Birch Lake Property Returned to Pelangio and Pelangio Acquires Net Smelter Royalty ON Adjoining Property
Pelangio Exploration Inc.
Pelangio Exploration Inc. News Release – April 12, 2018 1
82 Richmond Street East,
Toronto, ON M5C 1P1
Tel: 905-336-3828
Fax: 905-336-3899
NEWS RELEASE
BIRCH LAKE PROPERTY RETURNED TO PELANGIO AND
PELANGIO ACQUIRES NET SMELTER ROYALTY ON ADJOINING PROPERTY
TORONTO, Ontario (April 12, 2018) – 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 La ke 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.
Pelangio Exploration Inc. News Release – April 12, 2018
2
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 a nd
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).
Pelangio Exploration Inc. News Release – April 12, 2018
3
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: [email protected]
Forward Looking Statements
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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
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