Gold Explorer Showcases West African Breakthrough

1. 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.
2. 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.
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Pasofino Gold Ltd. (VEIN:TSX.V; EFRGF:OTCQB; N07:FSE) has announced its participation in THE Mining Investment Event of the North, scheduled for June 3–5, 2025, in Quebec City. This conference, billed as Canada’s only Tier I global mining investment event, will offer Pasofino the opportunity to engage directly with institutional investors, mining leaders, and government representatives.

In a company news release, management stated: “We are particularly excited about the global audience that THE Event has attracted, showcasing the best of international mining in Canada. This is a unique chance to engage with industry leaders and innovators.”

Pasofino owns 100% of the Dugbe Gold Project in southern Liberia, located in the Birimian geological province, one of West Africa’s most prolific gold-producing regions. According to the most recent feasibility study filed in July 2022, the Dugbe Project contains a Mineral Reserve of 2.76 million ounces of gold at a grade of 1.30 grams per tonne (g/t) and a Mineral Resource of 3.3 million ounces in the Measured and Indicated category. The project anticipates a 14-year life of mine (LOM) with an average annual gold production of 171,000 ounces and more than 200,000 ounces per year during the first five years.

The feasibility study estimates a capital expenditure (CapEx) of US$435 million and an all-in sustaining cost (AISC) of US$1,055 per ounce. At a gold price of US$2,700 per ounce, the project delivers a post-tax net present value at a 5% discount rate (NPV5) of US$1.674 billion and an internal rate of return (IRR) of 54.3%. The report was prepared in accordance with National Instrument 43-101 and is available on SEDAR+.

Pasofino is targeting an update to the feasibility study in the second half of 2025 and expects to reach a construction decision and secure project financing by year-end. The company noted that the project is fully permitted for final approval steps, including the submission of an Environmental and Social Impact Assessment (ESIA) and a Resettlement Action Plan (RAP).

Gold Sector Sentiment Turns as Prices Surge and Retail Demand Escalates

According to a May 26 article by John Rubino titled Believe It or Not, Gold is Still Out of Favor, gold-related ETFs had not yet seen the inflows typical of previous bull cycles, despite strong price performance. He wrote that “gold and gold miner ETFs seem to be an afterthought for the average investor,” adding that the current enthusiasm among retail buyers, particularly in China and at big-box retailers, could be an early sign of changing sentiment. Rubino noted, “Costco customers’ eagerness to put multiple ounces of gold on their store credit cards implies the kind of enthusiasm that could easily spread to equity investors.”

In a May 27 video commentary from Goldfinger Capital, the host observed that junior and mid-tier gold miners were beginning to outperform the metal itself. He stated, “This is very constructive bull market price action,” referring to the sustained uptrend in gold despite ETF outflows. He added that “the miners are beginning to outperform the metal,” highlighting a key shift in how equities linked to the sector were behaving relative to the underlying commodity.

Further evidence of rising retail demand appeared in a May 28 report from VBL, which documented tighter gold purchase limits at Costco. The outlet reported that spot gold had appreciated “over 70% during that period, reaching all-time highs in April.” As of that week, the price of a 1-ounce South African gold bar had risen to US$3,279.99, with customer limits reduced to one per transaction and two per 24-hour period. The report also confirmed that similar restrictions were applied to other gold products, underscoring high consumer interest in physical bullion.

Positioned for a Leap Forward

Pasofino's investor materials indicate multiple near-term catalysts that may strengthen the Dugbe Gold Project’s commercial viability. Optimization studies are underway to potentially increase both the size and grade of the resource, reduce power and mining costs, and improve overall project economics. According to the company, even a modest 2% improvement in metallurgical recoveries could boost the NPV by as much as US$52 million.

The company also sees additional upside through near-mine and regional exploration. Inferred resources totaling 67,000 ounces with an average grade of 1.25 g/t lie within or adjacent to the current feasibility pit and may be included with further drilling. In 2024, drilling at the Bukon Jedeh target yielded intercepts such as 21.3 meters at 0.9 g/t and 4.0 meters at 2.1 g/t, suggesting a structural setting similar to the nearby Tuzon deposit, which contains 2.3 million ounces of gold.

On the infrastructure side, the project benefits from proximity to the Port of Greenville, only 76 kilometers away. Pasofino has already upgraded the access corridor and plans to use liquefied natural gas (LNG) and solar power to meet its 28.9 megawatt energy demand. Power cost estimates for the life of mine are US$175.10 per megawatt hour.

The Dugbe project is held under a 25-year Mineral Development Agreement with the Liberian government, offering a stabilized fiscal framework. The agreement includes a 3% gold production royalty and a 10% free carried interest for the government.

With permitting and financing timelines clearly laid out and early construction activities on the horizon, Pasofino appears focused on transitioning the Dugbe Gold Project from feasibility into development.

Expert Analysis Highlights Market Potential and Undervaluation

In an April 8 report published by Clive Maund, Pasofino Gold Limited was described as “very undervalued” based on both technical and fundamental analysis. Maund noted that while the company’s stock had drifted lower due to a lack of takeover activity, “the value of its primary asset has continued to appreciate as the gold price has continued to trend strongly higher.” He highlighted a sharp breakout in Pasofino’s share price following the announcement of a new co-operation agreement between Pasofino, Hummingbird Resources, and Nioko Resources, stating that this move “caused the stock to break out of the intermediate downtrend it had been stuck in since last October.”

Maund reviewed the Dugbe Gold Project as a “large, highly economic gold project” situated in a “mining-friendly and now politically stable” jurisdiction in Liberia. He outlined the project’s significant scale, quality infrastructure, and expansion potential. He wrote that only five of more than fifteen identified targets had been drilled to date, leaving “plenty of exploration opportunity.”

The article also featured remarks from Pasofino CEO Brett A. Richards, who emphasized the strategic shift resulting from Nioko Resources’ acquisition of Hummingbird. 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 further added, “Pasofino represents probably the most under-valued gold junior in the market today, given the size, scale, quality, and economic voracity of the current feasibility study.”

Maund concluded his analysis by rating the company as an “Immediate Strong Buy,” pointing to recent technical strength and upside potential in valuation, with initial resistance levels near CA$0.75 to CA$0.80. 

Ownership 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.