Gold mining has long been a cornerstone industry in West Africa, and the region produced more than 324 metric tons of gold in 2021. Ghana, Burkina Faso, and Mali have been leading this charge, accounting for 33% of Africa's gold production. However, the focus is shifting to less explored countries such as Liberia, where Pasofino Gold (OTC: EFRGF) is making significant strides with its Dugbe Gold Project.
Pasofino Gold's Dugbe Gold Project is situated in the Birimian geological province, known for hosting the majority of West Africa's gold deposits. The project covers 2,302 square kilometers in Liberia's Sinoe County, about 90 kilometers from the port of Greenville. Despite its promising location, the Dugbe Gold Project remains largely underexplored, with less than 20% of the area thoroughly examined to date.
Compared to other projects in the region, Pasofino's Dugbe Gold Project boasts a higher grade of gold resources, with 3.31 million ounces at an average of 1.37 grams per ton (g/t) Au. This contrasts with Osino Resources Corp.'s Twin Hills Project in Namibia and Tietto Minerals' Abijar Project in Ivory Coast, which have grades of 1.08 g/t Au and 1.0 g/t Au, respectively.
The Dugbe Gold Project has already shown considerable success in its explored areas, notably Dugbe F and Tuzon, which hold a combined Measured and Indicated Resource of approximately 3.3 million ounces of gold. The company believes the remaining 80% of the project area holds significant potential for further discoveries, which could substantially increase its gold resources.
Pasofino's Dugbe project is supported by a recent $2.3 million private placement, enabling further development and value maximization. The 2022 Definitive Feasibility Study (DFS) defined a large mineral reserve that supports an average annual gold production of 173,000 ounces from open-pit mining, with an expected recovery rate of 83% and a 14-year Life of Mine (LOM).
In comparison, Osino's Twin Hills Project and Tietto's Abijar Project are also making headway. Osino is focused on continuous drilling campaigns to improve resource estimates, while Tietto is rapidly moving towards production, with construction activities already underway. However, Tietto's advanced stage may indicate a shorter remaining lifespan and lower potential for growth compared to Pasofino and Osino, which might offer more long-term exploration opportunities.
As the gold market continues to grow, with predictions that gold prices could exceed $2,300 per ounce by the end of 2024, West Africa's potential remains significant. Pasofino's lower market capitalization of $44 million compared to Osino's $237 million and Tietto's $605 million suggests that it may present an attractive investment opportunity, particularly for those interested in early-stage projects with high growth potential.
West Africa's gold mining frontier continues to evolve, offering various opportunities for investors depending on their risk profiles and investment goals. With promising projects like Dugbe, the region is poised to remain a critical player in the global gold market.
