Pasofino Gold: Unlocking Liberia’s Untapped Gold Potential
Detroit, Michigan
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August 28, 2024 08:55 AM Eastern Daylight Time
By James Blacker, Benzinga
Liberia is rich in mineral resources. With gold, diamonds, and iron ore found in many parts of the country, the mining sector makes up a large part of its economy; revenues from iron ore accounted for almost half of Liberia’s earnings before 1990. Gold mining has historically been dominated by small-scale artisanal miners, but the last two decades have seen billions of dollars of investment pouring in from players such as ArcelorMittal (OTC:AMSYF), Liberty Gold (OTC:LGDTF) and Hummingbird Resources (OTC:HUMRF).
These big players have paved the way for others like Pasofino Gold (OTC: EFRGF) to explore Liberia’s potential. The company sees Liberia as a strong candidate for gold mining due to its many unique characteristics, the extensive exploration performed by the company to date, their completed feasibility study and the positive economics resulting from that. Liberia, with a population of 5.3 million, stands as Africa's oldest modern republic.
The government of Liberia has consistently shown a pro-mining stance, creating a favorable environment for mining activities. Since 2011, Liberia has been compliant with the Extractive Industries Transparency Initiative (EITI), becoming the first African country to adhere to its regulations. The country's mining laws are designed based on Australian mining regulations, providing stability and clarity for the industry. With a high level of Foreign Direct Investment (FDI) compared to GDP, Liberia stands as a potentially attractive investment destination in West Africa. With FDI surpassing $18 billion, Pasofino Gold considers Liberia an important gold exploration frontier.
The Dugbe Gold Project
The Dugbe Gold Project, which is owned by Pasofino, covers an area of 2,078 square kilometers (802 square miles) in southern Liberia, an area known for rich gold deposits. Bukon Jedeh is just one of 15 or more targets within the license. Only five of these targets have been drilled so far. Two of these became the Tuzon and Dugbe F deposits, which were initially discovered by Hummingbird in 2009 and 2011 respectively. Additionally, a number of opportunities have been identified to optimize the feasibility study, which was completed during the COVID-19 pandemic with challenges incurred during that time.
Pasofino operates the project under a 25-year agreement with the government of Liberia, which includes a 3% royalty rate on gold production and a 25% income tax rate. The government holds a 10% interest in the project.
Although less than 20% of the project has been explored so far, Pasofino Gold reports that the known discoveries are already promising. This includes the Dugbe F and Tuzon areas, which hold a combined Measured and Indicated Resource of approximately 3.3 million ounces of gold. Multiple drill-ready targets also display abundant gold mineralization at the surface, the company says.
With such substantial resources, the Dugbe Gold Project is a key asset and holds great potential for future growth, Pasofino Gold argues, suggesting it may be on the verge of unlocking a significant gold resource in Liberia. The company has developed strong relationships with the people and community in the region, it says, and is excited about contributing to developing Liberia as a strong contender in the gold market.
Featured photo by Shutterstock.
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