Pelangio Exploration Signs Term Sheet to Acquire Abansuaso Property Adjacent to Its Manfo Project
Pelangio Exploration Inc.
Pelangio Exploration Inc. News Release – November 26, 2019 1
82 Richmond Street East,
Toronto, ON M5C 1P1
Tel: 905-336-3828
Fax: 905-336-3899
NEWS RELEASE
PELANGIO EXPLORATION SIGNS TERM SHEET TO ACQUIRE ABANSUASO PROPERTY
ADJACENT TO ITS MANFO PROJECT
TORONTO, Ontario (November 26, 2019) – Pelangio Exploration Inc. (PX:TSX-V; OTC PINK:PGXPF) (“Pelangio”
or the “Company”) is pleased to announce it has entered into a binding Term Sheet with Supercare Group
Limited (“Supercare”) to acquire a 90% interest in the 60 square kilometer Abansuaso Prospecting License
located adjacent to Pelangio’s Manfo project.
Highlights of the Abansuaso Property
• strike extensions of Pelangio’s Nfante mineralized zones, all open to the southwest
• site of significant artisanal mining workings over an area striking 1,500 meters and up to 800
meters wide
• historical exploration by AngloGold Ashanti including results up to 4.03 g/t Au over 19 meters
and 19.64 g/t over 5m from trenching and 1.52 g/t Au over 37 meters in Reverse Circulation
drilling
• at least 2 kilometers strike of mineralization in multiple zones delineated by limited historic
Anglogold Ashanti exploration and artisanal mining, plus an additional 2.5 kilometers of untested
strike within the property
“We are very pleased that our collaboration with Supercare would allow the Manfo Project and the Abansuaso
Property to be explored together”, commented Ingrid Hibbard, President and CEO of Pelangio. “Planning is
underway for a first-phase drill program to begin as soon as possible.”
Term Sheet
In order to acquire a 90% interest in the Abansuaso property, Pelangio would transfer to Supercare a 10%
interest in Pelangio’s Manfo property. Upon completion of the transfer, a Joint Venture would be formed to
hold title to both the Manfo and Abansuaso properties. Pelangio would incur initial expenditures of US$2.5
million and thereafter each party may contribute funding on a pro rata basis (initially, 90% Pelangio and 10%
Supercare) or have its participating interest diluted in accordance with a standard dilution formula. The Term
Sheet is subject to approval of Pelangio’s Board of Directors and satisfactory receipt of all regulatory and
governmental approvals.
The Abansuaso Property
The 60 square kilometer Abansuaso Prospecting License, contiguous to and immediately south of Pelangio’s
Manfo Project, covers the possible strike extensions of Pelangio’s Nfante, Nfante West and Nfante East
mineralized zones. Refer to Figures 1 and 2. Pelangio’s Nfante West deposit, which sits at the southern end of
the principal mineralized structure on the Manfo Project hosts a small portion of the total mineral resource at
Manfo, estimated at 503,000 tonnes at 1.10 g/t Au (18,000 oz) in Indicated plus 663,000 tonnes at 0.80 g/t
Au (17,000 oz) in Inferred categories. The total mineral resource estimate at Manfo currently stands at 3.97
million tonnes at 1.52 g/t Au (195,000 oz) in Indicated plus 9.67 million tonnes at 0.96 g/t Au (298,000 oz) in
Inferred categories, hosted by the Nfante West, Pokukrom East and Pokukrom West deposits.
Pelangio Exploration Inc. News Release – November 26, 2019 2
The Nfante West deposit, similar to the other deposits and mineralized zones at Manfo, is hosted in a
metagranodiorite and is related to silica-sericite-dolomite alteration with associated quartz-dolomite veining
plus disseminated pyrite. Weaker gold mineralization tends to be associated with hematite +/ - sericite
alteration. The mineralization at Nfante West dips steeply to the west at 70 to 80 degrees and is generally
bounded by a brittle-ductile shear zone along the contact with mafic metavolcanics on the footwall side to the
east. The Nfante and Nfante East mineralized zones are similar, weaker versions of Nfante West.
Diamond drilling of the Nfante West target by Pelangio in 2010 returned the best intercept in the first hole,
SFDD-079, which returned 1.35 g/t Au over 70 meters (true width of 53 meters), including 3.03 g/t Au over 18
meters (true width of 13.5 meters). One of the follow up drill holes, SFDD-082, drilled at the southernmost end
of the Nfante West deposit on Pelangio’s property boundary, returned 0.89 g/t Au over 41 meters (true width
of 26 meters).
Anglogold Ashanti Limited, initially as Ashanti Goldfields Corporation, held the Manfo property (Subriso
Prospecting License) from 2003 through 2005 and conducted conventional soil geochemistry surveys,
trenching and 3,400 meters of RC drilling in 64 holes discovering most of the currently known mineralized zones
on the Manfo Project. Some of their exploration work extended onto the current Abansuaso property along
the Nfante West extension, with 4 trenches and 10 RC holes drilled on Abansuaso. Gold assay results from
Anglogold Ashanti’s exploration on Abansuaso ranged from negligible (< 0.20 g/t Au) in two of the trenches
and five out of the 10 RC holes drilled, up to high grade values in their southernmost trench SFTR015, which is
located 900 meters southwest of Pelangio’s southernmost drilling and reportedly returned intervals of 4.03 g/t
Au over 19 meters, 19.64 g/t Au over 5 meters and 14.32 g/t Au over 2 meters. An RC drill hole, SFRC011,
designed to undercut the trench returned 1.04 g/t Au over 34 meters (true width of 27 meters) including 5.52
g/t Au over 4 meters (true width of 3.2 meters), and a second noteworthy RC hole, SFRC016, drilled 650 meters
to the northeast, returned 1.52 g/t Au over 37 meters (true width of 32 meters) including 3.23 g/t Au over 6
meters (true width of 5 meters). Refer to Figure 3.
