Pasofino reports ‘strong’ feasibility study results for Dugbe gold project in Liberia

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(Kitco News) – Pasofino Gold (TSXV: VEIN) today announced positive results of the Dugbe gold project feasibility study (FS), which is located in Southern Liberia.

The company said that the project’s FS delivers strong financial metrics, with pre-tax NPV5% of $690M ($530M post-tax) and 26.35% IRR (23.6% post-tax) at a base gold price of $1,700/oz, adding that the project boasts fast capital payback of approximately 3.5 years from start of production.

Importantly, the company noted that the project has significant mineral reserves of 2.76 million ounces of gold, with potential for further expansion.

Pasofino also pointed out that 2.27 million gold ounces will be produced over a 14-year life-of-mine, with average annual production of 200,000 ounces for the first 5 years.

More importantly, according to the company’s statement, subject to the filing by Pasofino of the FS, Hummingbird has confirmed that the FS has been carried out to the agreed standards and will satisfy the technical requirements to allow Pasofino to earn its 49% economic interest in the project (prior to the issuance of the Government of Liberia’s 10% carried interest).

Further, both Pasofino and Hummingbird will have the right to exercise the option to consolidate ownership by converting Hummingbird’s 51% ownership of the project for a 51% shareholding in Pasofino, such that Pasofino would own 100% of the project (prior to the government of Liberia’s 10% carried interest).

CEO Ian Stalker commented, “I am extremely pleased with the outcome of the FS, particularly given the current environment of higher raw material, capital and energy costs as a result of inflation and other global dislocations. The Dugbe gold project is now a significant, viable and economically robust gold project, with substantial exploration upside potential to improve upon the already large 4Moz resources base.”

Pasofino Gold is a Canadian-based mineral exploration company. Pasofino, through its wholly-owned subsidiary, is earning a 49% economic interest (prior to the issuance of the Government of Liberia’s 10% carried interest) in the Dugbe gold project, located in Liberia.

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