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Pelangio Exploration Inc (CVE:PX) Acquiring Valuable Land Packages in Ghana and Northern Ontario

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Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Pelangio Exploration Inc (CVE:PX) (OTCMKTS:PGXPF) (FRA:67P1) is a junior gold exploration company with properties in Canada and Ghana. CEO Ingrid Hibbard shares details of her history in the space and of the company’s current projects. Pelangio has two land packages in the Timmins, Ontario area: Dome West and Dalton. Pelangio purchased the previously unexplored Dome West land package in January and has begun orientation drilling. Hibbard expects results from this initial hole in a month’s time. The company will use these results, in addition to surface exploration, to plan a complete drill program. Pelangio also recently acquired the Dalton Property, located 1.5 kilometers from the Hollinger site, and will be drilling several holes at that property in the summer. In Ghana, Pelangio acquired a virtually unexplored 284 square kilometre land package near the historic Obuasi Gold Mine. Hibbard also discusses the company’s other project site in Ghana, which has 300,000 ounces in the indicated category with an additional 200,000 ounces in the inferred category. The interview concludes with a discussion of partnership possibilities to move from the exploration to active mining phase.

Transcript:

Ed Milewski:   Joining me now we have Ingrid Hibbard, who’s the CEO of Pelangio Exploration.

Ingrid Hubbard:     Exactly.

Ed Milewski:   And you’re no stranger to the mining industry, Ingrid; your dad founded basically what was eventually Detour Mines, right?

Ingrid Hubbard:     When they first found the Detour Mine, my dad staked everything around it, and then when he passed away in 1996, and somehow I found myself CEO of a junior mining company.

Ed Milewski:   Pelangio Mines ultimately sold the Detour property.

Ingrid Hubbard:     Yeah.

Ed Milewski:   You then got a bunch of cash and some shares in another company, and you basically dividended those out?

Ingrid Hubbard:     In 1996, we had a piece of property beside the mine that we still had from when my dad staked it all in the 70s, and we realized that they were closing the mine and it was up for sale. So we were able to buy the mine with still 1.5 million ounce resource, and 52 square miles around it, underexplored on the Abitibi Greenstone belt.

Ed Milewski:   Prime, prime location.

Ingrid Hubbard:     Prime location, for $1.5 million.

Ed Milewski:   Wow.

Ingrid Hubbard:     Less than a buck an ounce in the ground.

Ed Milewski:   You want to talk about how cheap things are then, or now, they’re just as cheap then.

Ingrid Hubbard:     Yep. So we were able to acquire it, except we didn’t have any money. What we had about, I don’t know, $2,000 in the bank, and we decided we’d like to buy the mine, so David Harquail at Franco-Nevada helped us out with that, and so that’s how they ended up with the royalty.

And then, you know, fast-forward a decade, and we sold it to a spinout company, Detour Gold. So it IPO’d on it, and post-IPO, w owned 50 percent of the stock, which was 20 million shares.

Ed Milewski:   Right.

Ingrid Hubbard:     And then after a few years those shares ended up, a series of corporate transactions, but let’s keep it simple – those shares ended up in our shareholders’ hands. So for very many, for the patient shareholders, it was a 100-bagger.

Ed Milewski:   It was unbelievable.

Ingrid Hubbard:     Having watched my father do it and then me, I believe in the cycles. Like, it’s all about playing the cycles.

Ed Milewski:   You got land in Timmins?

Ingrid Hubbard:     Yes.

Ed Milewski:   And you recently acquired land. You’ve got another major position of land in Ghana –

Ingrid Hubbard:     Yep.

Ed Milewski:   In a proven area.

Ingrid Hubbard:     It’s 284 square kilometres.

Ed Milewski:   And what did you say you had back in the Detour area? You had 52 square –

Ingrid Hubbard:     Yeah. So we’ve got two land packages in Timmins that I, you know, kind of pinch me now, because I wouldn’t have thought you could get them. So this is called Dome West, so we acquired it in January.

Ed Milewski:   This is the same Dome as, remember we had Dome Mines, right?

Ingrid Hubbard:     That’s where we’re next door. The land package that we’ve got has not had any real exploration since the 1940s, so we just did a 550-metre hole there. So what we’re drilling to find here is really to orient ourselves, let’s be honest. I don’t expect one hole to find us a mine; this one hole, which is almost vertical, is just looking to locate that porphyry, get a look at what’s there. I’m convinced we’re going to be back there in January preparing for – we’re going to be doing a lot more work, it’s only 550 metres. We’ve completed the drilling, they’re logging the core now, and it’ll be up for assay in a couple of weeks.

Ed Milewski:   So you’ll get results here, what, in three, four weeks?

Ingrid Hubbard:     Probably, yeah. There’s another target in the middle of the property, from government reports where there was an added shaft and some surface quartz veins. So once the snow is gone, we’re going to go in and take a quick look at that. Then we’ll, you know, see what else we can find, put together the program plan for next winter. So that’s Dome West.

