Birch Lake Property Returned to Pelangio and Pelangio Acquires Net Smelter Royalty on Adjoining Property
Toronto, Ontario (FSCwire) - Pelangio Exploration Inc. (PX:TSX-V; OTC
PINK:PGXPF) (“Pelangio” or the “Company”) announces that Pacton Gold Inc. (“Pacton”) has terminated their Option
Agreement (the “Agreement”) on the Birch Lake property, and Pelangio will retain its 100% interest in this property. Pelangio
also announces it has acquired a net smelter royalty from 2522962 Ontario Inc. (“5SD Capital”) on approximately 1856 hectares
adjoining Pelangio’s Birch Lake property.
Pacton (previously Noka Resources Inc.) terminated the Agreement dated March 10, 2017, without earning any interest in the
property after making the first-year option payment of $75,000 and issuing 900,000 common shares to Pelangio, but without
completing any exploration expenditures.
Also, Pelangio has acquired a 1.5% net smelter royalty (“NSR Royalty”) in 10 claims (approximately 1856 hectares) adjoining
its 100% owned Birch Lake property pursuant to an agreement between 5SD Capital and Pelangio dated April 10, 2018, whereby
Pelangio agreed to transfer $564,000 of assessment work credits to 5SD to enable the adjoining claims to be held for an
additional 10 years. Pelangio will retain sufficient assessment work credits to maintain the Birch Lake Property for over
10 years. 5SD has the right to purchase 1/3 of this royalty (0.5%) at any time for $1,000,000.
Ingrid Hibbard, President and CEO of Pelangio states, “Pelangio is focused on realizing value from our Canadian
properties as we did with the option of the Birch Lake property. With the return of the property we are pleased to find
innovative ways to add value to Pelangio through the acquisition of a NSR Royalty interest in 5SD’s property which adjoins both
Pelangio’s Birch Lake property and First Mining’s Springpole Gold Project and through future collaboration with 5SD on the
combined properties.”
Birch Lake Property, Red Lake District
Pelangio's Birch Lake property is located within the Birch-Uchi Greenstone Belt, approximately 120 kilometres northeast of the
town of Red Lake, Ontario. Within an eight-kilometre radius of the Birch Lake property, there is a large gold resource
(Springpole Deposit) and a past producer (Argosy Mine) which produced 101,875 ounces of gold at an average grade of 0.37 ounce
per ton (reference: Ontario Geological Survey Open File Report 5835). Over the last decade, significant exploration was conducted
in this area by Gold Canyon Resources Inc. (“Gold Canyon”) on the Springpole Deposit, located approximately five kilometres
southwest of Pelangio's Birch Lake property. The Springpole Deposit is a bulk tonnage mineralized system with an indicated
resource of 128.2 million tonnes at a grade of 1.07 g/t gold and 5.7 g/t silver or a contained metal content of 4.41 million
ounces of gold and 23.8 million ounces of silver (reference: Gold Canyon NI 43-101, May 2013).
Dome Exploration (Canada) Ltd. (later Placer Dome (“Placer Dome”)) and Trade Winds Ventures Inc. (“Trade Winds”) completed the
majority of the exploration work conducted on the Birch Lake property to date. Initial exploration work by Placer Dome consisted
of mapping, geophysical and geochemical surveys along with diamond drill follow-up, resulting in the discovery of the 70-meter
wide, steeply dipping deformation corridor that yielded isolated high-grade gold intersections. Subsequently named the High Grade
Island Deformation Zone, high-grade gold mineralization within this corridor is hosted by quartz-tourmaline-pyrite-arsenopyrite
veins in the Main Central Zone. Secondary gold mineralization associated with a folded banded iron formation (West Zone) that is
proximal to the deformation zone, has also been recorded.
Subsequent to Placer Dome’s exploration, Trade Winds conducted two diamond drill programs to evaluate the Main Central Zone
between 200 metres and 400 metres below surface.
Select historical intercepts obtained by Placer Dome and Trade Winds on the Birch Lake property’s Main Central Zone are shown
in the following table.
Highlights of Historical Drilling Intercepts for the Main Central Zone, Birch Lake Property*
Hole No
|
From
|
To
|
Metres10
|
g/t Gold
|
Placer Dome1,3,6 DDH 53
|
136.60
|
138.50
|
1.90
|
63.94
|
Placer Dome1,3,6 DDH 78
|
174.45
|
176.45
|
2.00
|
105.30
|
Placer Dome1,4,7DDH 90
|
208.00
|
210.00
|
2.00
|
52.08
|
|
|
|
|
|
Trade Winds2,5,8,9 DDH 96
|
239.15
|
249.00
|
9.85
|
34.54
|
including
|
239.15
|
242.10
|
2.95
|
113.94
|
Trade Winds2,5,8,9 DDH 97
|
357.85
|
360.30
|
2.45
|
244.73
|
Trade Winds2,5,8,9 DDH 98
|
206.00
|
209.40
|
3.40
|
6.15
|
Trade Winds2,5,8,9 DDH 100
|
285.00
|
288.00
|
3.00
|
6.69
|
*Reference from Geological Reports by:
1 M. Ball PhD, P.Geo., Mosquito Consolidated Gold Mines Ltd., December 2002.
2 R. Wells, P.Geo., Trade Winds Ventures Inc., NI 43-101, February 2005.
3 Data from detailed diamond drill sampling logs and records, received from Placer Dome, assay
certificates unavailable.