The data compiled from Anglogold Ashanti’s exploration activities comes from two reports filed with
the Ghana Minerals Commission entitled: 1. Hebron Exploration and Mining Company Limited,
Subriso Prospecting License, Terminal Report for the Period Ending July 2003 Prepared by Ashanti
Goldfields Company Limited, and 2. Hebron Exploration and Mining Company Limited, Subriso
Prospecting License, Technical Progress Report Fourth Quarter 2004, Prepared by Anglogold Ashanti
Exploration. The second report contains the assay certificates for the RC drilling conducted by
Anglogold Ashanti during this period, however the assay certificates for trench sampling are not in
these reports. AngloGold Ashanti’s analytical work was conducted by Transworld Laboratories (now
Intertek Minerals Limited), in Tarkwa, Ghana. Anglogold Ashanti’s sampling, sample preparation and
QA/QC specifics are not known, however it is evident that their earliest efforts employed 24 hour 1
kg BLEG (Bulk Leach Extractable Gold, or “Bottle Roll”) for gold analysis, and they switched to 50g
Fire Assay with AAS Finish for all gold analyses in 2004.
During the period from 2011 to approximately 2015, the Abansuaso property experienced considerable
artisanal mining activity, at times utilizing heavy equipment, which resulted in a total area of approximately 18
hectares mined along three subparallel zones over a strike length of 1,500 meters and across a width of up to
800 meters. The artisanal miners worked oxidized elluvial (saprolitic) material and numerous hand-dug vertical
shafts as deep as the water table (20-30 meters?) were excavated targeting quartz veining along the three
mineralized trends, with processing by crushing and sluicing. Much of the mining activity was along the strike
extension of the Nfante West deposit, with two mineralized trends apparent to the east, the easternmost of
which appears to correspond to the strike continuation of the Nfante mineralized zone. The majority of the
artisanal mining area has not been tested by drilling, and Pelangio has not sampled the mining stockpiles to
verify gold tenor.
Pelangio Exploration Inc. News Release – November 26, 2019 3
The historic artisanal mining activities and the previous exploration by Anglogold Ashanti have demonstrated
the presence of three or more mineralized trends extending southwest from Pelangio’s Nfante and Nfante
West prospects onto the Abansuaso property, identifying a high priority drill-ready exploration target area of
approximately 2.5 kilometers in strike and 800 meters in width. Upon the finalization of the formal agreement
with Supercare and necessary permitting, Pelangio intends to drill multiple fences of diamond and RC holes
across the target area in order to rapidly assess the potential of the mineralized trends which were lightly
tested by Anglogold Ashanti, possibly leading to resource definition drilling. A further 2.5 kilometers of strike
of the trend to the southwest is covered by the Abansuaso property and will likely be evaluated with soil
geochemical sampling as a first pass.
Figure 1. District Geological Setting of the Manfo and Abansuaso Properties
Pelangio Exploration Inc. News Release – November 26, 2019 4
Figure 2. Soil Geochemistry, Deposits, Prospects and drilling on Pelangio’s Manfo Project and extension onto
Abansuaso in the Exploration Priority Target Area
Pelangio Exploration Inc. News Release – November 26, 2019 5
Figure 3. Detailed view of Abansuaso Exploration Results and Artisanal Mining Areas
Qualified Person
Mr. Kevin Thomson, P.Geo. (Ontario), is a qualified person within the meaning of National Instrument 43-101.
Mr. Thomson has verified and approved the data disclosed in this release.
About Pelangio
Pelangio acquires and explores large land packages in world-class gold belts in Canada and Ghana, West Africa.
In Canada, the company is focusing on the Dome West property located 800 metres from the Dome Mine in
Timmins, the 25 km2 Birch Lake Property located in the Red Lake Mining District, the Grenfell Property located
10 km from the Macassa Mine in Kirkland Lake, the Dalton Property located 1.5 km from the Hollinger mine in
Timmins. In Ghana, the Company is focusing on two 100%-owned camp-sized properties: the 100 km2 Manfo
Property, the site of seven recent near-surface gold discoveries, and the 284 km2 Obuasi Property, located 4
km on strike and adjacent to AngloGold Ashanti’s prolific high -grade Obuasi Mine. Ghana is an English-
speaking, common law jurisdiction that is consistently ranked amongst the most favourable m ining
jurisdictions in Africa.
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]
Pelangio Exploration Inc. News Release – November 26, 2019 6
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 ability to complete the acquisition of the Abansuaso Property, the planned work programs, the Company’s
strategy of acquiring large land packages in areas of sizeable gold mineralization, the Company’s plans to follow-up
on previous work, and 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 the changes in equity markets, share price volatility, volatility of global and local
economic climate, inability to obtain necessary approvals or permits in Ghana , gold price volatility, political
developments in Ghana, and Canada, increases in costs, exchange rate fl uctuations, speculative nature of gold
exploration, including the risk that favourable exploration results may not be obtained, 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 the 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.