration at most targets, including significant sericitization and anomalous gold mineralized widths at the Big Vein prospect;
- confirmed gold mineralization along the Main Obuasi Mine Trend on the Obuasi Property;
- confirmed Mount Kate, Big Vein, Tikal, and NT 1 as targets meriting significant additional drilling.
1. Main Obuasi Trend
The Company conducted a regional MMI survey along the south central section of the Main Obuasi Trend, which identified large anomalies running northeast in excess of 2.5 kilometres along strike. These anomalies coincided with the results of the VTEM survey, with the strongest MMI survey signatures coinciding with the most highly conductive zones identified in the VTEM survey. Work in this area will focus on tracing the geometry and extent of the mafic volcanic horizon through prospecting and detailed mapping of the area. The mafic volcanic horizon is correlative with the footwall to the main ore zones at the Obuasi mine, and is in the hanging wall of the Gyabunsu Trend mineralization at Obuasi.
Mount Kate Area
Pelangio drilled two holes at Mount Kate in the first quarter of 2008 based on encouraging trenching and MMI results. The drilling intersected near-surface mineralization, the best results of which were in holes AMK-08-01, which intersected 1.57 g/t gold over 1.0 metre, within a wider intercept of 0.3 g/t gold over 17.0 metres, and AMK-08-02, which intersected 1.24 g/t gold over 4.0 metres within a wider zone of 0.78 g/t gold over 9.0 metres. Significantly, both of these holes intersected structurally controlled mineralization at the fault contact between argillaceous sediments and mafic volcanics, which is a typical setting for mineralization at Obuasi.
During 2009, the Company commenced a program to drill beneath and along strike from mineralization at Mount Kate with an emphasis on testing mineralization below the weathered horizon, as the deep weathering at the target may have resulted in near-surface gold depletion. The initial drilling in the 2009 program at Mount Kate encountered multiple zones of strong alteration and quartz veining. PG09-MK-01 and PG09-MK-03 intercepted sulfide mineralized veins of 5.0 metres and 8.0 metres, respectively, surrounded by strong carbonate-pyrite altered graphitic shales, as illustrated below:
During early 2010, a further four holes were drilled totaling 1,230 metres. These holes were designed to test the northern half of the MMI anomaly in the area and similarly to follow up on structural and geological targets intercepted during the 2008 drilling program. The best results were encountered in drill hole PG10-MK-04, which intersected 1.33 g/t gold over 2.0 metres, within a broader intercept of 0.49 g/t gold over 7.0 metres in a broad package of alteration. The mineralization is located at the contact between graphitic, sheared sediments and altered mafic volcanics, which is typical of the geological setting of the gold mineralization in the Obuasi mine.
Drilling on the prospect to date has also defined that the Cote D'Or structure, one of the two major faults hosting mineralization at the Obuasi mine, has an orientation of azimuth 20°/60°NW in the area. The Company will use this information to more effectively orient future drill programs in relation to historical knowledge regarding the Obuasi mine.
Big Vein Area
Big Vein is located near the western property boundary and 900 metres north of the Mount Kate prospect. Two holes were drilled on the prospect from the same collar at -50° and -75 dips. We have interpreted that these holes intersected the Obuasi fissure, which is identified by steep north-dipping mafic slivers in a broad argillite-hosted shear zone. Both drill holes displayed strong sericite-pyrite alteration in mafic volcanic rock. PG09-BV-02 contained a wide zone of anomalous gold averaging 0.34 g/t gold 22 metres in sheared argillite in the immediate hanging wall of the mafic horizon.
Tikal Area
The Tikal showing was identified during the Company's 2009 prospecting program, which located outcrops grading up to 3.4 g/t Au in the area. Two holes were drilled at Tikal during 2009. Hole PG09-TK-01 encountered 0.8 metre white pyritic quartz vein containing a fleck of visible gold and surrounded by approximately 6.0 metres of strong alteration at 108 to 115 metres depth:
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Hole PG09-TK-03 appears to have hit the periphery of this zone of alteration at a depth of 186 metres.
A further three holes were drilled in the area in early 2010. PG09-TK-02, a 100 metre step-out hole to the northeast, intersected the same style of alteration as in hole PG09-TK-01 and intercepted 1.4 g/t gold over 3.0 metres. Drill hole PG09-TK-04, 100 metres along strike to the southwest, intersected the structure, but with very little alteration. The drilling completed to date at Tikal, suggests a shallow northeast plunging zone of mineralization, which remains open to depth.
