Zacks_Analysts' Blog : Pelangio announces major gold drilling programs in Ghana for 2011 - Analyst Blog

Steven Ralston, CFA

Pelangio announces major gold drilling programs in Ghana for 2011



Today, Pelangio Exploration (PX.V: TSX-V,  PX: TSX-V and PGXPF) provided the company’s exploration plans for its Ghana properties in 2011. The programs are aggressive, encompassing over 25,000 meters of diamond drilling, and should provide significant news flow throughout the year. Management believes that the assay results of prior drilling programs have only hinted at the potential at Manfo, a 100 square kilometer camp-sized property. To date, the gold mineralization encountered at Manfo appears to be similar to the multi-million ounce, near-surface, bulk tonnage mineralization found at Ahafo and Chirano, where Newmont Mining and Kinross, respectively, operate pit mines.  



Of particular interest is the planned 10,000 meter diamond drilling program on the Obuasi property, which is located adjacent to and on strike with the Obuasi Mine, the world’s largest vein hosted gold deposit. The Obuasi Mine has produced over 30 million ounces of gold since 1897 and still holds another 29.5 million ounces in reserves and resources. Management believes that the Obuasi Mine may have a series of high grade gold ore shoots with strike lengths of 80 to 200 meters and widths of three to 20 meters that extend into the company’s property. The discovery of these high grade shoots would have dramatically positive ramifications for the stock’s valuation.  

 

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