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Liberia's Gold Rush: Pasofino Eyes Untapped Frontier

Pasofino Gold's exploration in Liberia taps into untapped gold potential, aiming to bolster the country's economic stance in West Africa.

By Max Weldon

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3/18, 08:22 EDT
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Key Takeaway

  • Pasofino Gold is advancing the Dugbe gold project in Liberia, with a new exploration program at Bukon Jedeh expected to start drilling in March 2024.
  • Liberia's pro-mining environment and underexplored potential position it as West Africa’s last untapped gold frontier, attracting significant interest.
  • With FDI surpassing $18 billion and a growing contribution to GDP from mining, Liberia is poised to become a major economic force in West Africa's gold market.

Gold's Global Landscape and Liberia's Untapped Potential

China leads as the world's largest gold producer, contributing about 10% to the global supply in 2022, with Australia, Russia, the United States, Canada, and South Africa also being key players in the gold mining industry. These countries boast rich gold reserves and advanced mining technologies. Amidst this competitive field, Liberia emerges as West Africa's last untapped gold exploration frontier, with its mining sector's contribution to GDP rising from $545.30 million in 2021 to $621.80 million in 2022. The country's pro-mining stance, adherence to the Extractive Industries Transparency Initiative (EITI) since 2011, and mining laws based on Australian regulations create a stable and attractive environment for mining activities.

Pasofino Gold's Strategic Moves in Liberia

Pasofino Gold has announced significant developments in their Dugbe gold project, including the commencement of an exploration program in the Bukon Jedeh area, located approximately 10 kilometers southeast of the Dugbe Gold Project. The Dugbe Gold Project itself boasts a Measured and Indicated Mineral Resource Estimate of 3.3 million ounces. Initial exploration in Bukon Jedeh revealed high-grade intervals of gold, with rock samples collected in August 2022 showing promising results of up to 31 grams per ton of gold. This exploration taps into the Birimian area's rich gold-bearing terrain, which has seen over 20 new mines established in the past two decades.

Economic Implications for Liberia and West Africa

Pasofino Gold's exploration and development efforts in Liberia could significantly impact the country's position in the gold market and its overall economic landscape. With only a small percentage of Liberia's potential explored or mined, the company's activities could unlock substantial value for the country and its community. Liberia's remarkable level of Foreign Direct Investment (FDI), surpassing $18 billion, alongside the economic growth of West Africa's largest economies (Nigeria, Ghana, and Côte d’Ivoire), positions Liberia as a potentially attractive investment destination. Pasofino Gold's success could contribute to making Liberia a stronger economic force in West Africa, benefiting investors and the regional economy.