Pasofino Gold files Dugbe Gold Project Feasibility Study, Liberia

Pasofino Gold files Dugbe Gold Project Feasibility Study, Liberia

Pasofino Gold Limited [VEIN-TSXV; EFRGF-OTCQB; N07-FSE] has filed the Feasibility Study in respect of the Dugbe Gold Project in Liberia. Further, the company is pleased to announce that Hummingbird Resources Plc has confirmed that the option exercise conditions have been satisfied such that the company may within 120 days from the date of this press release deliver the option satisfaction notice to Hummingbird. Upon delivery of the option satisfaction notice the company will acquire its 49% interest in the project (prior to the issuance of the Government of Liberia’s 10% carried interest).

Following acquisition of its 49% interest in the project, 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.

30 days after Pasofino provides the Notice it will be responsible for sole funding the first US$4.71 million of Joint Venture Expenditures and shall remain as operator during such sole funding period.

A strategic review of options to best realize the maximum value of the Dugbe Gold Project for all stakeholders is being led by Pasofino with the support of Hummingbird.

Krisztian Toth, Chairman of the Board of Directors of Pasofino, commented: “We are pleased to advance to this stage, satisfying the requirements to earn our initial 49% interest in the Dugbe project. As we continue in our partnership with Hummingbird, we look forward to jointly exploring strategic opportunities and generating maximum value for each of our stakeholders.”

Highlights include 5Mtpa throughput, for a potential mine life of 14 years; estimated head grade of 1.30 g/t gold over the life of mine. Average annual production would be 200 koz for the first five years with a LOM Average of 172koz. Average Estimated Recovery of 83% for the combined Tuzon and Dugbe F pits. Start-up capital cost is USD 435 million. A post tax NPV at 5% of US$524 million, for a gold price of US$1,700/oz. Life-of-mine AISC of US$1005/oz and a post tax IRR of 23.6%.

Payback period is 3.3 years. The Mineral Reserve Estimate has 66Mt grading of 1.30 g/t gold with a total of 2,760koz. Life-of-mine strip ratio is 4.02.

The 2,559 km2 Dugbe Gold Project is in southern Liberia and situated within the southwestern corner of the Birimian Supergroup which is host to the majority of West African gold deposits. To date, two deposits have been identified on the Project; Dugbe F and Tuzon discovered by Hummingbird in 2009 and 2011 respectively. The deposits are located within 4 km of the Dugbe Shear Zone which is thought to have played a role in large scale gold mineralization in the area.

A large amount of exploration in the area was conducted by Hummingbird up until 2012 including 74,497 m of diamond coring. Pasofino drilled an additional 14,584 m at Tuzon and Dugbe during 2021. Both deposits have Mineral Resource Estimates dated 17 November 2021. Following the completion of the Definitive Feasibility Study in June 2022 a Mineral Reserve Estimate was declared, based on the open-pit mining of both deposits over a 14-year Life of Mine.

In addition, there are many gold prospects within the Project including the Bukon Jedeh area acquired in late 2020. Here artisanal mining has extracted gold since the 1930’s, including from currently active open pits over 20 m deep working fresh-bedrock. At the DSZ target on the Tuzon-Sackor trend Pasofino has discovered a broad zone of surface gold mineralisation in trenches and outcropping along strike from Tuzon. At this and several of the other prospects no drilling has been carried out to date.

In 2019, Hummingbird signed a 25-year Mineral Development Agreement (MDA) with the Government of Liberia providing the necessary long-term framework and stabilization of taxes and duties. Under the terms of the MDA, the royalty rate on gold production is 3%, the income tax rate payable is 25% (with credit given for historic exploration expenditures), the fuel duty is reduced by 50%, and the Government of Liberia is granted a free carried interest of 10% in the project.