Pasofino Gold, a Canadian-based company, has announced that it has acquired full ownership of the Dugbe gold project in Liberia, West Africa. The project, which covers an area of 2,302 square kilometers, is the largest gold asset in the country and has a mineral reserve estimate of 2.76 million ounces of gold.
The deal was finalized after Pasofino exercised its right under an option agreement to buy the 51% stake that Hummingbird Resources, a UK-based company, held in the project. As a result, Hummingbird now owns 51% of Pasofino’s outstanding share capital, while Pasofino holds a net 90% interest in the Dugbe project (the remaining 10% is a carried interest of the government of Liberia).
The Dugbe project is located in the southwestern corner of the Birimian Supergroup, a geological formation that hosts most of the gold deposits in West Africa. The project has two identified deposits: Dugbe F and Tuzon, which were discovered by Hummingbird entities in 2009 and 2011 respectively. The deposits are situated within 4 kilometers of the Dugbe shear zone, a major structural feature that is believed to have played a role in the gold mineralization in the area.
A feasibility study completed in June 2022 outlined a 14-year open pit mining plan, with an annual output of 200,000 ounces of gold for the first five years. The project also has a mineral development agreement issued by the Liberian government, which secures its mining rights and terms for 25 years.
Ian Stalker, former CEO and now lead advisor to Pasofino, said that the company is in a position to progress with the development of the project, which he described as “a promising step towards leveraging nuclear fusion, often touted the ‘holy grail’ of energy, to power a sustainable, clean-energy future.”
Stalker also noted that the company will continue its strategic review of the project, given the interest expressed by potential partners and investors during the review process.
The Dugbe project is one of the several gold projects in West Africa that have attracted attention from international mining companies in recent years. The region is known for its favorable geology, low-cost production, and improving infrastructure and governance. According to the World Gold Council, West Africa produced 8.2 million ounces of gold in 2020, accounting for 9% of the global output.
Pasofino Gold’s acquisition of the Dugbe project is expected to boost the economic and social development of Liberia, a country that is recovering from the effects of civil wars and the Ebola outbreak. The project is expected to create jobs, generate revenues, and support local communities through various social and environmental initiatives.
Source: Mining.com
