Pelangio’s Manfo project is situated roughly in the middle of the Sefwi-Bibiani Belt between Newmont’s Ahafo mine; the Subika deposit being only 14 kilometres to the NNE, and Resolute’s Bibiani mine 25 kilometres to the south of the Manfo project area and 50 kilometres from Kinross’ Chirano Mine. The Manfo project also shows indications of geological characteristics similar to the largest deposit at Ahafo, Subika.
The Manfo project is located along the eastern edge of the Paleoproterozoic Sefwi-Bibiani Belt. The property is underlain primarily by metasediments, mafic volcanic rocks, and small granitoid bodies. A major northeast trending fault zone or corridor, approximately three kilometres wide, traverses the east side of the property. This fault corridor serves as the regional contact between the greenstone volcano-sedimentary package to the west and a regional belt batholith to the east. Gold mineralization at Manfo is hosted in sericite and hematite altered granitoid rock adjacent to a set of brittle-ductile faults. Within the alteration envelopes, the gold mineralization occurs adjacent to the brittle-ductile faults, and in fracture-controlled zones preferentially developed in certain horizons within the granitoid in the hanging wall of the fault. The mineralization is localized along the major northeast-striking fault zone. Alteration and gold mineralization are closely related to increasing strain. Gold is associated with wide zones of pervasive to fracture-controlled quartz-sericite-carbonate-pyrite alteration overprinting an earlier phase of hematite alteration hosted predominantly in sheared and locally brecciated, altered granitoid rocks and to a lesser extent brecciated hematite-altered mafic metavolcanic rocks.
Pelangio has drilled 271 holes totalling 42,150 metres. Seven gold-mineralized areas have been identified to date, primarily targeting a 9-kilometre long soil geochemical trend, on the eastern side of the project. The maiden gold resource at the Manfo project can be divided into three areas:
- Pokukrom East (PE);
- Pokukrom West (PW); and
- Nfante West (NW)
Pelangio’s technical team defined wireframes for the altered envelopes and submitted them to SRK for optimization using alteration profiles and lithological coding of drilling data. SRK considers portions of the Manfo gold mineralization amenable for open pit extraction. The “reasonable prospects for eventual economic extraction” were assessed using a pit optimizer. The mineral resources for the Manfo gold project are reported at two cut-off grades. The mineral resources within the oxide material are reported at a cut-off of 0.40 gram of gold per tonne (gpt gold), whereas the transitional and fresh portion of mineral resources are reported at a cut-off grade of 0.50 gpt gold. The Company’s technical interpretation of the structural geology maintains that the gold mineralization improves considerably in grade down plunge and a high-grade underground-mineable lode of mineralization is present down plunge from what has been defined by shallower drilling to date. The mineral resources were classified as Indicated and Inferred, primarily based on the basis of continuity at the reporting cut-off grade, positive kriging efficiency, completely located within the conceptual pit envelope used to constrain the mineral resources and on variography results.