Gold Explorer Unleashes Big Liberia Update
Pasofino Gold Ltd. (VEIN:TSX.V; EFRGF:OTCQB; N07:FSE) kicks off a major feasibility refresh at its 3.9Moz Dugbe project in Liberia, aiming to boost project economics and unlock exploration upside. Read more to learn how shifting market dynamics, rising gold demand, and new strategic partnerships are positioning Dugbe for long-term success.
Pasofino Gold Ltd. (VEIN:TSX.V; EFRGF:OTCQB; N07:FSE) has launched the first phase of an updated feasibility study for its Dugbe Gold Project in southern Liberia. The company has engaged MineScope Services Pty Ltd., based in Perth, Australia, to conduct a gap analysis and trade-off studies to advance optimization efforts following the July 2022 feasibility study.
According to the company, this updated study will retain the current throughput rate of 5 million tonnes per annum, aiming instead to refine economic and technical aspects to reflect present market conditions. Dugbe's previously reported technical metrics included a 14-year mine life, average annual gold production of 172,000 ounces (peaking at 200,000 ounces in the first five years), and a life-of-mine head grade of 1.30 grams per tonne. The original feasibility study, filed in 2022, estimated capital expenditures at US$435 million and projected a post-tax net present value (NPV) of US$530 million at a gold price of US$1,700 per ounce, with a post-tax internal rate of return (IRR) of 23.6% and a 3.3-year payback period. With spot gold now trading closer to AU$3,350 per ounce, the project's potential economic returns appear even stronger based on sensitivity analyses included in the study.
Chief Executive Officer Brett A. Richards commented in the release, "Pasofino is well positioned and well funded to commence updating the July 28, 2022 Feasibility Study... with our goal [being] to enhance those economic outputs." He added that the company is working closely with stakeholders to expedite engineering, permitting, and infrastructure development activities.
The Dugbe Project, covering 2,078 square kilometers, lies within the Birimian Supergroup, an established host of West African gold deposits. It includes two defined deposits, Dugbe F and Tuzon, which together contain a Measured and Indicated mineral resource of 3.3 million ounces at an average grade of 1.37 g/t gold, and 0.6 million ounces in the Inferred category. The current Mineral Reserve Estimate includes 66 million tonnes at 1.30 g/t, totaling 2.76 million ounces.
Pasofino holds a 100% interest in the Dugbe Project, subject to a 10% free carried interest held by the Government of Liberia. The project operates under a 25-year Mineral Development Agreement signed in 2019, which provides a 3% royalty rate on gold production, a 25% income tax rate, and reduced fuel duties.
Shifting Market Conditions Could Support Sector Momentum
Recent trends in the gold sector may provide supportive context for projects like Dugbe. On May 26, market commentator John Rubino noted that while gold prices had reached record highs, institutional participation in gold-related equities remained limited compared to previous bull markets. However, Rubino pointed to early signs of renewed interest, especially in markets like China and among retail buyers in the United States. One example cited was Costco, where customer enthusiasm for physical gold led to tighter purchase limits due to strong demand, with 1-ounce bars priced as high as US$3,279.99.
A separate May 27 analysis from Goldfinger Capital suggested capital was beginning to rotate into smaller gold producers, with some outperforming bullion itself. The trend was attributed to macroeconomic factors such as a weakening US dollar and expectations of higher inflation. Reuters reported on June 2 that safe-haven buying amid geopolitical risks also drove gold prices higher, with spot gold reaching US$3,344.49 per ounce. UBS analyst Giovanni Staunovo said that "rising geopolitical tensions" and a broader "risk-off sentiment" were contributing to robust demand for the metal. These dynamics may continue to create a favorable environment for advanced-stage development projects like Dugbe.
