Pelangio Exploration Inc. · TSXV:PX
Pelangio Exploration — Shareholder Meeting (May 2015)
35 slides from Pelangio Exploration's shareholder meeting presentation, May 2015
Slide 1: Pelangio
PELANGIO @PelangioEx tsxv:px - otcbb:pgxpf www.pelangio.com
Slide 2: Cautionary Note Regarding Mineral Resource Estimates
Cautionary Note Regarding Mineral Resource Estimates Investors should not assume that any of the indicated or inferred resource disclosed herein will ever be upgraded to a higher category of mineral resource or to mineral reserves and that any or all of the indicated or inferred mineral resource exi
Slide 3: Mineral Resource Statement, Manfo Gold Project, Ghana
Mineral Resource Statement* Manfo Gold Project, Ghana SRK Consulting, May 2013 Indicated Inferred Category Cut-off Quantity Grade Contained Quantity Grade Contained (000’ Au Au (000’ Au Au (Au gpt) tonnes) (gpt) (000’ oz) tonnes) (gpt) (000’ oz) Inside Pit: Laterite/Oxide 0.40 49 0.96 2 458 1.07 16
Slide 4: Strategy
Strategy Pelangio’s strategy is to acquire large land packages in highly prolific gold producing areas which have low political risk and to add value through exploration and resource development. Our strategy recognizes the cyclical nature of the gold sector and capitalizes on it by taking advantage
Slide 5: Properties
Properties • PX - Three Large Properties: Manfo - 100 Sq Km – Maiden resource (195,000 oz Indicated + 298,000 oz Inferred) on 3 of 7 mineralized areas discovered to date Obuasi - 264 Sq Km – High-Grade intercepts (24.5 G/t Au over 1 m, 11.28 g/t Au over 2 m) Akroma - 159 Sq Km –Large geochemical ano
Slide 6: Prolific Gold Producer
Prolific Gold Producer Ghana: In the Top 10 Countries by Ounces & Grade of +1,000,000 Oz Deposits 8th by Total Ounces -16 Deposits (122,053,281 oz) 6th by Grade -1.95 g/t www.visualcapitalist.com/global-gold-mine-and-deposit-rankings-2013 6
Slide 7: Low Political Risk
Low Political Risk Politics: - Stable democratic government - Supportive of mineral exploration and production - Ability to permit and bring to production Gold Mining History: - Centuries of Gold Production (formerly called Gold Coast) - Obuasi Mine, in operation since 1897 Support for Mining: - Min
Slide 8: Exploration and Resource Development – Adding Value
Exploration and Resource Development – Adding Value • 100 sq km on Ghana’s Sefwi Greenstone Belt - 14 km from Newmont’s flagship Ahafo mine with similar alteration style to Ahafo and 50 km from Kinross’ Chirano mine • 100% interest held by Pelangio (subject to 10% Gov’t interest and royalty interest
Slide 9: Manfo
Manfo • 9 kilometre geochemical trend, multiple structures • 9 near surface discoveries since August 2010 (3 at Nkansu) • Three areas at initial Resource stage: Pokukrom East and West, Nfante West • Received maiden resource estimate from SRK (195,000 oz Indicated and 298,000 oz inferred) in 2013 • I
Slide 10: Maiden Resource by SRK: model parameters
• Maiden Resource by SRK • 5x5x5 m blocks • Mining Cost: $US3.25 / 3.75/t rock (oxide/fresh) • Mill Recovery: 94% / 86% • Milling: 5,000 t/day • Milling Cost: $US11.00 / 17.00/t rock • Mining Dilution: 10% • Mining Recovery: 95% • Royalty: 7.5% • Gold Price: US$1,450 On June 21, 2013, the Company fi
Slide 11: Manfo
Manfo Mineral Resource Statement* Manfo Gold Project, Ghana SRK Consulting, May 2013 Indicated Inferred Category Cut-off Quantity Grade Contained Quantity Grade Contained (000’ Au Au (000’ Au Au (Au gpt) tonnes) (gpt) (000’ oz) tonnes) (gpt) (000’ oz) Inside Pit: Laterite/Oxide 0.40 49 0.96 2 458 1.
