Pelangio Advised by Detour Gold of Filing of Technical Report
Tue Aug 19, 9:20 AMTORONTO, ONTARIO--(Marketwire - Aug. 19, 2008) - Pelangio Mines Inc. (TSX: PLG.TO)("Pelangio") has been advised by Detour Gold Corporation ("Detour Gold") that it has filed today a Technical Report for the updated National Instrument 43-101 compliant mineral resource estimate for its Detour Lake gold project in northern Ontario announced on July 2, 2008. Detour has provided additional information in the Technical Report, which includes cut-off grade sensitivities ranging from 0.30 to 0.90 g/t gold for the Base Case US$700/oz engineered pit design, a preliminary mining schedule and improvements of the pit slopes. Pelangio also expects to file its technical report today.
Pelangio has a 44.6% equity interest in Detour Gold (20 million shares). Detour Gold issued a press release today, the verbatim text of which follows: "Detour Gold Files Technical Report for Mineral Resource Update at Detour Lake and Provides Cut-off Grades Sensitivities, Preliminary Mining Schedule and Improvements in Pit Slopes Detour Gold Corporation (TSX: DGC.TO) ("Detour Gold" or the "Company") is pleased to report that it has filed today a Technical Report for the updated National Instrument 43-101 compliant mineral resource estimate for its Detour Lake gold project in northern Ontario announced on July 2, 2008. The Company has provided additional information in the Technical Report, which includes cut-off grade sensitivities ranging from 0.30 to 0.90 g/t gold for the Base Case US$700/oz engineered pit design, a preliminary mining schedule and improvements of the pit slopes. The result of this work is described below. Gerald Panneton, President and CEO of Detour Gold commented: "We are continuing to advance Detour Lake towards development and production. The project is remarkably strong at US$700/oz gold price with nearly 10 million ounces grading 1.91 g/t at a cut-off grade as high as 0.90 g/t and up to 15 million ounces grading 1.02 g/t at a cut-off grade as low as 0.30 g/t. This will provide Detour Gold with flexibility during production depending on the gold price environment and will help secure our profitability. The preliminary mining schedule, which supports our expansion from 30,000 tpd to 60,000 tpd in Year 3, shows that Detour Lake will be the largest gold operation in North America. There is potential to further increase the resource base especially to the west of the Calcite Zone and below the former open pit. We are awaiting results for 40% of our Phase II program and our Phase III program of 30,000 metres is underway. We expect to deliver a positive feasibility study as we proceed with a final pit design and reserve estimates, possibly by year-end. It is our goal to make Detour Gold the next premium intermediate gold producer." Cut-off Grade Sensitivities on the Base Case US$700/oz Engineered Pit Design In the press release issued on July 2, 2008, the Company provided sensitivities to gold price for the Base Case (0.50 g/t cut-off grade). The Company has now run sensitivities on a range of cut-off grades for the Base Case. The results clearly indicate that even at a cut-off grade of 0.90 g/t, the deposit still contains a measured and indicated resource of 8.4 million ounces of gold at a grade of 1.95 g/t with an additional 1.7 million ounces at a grade of 1.75 g/t in the inferred category.
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Measured Indicated Measured and Indicated
Category Category Categories
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Cut-off Gold
Grade Tonnes Grade Tonnes Grade Tonnes Grade Ounces
(g/t Au) (millions) (g/t Au) (millions) (g/t Au) (millions) (g/t Au) (000's)
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0.30 54.1 1.32 300.8 1.02 354.9 1.07 12,168
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0.40 45.4 1.50 245.5 1.17 290.9 1.22 11,454
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0.50 38.8 1.68 204.1 1.32 242.9 1.38 10,763
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0.60 33.7 1.86 172.4 1.46 206.0 1.53 10,113
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0.70 29.4 2.03 147.4 1.60 176.9 1.67 9,506
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0.80 26.2 2.19 127.5 1.73 153.7 1.81 8,948
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0.90 23.4 2.35 111.1 1.86 134.5 1.95 8,426
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Inferred
Category
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Cut-off Gold
Grade Tonnes Grade Ounces
(g/t Au) (millions) (g/t Au) (000's)
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0.30 102.6 0.89 2,936
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0.40 80.0 1.04 2,684
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0.50 63.9 1.19 2,452
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0.60 52.5 1.33 2,252
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0.70 43.4 1.48 2,061
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0.80 36.7 1.61 1,901
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0.90 31.1 1.75 1,748
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Note: Gold values are capped at 20 g/t.