Central banks have continued to play a significant but largely opaque role in the gold market, according to a June 4 report from Bloomberg. Analysts at Goldman Sachs estimate that global central banks and sovereign wealth funds are acquiring approximately 80 metric tons of gold per month - equivalent to about US$8.5 billion at current prices. While much of this buying remains undeclared, trade data suggests China is a key participant, with additional purchases routed through Switzerland. The sustained pace of accumulation, despite gold's record-setting run, points to continued long-term support from official sector demand.
Project Momentum and Strategic Path Ahead
Pasofino has indicated multiple catalysts that may enhance the economic profile and development trajectory of the Dugbe Gold Project. Optimization studies are already underway, targeting potential increases in mineral reserve grade, lower energy costs, and reductions in capital expenditures. For example, a 2% improvement in metallurgical recovery could yield up to US$52 million in additional NPV. Other areas under review include haul truck size optimization, potential hydropower integration, and revised tailings storage facility designs.
Drill-ready expansion targets also add to the project's upside. The company is pursuing regional and near-mine exploration programs across several promising zones, including the Bukon Jedeh and Tuzon-Sackor areas. Bukon Jedeh, in particular, has returned trench and drill intercepts including 21.3 meters at 0.9 g/t gold and 4.0 meters at 2.1 g/t gold. Only five of the 15+ identified targets have been drilled to date.
In terms of infrastructure readiness, the project benefits from proximity (76 kilometers by road) to the operating Port of Greenville, which Pasofino has upgraded. Planned energy sources include LNG and solar generation. Environmental and social approvals are also progressing, with the company preparing to submit its Environmental and Social Impact Assessment (ESIA) and Resettlement Action Plan (RAP) to the Liberian EPA. Pasofino has also outlined a plan for carbon credits via a sustainable forestry initiative to achieve carbon net positivity.
With the feasibility study update now underway and permitting and site readiness advancing in parallel, Pasofino appears to be positioning Dugbe for final investment decisions and project financing in the near term.
Analyst Report Underscores Project Scale and Valuation Potential
A report published on April 8 by analyst Clive Maund characterized Pasofino Gold Limited as significantly undervalued based on both technical indicators and fundamental metrics. While the company's share price had experienced a decline amid limited takeover activity, Maund noted that the underlying value of its primary asset, the Dugbe Gold Project, continued to rise alongside strong gains in the price of gold. He also pointed to a notable rebound in Pasofino's stock following the announcement of a co-operation agreement with Hummingbird Resources and Nioko Resources, which marked a technical breakout from a multi-month downtrend.
Maund described Dugbe as a large-scale, economically robust gold project located in what he termed a mining-friendly and politically stable jurisdiction in Liberia. He highlighted the project's infrastructure advantages, long mine life, and exploration upside, noting that only a small portion of more than fifteen known targets have been drill tested to date.
The report included commentary from Pasofino CEO Brett A. Richards, who emphasized the strategic alignment resulting from Nioko Resources' acquisition of Hummingbird's interest in the project. Richards stated, "This recent Co-operation Agreement... represents a re-birth of the Dugbe Gold Project, now having a strongly aligned partnership, committed joint funding and an operating plan to create transformational value for all shareholders over the next eighteen months." He also remarked that Pasofino "represents probably the most under-valued gold junior in the market today," citing the project's scale and economic potential as outlined in the feasibility study.
Streetwise Ownership Overview*
Pasofino Gold Ltd. (VEIN:TSX.V;EFRGF:OTCQB;N07:FSE)
*Share Structureas of 6/2/2025Source: RefinitivOwnership and Share Structure
According to Refinitiv, eight strategic entities own 67.37%, or the lion's share, of Pasofino. Of these investors, the Top 3 are Hummingbird with 50.8%, ESAN with 9.6% and Stephen Dattels with 3.97%.
The rest is in retail.
Pasofino has 117.03 million (117.03M) outstanding shares and 37.79M free float traded shares. Its market cap is CA$ 40.89M. Its 52-week trading range is CA$0.375-0.80 per share.
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Important Disclosures:
Pasofino Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pasofino Gold Ltd.James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.