Why Pasofino Gold Is Investing In Developing Liberia As A Strong Contender In The Gold Market
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By Faith Ashmore, Benzinga
The historical landscape of gold investment has been marked by its status as a highly valuable and sought-after precious metal. China has emerged as the world's largest producer of gold, accounting for about 10% of global supply in 2022. Other major gold-mining countries include Australia, Russia, the United States, Canada and South Africa. These nations have rich gold reserves, advanced mining technologies and well-established mining industries.
Another potentially wealthy resource, Pasofino Gold (TSX-V: VEIN) is hoping to bring Liberia into the gold mining conversation alongside other locations in West Africa. The company sees Liberia as a strong candidate for gold mining due to its many unique characteristics, the extensive exploration performed by the company to date, their completed feasibility study and the positive economics resulting from the same. Liberia, with a population of 5.3 million, stands as Africa's oldest modern republic, having completed four elections since 2003.
The government of Liberia has consistently shown a pro-mining stance, creating a favorable environment for mining activities. Since 2011, Liberia has been compliant with the Extractive Industries Transparency Initiative (EITI), becoming the first African country to adhere to its regulations. The country's mining laws are designed based on Australian mining regulations, providing stability and clarity for the industry. Not to mention, mining is playing an increasingly crucial role in Liberia's economy, with its contribution to GDP rising to $621.80 million in 2022 from $545.30 million in 2021. Pasofino Gold considers Liberia as West Africa's last untapped gold exploration frontier.
Developments In The Region
Pasofino Gold recently announced significant developments in their Dugbe gold project. On the back of extensive exploration already completed and the completed feasibility study in 2022, they have recently started an exploration program in a specific target area called Bukon Jedeh and have already begun fieldwork and mobilized the drilling rig. The drilling itself is expected to begin in March 2024. Bukon Jedeh is located approximately 10 kilometers southeast of Pasofino's Dugbe Gold Project, which boasts a Measured and Indicated Mineral Resource Estimate of 3.3 million ounces.
Despite the area's rich gold deposits and a long history of production, Pasofino Gold believes that the geology and potential of Bukon Jedeh have not been thoroughly understood. Back in 2012 and 2013, some initial Reverse Circulation (RC) drill holes were conducted in Bukon Jedeh. These drill holes revealed high-grade intervals, but no further follow-up was done at the time. This was largely due to the company's focus shifting to other gold deposits. However, in August 2022, Pasofino Gold revisited Bukon Jedeh and collected rock samples, which returned promising results of up to 31 grams per ton of gold. The Birimian area, where the Dugbe project is situated, represents one of the most productive gold-bearing terrains globally, with more than 20 new mines established in the past two decades.
Helping Develop Liberia As A Strong Contender In The Gold Market
Pasofino Gold shares that only a small percentage of Liberias potential has been explored/mined. The company has developed strong relationships with the people and community in the region and is excited about developing Liberia as a strong contender in the gold market. With a remarkable level of Foreign Direct Investment (FDI) compared to GDP, Liberia stands as a potentially attractive potential investment destination in West Africa. With FDI surpassing $18 billion, the country's dedication to economic growth and development is clear. The economic landscape of West Africa has also experienced growth since the early 1990s, with collective GDP soaring from $105 billion to over $659 billion in 2020. Nigeria, Ghana and Cte d'Ivoire the region's largest economies accounted for one-quarter of Africa's GDP in 2020. Pasofino Gold believes that with a strong gold economy, Liberia could become an even larger economic force in West Africa making its investors wealthier in the process, as well.
Featured photo by Wilhelm Gunkel on Unsplash.
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