Exploration Program At The Dugbe Gold Project

TORONTO - Pasofino Gold Limited reported the start of the exploration at its Dugbe gold project with an extensive program of step-out drilling, drilling of new targets and large scale regional soil sampling. This is the first stage of a major exploration and mineral resource drilling program aimed at substantially increasing the already large mineral resource at Dugbe. Over the coming months, Pasofino will provide the results of the exploration program to the market. Since 2009, only 3 areas on the 2,355 km2 property have been drilled, two of these becoming the Tuzon and Dugbe F deposits. The planned program aims to add to these deposits.

At the Tiehnpo target to follow up on gold in trenches completed in 2012, and planned start during November 2020. Teams are also planning the mobilization of a rig to the Dugbe F deposit to get the resource drilling there underway. Two new regional targets with clear discovery potential identified on key structural trends, both with artisanal activity as identified from recently acquired satellite data. Teams mobilized to begin soil sampling grids in October 2020 over these and other targets on the 2,355 km2 property. Tuzon Expansion and 'Satellite deposit' potential: Gold in soil anomalies suggestive of possible 'satellite' mineralization northeast and southwest of the Tuzon deposit have been delineated and will be drilled in Q1/2021. These targets are in addition to the possible immediate strike extension of the existing deposits which will be the subject of a separate market announcement. Further drilling at Sackor is planned in 2021 to potentially extend the prospective Sackor target where gold was intersected in 2012.

Ian Stalker, CEO, said "Drill testing of just three of the many gold targets previously identified on the project led to the discovery of the large Tuzon and Dugbe F deposits. These host Indicated and Inferred Mineral Resources of 2.3 and 1.3 Moz respectively, and our objective is to grow this resource by discovering new deposits and extending the existing resources. We are now ready to roll out a program to test the best of 100+ targets present, some of which are 'new' and have obvious discovery potential; and drill possible extensions of the existing deposits."

Pasofino's geological team has completed a target generation exercise by compiling and interpreting the large amount of exploration data collected by Hummingbird Resources PLC between 2006 and 2014 and have added new data notably from recent satellite images of the project. Those targets that rank most highly are two 'new' targets named Gmayenken and Jaedae East. No exploration has been carried at either of these areas to date.

At Gmayenken, extensive artisanal gold mining operations are exploiting alluvial gravels along a 5 km length of a stream channel. The excavated areas are up to 200 m wide and are within a 4 km by 2 km drainage area over which a soil sampling grid will be completed during October-November aimed at identifying the source of the alluvial gold.

The Jaedae East target is 9 km east of the Tuzon deposit and bears many similarities to Tuzon, being on a secondary 'splay' structure just north of the Dugbe Shear zone and with a northeast-southwest orientation. Artisanal workings visible on satellite data support the possible presence of gold mineralization. An extensive soil sampling grid will cover this area, the area between it, and the Tuzon deposit as soon as access can be established. This area was not covered by previous soil sampling grids.