Can you start with an introduction to your Dugbe Gold Project in Liberia? What are some of the key project highlights that we should know?
The 2,078km2 Dugbe Gold Project is in southern Liberia and situated within the southwestern corner of the Birimian Supergroup which is host to most West African gold deposits. The mineral resource estimate dated 17 November 2021, demonstrates total measured and indicated of 3.3Moz with an average grade of 1.37g/t Au, and 0.6Moz in inferred.
The project has a bankable feasibility study completed, with a mineral reserve of 2.7Moz Au using US$1,700 Au price; and delivers stellar economics.
Using the gold price sensitivity table from the feasibility study, the project has a low capex of US$435M; high post tax NPV5 of US$1.674B at US$2,700 Au price, and an IRR @ 54.3%, 14 year mine life, AISC of US$1,055/oz Au and an average production profile of 171,000oz Au pa for 14 year LOM, with over 200,000oz Au pa for the first five years.
The Dugbe project is ready for final permitting now. What are some of your next steps?
The next steps for Pasofino and the Dugbe Gold Project are:
- Update the resource model using a higher gold price for pit shell constraining (possibly higher cut off grade) that will deliver materially different results (larger resource, higher grade)
- Use the updated revised model to update the mine plan
- Update various studies and designs to increase recoveries from 83% to c.90% — through additional met test work, HPGR testing, liberation analysis, and tailings recovery analysis
- Improve the power profile and implement a more cost effective generation of power (diesel + solar, versus LNG)
- Update the master feasibility study and financial model — with revised inputs and outputs, more reflective of the gold price environment and outlook
- Submit the ESIA and RAP for permitting approval
- Submit the updated feasibility study for Class A Mining Licence approval
- Commence pre-construction activities on the ground (roads, bridges, and port rehabilitation)
- Commence community development programmes and other social activities prior to construction
Let’s look at Liberia as an exploration and mining jurisdiction. What should investors and other juniors know before getting involved in projects there?
It is important to understand the country of Liberia first and foremost, to best understand the size and scale of the opportunity for Pasofino to develop the Dugbe Gold Project.
Some facts about Liberia:
- It is the only black state or country in Africa not subjected to colonization and colonial rule
- It is the longest standing African republic
- The country enjoyed relative stability until a rebellion in 1989 escalated into a destructive civil war in the 1990s that did not fully cease until 2003
- The country’s first post-conflict elections, held in 2005, were noteworthy for the election of Ellen Johnson Sirleaf to the presidency, as she was the first woman to be elected head of state in Africa
- Liberia is a member of two regional economic unions—the Mano River Union, a free trade group to which Sierra Leone and Guinea also belong, and the Economic Community of West African States (ECOWAS)
- Population of 5.5M (2023)
- English speaking with six other predominant local languages
- GDP: US$4.24B annually (2023)
- GDP per capita: US$772 per person (2023)
- Heavy presence and history from the United States of America (US)
- Large US Embassy
- Trades in Liberian dollars and USD
The importance of understanding the facts is really to understand and calibrate the risk and the geopolitical stability it has enjoyed since 2005.
Liberia is one of the most stable, secure, and politically sound countries in West Africa, and definitely top three in all of Africa.
There are very few operating mines (six – Class A mining licenses and 30 – Class B mining licenses), and approximately 30 exploration companies conducting work in the country.
The active mining companies in Liberia are generally much fewer in number than other West African countries, but it has a very mature and sophisticated mining infrastructure within its government. Other companies such as Arcelor Mittal, Vale, Avesoro AMEC Liberia, MNG, Sarama Resources, and (historically) BHP have all operated in the country.
Can you provide insights into Pasofino Gold’s current financial position and how you plan to fund future exploration and development?
In March 2025, we entered into a cooperation and support agreement with Hummingbird Resources and Nioko Resources.
Contained within the agreement is a joint funding commitment from Nioko to fund 50.8% of US$10M in 2025 and 50.8% of US$15M in 2026. Pasofino will raise the balance (49.2%) through standard private placements in the market.
We saw you won the Dealmakers Den at Mining Indaba this year with the most promising project on the stage. How has this investor support bolstered the company?
I don’t think the true opportunity has been realized in the market just yet given the stage of development, size and scale of the resource, quality of the project, and the geo-political stability in Liberia. The market has not pieced it all together, to give a proper valuation of the company in the capital markets. I believe it is a matter of when not if, and I think that as we continue to prepare the project, site, and infrastructure for the construction project, the market will play catch up on valuation calibration to comparable companies, and comparable projects.
What are Pasofino Gold’s strategic goals for the coming year? What can investors expect in terms of growth and project advancement?
I think for the next 18 months, we will be focused on various activities to update the feasibility study and prepare the project for a meaningful construction project in 2026-2028.
In summary:
Over the past two or three years, Pasofino Gold, and its Dugbe Gold Project have been a secondary focus to Pasofino’s major shareholder – Hummingbird Resources plc. Now that Hummingbird has been acquired by Nioko Resources, all parties and shareholders recognize the strategic significance of such a large, highly economic gold project in one of the most (if not the most) attractive geopolitical jurisdictions in West Africa. I think that is obvious from the numerous interested parties that we have engaged with in the past six months, who had an interest to acquire the project for value.
This recent cooperation and support agreement signed between Nioko Resources, Hummingbird Resource, and Pasofino Gold, represents a re-birth of the Dugbe Gold Project, now having a strongly aligned partnership, committed joint funding and an operating plan to create transformational value for all shareholders over the next 18 months.
In this current and forecasted gold price environment, Pasofino Gold probably represents the most under-valued gold junior in the market today, given the size, scale, quality, and economic voracity of the current feasibility study. To that end, we have developed a joint path with our major shareholder to unlock that value and build on the already robust nature of the project.
A technical report for the Dugbe Gold Project was prepared in accordance with National Instrument 43-101 and filed on SEDAR+ at www.sedarplus.com and on the company’s website www.pasofinogold.com.
