Company Identifies High-Potential Gold Zones in West Africa

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Pasofino Gold Ltd. (VEIN:TSX.V; EFRGF:OTCQB; N07:FSE) has provided an update on its ongoing exploration activities at the Dugbe Gold Project in Liberia. The company, through its wholly owned subsidiary Hummingbird Resources (Liberia) Ltd., has identified new drill targets at the Jadae East and DSZ prospects, both located on the Dugbe Shear Zone near its Tuzon and Dugbe F deposits.

The Dugbe project currently hosts a Measured and Indicated Mineral Resource of 3.3 million ounces of gold with an average grade of 1.37 grams per tonne (g/t), and an additional Inferred Resource of 0.6 million ounces, as of the last resource update in November 2021. These resources are centered around the Tuzon and Dugbe F deposits, discovered in 2011 and 2009, respectively.

As specified in the company news release, the current exploration campaign is focused on potential near-surface oxide satellite deposits within 8 kilometers of existing infrastructure. At Jadae East, Pasofino reported evidence of artisanal mining and gold extraction from soils and eluvial gravels. A portable auger drill rig has been acquired to carry out shallow auger drilling to determine the source of this gold.

At the DSZ target, historical work revealed 36 meters at 0.6 g/t Au from a channel sample in bedrock, with outcrop samples returning up to 2.0 g/t Au. The lithology and structure in this area resemble those at the Tuzon deposit, where mineralization is thickened within fold hinges and flexures. Pasofino stated that "this early stage exploration work is necessary to prepare several of these key targets for drilling," as part of its broader regional and deposit-specific programs.

The company plans to commence drill testing at DSZ during the upcoming feasibility study drilling campaign in late 2025. The feasibility study update is being prepared to support project financing and permitting, with construction targeted for 2026.

Gold Strengthens Position Amid Global Economic Uncertainty

Gold prices reached new record levels in early September, reinforcing the metal's historical role as a safe-haven asset during periods of economic strain. On September 3, Gains, Pains & Capital reported that gold climbed as much as US$85 in a single session to reach an all-time high of US$3,601 per ounce. The move represented a year-to-date increase of 34%. The report attributed the surge to persistent inflation concerns and described the current environment as one in which gold tends to outperform equities.

The same report characterized gold's performance as part of a broader technical breakout, suggesting that the shift in investor preference toward precious metals reflected growing caution about traditional financial instruments. "When gold outperforms stocks, it's a major ‘tell' that inflation is reaching the tipping point," the analysis stated.

On September 4, Midas Letter highlighted macroeconomic factors supporting the rally. Spot prices reached US$3,578.50, while December futures contracts exceeded US$3,610. The commentary pointed to the U.S. government's increasing use of short-term debt issuance, describing it as a "high-frequency churn of trillions of dollars," which may be contributing to concerns over long-term fiscal stability.

Stockhead, in a September 5 report, confirmed that gold continued to trade above US$3,550 per ounce, citing pricing data from the London Bullion Market Association. The publication noted that gold had reached nearly 30 new highs in 2025 alone.

Investor interest has remained elevated throughout the year. On September 10, Yahoo Finance reported that gold had more than doubled in value over the past three years and risen over 40% since the start of 2025, outpacing both the S&P 500's 10% gain and Bitcoin's 20% rise. Analysts cited ongoing geopolitical tensions and uncertainty surrounding central bank policies as ongoing drivers of demand.

Further context was provided by Crescat Capital using Bloomberg data, which showed that global gold reserves have surpassed foreign holdings of U.S. Treasuries for the first time since 1996. The firm noted that high long-term yields and growing skepticism about U.S. fiscal conditions may be prompting some nations and investors to shift away from dollar-denominated assets.

Ongoing debates over the direction of the U.S. dollar are amplifying interest in gold's role as a global reserve asset. In a September 14 commentary, analyst Matthew Piepenburg highlighted that the dollar underpins a majority of global reserves, trade finance, and foreign debt, making its strength or weakness central to global markets.

While some analysts foresee a final surge in the U.S. Dollar Index due to global demand for dollar liquidity in times of crisis, Piepenburg argued that gold is unlikely to retrace as it did during the 2008 financial crisis. He cited a shift in gold's function from speculative asset to strategic reserve, supported by central bank accumulation, non-dollar trade settlements, and gold's Tier-1 classification. Regardless of short-term currency moves, the broader trend points to sustained demand for gold amid evolving monetary dynamics.

Catalysts: Building Toward Full Development at Dugbe

Pasofino is positioning the Dugbe Gold Project for its next phase of development through a combination of technical updates, permitting milestones, and resource expansion. The company's 2022 feasibility study outlined an open-pit operation producing 173,000 ounces annually over a 14-year life of mine, with capital costs of US$435 million and average all-in sustaining costs of US$1,005 per ounce. Pasofino is now conducting metallurgical test work, feasibility drilling, and engineering refinements to bring the project to bankable feasibility status.

The current study update is also evaluating potential improvements such as increasing gold recovery from 83% to approximately 90%, re-evaluating mine plans at higher gold price assumptions, and integrating hybrid power solutions using solar and diesel. A power generation study is underway, and permitting applications are expected by the end of 2025.

Pasofino has also highlighted the exploration upside at Dugbe, which spans over 2,000 square kilometers with only a small portion explored to date. In addition to Tuzon and Dugbe F, other areas such as Bukon Jedeh, Sackor, and the Tuzon-Sackor trend show mineralization from surface and have drill-ready targets. The company has conducted additional drilling at Bukon Jedeh, reporting 21.3 meters at 0.9 g/t Au and other intercepts over 2.0 g/t Au, supporting the potential for new resource areas.

With a 25-year Mineral Development Agreement secured in 2019, including a 3% royalty on gold production and a 10% free carried interest for the Government of Liberia, the project has a framework in place for long-term development. Pasofino continues to engage stakeholders and progress toward a Class A Mining License application expected in early 2026.

Ownership and Share Structure

According to Refinitiv, nine strategic entities own 66.45%, or the lion's share, of Pasofino. Of these investors, the Top 3 are Hummingbird with 46.78%, ESAN with 8.84%, and Mansa Resources with 4.07%.

The rest is in retail.

Pasofino has 127.03 million outstanding shares and 42.62 million free float traded shares. Its market cap is CA$55.73 million. Its 52-week trading range is CA$0.38–CA$0.80 per share.