Toronto, Ontario--(Newsfile Corp. - February 7, 2022) - Pasofino Gold Limited (TSXV: VEIN) (OTCQB: EFRGF) (FSE: N07A) ("Pasofino" or the "Company") is pleased to announce positive developments from the ongoing Feasibility Study ("FS") being undertaken on the Dugbe Gold Project ("The Project") by DRA Global Limited (ASX: DRA) (JSE: DRA), the independent consultants appointed by the Company to complete the FS.
Highlights; The FS is now scheduled to complete in April 2022, at that time the Company will, subject to satisfying certain other conditions in the earn-in agreement, earn a 49% interest in the Project (prior to the issuance of the Government of Liberia's 10% carried interest). Following the Company earning into the Project, the Company intends, subject to the receipt of all required approvals, including approval of the TSX Venture Exchange, to exercise its put right to acquire 100% of the Project (prior to the issuance of the Government of Liberia's 10% carried interest) by converting Hummingbird's 51% interest in the project into a 51% shareholding interest in Pasofino. The below highlights are preliminary in nature and there is no assurance that the final FS will reflect these preliminary developments.
- Confidence achieved with the FS confirmed gold recoveries of between 85% and 91%, depending on whether a straight CIL or CIL with flotation circuit is selected respectively. Current trade-offs are aimed at selection of the optimal process to achieve the best financial outcomes.
- Open Pittable resources include 57Mt material, grading 1.58 g/t with 2.88 Moz gold. Pasofino intends to prioritise the extraction of this higher-grade component of the overall Resource (75Mt at 1.37g/t in Measured and Indicated) in order to support a higher head grade during early years.
- Favorable results from the on- site geotechnical work should allow steeper pit slopes to be developed, these should translate to lower strip-ratios.
- Mining dilution has decreased to an average of 8.7% from 10% in the 2021 PEA.
- Reduced energy costs from US$0.212 per kWh to US$0.172 per kWh. This anticipated benefit expected to result in lower energy cost / tonne treated.
- All other disciplines are well advanced - the FS is + 70% complete.
- ESIA scope approved by the Liberian Environmental Protection Agency (EPA). Exhaustive biodiversity field work has identified areas of lower sensitivity enabling the location of key project infrastructure, reducing environmental impact. Continuous community engagement has been undertaken throughout the development of the project.
Ian Stalker, CEO, commented:
"It is pleasing to report that the ongoing Feasibility Study has improved our understanding of the technical basis of the project, and we are convinced this will enable the Company to turn these to account. To date, improvements have been identified in the following key areas; mineral resource, metallurgical process, mine design, and infrastructure. We are on track to earn our initial 49% interest in the Project and thereafter exercise our right (the "Put Right") to acquire Hummingbird's 51% interest in the Project in order for Pasofino to consolidate the ownership of the Project. Pursuant to the terms of its earn-in agreement with Hummingbird Resources plc ("Hummingbird"), upon earning its initial interest in the Project, Pasofino has the right, subject to certain protections and the receipt of all required approvals, to convert Hummingbird's 51% controlling interest in the Project into a 51%shareholding interest in Pasofino."