The Obuasi property is located contiguous with AngloGold Ashanti's world-class Obuasi gold mine within the prolific 300-kilometre-long Ashanti Gold Belt in southwest Ghana, West Africa. The Obuasi mine has produced over 33 million ounces of gold since 1897 and currently hosts a resource of approximately 28 million ounces of gold at an average grade of 7.98 g/t (Source: AngloGold Ashanti Mineral Resource and Ore Reserve Report 2015).
Pelangio’s most recent drilling campaign discovered high-grade, vein–hosted visible gold mineralization in sheared graphitic argillites. The gold mineralization observed from this drill core is associated with the ‘Obuasi style’ alteration responsible for the Obuasi Mine gold deposit. The structural characteristics of the Obuasi Mine’s mineralization consists of shear hosted quartz vein mineralization located within graphitic structures in Birimian sediments (wackes and phyllites) and along their contacts with Birimian volcanics and more competent Tarkwaian sediments. Quartz vein hosted gold at Obuasi is generally “free” gold (non-refractory) and usually high grade. Gold also occurs in silicified alteration haloes around the veins and is associated with fine needles of arsenopyrite. This style of gold is refractory, with gold encapsulated by arsenopyrite grains, and is usually lower grade but tends to develop into wide zones of mineralization. Pelangio’s Obuasi property contains evidence of both styles of mineralization; quartz (+/- carbonate) veining in carbonaceous shear zones in the sediments and locally within mafic volcanics (e.g. at Big Vein) with locally high grades (e.g. the NGA prospect) and also zones of silicification within the sediments, volcanics and dioritic intrusives (e.g. at Kusa) with disseminated arsenopyrite +/-pyrite and elevated gold grades.
A soil sampling campaign conducted post drilling discovered seven areas with greater than 200 ppb gold between 200 metres to 800 metres in strike length. Given the size of the land package Pelangio is exploring, it is the Company’s evidenced opinion that the drilling and exploration programs completed on the Obuasi project have thus far just scratched the surface of the property’s geology. When one considers the target model (a several million oz high grade lode sourced from the massive fluid system that deposited >60Moz a few kilometres to the southwest) further exploration and drilling on the project is demonstrably justified. Robust geological study over the course of Pelangio's interest in the property concludes that numerous D2 anastomosing splay structures emanate from the Obuasi Main Reef Fissure and strike north-easterly into Pelangio’s property. The geological interpretation of these events leads the Company to conclude that the massive Au-bearing hydrothermal fluid system which forms the Obuasi orebodies have leaked into these subsidiary structures located within Pelangio’s property and that significant gold mineralization lays deposited within a suitable structural trap.
For further information on the Obuasi property, please see the technical report, “Independent Technical Report, Obuasi Gold Project, Obuasi, Ghana for Pelangio Mines Inc. and Pelangio Exploration Inc. by SRK Consulting (Canada) Inc.”, April 30, 2008