Long View
Plan View
Giant Python Target
The Giant Python target is situated along a parallel structure to the north of Mount Kate. The Company drilled two holes at this target based on positive MMI survey results. The best result was in hole AGP-08-01, which intersected 1.2 g/t gold over 2.0 metres.
Ridge Top Target
The Ridge Top target is located between the Giant Python and School House targets. The Company drilled two holes at this target based on positive MMI survey results. The best results were obtained in hole ART-08-01, which hit multiple anomalous low grade intersections, the best of which assayed 0.95 g/t gold over 1.0 metre. Further work is planned at this target, including prospecting and structural mapping.
School House Target
The School House target is located 0.5 kilometres northwest of the Giant Python target on a parallel structure forming part of the Main Obuasi Trend. Pelangio drilled three holes totaling 651 metres at the target and intercepted mineralization in two of three holes, the best of which assayed 1.2 g/t gold over 1.0 metre in hole ASW-08-03.
East Copper and West Copper Targets
The East and West Copper Targets are located approximately one kilometre apart along strike to the north of the School House target. The Company drilled nine holes during 2008 totaling 2,393 metres at East and West Copper (four holes and five holes, respectively) based on encouraging MMI survey results and a VLF (very low frequency) survey. East and West Copper are located on the same structure as the School House target and are part of the Main Obuasi Trend. The best results from these targets were obtained in holes AEC-08-3b and AEC-08-04, which intersected 0.8g/t gold over 2.0 metres and 3.4 g/t gold over 2.0 metres, respectively.
Drilling during the 2010 portion of the first phase program encountered 3.03 g/t gold over 1.0 metres in hole PG10-EC-02.
We plan to conduct further surface work in the area prior to planning a further series of drill holes.
Old Akrofuom Target
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Old Akrofuom Area << Previous | Play/Stop | Next >>
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This target lies about six kilometres northeast of the boundary of Anglogold Ashanti's Obuasi property. During the 2007/2008 field program, the Company conducted prospecting throughout the area as well as preparing detailed mapping of the quartz vein outcroppings at surface. The Company also collected rock chips from the drilling of water wells throughout the area, which we hope will provide further insight into the nature of the gold occurrences. A detailed BLEG survey on a 100 metre by 50 metre grid is planned for the area, and potentially an augering program to follow up on any promising results obtained from the geochemistry survey.
2. Gyabunsu Trend
The Company has discovered a number of anomalies along the Gyabunsu Trend, most significant being the New Trench 1 and the New Trench 3 ("NT 1" and "NT 3") targets. Other targets include the Kusa, Dinkyie South and Dinkyie North targets. The southern part of the trend was included in the VTEM survey, which has provided the Company with further insight into the nature of the targets on the trend, particularly around NT1, NT2 and NT3.
NT1, NT2 and NT3 Targets
During the 2007 exploration program, Pelangio completed three drill holes at the NT 1 area located on the Gyabunsu trend. Gold mineralization is associated with silicified and veined Tarkwaian sandstones above the Birimian argillites. The 2007 holes, drilled on 25 metres intervals, tested the anomalous trench results obtained in NT 1 and Randgold Trench 10. Hole PG07NT1-3 intersected 1.10 g/t gold over 13.95 metres under three metres of overburden.
During the 2010 first phase program, the Company drilled three holes from north to south at 100 metre spacing in an east-west direction stepped 90 metres behind PG07-NT1-3. The best results were obtained in drill hole PG10-NT1-81, the easternmost hole, which cut a 78 metre interval grading 0.26 g/t gold, including three intersections grading in excess of 1.0 g/t gold. Anomalous gold mineralization was intersected in Upper Birimian quartzite, immediately south of a regional fault contact between the quartzite and Lower Birimian argillites.
During the 2008 field program an old adit was identified in Mampawhe to the north of the New Trench 3 target. According to local inhabitants, this adit was previously mined before being abandoned. The Company plans to prospect in the area of this adit. The Company plans a detailed soil geochemistry program in this area, while further soil geochemistry at a coarser grid and prospecting are planned to follow another geochemical trend 500 metres to the north.
