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Manfo

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Targeting Strategy and Implementation


Pelangio has completed a 272-hole drill program totaling 42,191-metres on the Manfo Property to date. This comprises 178 diamond drill holes totaling 37,313 meters, 36 RC holes totaling 2638 meters and 58 AirCore holes totaling 2240 meters. The encouraging drilling results encountered to date continue to enhance the Company's ongoing planning of the next phase program.

Pelangio's exploration on the Manfo Property to date has focused on an approximately 10 square kilometre area, though many other targets have been identified or are currently being delineated elsewhere on the property. The Sika North target, for example, located approximately 3.5 kilometres north of Pokukrom West, comprises three separate anomalies measuring 200, 400 and 375 metres along strike, respectively, and is contourable at up to 100 ppb gold. Additionally, the Company has interpreted a 10 kilometre trend of widely spaced anomalies from geochemical and geophysical surveying, approximately two kilometres northwest of the drilling completed to date. Geochemical samples were collected on the trend at 800-metre intervals and appear to be related along strike.

Although geochemical surveying has been very successful in identifying mineralized zones to date, the Manfo Property is predominantly a cover play, with geochemical anomalies being erosional "windows" through cover onto underlying mineralization. In areas of impermeable cover, geochemical sampling is generally ineffective. In the fourth quarter of 2011, we completed an induced polarization geophysical survey of the Manfo Property. The results suggested that gold mineralization on the Manfo Property is associated with areas of high resistivity. The survey identified approximately 20 new targets exhibiting such resistivity highs in areas where cover may mask geochemical anomalies. We have drill-tested nine of these targets for new discoveries.

Detailed interpretation using lidar data, photometry and airborne radiometrics was carried out to investigate the flat lying laterite layer 2-8 metre thick masking areas. Coupled with magnetic and IP data, a major structure to the east of the currently explored structure was found to be relatively unexplored and is mostly covered by laterite. In addition four structures were found to intersect the major structure. Where these subsidiary structures emerge from laterite cover, three of four were found to have gold occurrences.

2018 Work Program


The 2018 work program has been adjusted to focus on diamond drilling. This revised program consists of 18 to 20 holes of diamond drilling, totalling approximately 4000 metres, to test 8 target areas. These target areas include follow up on previously drilled sections at Pokukrom East, one of three deposits included in the Maiden Resource estimate. The program will emphasize stepping out from known mineralization at 50 or 100 meter intervals. The initial diamond drill program will be completed on priority target areas at the more recently discovered Nkansu zone (where previous drilling included holes SGRC-322 which intersected 49.5m at 1.18 g/t Au and SGRC-332 which intersected 42m at 1.00 g/t Au), and 3 priority target areas in the middle, south and north ends of Pokukrom East. Other targets will be assessed pending initial results, and include Nfante East, North Nkansu, Odumasi, and a 3km section of the main structure that remains unexplored.

At Pokukrom East, the priority targets for diamond drilling lie in the middle and directly to the north and south of Pokukrom East.

The target areas at the north end of Pokukrom East will follow up on four holes:
- SPDD-178 (26m at 1.35 g/t Au from 170 to 196m)
- SPDD-172 (23m at 1.03 g/t Au from surface)
- SPDD-128 (16m at 1.59 g/t Au from 62 to 78m) and,
- SPDD-089 (46m at 1.03 g/t Au from 56 to 102m)

The target in the middle of Pokukrom East will include follow up on hole:
- SPDD-166 (19m at 2.24 g/t from 263 to 282m)

The target areas to the south of Pokukrom East, which is open down-dip, down-plunge and to the south, will follow up on holes:
- SPDD-159 (9m at 2.48 g/t Au from surface)
- SPDD-143 (16m at 1.11 g/t from 72 to 88m) and,
- SPDD-219 (47m at 0.97 g/t Au from 82 to 129m)

The Nkansu area is located 2.5 kilometers to the south west of the Pokukrom East deposit. Nkansu was discovered in November 2011, after a single drill hole tested a two point, 40ppb (very weak) gold in soil anomaly, coincident with an interpreted structure from airborne magnetic data. The area is approximately 1100 meters north-south by 800 meters east-west.

At Nkansu the down-plunge drilling will follow up on two holes:
- SGRC-322 (49.5m at 1.18 g/t from 54.8 m to hole bottom at 104.3m) and,
- SGRC-332 (42m at 1.00 g/t from 95.5 m to 137.5m)

All mineralized intercepts are core lengths, true widths are expected to be 75-85% of core lengths.

Arrangements for preferential access to the diamond drill rig from a Ghanaian drilling company have been made similar to the arrangements made with the company previously for the use of the cost effective convertible Grasshopper drill rig for air core and reverse circulation drilling.