Gold Project's Valuation Surges With New Feasibility Metrics

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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* Disclosure for the quote from the Clive Maund article published on December 31, 2024

1. For the quoted article (published on December 31, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be  only be construed as a recommendation or solicitation to buy and sell securities.

Pasofino Gold Ltd. (VEIN:TSX.V) has provided an update regarding its shareholder rights plan, alerting shareholders that it has submitted an undertaking to the Ontario Securities Commission (OSC). According to the company, the undertaking ensures that Pasofino will not take further steps to implement the rights plan or facilitate the exercise of rights granted under it until at least March 17, 2025, or until the OSC revokes the undertaking. The Pasofino shareholder rights plan was enacted due to the inaction of its major shareholder, Nioko Resources, to file a material change report and mandatory bid with the Ontario Securities Commission. As a result, the plan has been triggered and should allow for fruitful and meaningful discussions between Pasofino and Nioko.

Pasofino, a Canadian mineral exploration company listed on the TSX Venture Exchange under the ticker VEIN, owns 100% of the Dugbe Gold Project in Liberia through its wholly owned subsidiary prior to the issuance of the Liberian government's 10% carried interest. The Dugbe Gold Project is one of the largest gold projects in Liberia, with a measured and indicated resource of 3.3 million ounces of gold at an average grade of 1.37 grams per tonne (g/t).

As noted in the announcement, a feasibility study for the project was completed in June 2022 by DRA Global, outlining an open-pit mining operation with an estimated mine life of 14 years and an average annual gold production of approximately 171,000 ounces. The study projected a post-tax net present value (NPV) of US$761 million using a gold price of US$2,100 per ounce and an internal rate of return (IRR) of 36.8%. The project's all-in-sustaining cost (AISC) was estimated at US$1,005 per ounce.

The Dugbe Gold Project is located in the Birimian geological region, which is known for its gold production potential. The site is approximately 76 kilometers from the Port of Greenville, with infrastructure improvements completed as part of the feasibility study. The project is currently at the stage of seeking final permitting, project financing, and potential joint venture partnerships.

Gold Market Dynamics: Inflation, Trade Policies, and Safe-Haven Demand

According to Kitco, on February 26, gold futures stabilized after a sharp US$40 price decline, with the most active April contract trading at US$2,933.80 per ounce, reflecting a modest gain of 0.17%. The report noted that gold had surged approximately 14.46% since December 18, 2024, reaching a high of US$2,968.90. Market analysts linked this rally to expectations that President Trump would impose tariffs on imports from Canada and Mexico after already implementing a 10% tariff on Chinese goods. "The threat of a spreading trade war that would cut into the global economy and boost inflation is unsettling markets and consumers," MT Newswires reported. The article indicated that if additional tariffs were imposed, economic uncertainty would likely continue to drive investors toward safe-haven assets like gold.

Dominic Frisby, writing for The Flying Frisby on February 26, described gold's recent performance as a textbook bull market, marked by uptrends and consolidation phases. He highlighted the role of central banks, particularly in Asia, in driving demand while diversifying away from the U.S. dollar.

According to Frisby, "They are climbing, and every dip is being bought, largely, it seems, by central banks — especially in Asia — who are diversifying their holdings and de-dollarizing." He also noted that gold miners stood to benefit from a weaker dollar and lower oil prices, which could reduce their input costs and improve profitability.

The International Man, writing on March 3, highlighted significant gold purchases in recent months, speculating that an "unknown buyer in the U.S." had acquired 2,000 metric tons — roughly 64 million ounces — since November 2024. The report suggested that these acquisitions could be tied to broader changes in the Trump administration's monetary policy. "Gold is coming home to the U.S. because it's about to reclaim its historical role as an anchor of sanity in the monetary system," the publication stated.

Positive Third-Party Analysis of Pasofino Gold

*According to Technical Analyst Clive Maund, on December 31, Pasofino Gold Ltd. was rated an "Immediate Strong Buy" based on technical and fundamental analysis. Maund highlighted that the company was developing its 100% owned Dugbe Gold Project in Liberia, a region within the prolific Birimian Gold Belt. He noted that Pasofino had already received acquisition offers in the range of CA$100 million, equivalent to approximately CA$0.90 per share, while its stock was trading significantly lower at about CA$0.58. The feasibility study for the project projected strong economic returns, with an estimated capital expenditure of US$435 million and an operating cost of US$1,005 per ounce. Maund pointed out that with gold prices at approximately US$2,600 per ounce, the project's margins had become significantly more attractive, making it a potential target for acquisition.

Maund further emphasized Pasofino's strategic positioning, citing its experienced management team, stable operating jurisdiction, and the project's scale and exploration potential. He underscored that the company's land package, spanning 2,000 square kilometers, remained largely unexplored, with only five of its 15 identified targets drilled to date. The presence of major gold discoveries nearby, along with strong interest from potential buyers conducting due diligence, reinforced his view that Pasofino was undervalued and poised for significant upside.

Additionally, Maund noted that optimization studies were expected to enhance the project's economics by improving metallurgical recoveries and reducing costs. He also highlighted that Pasofino had successfully completed a private placement of CA$3.3 million to maintain liquidity, further strengthening its financial position. Based on these factors, Maund concluded that Pasofino's stock was on the verge of a breakout and positioned for a major bull market move, with a high probability of a buyout at favorable terms for shareholders.

Advancing the Dugbe Gold Project: Key Catalysts and Strategic Initiatives

Pasofino's investor presentation highlights several key catalysts for the Dugbe Gold Project's development. The company has identified opportunities to increase mineral reserves through additional drilling of inferred resources located within and adjacent to the feasibility study pit. Optimization studies are also expected to enhance project economics by improving metallurgical recoveries, reducing capital and operating costs, and evaluating alternative energy sources to lower expenses.

The feasibility study estimates that the project will require a total capital expenditure of approximately US$435 million, with a payback period of 2.2 years at a gold price of US$2,100 per ounce. Pasofino is evaluating potential joint venture partnerships and strategic alternatives to advance the project toward construction.

Additionally, Pasofino has committed to environmental, social, and governance (ESG) initiatives, including a community development fund and plans to offset carbon and biodiversity impacts through a sustainable forestry project. The company aims to finalize its Environmental and Social Impact Assessment (ESIA) and submit a revised Resettlement Action Plan (RAP) to Liberia's Environmental Protection Agency as part of its permitting process.

The Dugbe Gold Project's progress is contingent on securing financing and regulatory approvals. With a long-term mining agreement in place and a 25-year tenure secured under Liberia's Mineral Development Agreement, Pasofino continues to position the project for future development while awaiting further regulatory decisions.

Ownership and Share Structure

According to Refinitiv, eight insiders together own about 60% of Pasofino. The largest shareholder is Hummingbird with 50.78%, followed by ESAN with 9.6%.

The other three investors of the Top 5 are Pasofino Deputy Chairman Stephen Dattels with 3.97%, Pasofino Chairman Daniel Betts with 1.28%, and Pasofino Director Robert Metcalfe with 0.66%. Richards owns 0.59%.

The company has 117.03 million outstanding shares and 38.19 million free-float traded shares.

Its market cap is CA$58.39 million. Its 52-week high and low are CA$0.80 and CA$0.35 per share, respectively.