 Click on image to enlarge |
Pelangio controls three early-stage gold exploration concessions totaling 290 kilometres on strike and adjacent to the AngloGold Ashanti's world-class Obuasi gold mine, in Ghana, West Africa. Pelangio's exploration team has completed its first surface exploration program on the property, which confirmed the presence of prospective gold mineralization, to be followed by a first phase drilling program on priority targets in 2007.
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.
- Royalties vary form 3% to 12% of the gross value of minerals produced (variation based on "operating margin" and designed to prevent royalties becoming too onerous during times of low profitability)
- Some of the world's most senior gold producers have made large investments in Ghana:
- AngloGold Ashanti operates three producing mines: Obuasi, Bibiani 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 permitting the Akyem project
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. The final payments were made early pursuant to amendments to the option agreements (the "Option Amendments") in respect of the Obuasi Property which Pelangio negotiated with the vendors.
Pursuant to the Option Amendments, in order to acquire the remaining 49% in all three properties Pelangio Exploration Inc. must make payments in accordance with the following schedule: on or before June 19, 2009, US$300,000 and 2,400,000 shares for Kyereboso 2, US$300,000 and 2,400,000 shares for Kyereboso 3, and US$150,000 and 1,200,000 shares for Meduma; on or before June 19, 2010, $300,000 for Kyereboso 2, $300,000 for Kyereboso 3 and US$150,000 for Meduma; and or on before June 19, 2011, US$300,000 for Kyereboso 2, US$300,000 for Kyereboso 3 and US$150,000 for Meduma.
Exploration History
 Click on image to enlarge |
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. There are no records of historical exploration work on the New Edubiasi concession. 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.
2008-2009 Exploration Program
The Company's exploration program conducted in 2007 and 2008 included the completion and interpretation of a versatile time electromagnetic ("VTEM") airborne survey, a 6,965 metre drill program as well as focused mobile metal ion ("MMI") and other geochemical surveys. The results from the VTEM survey confirmed the continuity from the Obuasi mine onto the Company's concessions of electromagnetic anomalies indicating structures, and also indicated two priority target zones at the Mount Kate and Anyinabirim targets.
The 2008/2009 exploration program is designed to take advantage of the new information generated during the 2007/2008 program, especially along the Main Obuasi Trend, and to upgrade existing targets and identify new targets and showings on the Company's property.
 Click on image to enlarge |
The Company has been working on 16 primary target areas on the three main trends traversing the project:
1. Main Obuasi Trend extension
2. Gyabunsu Trend; and
3. Central Trend.
The primary focus for the 2008 to 2009 program will be along the Main Obuasi Trend extension, which the Company believes to have the greatest potential.
1. Main Obuasi Trend
 Click on image to enlarge |
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 package through prospecting and detailed mapping of the area. The mafic volcanic package 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.
The Company plans 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.
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. The Company plans to conduct further detailed prospecting and drilling along strike from hole AGP 08-01 during the 2008/2009 program.
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 to 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. Further work will include testing beneath and along strike from AEC-08-04.
Old Akrofuom Target
|
Old Akrofuom Area << Previous | Play/Stop | Next >>
Picture: of
|
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 (bulk leach extractable gold) geochemistry 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 New Trench 1 area located on the Gyabunsu trend. The holes, drilled on 25 metres intervals, tested the anomalous trench results obtained in New Trench 1 and Randgold Trench 10. Hole PG07NT1-3 intersected 1.10 g/t gold over 13.95 metres under three metres of overburden. Gold mineralization is associated with silicified and veined Tarkwaian sandstones above the Birimian argillites. The orientation of mineralization remains uncertain.
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 New Trench 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
 Click on image to enlarge |
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 (Trench 15). The mineralized interval is hosted in graphitic schists (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
 Click on image to enlarge |
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 2009.
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. A follow-up soil auger and trenching program is being performed in late 2008.
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. During 2009, the Company will explore 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.
2009 and Beyond
 Click on image to enlarge |
 Click on image to enlarge |
Pelangio plans to extend the limits of the VTEM survey to include the rest of its concessions, including incorporating other major deposits bordering its concessions. The 2008 program established that MMI is an accurate tool for use in areas of deep cover such as Pelangio's property. Consequently, the Company expects to rely on this method primarily in promising areas. The Company also hopes to conduct significantly more drilling along the Main Obuasi Trend especially in the Mount Kate, Ridge Top, East Copper and Giant Python target areas.