Pasofino Gold Limited is pleased to announce the results of the Dugbe Project Feasibility Study (FS), which is located in Southern Liberia.
The FS was prepared by the Company’s lead engineers, DRA Global (South Africa), in accordance with Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).
As per NI 43-101 the Feasibility Study will be filed by Pasofino at within 45 days of this news release. Subject to the filing by Pasofino of the Feasibility Study under Pasofino’s profile and final administrative documentation, Hummingbird Resources Plc (“Hummingbird”) has confirmed that the FS has been carried out to the agreed standards and will satisfy the technical requirements to allow Pasofino to earn its 49% economic interest in the Project (prior to the issuance of the Government of Liberia’s 10% carried interest).
Pasofino earn-in update
Hummingbird has confirmed that the FS has been carried out to the agreed standards and will satisfy the technical requirements to allow Pasofino to earn its 49% economic interest in the Project (prior to the issuance of the Government of Liberia’s 10% carried interest).
Further, both Pasofino and Hummingbird will have the right to exercise the option to consolidate ownership by converting Hummingbird’s 51% ownership of the Project for a 51% shareholding in Pasofino, such that Pasofino would own 100% of the Project (prior to the government of Liberia’s 10% carried interest), subject to the receipt of all required approvals including the TSX Venture Exchange.
Environment, social and governance
Environmental and social impact assessment (ESIA) process nearing completion with submission to the EPA expected in June 2022. Build, own, operate and transfer (BOOT) liquified natural gas (LNG) thermal power and owner’s photovoltaic (PV)/battery energy storage solution power supply mix. Substantial reduction in predicted greenhouse gas emissions, including approximately 25% fewer tonnes carbon dioxide equivalent (tCO2e) compared to using only a conventional HFO thermal power plant.
Multiple rounds of ESIA stakeholder engagement, along with ongoing relationship building by the Hummingbird Liberia (HBL) team, leading to general acceptance of the project whilst recognising high community expectations.
Project description and location
The Project is located in south-eastern Liberia, approximately 76km east of Greenville and 240km south-east of the capital Monrovia-Figure 1. The combined Project covers an area of 2,559km2 and is defined within a single Mineral Development Agreement (MDA), effective in April 2019, valid for 25 years. The centre of the Project has an approximate latitude of 5.093º and longitude of -8.502º. The Tuzon and Dugbe F deposits are approximately 4km apart.
The Project is located in an undeveloped area of Liberia, with one main access road, recently upgraded by the mine, and several villages. Most people in the area engage in artisanal and small-scale mining (ASM), hunting and/or small-scale farming. No utilities such as power and water are available.
The area is primarily rainforest over low rolling hills. The region is drained by three major rivers, the Dugbe River in the south-east, the Geebo River that runs between the two deposits, and the Nyenmon River in the west. Sapo National Park is approximately 15km north of the Project area with the Grand Kru – River Gee proposed Protected Area approximately 10-20km to the south-east.
A wide range of plant and animal species that are endemic and/or of conservation importance are present in the forests. The climate is typically tropical, with high humidity, daytime temperatures and rainfall. The nearest town of consequence is Greenville, the Sinoe County capital, which has a basic port and a palm oil processing centre, but no grid-scale utilities.
Geology and mineralisation
The Project is located just south of the inferred boundary between the Archean Liberian Age Province (3000-2500 Ma) which covers the northern two-thirds of Liberia and the Paleo Proterozoic Birimian aged rocks (2166 ±66 Ma) to the south-east-Figure 2. The regional scale ENE-WSW oriented Dugbe Shear Zone bisects the Project area passing just south of the deposits. The dominant lithologies in the project area are granulite facies gneisses, migmatites and younger crosscutting granitoids and pegmatites.
Mineralogical investigations suggest that the Tuzon and Dugbe F deposits in their current form resulted from the deformation and metamorphism of a single pre-existing gold deposit. Gold pre-dates peak metamorphic conditions and therefore differs from most typical Birimian deposits where mineralisation is largely associated with late transcurrent shearing. The deposits may more appropriately be compared to granulite facies gold deposits, which are found in cratonic regions in Canada, Australia and China.
Tropical weathering has produced a lateritic profile of 1m to approximately 15m thick. The contact between weathered material and fresh rock is abrupt, the transitional layer being poorly developed generally less than 1m thick.
