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Pelangio Exploration Reports New Gold Discovery at Manfo Property, Ghana

Pelangio Exploration Inc. (TSX VENTURE:PX) has announced a third gold discovery at the Manfo Property in Ghana, including further near-surface, high-grade drill results from Pokukrom East.

Highlights of the five diamond drill holes totaling 881 metres reported today include:

  • 24.7 grams per tonne (g/t) gold (or 13.24 g/t cut to 30 g/t) over 5 metres (SPDD-088) starting from 35 metres;
  • 1.64 g/t gold over 33 metres (SPDD-085) starting from 98 metres, 215 metres north of SPDD-088;
  • 1.03 g/t gold over 46 metres (SPDD-089) starting from 56 metres, 505 metres north of SPDD-088;
  • Today's results are approximately 500 metres east of the 8.6 g/t over 12 metres (SPDD-084) intersection reported from Pokukrom West and four kilometres northeast of the 1.5 g/t over 61 metres intersection (SPDD-079) reported from Nfante West (see press releases dated September 16th and September 7th, 2010, respectively);
  • Assays pending on five further holes from Pokukrom West and Nfante East.

"Our recent drilling at the Manfo Property suggests that we are in a major gold bearing system similar to those hosting Sefwi Belt mines such as Newmont's Ahafo and Kinross' Chirano," stated Warren Bates, Senior Vice President Exploration. "Each of those mines is composed of numerous deposits of varying size and grade spread over a considerable strike length. Today's results include exceptional gold grades and widths and I am particularly pleased to have hit near-surface, high-grade gold on two widely spaced targets, Pokukrom West and now Pokukrom East. Additionally, our drilling indicates bulk tonnage potential along a minimum 500-metre strike length of the 1,300-metre long Pokukrom East anomaly. We are still in the early stages of our exploration program, but with separate yet geologically-related discoveries and another 5,000 metres of drilling starting shortly, we are eager to realize the full potential of the Manfo Property."

"We now have three discoveries to pursue on the Manfo Property," added Ingrid Hibbard, President and Chief Executive Officer. "We have drilled tremendous intersections at Nfante West, Pokukrom West and Pokukrom East, with yet further assays pending from our fourth target at Nfante East. We look forward to more great results through the remainder of the year and into 2011."

Summary of Results

The five holes reported today were drilled on three sections over a strike length of approximately 500 metres. Each hole was drilled at azimuth 117° and a -50° dip, other than SPDD-089, which was drilled at a -45° dip. Holes SPDD-085 and -086 were drilled in the central portion of the 1,300-metre long Pokukrom East anomaly, with a 290-metre step-out to the north (hole SPDD-089) and 215 metre step-outs to the south (holes SPDD-087 and -088) along a north-northeast axis. Holes SPDD-085 and -087 were spotted as 50-metre step-backs from holes SPDD-086 and -088, respectively.

Significant gold mineralization at broad intervals was intersected on each of the sections along strike. Each section indicates bulk tonnage potential, with holes SPDD-087 and -088 being the most immediately compelling as hole -088 collared in 7 metres of 1.06 g/t gold that appears to be related to the mineralization in hole -087, suggesting down-dip continuity of the mineralized zone. The mineralization is hosted in pyritic quartz-sericite schist, similar to the unit intersected in holes SPDD-083 and -084 at Pokukrom West. The sericitic unit is hosted in a mafic volcanic intruded by small granitoid bodies.  Mineralization in the five metre high-grade section of SPDD-088 is hosted in a quartz-pyrite vein stockwork in quartz-sericite pyrite schist.

Pelangio's exploration on the Manfo Property to date has focused on four targets in an approximately 10 square kilometre area, though many other targets have been identified or are currently being delineated elsewhere on the property. The Sika North target, for example, located approximately 3.5 kilometres north of Pokukrom West, comprises three separate anomalies measuring 200, 400 and 375 metres along strike, respectively, and is contourable at up to 100 ppb gold. Additionally, the Company has interpreted a 10 kilometre trend of widely spaced anomalies from geochemical and geophysical surveying, approximately two kilometres northwest of the drilling completed to date. Geochemical samples were collected on the trend at 800-metre intervals and appear to be related along strike. Further surveying at tighter spacing will be conducted in the near future to define the target anomalies for drilling in upcoming programs.

Drill Program Progress

Pelangio has completed an initial 16-hole drill program totaling 2,379-metres on the Manfo Property. Assays are pending on five holes totaling 690.50 metres from the Pokukrom West (three holes, 346.50 metres, including one hole abandoned at 51.5 metres due to poor ground conditions) and Nfante East (two holes, 344 metres) areas. The encouraging drilling results encountered to date have enhanced the Company's planning of the second phase, 5,000-metre drill program, which is now expected to commence in mid-October.

Quality Assurance/Quality Control and Qualified Person

The drill holes reported in this press release were drilled using HQ (63.5 mm) and NQ (47.6 mm) sized diamond drill bits. Company security is provided at the drill site. Contractors working for Pelangio conducted all logging and sampling. The core was logged, marked up for sampling using standard lengths of one metre, then split into equal portions using a diamond saw. One half of the core was left in the original core box and stored in a secure location at the Pelangio compound in Tepa, Ghana. The other half was sampled, placed into sealed bags and securely stored at the site until it was shipped to the ALS Chemex laboratory in Kumasi, Ghana. The core was dried and crushed by ALS Chemex and a 150-gram pulp was prepared from the coarse crushed material. ALS Chemex conducted routine gold analysis using a 50 gram charge and fire assaying with atomic absorption finish. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream at the rate of one per every 20 samples. In addition, ALS Chemex inserted one preparation blank and certified reference material for every 20 samples, and ran one duplicate analysis every 20 samples.

The exploration program at the Manfo Property is overseen by Warren Bates, P. Geo. (Ontario), a Qualified Person within the meaning of National Instrument 43-101. Mr. Bates has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information.


Pelangio Exploration Inc.


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