Home » Pasofino Gold Advances Dugbe Project with $2 Million Funding Boost

Pasofino Gold Advances Dugbe Project with $2 Million Funding Boost

Liberia's Gold Mining Sector Eyes Growth with Hummingbird Resources Investment

by Adenike Adeodun

Pasofino Gold, the owner of the Dugbe Gold Project in Liberia, has announced a significant financial advancement following Hummingbird Resources’ commitment of approximately US$2 million to the project. This investment, set to close on January 10, 2024, is part of Hummingbird Resources’ Share Placement update and aims to bring the Dugbe project closer to production.

The funds will be dedicated to optimizing the 2022 Definitive Feasibility Study (DFS) throughout FY-2024 and advancing the project further. Both Hummingbird Resources and Pasofino Gold have identified several strategies to enhance the project’s value and reduce capital expenditure. These include optimizing power usage, improving metallurgical recovery rates, and expanding exploration activities.

According to a report by Mining Review, Daniel Limpitlaw of Pasofino Gold expressed optimism about the funding, stating it will facilitate the development of the project and maximize its value. “We are evaluating a new drill program to extend the Tuzon mineralization, and we see opportunities to optimize the FS that faced challenges during COVID,” Limpitlaw noted.

The commitment from Hummingbird Resources is contingent on obtaining necessary approvals, including regulatory, shareholder, and TSXV approval, and agreeing on commercial terms between Hummingbird Resources and Pasofino.

Gold mining in Liberia, a significant economic activity, has attracted both local and international mining companies due to the country’s rich gold deposits. Artisanal and Small-scale Mining (ASM) plays a vital role in the sector, employing many Liberians. However, challenges such as environmental concerns and the need for better regulation persist.

Efforts to formalize and regulate the ASM sector are crucial for sustainable mining practices and the well-being of local communities. The Liberian government and international support have been working towards these goals.

This investment in the Dugbe project represents a positive development for Liberia’s gold mining sector, promising economic growth while emphasizing responsible mining practices and environmental conservation.

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