Pelangio Exploration Inc. - QwikReport

PELANGIO EXPLORATION INC. : http://www.pelangio.com/ : QwikReport

Canada

Pelangio controls a number of early-stage properties in Ontario and Quebec, mostly in areas with active and historic mining activities.

Birch Lake, Ontario

Pelangio owns a 100% interest in the Birch Lake property, which comprises 28 contiguous unpatented mining claims (1,120 acres) located in the Keigat Lake area, approximately 120 kilometres northeast of Red Lake, Ontario.

The property is subject to an underlying agreement whereby Goldcorp retains a 2% NSR royalty on all of the claims. There are currently no obligations to Goldcorp other than payment of the royalty on production.

Previous work by Placer Dome delineated a gold-bearing system (High Grade Island) over a strike length of approximately 300 metres to a vertical extent of 150 metres. From 1986 to 1996, Placer Dome completed 110 drill holes totaling 19,918 metres, together with mapping, trenching, geochemical and ground geophysical surveys.

Prior to September 30, 2008, the property was subject to an option agreement between Pelangio and Trade Winds Ventures Inc., which spent approximately $1.2 million on the property during the term of the option. Trade Winds completed its most recent drilling activities on High Grade Island during winter 2005. The previous 2004 drilling program consisted of four holes, TWBL-094/095/096/097, totaling 1,102.60 metres, testing the continuity and down-dip extension of the central gold zone located on High Grade Island. Trade Winds reported multiple occurrences of visible and coarse gold, with the best assay results reported from the program being: 115.89 g/t gold over 2.90 metres (est. true width 1.86 metres) from 239.35 to 242.10 metres (TWBL-096); and 21.22 g/t gold over 2.35 metres (est. true width 1.51 metres) and 229.96 g/t gold over 2.45 metres (est. true width 1.58 metres) between 300 and 360 metres (TWBL-097).

Trade Winds 2005 drilling program consisted of three holes, TWBL-098/099/100. Coarse and visible gold was reported in holes TWBL-098 and -100, with the best results from those holes being: 14.7 g/t gold over 1.2 metres contained within a broader zone of mineralization of 4.8 g/t gold over 4.4 metres (TWBL-098); and 11.8 g/t gold over 0.5 metres and 19.7 g/t gold over 1.0 metre (TWBL-100).

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Poirier Gold, West Timmins, Ontario

Pelangio owns 100% of the Poirier Gold Property, which comprises two contiguous unpatented mining claims (160 acres) located in Bristol Township, 22 kilometres west of Timmins. We are also in the process of converting these claims to leases. The property is subject to a 1% NSR payable to the vendors and a further 1% NSR payable to a third party. In the fourth quarter of 2009, we paid the third party $10,000 to purchase an option to repurchase 50% of the third party's 1% NSR, which we may exercise on or before November 19, 2010 upon a further payment of $40,000 to the third party.

The claims are contiguous with Lake Shore Gold Corp.'s Timmins Gold Project (which holds a 1.2 million ounce gold reserve at a grade of 10.4 g/t) and the Thunder Creek project. Lake Shore Gold reported a drill result of 83.40 metres grading 12.75 g/t gold in hole TC-09-68b at Thunder Creek in June 2009, which was collared within 250 metres of our property boundary.

The Poirier Gold Property is located in a mafic volcanic unit approximately a kilometre to the west of the mafic, ultramafic and sedimentary contact, which dips steeply westwards towards our claim block. Subsequent to the end of the second quarter, we conducted prospecting and MMI surveying on the property, the assay results of which are pending. Quartz veining and sulfide occurrences were noted on the property during this program. We intend to continue monitoring Lake Shore Gold's exploration progress and may initiate a drill program on the property based on the information that our neighbours' results will provide.

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Manitouwadge, Ontario (option to acquire 100%)

The Manitouwadge property encompasses the Moshkinabi property, comprising 14 claims, 110 units, 1,760 hectares, located in the Herbert and Roberta Townships of the Thunder Bay Mining Division, Ontario (the "Moshkinabi Property").

The Moshkinabi Property is host to a poly-metallic NI, Cu, Pt/Pd rich massive sulphide unit hosted in a metamorphosed suite of volcanics overlain by a sulphide rich ultramafic unit, that can be traced along a strike of two kilometres. Grab samples taken by the Company returned values of up to 3.9 g/t combined Pt/Pd accompanied by up to 1% Cu and 0.2% Ni. All information at this stage indicates good potential for both bulk tonnage Cu-PGM and massive sulphide Ni-Cu type deposits.

Under the terms of the Option Agreement, the Company may acquire a 100% interest in the Moshkinabi property by making payments totaling $250,000 to the vendors, with such payments to be made on specified dates within four years of September 15, 2008. To date, the Company has paid $85,000 in respect of the property.

Seeley Lake, Ontario

The property comprises 19 contiguous unpatented mining claims (760 acres) located within the Seeley Lake areas, approximately 14 kilometres northeast of Marathon, Ontario. There are no underlying royalties pertaining to this property.

Black Township, Ontario

The Black Township property includes leased and staked mining claims (approx. 640acres), located between the towns of Timmins and Kirkland Lake, approximately 100 road kilometres east of Timmins. Pelangio has not completed any exploration on the property since its acquisition. Previous reports during the 1980s indicate the presence of a north-trending shear zone over a projected strike length of approximately 300 metres. Some of the better gold values include 0.23 oz/t over 1.5 metres from a channel sample and 0.36 oz/t from a grab sample. Another parallel zone located 200 metres to the north returned gold values ranging from 0.03 to 0.10 oz/t. Some near-surface drilling is reported from the adjacent claim to the east but results are not available.

Other Canadian Properties and Royalties

Pelangio owns a number of other Canadian properties as shown below.

	Lartic Gold	Thunder Gold
Location	4 km west northwest of Malartic, Quebec	20 km west of Timmins, Ontario
Size	9 claims (900 acres)	3 claims (120 acres)
Pelangio Interest	100%	100%
Underlying Royalty	None	2% to vendors ($1000/yr advance royalty)

In addition, Pelangio has royalty interests in a number of Canadian properties as shown below.

Matheson West and East	1% NSR can be purchased by Matamec Explorations Inc. for $1.0 million and 100,000 common shares of Matamec
Stoughton Staz	10% carried to bankable feasibility
Mord	1.5% NSR (provided Pelangio exercises right to buy back 1% for 100,000 shares of Pelangio)
Ross	1% NSR
Simon	1% NSR
Kennecott McGarry	15% Net Profit Interest

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This page was created on Tue Sep 7, 2010 at 3:10:21 AM Pacific Time.