Pelangio Exploration (PGXPF: OTCBB and PX: TSX-V) Announces Encouraging Positive Assay Results - Analyst Blog

Steven Ralston, CFA

Today, Pelangio Exploration (PGXPF: OTCBB and PX: TSX-V) announced encouraging positive assay results from the second Manfo drilling program at the Pokukrom East and Nfante West gold exploration areas. The results strongly confirm that major mineralized systems of bulk tonnage deposits are on the Manfo property. At Pokukrom East, 1.36 grams per tonne (g/t) gold was discovered over 52 meters, including a higher grade zone of 3.47 g/t gold over 13 meters in drill hole SPDD-106, and in SPDD-107, 1.13 g/t gold over 72 meters was found, including a higher grade zone of 3.53 g/t gold over 11 meters. These intersections continue to confirm that the strike length of bulk tonnage at Pokukrom East is at least 500 meters, since the mineralization is consistent with the style of mineralization in holes to the north (SPDD-085, SPDD-086 and SPDD-089) and south (SPDD-087 and SPDD-088).

At Nfante West on the Manfo property, drill hole SFDD-100 discovered 1.05 g/t gold over 23 meters, including a higher grade interval of 2.67 g/t gold over 8.0 meters. This hole appears to confirm a 100 meter northern extension of previously reported intersection of 1.50 g/t gold over 61 meters by drill hole SFDD-079.

Pelangio recommenced its second drilling at Pokukrom East on January 16th and expects to complete further holes before moving to Pokukrom West. The company has completed 15 drill holes totaling 2,399 meters (of which the results of 10 holes totaling 1,638 meters was announced today) in this second phase drilling program on the Manfo Property, which is expected to total over 5,000 meters. Pelangio will release further assay results as they are received.

Management's near-term goal is to discover and delineate as many gold mineralized zones as possible on the Manfo Property prior to a resource estimation. Also, trenching and geochemical surveying are currently being conducted. Pelangio has interpreted a 10 kilometer trend of anomalies from 800 meter spaced geochemical and geophysical surveying in the northwestern portion of the Manfo Property, while the southeastern portion of the Manfo Property is currently still being evaluated geochemically.

Results from the second phase drilling program could potentially increase the stock's valuation, especially when the drilling program moves to where previous drilling encountered high grade intercepts at Pokukrom West. Our initial target remains $1.25.
 

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