Liberia, a country abundant in mineral resources such as gold, diamonds, and iron ore, is witnessing a surge in gold mining investments. Pasofino Gold (OTC: EFRGF), a prominent player in this sector, is actively exploring Liberia's potential, capitalizing on the extensive exploration performed to date and the positive economics derived from their completed feasibility study.
The mining sector has long been a cornerstone of Liberia's economy, with revenues from iron ore alone accounting for almost half of the country's earnings before 1990. While gold mining has traditionally been dominated by small-scale artisanal miners, the past two decades have seen significant investments from major companies including ArcelorMittal (OTC: AMSYF), Liberty Gold (OTC: LGDTF), and Hummingbird Resources (OTC: HUMRF).
The government of Liberia has fostered a pro-mining environment, adhering to the Extractive Industries Transparency Initiative (EITI) since 2011 and modeling its mining laws on Australian regulations. With Foreign Direct Investment (FDI) surpassing $18 billion, Liberia presents an attractive investment destination in West Africa. Pasofino Gold views Liberia as a key frontier for gold exploration, particularly through its Dugbe Gold Project.
The Dugbe Gold Project, owned by Pasofino, spans 2,078 square kilometers in southern Liberia, an area known for its rich gold deposits. Despite only 20% of the project being explored so far, the known discoveries such as Dugbe F and Tuzon have already shown a combined Measured and Indicated Resource of approximately 3.3 million ounces of gold. Multiple drill-ready targets further display abundant surface gold mineralization.
Pasofino operates the Dugbe Gold Project under a 25-year agreement with the Liberian government, which includes a 3% royalty rate on gold production and a 25% income tax rate. The government also holds a 10% interest in the project, underscoring its commitment to fostering a stable mining industry.
The implications of Pasofino's activities in Liberia are far-reaching. For Liberia, the development of the Dugbe Gold Project could mean significant economic growth, job creation, and increased foreign investment. For the global gold market, it could herald the emergence of a new, substantial source of gold, potentially affecting global supply dynamics.
Pasofino Gold has established strong relationships with local communities, emphasizing their role in developing Liberia into a formidable player in the gold mining industry. With promising resources and ongoing exploration, the Dugbe Gold Project stands as a key asset with great potential for future growth.