New Trench 3 target is approximately 1.3 kilometres southwest of NT 1. Two drill holes intersected anomalous gold values in four trenches. Hole PG07NT3-2 intersected 5.85 g/t gold over 1.0 metre. No further work is planned for this target in the immediate future.
Abomposo Target
The VTEM survey indicates that the Abomposo target is situated along a splay of the Main Obuasi Trend. Randgold obtained its best trenching results at the Abomposo target. A duplication of Randgold Trench 15, which encountered 1.25 g/t gold over 23.0 metres, returned 1.93 g/t gold over 17.0 metres within a larger halo of 1.08 g/t gold over 40 metres. The mineralized interval is hosted in graphitic schist (one of the main host rocks at the Obuasi mine) containing a high percentage of small quartz veinlets. Other trenches returned 1.03 g/t gold over 9.0 metres, 1.02 g/t gold over 6.0 metres, and 1.77 g/t gold over 3.0 metres.
Gold mineralization on the Abomposo target is hosted by quartz carbonate veins in sheared argillite. The gold mineralized zone has been defined by trenching over a distance of 450 metres along an east-southeast trend (110° azimuth) plunging 10° to 20° to the west.
Pelangio drilled seven holes totaling 753 metres to test the extension of Trench 15 during the 2007 exploration program. The best results were in holes PG07-AB-3, which intersected 9.84 g/t gold over 1.0 metre (11 metres from surface), and PG07-AB-4, which intersected 4.23 g/t gold over 1.0 metre (10 metres from surface). These holes are located 25 metres and 50 metres west of Trench 15, respectively.
No further work is planned for this target in the immediate future.
Kusa Centracor Target
The Kusa Centracor target is located 6.3 kilometres east of Trench 15 at Abomposo. The anomalous gold zone was defined over a strike length of 250 metres by trenching and seven holes drilled by Centracor Mining Ltd in 1993. Six drill holes were completed over a strike length of 125 metres, within 120 metres west of the past drilling area.
The mineralized zone lies within a sheared silicified and pyritic felsic intrusive with 1-5% pyrite in contact with graphitic phyllites to the south. The best gold intercepts were in holes PG07-KU-1 and PG07-KU-4, which assayed 1.08 g/t gold over 12.0 metres and 1.29 g/t gold over 12.0 metres, respectively, both within the intrusive rocks and 80 metres apart.
Holes PG07KU-4 and PGKU07-5 were stopped before they reached the contact with the graphitic phyllites and may have missed some mineralized zones. The zone remains open to the west and east.
The Randgold exploration program identified a gold geochemical target east of Kusa Centracor within the Tarkwaian sediments outcropping in the area. This target, referred to as Big Bend, will be examined during our 2009-2010 drill program.
Dinkyie South Target
The Dinkyie South target was identified by a soil geochemistry anomaly from historical Randgold data. The Company has conducted prospecting and trenching at the target. The best trench result was in Trench Dinkyie 19, which intersected 0.54 g/t gold over 13.0 metres.
Dinkyie North
Dinkyie North is approximately 2.0 kilometres north of Dinkyie South and was also reviewed based on anomalous gold results in historical Randgold soil geochemistry data. A detailed MMI survey was conducted over this area and returned anomalous results in three areas. The Company is exploring these three anomalies with auguring and will conduct further soil geochemistry surveys, as one of the anomalies remains open and untested to the southeast.
3. Central Trend
Pelangio has identified two main targets along the Central Trend: the Brofoyedru South and Brofoyedru East targets. These targets are located along strike from the Chireboso deposit, which is located approximately 6.0 kilometres to the southeast of the Brofoyedru South target. The Brofoyedru North target lies approximately 4.0 kilometres northeast of Brofoyedru South. Both of these targets were drilled during the first quarter of 2008, with the best results intersected in hole BE-08-02, which had multiple intersections of 2.0 metres of 1.6 g/t gold, 4.0 metres of 0.51 g/t gold and 1.0 metre of 3.39 g/t gold, and holes BSD-08-01, BSD-08-06 and BSD-08-08, which intersected 1.0 metre of 0.9 g/t gold, 1.0 metre of 3.4 g/t gold and 2.0 metres of 0.9 g/t gold, respectively. The Company plans to implement a surface program, including prospecting and mapping, to trace the Central Trend structure between Brofoyedru South and Brofoyedru East, and to determine the extent of mineralization along the Central Trend and its relation to the Chireboso deposit.