Preliminary Mining Schedule A preliminary mining schedule was prepared for the development of the Detour Gold project and is presented below. The mining schedule is based on a mining rate of 30,000 tpd for Year 1 and Year 2, followed by an increase to 60,000 tpd for subsequent mining years until the end of the mine life. The schedule is created using five (5) mining phases, about 3 to 4 years per phase including a starter pit to allow for a higher average grade and a lower stripping ratio to maximize the return on the investment. A cut-off grade of 0.50 g/t is used and the schedule consists of all mineral categories (i.e. measured, indicated and inferred). The preparation of this preliminary mining schedule does not include mining dilution and gold recovery factor.
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PP Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
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Ore (MT) 0 10.82 11.85 21.60 21.60 21.61
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Grade (g/t Au) - 1.25 1.29 1.42 1.17 1.16
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Insitu oz (000's oz) 0 433 493 984 815 805
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Rock (MT) 6.18 41.43 51.81 110.77 121.46 134.74
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Overburden (MT) 15.00 12.50 12.50 12.50 12.50 5.18
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Waste (MT) 21.18 53.93 64.31 123.27 133.96 139.92
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Strip ratio - 4.99 5.43 5.71 6.20 6.47
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Yr 6 Yr 7 Yr 8 Yr 9 Year 10 Year 11
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Ore (MT) 21.61 21.60 21.61 21.58 21.61 21.60
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Grade (g/t Au) 1.33 1.25 1.26 1.30 1.50 1.42
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Insitu oz (000's oz) 924 866 875 903 1,042 990
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Rock (MT) 140.55 144.75 146.73 143.81 142.11 137.90
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Overburden (MT) 0 0 0 0 0 0
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Waste (MT) 140.55 144.75 146.74 143.81 142.11 137.90
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Strip ratio 6.50 6.70 6.79 6.66 6.58 6.38
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Year 12 Year 13 Year 14 Year 15 Year 16 Total
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Ore (MT) 21.61 21.59 21.61 21.59 3.28 306.77
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Grade (g/t Au) 1.25 1.41 1.38 1.54 1.93 1.34
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Insitu oz (000's oz) 871 978 962 1,070 204 13,215
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Rock (MT) 135.70 132.04 126.11 124.34 17.64 1,858
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Overburden (MT) 0 0 0 0 0 70.18
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Waste (MT) 135.70 132.04 126.11 124.34 17.64 1,928
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Strip ratio 6.28 6.12 5.84 5.76 5.37 6.29
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Pit Slope Design Upside Potential Subsequent to the mineral resource update of July 2, 2008, results from acoustic televiewer (ATV) surveys carried out in three exploration holes targeting the footwall slopes indicated that the pit slopes could be steepened to 53 degrees from 49 degrees in certain portions of the footwall. These improvements will be incorporated in the final pit design of the feasibility study currently underway. Further improvements are expected, especially at the west end of the deposit, as the Company completes its infill drill program (remaining Phase II and Phase III) and incorporates them in the US$700/oz engineered pit design. Detailed Engineered Pit Design Resource Estimate (reported on July 2, 2008) On July 2, 2008, the Company reported a mineral resource update based on a detailed engineered pit design. The measured and indicated gold resources increased 125% from 4.8 million ounces to 10.8 million ounces while the inferred gold resources decreased 20% from 3.0 million ounces to 2.4 million ounces. Based on a cut-off grade of 0.50 g/t gold and a gold price of US$700/oz, the in-pit resources included in a detailed engineered pit design is shown below.
June 2008 Detailed Engineered Pit Design Resource Estimate
Base Case US$700/oz
Grade Capped Gold Ounces
Tonnes at 20 g/t Au (capped)
(millions) (g/t Au) (000's)
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Measured (M) 38.8 1.68 2,099
Indicated (I) 204.1 1.32 8,664
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Total (M&I) 242.9 1.38 10,763
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Inferred 63.9 1.19 2,452
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Notes:
(1) The mineral resources are classified as measured, indicated and
inferred, and comply with the CIM mineral resource definitions
referenced in National Instrument 43-101.
(2) Base case assumes a gold price of US$700/oz gold and $US exchange rate
of $1.10.
(3) Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
(4) The quantity and grade of reported inferred resources in this
estimation are conceptual in nature and there has been insufficient
exploration to define these inferred resources as an indicated or
measured resource and it is uncertain if further exploration will
result in upgrading them to an indicated or measured resource category.