4 Data from detailed diamond drill logs and sampling records, performed by Placer Dome, assay
certificates from Chemex Labs, Vancouver, fire assay gravimetric finish.
5 Data from diamond drill sampling logs and records, Trade Winds Ventures, fire assaying performed by
Eco tech Laboratory Inc., Kamloops BC, assay certificates available, diamond drilling program 2004-2006 supervised by Lorne
Warner, P.Geo. N-Q core was split, sample lengths varied from 0.6 m to 1.05 m.
6 Data from Placer Dome drill holes DDH 53 and DDH 78 are historical results and cannot be verified
with assay sheets, it is unknown what type of quality-control programs were performed.
7 Data from Placer Dome drilling has been verified with assay certificates for DDH 96, duplicate
assays were performed, but the quality-control program is unknown.
8 Data from Trade Winds has been verified with assay certificates, and a comprehensive program of
blanks, duplicates and standard were inserted to the sample stream during program. The program was supervised by Lorne Warner
P.Geo.,and meets modern industry practice. Sample lengths varied from 0.6 m to 1.05 m.
9 All Trade Winds drill core was located by Pelangio geologists, during a data verification program in
2008, core was photographed, catalogued and cross-piled. In addition, all Trade Winds collars were field-located as well as a
significant number of the older Placer Dome holes and the collar locations were found to be within 5 metres of maps supplied by
Trade Winds and Placer Dome. The verification program was carried out under the supervision of Warren Bates P.Geo., (APGO#
0211).
10 All intervals are core lengths, and estimates of true widths would be 60 to 80 percent of core
lengths.
The Main Central Zone has been diamond drill tested along 350 metres of strike length with two mineralized shoots identified.
Gaps in drill testing remain.
The bulk of the drilling to date has been completed above 200 metres. However, the Trade Winds’ DDH 97 hole (intercept)
demonstrated that high-grade potential exists at depth. It is recommended that a program of deeper drilling and infill drilling
between the known shoots be completed to fully evaluate the potential of the Main Central Zone.
Geological mapping, drilling results, and geophysical surveying suggest that the High Grade Island Deformation Zone and
structure extends across High Grade Island for 1800 metres. Further, induced polarization surveying suggests the deformation zone
extends beyond the island for another 1800 metres southeast. Approximately 3250 metres of projected deformation zone remains to
be evaluated. (Reference: Trade Winds NI 43-101, February 2005, and Mosquito Consolidated Gold Mines Ltd., December 2002).
Qualified Person
Mr. Warren Bates, P.Geo. is a qualified person as defined by NI 43-101 and has reviewed and approved the technical contents of
this press release.
About Pelangio
Pelangio successfully acquires and explores camp-sized land packages in world-class gold belts. The Company primarily operates
in Ghana, West Africa, an English-speaking, common law jurisdiction that is consistently ranked amongst the most favourable
mining jurisdictions in Africa. The Company is exploring three 100%-owned camp-sized properties: the 100 km2 Manfo
Property, the site of seven recent near-surface gold discoveries, the 264 km2 Obuasi Property, located 4 km on strike
and adjacent to AngloGold Ashanti’s prolific high-grade Obuasi Mine and the early-stage 86 km2 Akroma Property, which
includes the Dormaa concession.
For additional information, please visit our website at www.pelangio.com, or
contact:
Ingrid Hibbard, President and CEO
Tel: 905-336-3828 / Toll-free: 1-877-746-1632 / Email: info@pelangio.com
Forward Looking Statements
Certain statements herein may contain forward-looking statements and forward-looking information within the
meaning of applicable securities laws. Forward-looking statements or information appear in a number of places and can be
identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases
or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements and information include statements regarding the Company’s exploration plans. With respect to
forward-looking statements and information contained herein, we have made numerous assumptions, including assumptions about the
state of the equity markets. Such forward-looking statements and information are subject to risks, uncertainties and other
factors which may cause the Company’s actual results, performance or achievements, or industry results, to be materially
different from any future results, performance or achievements expressed or implied by such forward-looking statement or
information. Such risks include changes in equity markets, share price volatility, volatility of global and local economic
climate, gold price volatility, political developments in Ghana, increases in costs, exchange rate fluctuations, speculative
nature of gold exploration and other risks involved in the gold exploration industry. See the Company’s annual and quarterly
financial statements and management’s discussion and analysis for additional information on risks and uncertainties relating to
the forward-looking statement and information. There can be no assurance that a forward-looking statement or information
referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated
in such statements or information. Also, many of the factors are beyond the control of the Company. Accordingly, readers should
not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update any
forward-looking statements or information except as required by law. All forward-looking statements and information herein are
qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the original release, please click here
Source: Pelangio Exploration Inc. (TSX Venture:PX, OTC Pink:PGXPF)
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