Pelangio Exploration Inc.

Manfo

Apr 28, 2015
Overview
 
Pelangio's latest acquisition, the Manfo Property, is a 100 sq. km property on the Sefwi greenstone belt, northwest of the Ashanti greenstone belt that hosts the Obuasi property. The acquisition exemplifies Pelangio's mission of acquiring camp-size land packages on world-class gold belts, as Newmont's Ahafo mine (10 million ounce reserve grading 2.54 g/t in a measured and indicated resource of 13.4 million ounces, with a further 3.35 million ounces of inferred resource) is only 14 kilometres to the north and Kinross Gold Corporation's Chirano mine (2.43 million ounce reserve grading 2.43 g/t) lies 50 kilometres to the south, on the same fault network as Manfo.
 
Optioning the Manfo Property also illustrates Pelangio's approach to the acquisition and exploration of properties in Ghana. We reviewed a multitude of projects all over Ghana, and indeed the world, before deciding that Manfo was an opportunity not to be missed. We then spent significant time developing our relationships with the local communities, to ensure that we could work amicably with them and to ensure that their concerns were addressed before we even commenced exploration. Careful appraisal and a measured touch - just two of the reasons why Pelangio is confident of a successful future in Ghana and around the world.  


Project Summary
 
The 100 km2 camp-sized Manfo property was acquired as a grassroots project in August 2010. Since then we have been successful in the discovery of seven areas of gold mineralization and have identified ten additional targets along and parallel to the nine kilometre long structural corridor that is a continuation of the fault system hosting the Chriano Mine (Kinross Gold) and the Bibiani Mine (Nobel Mineral Resources) - deposits with multi-million ounces of gold in past production. This first resource statement for Manfo constitutes an important milestone in the long-term exploration strategy for Pelangio's gold properties in Ghana.
 



 
With three resource areas that remain open, several recent discoveries and ten more target areas along the nine kilometre trend, we are well positioned to expand upon our resource base.


Ownership
 
The Manfo Property comprises three contiguous concessions named Subriso, Sempekrom and Twabidi, respectively. In August 2011, Pelangio acquired 100% of each of the concessions pursuant to the terms of applicable option agreements by completing cash payments totalling US$435,000, completing US$2 million in work expenditures and granting the option or a 2.5% net smelter royalty ("NSR") on the Manfo Property, subject to Pelangio's right to repurchase 1% of the NSR for a payment of US$4,000,000.
 
Additionally, Pelangio (or its successor or permitted assign) will pay the Optionor a discovery bonus totaling the sum of (i) US$1,000,000 plus (ii) US$1.00 per ounce of proven and probable gold reserve set out in the first positive feasibility study published or released in respect of the Manfo Property.


Geology and Mineralization
 
The geology of southwestern Ghana is dominated by greenstone belts composed of mafic volcanic rocks and intervening basins typically consisting of fine-grained, deep marine sediments metamorphosed at greenschist facies. Both components are intruded by granitic rocks and separated by major structures. The Sefwi Belt, which hosts the Manfo Project in its north central portion as well as the Ahafo, Bibiani and Chirano gold deposits, is one of the largest and most productive of the Birimian age greenstone belts.
 
 
The Manfo Property is underlain primarily by metasediments, volcaniclastics, and small granitoid bodies. A major northeast trending fault 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 synvolcanic intrusive to the east. The geochemical targets identified to date lie within this fault corridor. The fault hosts the Bibiani deposit 35 kilometres to the south and is similar in orientation and age to the Kenyasi fault, which hosts gold deposits at Ahafo, 19 kilometres to the north. Gold occurs in structures with sheared and laminated smoky quartz, and with sulphides in sheared, siliceous, carbonate and sericite-rich metasediments.


Exploration Results : Summary
 
Pelangio's due diligence on the Manfo Property consisted of soil sampling, structural mapping, trenching and the identification of historical drill collars, with the intention of confirming the historical data available. During due diligence, Pelangio reaffirmed the delineation of five large geochemical anomalies as defined by soil sampling that consistently returned values in excess of 40 parts per billion.

The anomalous areas and their dimensions are described as follows:
• Nfante East (800 metres x 350 metres; open to the northeast and southwest);
• Nfante West (700 metres x 150 metres; open to the southwest);
• Pokukrom East (1,300 metres x 300 metres);
• Pokukrom West (200 metres x 150 metres);
• Sika North (two areas: 700 metres x 100 metres and 500 metres by 100 metres).

Drill Results
Pelangio completed a 16 hole, 2,379-metre diamond drill program during the its due diligence on the Manfo Property. The initial program was designed to confirm certain of the historical exploration results from the property and to follow-up on surveying and trenching results. The initial drill program targeted four of the five anomalies identified during due diligence and in historical exploration work at Nfante West, Nfante East, Pokukrom West and Pokukrom East.
 
Pelangio is currently undertaking a second phase drilling program in excess of 30,000 metres, which will focus on the Nfante West and East, Pokukrom West and East targets, as well as further targets that the Company is developing beyond the previously identified anomalies. 
 
To date, Pelangio has made seven discoveries on the Manfo Property, with representative results illustrated below:




Exploration Program

Pelangio has completed an initial 16-hole drill program totaling 2,379-metres on the Manfo Property. The encouraging drilling results encountered to date continue to enhance the Company's ongoing planning of the second phase program, which commenced in mid-October 2010. During 2011, the Company drilled 108 diamond drill totaling 22,637 metres as part of its ongoing second phase drill program on the property. 
 
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. During the fourth quarter of 2011, we completed an induced polarization geophysical survey of the Manfo Property, the results of which were received in late 2011 and early 2012. 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 are currently drill-testing nine of these targets for new discoveries and is, or will be, conducting surface work or drilling on the remainder in the coming months. 


Source: http://www.pelangio.com/s/manfo.asp