Pelangio Exploration continues option at Dome West - Timmins

"This highly prospective gold project has excellent potential within our Canadian portfolio, with its strategic location adjacent to the second largest gold producer in Timmins," said Ingrid Hibbard, President and CEO. "As such, we are pleased to continue to exercise our option agreement and look forward to future exploration efforts on the property once the pandemic situation improves and it is safe to continue to access the property."

Pelangio Exploration Inc. will continue to exercise its option on its Dome West property in Timmins, by making a cash payment of $75,000 and issuing 100,000 common shares of the Company to Francois Desrosiers and to 6398651 Canada Inc., the optionees, in accordance with the terms of the agreement.

Highlights of the Dome West Property

• 10 claims, located 800 meters ("m") west of Newmont's Dome Mine and 450 meters northwest of the former Paymaster Mine (see figure 1);
• Gold mineralization was intersected proximal to the Dome West Property in historical underground drilling from the Paymaster Mine 1000-foot level:
  • Paymaster drill hole PM10155, with an azimuth of 20 degrees and an inclination of -12 degrees collared at the 1000-foot level of the Paymaster Mine, intersected 1.74 oz/ton gold over 6.5 ft from 75 to 81.5 feet down hole. This intersection is approximately 82m southeast of the southeast corner of the Dome West Property. (Reference: Copy of Original Paymaster Drill Log PM10155 & Assessment File Level Plan File T-125)
  • A second horizontal drill hole, PM10156, at azimuth 20 degrees from the same collar location as hole PM10155 at the 1000-foot level of the Paymaster Mine, returned 0.63 oz/ton gold over 6 feet, from 941 to 947 feet down hole. This intercept is located approximately 176 meters east of the property boundary. (Reference: Copy of Original Paymaster Drill Log PM10156 & Assessment File Level Plan File T-125)
  • The initial gold intercept in Paymaster hole PM10155 is interpreted to be associated with the same porphyritic intrusive intersected in Pelangio's drill hole DW1901. (Reference: Ontario Resident Geologist Assessment File T125 and OGS Report 58; Ferguson, S.1968);
• Initial drilling by Pelangio in 2019 intersected 3.21 g/t gold over 1.25m (including 4.754 g/t Au over 0.75m) in DW1901 (see Pelangio press release June 13, 2019). The hole also confirmed the presence of prospective Tisdale Group stratigraphy, variolitic flows, and porphyritic intrusives known to be associated with gold deposits at the adjoining Dome and Paymaster Mines and represented the first known recorded gold intercept on the Dome West property.
• The prospective stratigraphy stretches for 400 meters across the property and remains virtually untested. Note, the reader is cautioned that mineralization on adjoining lands is not necessarily representative of mineralization on the subject property.

Future Plans
The Company has proposed a 700 meter drill program. Drill holes will target potential new gold veins associated with the porphyritic intrusive intersected during Pelangio's first drill program. Planned exploration and advancement of the Dome West project was curtailed in early 2020 due to certain COVID-19 access restrictions by surface rights holders. Pelangio is working in concert with surface rights holders to monitor the COVID-19 situation in Timmins; and a return to work will be initiated when it is deemed safe to do so by both parties. As a result of this unforeseen delay in work progress, Pelangio has exercised the "force majeure" clause in the option agreement in order to extend the time required for the work commitments to be made on the property, as per the terms of the option agreement.

 

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