Slide 12: Block model and pit bottom
• +1.0 g/t block model shown • Mineralization below pit not tabulated in this estimate • 175 m depth is pit bottom • Metallurgical testing - gold recovery 86% from sulphide and 94% from oxide 12
Slide 13: Gold deposits associated with major faults
• Gold Deposits Are Associated with North to Northeast trending Major Faults that bound each terrane. • 62 Known Gold Occurrences in the Sefwi Belt • There are 33 economic gold deposits, with total reserves and past production of 22.8 million Ounces. • 4 main Gold Camps; Ahafo North, Ahafo South, Bi
Slide 14: Largest deposits located on or within 1 km of belt-bounding faults
• Largest Deposits are located directly on or within 1 km of belt-bounding faults (Subika,Kenyase,Apensu,Awonsu, Yamfo,Akwaaba and Bibiani Deposits • 7 Major Deposits Account for 2/3 of all mineable ounces in the belt. Major Faults are well mapped with regional magnetic maps • Larger deposits show h
Slide 15: A Major Structure unexplored to date on east side of Manfo
• A Major Structure (unexplored to date) on East side of Manfo, • separates volcanics and sediments from a Belt Batholith to the East • Exploration to date has focused on a subsidiary structure 1.4-3 km. west of Major Structure. • Mineralization encountered to date is replacement sericite- pyrite ca
Slide 16: Laterite layer mapped with combination of methods
• A flat lying laterite layer 2- 8 m thick. produces a very subdued geochemical response to BLEG geochemistry. • Laterite layer has been mapped with a combination of geophysics, mapping, review of geochemical sample descriptions. • Laterite cover masks geochemical signature along Major Structure! •
Slide 17: Lateritic cover and exploration to date
• Lateritic cover shown in grey • Exploration to date focused along structure marked in green an area of little lateric cover so strong geochem anomalies were evident • Nkansu discovery made on weak geochemical response, many similar targets on Major Fault to east! 17
Slide 18: Nkansu discovery
• Nkansu – Discovery made with little geochemical response due to lateritic cover • Three zones developing at Nkansu • Some Higher Grades Showing in SGRC-327 on North West end. • Bulk-Tonnage in South West and North • 2014 Drilling established continuity along 250 m to 125 depth in Southern target.
Slide 19: Continuity being established at Nkansu South
• Continuity being established at Nkansu South. Part of Stage 2 program • 2014 drill program achieved name plate productivity for drill to 150m depth! • Estimated drilling costs: o AC $32/m o RC $60/m o Diamond $100 /m 19
Slide 20: Exploration program Stage 1 and Stage 2
Stage 1 Objective: Find 1 to 3 New Zones • 14 target Areas • 90% on Major Fault to East • 8-10,000 m AC & RC program (150-200 holes) 3-6 months • CDN$465,000 Stage 2 Objective: Establish continuity on 2 to 4 new discoveries • 17 target Areas on or near Major Fault and known mineralized fault • 8500m
Slide 21: Exploration - Adding Value
Exploration- Adding Value • North of Sefwi belt • 159 sq km in 2 areas, Block A and Block B • Next sedimentary belt to north • Geochemical targets developed 2012 • 4,000m Air Core/RC program planned to test geochemical anomalies • Infill soil geochem program - Block A South 23
Slide 22: Untested Gold Geochemical anomalies for Air Core drilling
Untested Gold Geochemical anomalies for Air Core drilling 25
Slide 23: Obuasi hard rock targets