Timeline Release of the remaining Phase II drill results (approximately 68,000 metres) is expected over the next six months. The Phase III program of 30,000 metres is currently underway to properly continue the infill of the deposit on a 40 metre by 40 metre grid and to expand the deposit to the west of the Calcite Zone. Detour Gold plans to order its long-lead items (i.e. SAG and ball mills) before the end of month. Ongoing optimization studies are currently underway for the design pit and process design flowsheet. Work is underway for the Environmental Impact Assessment, which is expected to be completed by early 2009. NI 43-101 Compliant Technical Report The Company has filed a NI 43-101 compliant Technical Report on SEDAR, which is also available on the Company's website - http://www.detourgold.com/s/DetourLake.asp#resources. The following Qualified Persons have participated in the preparation of the report: Patrice Live, Eng. of BBA Inc. prepared the fully designed and engineered open pit resource, and provided and reviewed the costs estimates used in the resource estimates; Kurt Breede, P.Eng. of Watts, Griffis and McOuat Limited audited the mineral resource estimate prepared by Thon Consulting and compiled the technical report; Lawrence Melis, P.Eng. of Melis Engineering Ltd. supervised and conducted all the metallurgical work done to date; and Luiz Castro, P.Eng. of Golder Associates supervised and conducted all the geotechnical work done to date and provided the pit slope information used in the designed and engineered open pit resource. All the names mentioned above have reviewed the content of this news release. All samples from the Company's drilling programs are processed and analyzed at SGS Minerals Services in Don Mills, Ontario (accredited to ISO/IEC 17025). For further information, please contact: Gerald Panneton, Laurie Gaborit President and CEO Director Investor Relations Tel: (416) 304-0800 Tel: (416) 304-0581Detour Gold Corporation, Royal Bank Plaza, North Tower, 200 Bay Street, Suite 2040, Toronto, Ontario M5J 2J1 Forward-Looking Information This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Specifically, this press release includes forward-looking statements regarding: the Company's planned drilling program and estimate of the quantity and quality of its mineral resources. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, the uncertainties involved in interpreting geological data and other risks involved in the gold exploration and development industry as well as those risk factors listed in the Company's Annual Information Form (AIF), Item 4.4 -- "Description of Business - Risk Factors" filed on SEDAR. Readers are cautioned that the list of factors included in the AIF is not exhaustive of the factors that may affect the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the following assumptions: the Company's exploration and development activities on the Detour Lake Property will proceed in accordance with the Company's current timetables; and the Company's resource estimates, geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral resources) and operational and price assumptions on which the resource estimates are based, are accurate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. Information Concerning Estimates of Mineral Resources This news release uses the terms 'measured', 'indicated' and 'inferred' resources. Detour Gold advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable." About Pelangio Pelangio is a gold exploration company active in the top-ranked mining jurisdictions in the world, Canada and Ghana. Pelangio's main focus is to advance its exploration programs on its premier land position in Ghana totaling 290 square kilometres, located on strike and adjacent to AngloGold Ashanti's Obuasi gold mine. Pelangio also has a 44.6% equity interest in 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. Reliance on Detour Gold and Forward-Looking Statements The information contained in this press release is a verbatim extract of the press release issued by Detour Gold. Although Pelangio believes the information included in the press release to be generally reliable, the data has not been independently verified and Pelangio does not assume any liability for the accuracy or completeness of such information. Furthermore, as noted above in the verbatim extract, the press release may contain forward-looking information within the meaning of applicable securities laws. Such information includes the statements contained in the verbatim extract regarding Detour Gold's exploration and drilling plans, plans to update the mineral resource and the estimation of mineral resources and are subject to risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The risks include those that are set out above in the verbatim extract and those contained in Detour Gold's annual information form, Item 4.4 - "Description of Business - Risk Factors" filed on SEDAR as noted above. See also, the risks set out in Pelangio's annual information form, management information circular and quarterly and annual management's discussion and analysis. There is no assurance that the forward-looking information contained in the press release will prove to be accurate. Accordingly, readers should not place undue reliance on the forward-looking information. All of the information contained in the press release is qualified by this cautionary statement. ContactsIngrid Hibbard
Pelangio Mines Inc.
President & CEO
(905) 875-3828 or Toll Free: 1-877-746-1632
Warren Bates
Pelangio Mines Inc.
Vice President Exploration
(905) 875-3828 or Toll Free: 1-877-746-1632
Email: info@pelangio.com
Website: www.pelangio.com
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