Pelangio Mines Inc.
539 Moorelands Cres.
Milton, Ontario L9T 4B2
Phone (905) 875-3828
Fax (905) 875-3829
NEWS RELEASE
PELANGIO REPORTS ENCOURAGING RESULTS FROM FIRST SURFACE
EXPLORATION PROGRAM AT ITS OBUASI GOLD PROPERTY IN GHANA
TORONTO, Ontario (October 3, 2006) – Pelangio Mines Inc. (PLG: TSX) (“Pelangio”
or the “Company) today reported initial results from its surface exploration activities
conducted between April and August 2006 at its Obuasi gold property, located on strike
and adjacent to Anglogold Ashanti Obuasi gold mine in Ghana, West Africa.
Pelangio's first exploration program on its Obuasi gold property focused on two of the
four mineral concessions, namely Kyereboso #2 and #3. Pelangio excavated 24
trenches totaling 3,500 horizontal metres and three water wells totaling 50 vertical
metres (refer to Figure 1). Trench location was based on previously identified gold soil
anomalies and trench work carried out in 2004 by Randgold Resources Inc.
(“Randgold”). The trenching program was designed to evaluate a variety of targets
within the three major structural trends: (1) extension of the Obuasi "Main Mine" trend,
which is projected to extend onto Pelangio’s property over a strike length of
approximately 10 kilometres, (2) extension of the Gyabunsu trend, located southeast of
the Main Obuasi mine, which extends into Pelangio’s property over a strike length of 18
kilometres, and (3) extension of the Central trend, which hosts the Chirebroso gold
deposit located 1 kilometre southwest of the property boundary (historical inferred
resource of 235,000 ounces of gold from surface to a depth of 150 metres, noncompliant with NI 43-101 standards).
Results of the surface exploration program for the Old Akrofuom and Anyinabrim target
areas, both located on the extension of the Obuasi “Main Mine” trend are reported
below. Further information on these results is available on the Company’s website at
www.pelangio.com/Properties/Obuasi Property. The Company plans to release the
remaining results of its exploration program in the coming weeks.
Previous limited exploration work by Randgold and the recent property evaluation by
SRK Consulting Canada indicated that the main trend of Anglogold Ashanti’s Obuasi
gold mine extends onto Pelangio’s property for approximately 10 kilometres. Pelangio
focused in two general areas along the trend based on the results obtained from
Randgold’s soil survey and trenching programs. The area has significant topographic
relief and poor accessibility.
Old Akrofuom Area
The Old Akrofuom target area is located approximately 6 kilometres north-northeast of
the property boundary with Anglogold Ashanti Obuasi mine property.
At the Old Akrofuom Village, visible gold, in the form of nuggets, spheres and dust,
is picked by the townspeople from the gutters running through the village during periods
of rain (visit Pelangio’s website for photos). Examination of this gold by Pelangio also
1/5
indicated that it occurs as platings and veinlets within quartz, and nuggets within mottled
zone laterite in a few mineralized samples. The village sits on a knoll, a local
topographic high, with saprolite along with extensive quartz veining exposed right at
surface. Based on these observations, Pelangio collected channel samples at various
depth levels along the line of possible gold mineralization. The channel samples were
taken at 1 metre intervals along an east-west sampling line, both at surface and at 10
centimetres below. Highlights of the channel sampling program are summarized below:
From surface:
 4.10 g/t Au over 4 m (from 41 to 45 m E) or 2.49 g/t Au over 8 m (from 41 to 49 m E)
 3.42 g/t Au over 34 m (from 88 to 122 m W) including 50.41 g/t Au over 1 m (from
103 to 104 m W)
From 10 cm below surface:
 3.19 g/t Au over 3 m (from 41 to 44 m E)
 6.98 g/t Au over 23 m (from 94 to 117 m W) including 21.75 g/t Au over 2 m (from
103 to 105 m W)
A follow-up trench with samples collected at depths of 1.5 to 2.0 metres did not
encounter the gold mineralization found at surface. This may indicate the possibility of
laterite gold enrichment or saprolite (top of bedrock) gold depletion and/or the presence
of shallow plunging mineralization. Further investigation of this promising area will follow
to determine the nature and controls of the gold mineralization to define a potential
drilling target. Pelangio believes that minimal or no exploration work was conducted in
this area prior to Pelangio’s work.
Pelangio excavated an additional five trenches (1,000 metres), northwest and southeast
of the Old Akrofuom Village at intervals of 1 kilometre (two trenches to the northwest
and three to the southeast of the village), testing several high gold soil anomalies
obtained by Randgold. Only low gold values were encountered in the saprolite. At two of
the trench sites, High Grade trench and the Old South trench, old galamsey (artisinal)
workings were encountered along with excavating tools with residual mercury amalgam.
The galamsey workings were located within the laterite just above the saprolite surface.
The High Grade trench was excavated on a 14.7 g/t gold soil value obtained from
Randgold soil survey.
Further investigation will be required at the Old Akrofuom target area. Pelangio is
planning to drill this target since there is a possibility that the "top of the bedrock" gold
has been depleted during the lateritization process (explaining the anomalous values
obtained in the trenches) and potentially gold mineralization could be found below.
