Liberia, a nation rich in mineral resources, is gaining prominence in the gold mining sector, thanks to significant investments and exploration efforts by companies such as Pasofino Gold (OTC: EFRGF). Historically, small-scale artisanal miners have dominated gold mining in Liberia. However, in the last two decades, substantial investments from industry giants like ArcelorMittal, Liberty Gold, and Hummingbird Resources have transformed the landscape.
Pasofino Gold sees immense potential in Liberia's gold mining sector. The company has conducted extensive exploration and completed a feasibility study, revealing positive economic prospects. With a population of 5.3 million, Liberia is Africa's oldest modern republic and presents an attractive environment for mining activities due to its pro-mining government stance.
Since 2011, Liberia has complied with the Extractive Industries Transparency Initiative (EITI), making it the first African country to do so. The nation's mining laws, modeled on Australian regulations, provide stability and clarity for investors. With Foreign Direct Investment (FDI) surpassing $18 billion, Liberia stands out as a promising destination for investment in West Africa.
Pasofino Gold's flagship project, the Dugbe Gold Project, covers 2,078 square kilometers (802 square miles) in southern Liberia, an area renowned for its rich gold deposits. The project includes multiple targets, with only five drilled so far. Of these, the Tuzon and Dugbe F deposits were initially discovered by Hummingbird in 2009 and 2011, respectively.
Operating under a 25-year agreement with the Liberian government, which includes a 3% royalty rate on gold production and a 25% income tax rate, Pasofino reports promising discoveries. The Dugbe F and Tuzon areas alone hold a combined Measured and Indicated Resource of approximately 3.3 million ounces of gold. Additionally, multiple drill-ready targets show abundant gold mineralization at the surface.
Despite exploring less than 20% of the project area, Pasofino believes the Dugbe Gold Project holds substantial potential for future growth. The company has established strong relationships with local communities and aims to contribute to developing Liberia as a significant player in the global gold market.
The implications of this development are far-reaching. For Liberia, it means potential economic growth, job creation, and increased foreign investment, which could significantly boost the country's economy. For the global gold industry, Liberia's untapped resources represent a new frontier that could diversify and increase global gold supply.
As Pasofino Gold continues to unlock Liberia's gold potential, the country's mining sector could see substantial growth, positioning Liberia as a key contender in the gold market.