The other recent acquisition is the Dalton property, which is a little bit bigger. It’s a kilometre and a half from the Hollinger; it’s been held by a family –

Ed Milewski:   How far is the Dome West to the Dalton?

Ingrid Hubbard:     Three kilometres, maybe five kilometres?

Ed Milewski:   Okay, so we’re talking, you know, if you’re spitting and there’s a wind blowing –

Ingrid Hubbard:     It’s one end of town to the other end of town, because they’re basically both in town, on two edges of the town. We’re going to be drilling there this summer, putting in a couple holes at Dalton this summer, and the other thing we’ve got in Ontario which is not new, but it’s – given the Great Bear discovery, people are a little more excited about it – it’s a property we’ve had for a long time. Twenty-five square kilometre land package, and we had it farmed out back when people were working, you know, eight, ten years ago, and they got 34 grams over 10 metres.

Ed Milewski:   Let’s talk about Western Africa.

Ingrid Hubbard:     So in West Africa, after Detour, we were looking for another – I mean, that worked, so you know, of course I’ve got to try the same again. So I said oh, okay, it works to get a big land package where there’s been a big producer, except that’s really hard to do. It’s kind of thing, every – and so coming from kind of a mining family, so my uncle was a little familiar with Ghana; I had only ever worked in Canada. And so he comes and says, I think I can get you this great land package in Ghana beside the Obuasi Mine.

Now, this is embarrassing, but at the time, I went, “Obuasi Mine?” and he said yes. Okay, this is the Obuasi Mine; it’s produced 35 million ounces.

Ed Milewski:   What time frame?

Ingrid Hubbard:     For a hundred years.

Ed Milewski:   Wow.

Ingrid Hubbard:     In the first 30 years, from 1897, the produced grade – now, imagine how much goes out in tails 100 years ago – the produced grade was over 1 ounce per tonne.

Ed Milewski:   High grade.

Ingrid Hubbard:     Right? It’s awesome. So we were able to acquire 284 square kilometres on strike with that, with virtually no exploration. Unbelievable to me. Like, coming from the Timmins camp, that would be like buying everything on the Dester Porcupine Fault beside the Hollinger, only this thing is bigger than the Hollinger, and nobody had explored it. It was a tremendous opportunity.

Ed Milewski:   Is this the kind of project that you might need a joint venture partner?

Ingrid Hubbard:     100 percent. But you know, at the right time –

Ed Milewski:   But you’re not spending a lot of money right now, because right now, nobody cares.

Ingrid Hubbard:     You – it’s all about preparing for the future. But I think the future – so, you know, six years ago, the future looked farther away. I think we’re at the very beginning, and that’s why these acquisitions in Timmins, I think we’re coming into a better market. But it doesn’t happen overnight; it’s not a light switch.

Ed Milewski:   How many shares are in PX?

Ingrid Hubbard:     There’s 38 million shares outstanding.

Ed Milewski:   38 million shares, trading at – so you’re capped at $6 million, $7 million.

Ingrid Hubbard:     Craziness.

Ed Milewski:   I know.

Ingrid Hubbard:     Because the other project we have in Canada is 100 square kilometres; it’s 14 kilometres from Newmont Ahafo, which is a 20 million ounce mine, and 50 kilometres from Kinross’ Terrano. 100 square kilometres. We started exploring along a 9-kilometre geochemical trend; we made seven discoveries, we’ve got a maiden resource on three of them: 300,000 ounces in the indicated category and 200,000 in the inferred category.

So you know, it’s – we’re going to need some help, but the opportunities were too good to pass up, and I’ve been looking for a long time to get back into – I grew up in Timmins, ask me if I want to work back in Timmins! It’s a great spot to be.

Ed Milewski:   Yeah, yeah.

Ingrid Hubbard:     The other thing we did is, we acquired a private project generator, closed in December. So that gives us kind of eight project generator projects, most of which are farmed out, and it’s Kevin Feedlow (phon)who was running it. Kevin was my partner when we did the Detour stuff, and he’s lived in Timmins all his life. So he, who lives in Timmins, keeps his ear to the ground, who has worked in the mines, he’s running those projects. So on the Ontario side, Kevin and I are back working together, and on the Ghana side, Warren Bates is doing it, and we have a great guy on the ground who’s got a geological engineering degree and an MBA from Freiberg, Germany, who runs the projects.

Ed Milewski:   You got great land – I mean, the idea is to have the land when it’s time, and the minute it starts to move, it gets easier to raise money. Ingrid, we’re going to have to leave it there. Great to have you. So you got Ghana, you got Ontario, you got a good structure, you got lots of experience, and you’ve drilled a hole. We’re going to have –

Ingrid Hubbard:     People, product and price. [laughter]

Ed Milewski:   Okay. Well, look – we’re going to come back. We’re going to come back, we’re going to update.

Ingrid Hubbard:     That’s great, sounds like a plan.

Ed Milewski:   Okay, thanks.

Ingrid Hubbard:     Talk to you soon.

Ed Milewski:   Thanks, Ingrid.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

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