Liberia, a nation rich in mineral resources, is experiencing a gold rush. The country boasts deposits of gold, diamonds, and iron ore, with the mining sector playing a vital role in its economy. The sector’s significance is highlighted by the fact that iron ore revenues accounted for nearly half of Liberia’s earnings before 1990. While small-scale artisanal mining has historically dominated gold extraction, the past two decades have seen a surge in investments from major players like ArcelorMittal, Liberty Gold, and Hummingbird Resources, attracting others like Pasofino Gold to explore Liberia’s potential.
Pasofino Gold, recognizing Liberia’s unique characteristics, extensive exploration conducted by the company, a completed feasibility study, and positive economic projections, views the country as a prime candidate for gold mining. This optimism is fueled by Liberia’s pro-mining stance, which has created a favorable environment for mining operations. The government’s commitment to transparency and stability is evident through its adherence to the Extractive Industries Transparency Initiative (EITI) since 2011, making Liberia the first African country to comply with its regulations. Further solidifying its position as a stable investment destination, Liberia’s mining laws are based on Australian mining regulations, ensuring clarity and consistency for the industry.
With a high level of foreign direct investment (FDI) relative to its GDP, Liberia stands out as an attractive investment destination in West Africa. With FDI exceeding $18 billion, Pasofino Gold views Liberia as a significant gold exploration frontier.
The centerpiece of Pasofino Gold’s operations in Liberia is the Dugbe Gold Project, spanning a vast 2,078 square kilometers (802 square miles) in southern Liberia, a region renowned for its rich gold deposits. The project encompasses 15 or more targets, with only five of them drilled so far. Two of these targets have yielded the Tuzon and Dugbe F deposits, initially discovered by Hummingbird in 2009 and 2011, respectively. Ongoing efforts are underway to optimize the feasibility study, which was completed during the COVID-19 pandemic amidst the challenges of that period.
Pasofino Gold operates the project under a 25-year agreement with the Liberian government. This agreement includes a 3% royalty rate on gold production, a 25% income tax rate, and grants the government a 10% stake in the project. Despite exploring less than 20% of the project area, Pasofino Gold reports promising discoveries, including the Dugbe F and Tuzon areas, which collectively hold a Measured and Indicated Resource of approximately 3.3 million ounces of gold. Multiple drill-ready targets exhibit abundant gold mineralization at the surface, showcasing the project’s immense potential.
With such substantial resources, the Dugbe Gold Project is a key asset for Pasofino Gold and holds significant promise for future growth. The company emphasizes its commitment to building strong relationships with the people and communities in the region, aiming to contribute to Liberia’s emergence as a leading gold producer.
