The Northern Miner, 5/21/2008
Pelangio ready to ramp up in Ghana
With its reputation already established via its stake in the Detour Lake gold project in northern Ontario, Pelangio Mines (PLG-T) is looking to cement its reputation in West Africa.
Towards that end, it has finished its first National Instrument 43-101 compliant technical report on its Obuasi property in Ghana.
The early stage project was given the green light by SRK Consulting as it recommended an exploration project consisting of geochemical and geophysical surveys and 12,000 metres of drilling.
Obuasi is made up of three early-stage gold exploration concessions totaling 290 sq. km on the 300-km long Ashanti gold belt – and is on strike and adjacent to AngloGold Ashanti's (AU-N) Obuasi gold mine.
Each of the three projects are subject to a 2% net smelter return and a 10% interest held by the government of Ghana.
Pelangio says it will first do more mapping, soil sampling and airborne geophysical data interpretation. It will use that information to pick targets, and then begin trenching and roughly 4,000 metres of drilling.
If all goes well, the company will do an airborne geophysical survey over the rest of the concessions to find more trenching and drilling targets.
It estimates that the work will cost roughly $2.9 million.
To help fund it, Pelangio closed a private placement on the same day it announced the completion of the study. The company is offering 10% promissory notes to raise $3 million.
Pelangio can take a 51% interest in Obuasi by paying US$60,000 and 600,000 shares for the Kyereboso 2 project; US$60,000 and 600,000 shares for Kyereboso 3 project; and US$30,000 and 300,000 shares for the third project Meduma. Those payments must be made by June of this year.
It can acquire the other 49% interest by making tranches of cash and share payments up until 2011.
Pelangio also holds 20 million shares of Detour Gold (DGC-T) for a 44.6% stake in the company. Detour Gold controls the Detour Lake advanced exploration project in Ontario.
In Toronto on May 21, Milton, Ontario-based Pelangio shares were up 14¢ to $4.31 on roughly 607,000 shares traded. The company has roughly 71 million shares outstanding.