• Next to Largest Vein Deposit in World • Hard rock targets along Main Structure Tikal - Bura and at the Birimian contact in North Government Area (NGA) • Strong Gold Arsenic Anomalism at NGA area in Birimian argillites • Scree and rock chip anomaly at Tikal Bura 28
Slide 24: Arsenic anomaly and visible gold in North Government Area
• Substantial arsenic anomaly coupled with visible gold in core affirm that Obuasi style system is clearly present in North Government Area • Eight RC and Air Core drill - ready targets 1500 metres >1500m of Gold - Arsenic 29 anomalism to test
Slide 25: Obuasi Alluvial Test Pits
P| Obuasi Alluvial Test Pits PELANGIO Legend Ep] obuasi Property Boundary \= Drainage © Aluvial Sample Location mw Pelangio Exploration Inc. (Px:Tsxv) Obuasi Project, Ghana Alluvial Bulk Sample Program May, 305 Kilometers n
Slide 26: Obuasi Alluvial
Obuasi Alluvial Minatura set up and commissioned a 150 ton per hour bulk sampling plant, including: • Supporting series of settling ponds for recirculation of water to the plant • All site infrastructure, including roads • Seedling nursery for reclamation • Water monitoring program • Security and he
Slide 27: Canadian Properties
r) Canadian Properties PELANGIO bervueio Legend @ Feotancio Exploration ne Bourdares Mineralized Condor Boundavies [Geology Ultramatc Volcanic HM Matic Votcanic Sediments Utramate Intrusive Pomhyrtic Syente [EM Disoase 57000 va Thunder Creek| ug 910 Level ‘Thunder Creek Deposit Projection. NAD_1983_
Slide 28: Opportunity
Opportunity • New compact Grasshopper RC/Air core rig has been through initial testing, shows good recoveries and rapid sampling for Air Core and RC • RC sampling shows good recoveries, will regularly reach depths to 150m at Manfo 33
Slide 29: Opportunity
Opportunity Only 199 Producing Mines Larger than 1 Million Oz in 2013 GHANA SEFWI BELT BY COMPARISON Average Grade of Reserves And Past Production on the Sefwi Belt is about 2 g/t Pelangio’s Manfo Resource - Indicated Grade is 1.52 g/t Pelangio’s Nkansu results - 1.18 g/t over 49.5m www.visualcapita
Slide 30: Pelangio in the Communities
Pelangio in the Communities 37
Slide 31: Why invest in Pelangio?
Why invest in Pelangio? A Track Record of Success & Proven Strategy • Wealth Generation: 10,000% return 2003 to 2011 Implementing the Strategy • Ghana: centuries of production in a mining friendly jurisdiction • Manfo (100 sq km), Obuasi (264 sq km) and Akroma (160 sq km) Successful Exploration in G
Slide 32: Share Capitalization
Share Capitalization Pelangio Exploration Inc. (PX:TSXV; PGXPF:OTCBB) Current Price (as at May 8, 2015): $0.04 $0.06/ Share Price – 52wk H/L: $0.02 Issued and Outstanding: 208M Options: 9.3M Warrants: 7.5M Fully Diluted: 225M Market Cap: $8.3M 39
Slide 33: Contact
Contact Pelangio Exploration Inc. (PX:TSXV; PGXPF:OTCBB) 4139 Britannia Road, Burlington, Ontario Contact L7M 0R8 Tel: (905) 336-3828 Fax: (905) 336-3829 Email: info@pelangio.com www.pelangio.com Twitter: @PelangioEx 40
Slide 34: The Talent for Success
The Talent for Success Carl Nurmi – C.A. (Chairman) Ian Shaw – C.A. Thor Eaton ADVISORY COMMITTEE Director of Excellon Resources and Nordex Explosives Ingrid Hibbard – LL.B. Peter Crossgrove – M.B.A. Philip Olson – P.Geo. Arthur (Gord) Slade David Mosher – B.Sc. (Geo.) 41
Slide 35: The Talent for Success
The Talent for Success Ingrid Hibbard, President and CEO Paul Rokeby, CFO Warren Bates, P. Geo., VP Exploration* *The exploration programs in Ghana are overseen by Warren Bates, P. Geo.(APGO #0211), a Qualified Person as defined by the Canadian Securities Administrators’ National Instrument 43-101.
Pelangio Exploration — Shareholder Meeting (May 2015) on 6ix