Anyinabrim Area
Pelangio excavated a total of five trenches (650 metres) in the Anyinabrim target area
on the projected strike extension of the Obuasi “Main Mine” trend, within 3 kilometres
from the property boundary.
The best results from this area came from the Schoolhouse trench (200 metres) which
encountered 0.11 g/t Au over 51 metres (from 21 to 72 m N) from a wide section of
graphitic phyllites. The Ridgetop Outcrop trench, which lies 400 metres east of the
Schoolhouse trench, returned 0.24 g/t Au over 6 metres (from 53 to 59 m N) from mafic
2/5
volcanics containing folded quartz veins and pyrite. These results are encouraging as it
demonstrates the possibility of finding the contact between the mafic volcanics and the
graphitic phyllites, which is the host rock environment of the Obuasi gold mine.
The other three trenches (150W, 300W, 450W), located at 150 metre intervals
immediately adjacent to the Obuasi mine property boundary, returned only low gold
values. Graphitic schists with large quartz vein structures (up to 6 metres in width) were
observed in the trenches. These trenches are located 600 metres to the southwest of
the Schoolhouse trench. Results from Randgold Trench 12, located east of Pelangio’s
trenches, are unknown.
Ongoing Exploration Work
Pelangio has commenced line cutting and soil geochemical surveys on the Meduma and
New Edubiase concessions. This work is expected to be completed by late fall. A
historic stream sediment geochemical survey on the New Edubiase concession had
identified a target area where Pelangio intends to focus.
Intensive prospecting and infill soil sampling will be initiated in the Obuasi "Main Mine"
trend area to identify higher grade gold targets starting in the area of the Schoolhouse
trench where wide, +100 ppb gold mineralization was encountered. The presence of
mafic volcanic rocks in close proximity to graphitic phyllites is very encouraging,
highlighting the potential to discover Obuasi-style mineralization.
Pelangio will be evaluating a number of targets this fall and expects to start a drilling
program at the beginning of 2007.
Quality Assurance/Quality Control and Qualified Person
Analytical work is carried out at the independent Transworld Laboratories in Tarkwa,
Ghana. All gold assaying was performed as fire assays with atomic absorption
measured finishes using 50 gram aliquot charges and detection limit of 1 pbb (part per
billion) gold. Pelangio inserted its own standard samples into each sample batch for
quality control of the analytical results.
Pelangio’s exploration program in Ghana is being managed and supervised by Chris
Pegg, P. Geo, consultant for the Company, Qualified Person within the meaning of
National Instrument 43-101. Mr. Pegg is responsible for the technical information in this
release and has verified the data disclosed in this release.
About Pelangio
Pelangio is a gold exploration company active in the top-ranked mining jurisdictions in
the world, Canada and Ghana. The Company focuses on the acquisition and exploration
of under-valued or early stage exploration prospects located on world-class gold belts,
where the potential for discovery can provide a significant return on investment.
The Company recently entered into an Asset Purchase Agreement (August 21, 2006)
whereby its advanced exploration stage Detour Lake project will be transferred to Detour
Gold Corporation (“Detour Gold”), a newly formed company, part of the Hunter
Dickinson group of resource companies. A new study, announced on September 22,
2006, outlined a multi-million ounce resource (indicated resource of 20.0 million tonnes
3/5
grading 2.14 g Au/t containing 1,379,500 ounces and inferred resource of 35.4 million
tonnes grading 1.8 g Au/t containing 2,035,650 ounces) at the Detour Lake Mine
property (former Detour Lake mine, which produced 1.8 million ounces of gold). Subject
to the successful completion of an IPO (initial public offering) by Detour Gold, Pelangio
will have approximately a 47% equity interest in the company allowing Pelangio to
maintain upside exposure to the project.
Pelangio’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 having reserves of 8.6 million ounces of gold. The mine has
produced over 30 million ounces of gold since mining operations started in 1897.
For additional information, please visit our website at www.pelangio.com or contact:
Ingrid Hibbard, President & CEO – Pelangio Mines Inc.
Tel: 905-875-3828 / Fax: 905-875-3829 / Email: ihibbard@pelangio.com
Laurie Gaborit, Investor Relations – Pelangio Mines Inc.
Tel: 416-350-2112 / Fax: 905-875-3829 / Email: lgaborit@pelangio.com
Martti Kangas, Investor Relations – The Equicom Group Inc. (Toronto)
Tel: 416-815-0700 ext. 243 / Fax: 416-815-0080 / Email: mkangas@equicomgroup.com
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 exploration plans and exploration results with respect to our
Obuasi gold property, the estimation of mineral resource, the sale of the Detour Lake Property
and the issuance of shares in connection with the sale 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, failure to satisfy the conditions of closing
and other risks involved in the gold exploration and development industry. See our 43-101
Technical Report dated September 21, 2006, our annual information form 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.
.
4/5
Figure 1. Pelangio 2006 Surface Exploration Program at the Obuasi Property
5/5