Pasofino becomes sole owner of Dugbe gold project in Liberia

Pasofino Gold (TSXV: VEIN; US-OTC: EFRGF) is now the sole owner of the Dugbe gold project in Liberia after consolidating a 100% interest from Hummingbird Resources (AIM: HUM), as the companies had agreed more than one year ago.

In November 2022, Pasofino said it would exercise its right under an option agreement to have Hummingbird sell its 51% interest in Dugbe to become a 100% owner (before giving effect to the 10% carried interest of the Liberian government).

The Toronto-based Pasofino agreed to issue a certain number of common shares to Hummingbird so that 51% of its outstanding share capital will be held by its U.K.-based counterpart. In a news release last week, it was revealed that around 54 million common shares were issued.

“With Pasofino now owning a net 90% interest in the Dugbe gold project, the company is in a position to progress with the development of the project,” Ian Stalker, former CEO and now lead advisor to Pasofino, stated in Tuesday’s release.

The consolidation comes as gold prices have touched historic highs in recent weeks, with the price hitting US$1,979.60 per oz. on Tuesday.  

The 2,302-sq.-km Dugbe project is location in the southwestern corner of the Birimian Supergroup, which hosts most West African gold deposits. A mineral development agreement issued by the government of Liberia for the project secures its mining rights and terms for 25 years.

Dugbe’s two main deposits are Dugbe F and Tuzon, discovered by Hummingbird entities in 2009 and 2011, respectively. The deposits are located within 4 km of the Dugbe shear zone, which is thought to have played a role in large scale gold mineralization in the area.

A June 2022 feasibility study outlined an open-pit reserve estimate of 2.7 million oz. grading 1.3 grams gold per tonne, for annual output of 200,000 oz. over the first five years of a 14-year mine life. The study estimated the total deposits come to 75.2 million measured and indicated tonnes at 1.37 grams gold for 3.3 million oz.; with 14.9 million inferred tonnes grading 1.23 grams gold for 588,000 contained ounces. The study was based on 82,000 metres of core drilling and fieldwork.

After the feasibility study was filed last year, Pasofino’s subsidiary ARX and Hummingbird operated Dugbe in a joint venture agreement, with ARX holding 49% interest. 

Earlier this year, the partners initiated a joint strategic review process to maximize value for the project. Stalker noted that Pasofino will continue its strategic review given its interest expressed during the review process.

Pasofino shares traded at 32¢ on Tuesday afternoon in Toronto, near the bottom of its 52-week range of 31¢ and 75¢. It has a market capitalization of $33.8 million.