Pasofino Gold’s Dugbe Project: A New Frontier in West African Gold Mining

Gold mining has long been a cornerstone industry in West Africa, with the region producing more than 324 metric tons of gold in 2021. Countries like Ghana, Burkina Faso, and Mali have dominated the production landscape, accounting for 33% of Africa’s total gold output. However, emerging companies are now exploring less tapped areas with significant potential, with Pasofino Gold's Dugbe Gold Project in Liberia standing out as a notable example.

Pasofino Gold (OTC: EFRGF) has set its sights on Liberia, which it believes is West Africa’s last untapped gold frontier. The Dugbe Gold Project is situated in the southeast county of Sinoe, approximately 90 kilometers from the port of Greenville, within the renowned Birimian geological province. This area is known for hosting the majority of West African gold deposits but remains largely underexplored, giving Pasofino a strategic advantage with its vast landholding of 2,302 square kilometers.

Osino Resources Corp.’s Twin Hills Project in Namibia and Tietto Minerals’ Abijar Project in Ivory Coast are other significant ventures in the region. While the Twin Hills Project is part of Namibia’s growing gold exploration efforts, the Abijar Project is rapidly moving towards production with substantial gold deposits. Comparatively, Pasofino’s Dugbe Gold Project boasts a higher grade of 3.31 million ounces at an average of 1.37 grams per ton (g/t) of gold, surpassing Osino and Tietto, which have grades of 1.08 g/t and 1.0 g/t, respectively.

Despite having explored less than 20% of its project area, Pasofino has already identified a combined Measured and Indicated Resource of approximately 3.3 million ounces of gold in the Dugbe F and Tuzon areas. The company believes that the remaining 80% holds significant potential for further discoveries. In January 2024, Pasofino secured $2.3 million through a non-brokered private placement, enabling further development of the Dugbe Gold Project and the maximization of its value.

The 2022 Definitive Feasibility Study (DFS) for Dugbe F and Tuzon outlined a substantial mineral reserve, supporting an average annual gold production of approximately 173,000 ounces from open-pit mining for a 14-year Life of Mine (LOM). The expected recovery rate is 83%, with an anticipated average annual production of 200,000 ounces for the first five years. This positions Pasofino as an attractive investment opportunity, particularly for those interested in long-term exploration potential.

Companies like Pasofino, Tietto, and Osino each present unique investment opportunities. Pasofino’s large untapped resource, Osino’s stable jurisdiction and expanding resources, and Tietto’s fast track to production offer different advantages. With a market cap of $44 million, Pasofino is notably undervalued compared to Osino’s $237 million and Tietto’s $605 million. As gold prices continue to rise, potentially exceeding $2,300 per ounce by the end of 2024, West Africa remains a promising frontier for gold exploration and investment.