Pangea boosts reserves at Fenn-Gib gold property

Shareholders at the recent annual meeting of Pangea Goldfields (TSE) were informed of developments on several properties being explored by the junior company.

Drilling at the Fenn-Gib property in northeastern Ontario has now outlined a total reserve of 17.42 million tons averaging 0.06 oz. gold per ton, at a cut-off grade of 0.29 oz. per ton. This equates to a reserve of 996,000 oz., which represents an increase of 50,000 oz. from the last report.

Mineralization is hosted in two zones, and 65% of the reserve is within the first 200 metres below surface. The two zones comprise a low-grade, shallow zone know as the Main zone as well as a high-grade, deep zone known as the Deformation zone.

Pangea is contemplating the extraction of ore from the Main zone via an open pit. Metallurgical testing, to be part of a pre-feasibility study, has been completed. A total of six composite bulk samples of NQ core was taken in order to complete metallurgical tests using both cyanide and flotation techniques.

Initial results from the Main zone indicate recoveries of 95.4% in the flotation concentrate. Pangea projects that the Fenn-Gib property could ultimately support an 80,000 oz.-per-year operation.

Meanwhile, in Tanzania, Pangea has compiled all data from the first stage of exploration on its Buly South property. The company has discovered gold mineralization within saprolite, and the gold is thought to have been derived from a sulphide-bearing, quartz-graphite horizon.

The discovery is along strike with Sutton Resources’ (VSE) Bulyanhulu gold deposit, which hosts a reserve of 1.5 million oz. in a similar geological setting.

Two reverse circulation drill holes completed by Pangea intersected 0.05 oz. gold per ton over 102 ft. and 0.02 oz. over 233 ft. Both holes ended in mineralized saprolite.

Exploration pitting on the Buly South property is now under way. The work will be completed in order to extend the gold-in-soil geochemical anomaly beyond its current 4-mile length. After this program is completed, the company will start the next phase of drilling, expected to begin in July.