TORONTO, March 29 /CNW/ - Pelangio Mines Inc. (PLG: TSX) ("Pelangio" or
the "Company") announces 2007 exploration plans for its 100% owned Seeley Lake
and Black Township properties located in Ontario. Pelangio has also entered
into a letter of intent for the sale of its 100% interest in the Matheson West
and East property to Matamec Explorations Inc. ("Matamec"). The transaction is
subject to acceptance of the TSX Venture Exchange.
The Seeley lake property is located approximately 14 kilometres northeast
of Marathon, near the Hemlo gold camp. In 1997, Pelangio completed an induced
polarization (IP) survey and four diamond drill holes totaling 623 metres
targeting a few anomalies. The best hole returned 4.7 g/t gold over 1 metre
within a 30 metre anomalous zone. Copper and zinc anomalies were also
encountered in several drill holes. Pelangio is planning a 1,500 metre
drilling program to further evaluate this gold mineralized zone and to test
several IP anomalies. The budget for this program is estimated at $310,000.
The Black Township property is located between the towns of Timmins and
Kirkland Lake, approximately 10 kilometres south of Ramore. Pelangio has not
done any exploration on the property since its acquisition. Information from
previous reports dating from the 1980s indicates the presence of a
north-trending shear zone over a projected strike length of approximately 300
metres. Some of the better gold values included 0.23 oz/t over 1.5 metres from
a channel sample and 0.36 oz/t from a grab sample. Another parallel zone
located 200 metres to the north returned gold values ranging from 0.03 to
0.10 oz/t. Some near-surface drilling is reported from the adjacent claim to
the east but results are not available.
The Company has expanded the property by staking an additional two claims
(480 acres). In 2007, Pelangio is planning geophysical surveys and prospecting
in the target areas described above. Pending the results of this first phase,
a 1,500 metre drilling program would follow. The budget for this program is
estimated at $230,000.
Matheson West and East
Pelangio has agreed to sell its 100% Matheson East and West properties to
Matamec. In consideration, Matamec will issue 100,000 common shares to
Pelangio and spend $250,000 in exploration over the next five years. Pelangio
will retain a 1% net smelter return ("NSR"), which can be purchased by Matamec
for $1,000,000 and 100,000 shares.
The property comprises two non-contiguous parcels of land located
approximately 22 road kilometres northeast of Timmins. The property is subject
to a 2% NSR to Asarco Exploration Company of Canada Ltd. and 1/2% NSR to
Kevin Filo, P.Geo., is the Qualified Person for the purpose of this news
Pelangio is a gold exploration company active in the top-ranked mining
jurisdictions in the world, Canada and Ghana. The Company's main focus is to
advance its exploration programs on its premier land position in Ghana
totaling 411 square kilometres, located on strike and adjacent to AngloGold
Ashanti's Obuasi gold mine.
Pelangio also has a 50% equity interest in Detour Gold Corporation
("Detour Gold"), which controls the Detour Lake advanced exploration project.
The near-term objective of Detour Gold is to advance the Detour Lake project
to development and production.
Forward Looking Statements
Certain statements herein may contain forward-looking statements and
forward-looking information within the meaning of applicable securities laws.
Forward-looking statements or information appear in a number of places and can
be identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate" or "believes" or variations
of such words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements and information include statements
regarding our proposed plans in respect of our Ghana property and our interest
in Detour Gold and are subject to such forward-looking risks, uncertainties
and other factors which may cause our actual results, performance or
achievements, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statement or information. Such risks include gold price
volatility, change in equity markets, political developments in Ghana, the
uncertainties involved in interpreting trenching and channel sampling results
and other geological data, increase in costs and exchange rate fluctuations
and other risks involved in the gold exploration and development industry. See
our annual information form, management information circular, and our
quarterly and annual management's discussion and analysis for additional
information on risks and uncertainties relating to the forward-looking
statement and information. There can be no assurance that a forward-looking
statement or information referenced herein will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements or information. Also, many of the factors are
beyond the control of Pelangio. Accordingly, readers should not place undue
reliance on forward-looking statements or information. All forward-looking
statement and information herein are qualified by this cautionary statement.
For further information:
For further information: Ingrid Hibbard, President & CEO - Pelangio
Mines Inc., Tel: (905) 875-3828, Fax: (905) 875-3829, Email:
firstname.lastname@example.org; Laurie Gaborit, Investor Relations - Pelangio Mines
Inc., Tel: (416) 350-2112, Fax: (905) 875-3829, Email: email@example.com