Amid Gold Rally, Economist Argues Mining Stocks 'Finally Leading Metals Higher,' Pasofino To Update Dugbe Mine Feasibility Study To Reflect Updated Price Assumptions

When gold hit a new high in mid-September, veteran economist Peter Schiff remarked that mining stocks are "finally leading metals higher." 

With gold printing multiple tops, attention has turned to miners, with many investors keeping an eye on junior miners for the next leg up. Another bullish voice comes from market strategist Otavio Costa of Crescat Capital, who highlighted that the ratio of junior to senior mining stocks "is still 54% below its 2010 peak," suggesting the industry is "just at the beginning of this cycle."

Against such a backdrop, junior miner Pasofino Gold Ltd. (OTC:EFRGF) announced the launch of a non-brokered private placement, raising gross proceeds of CA$12 million. 

Proceeds from the private placement, in which each unit was priced at CA$0.50 per unit, will be used to update the Dugbe Gold Project's feasibility study and pave the way for future financing, to repay debts to the Liberian government and for general working capital. Each unit consists of one common share of Pasofino Gold and one common share purchase warrant that entitles the holder to purchase one common share at a price of CA$0.75 for a period of 24 months following the issue date of the units.

Mansa Resources Limited, an affiliate of Hummingbird Resources Limited (HBL), agreed to subscribe for the portion of the offering corresponding to HBL's pro rata ownership of Pasofino Gold, which is about 50.9% – meaning that almost 51% of financing is prefilled by insiders, suggestive of insider confidence. 

The offering is expected to close in multiple tranches. The first tranche is anticipated to close on or about October 15, 2025.

Striking Gold In West Africa 

The Dugbe Gold Project in West Africa's gold-rich Liberia is within what the company says is one of the last remaining under-explored parts of the Birimian geological province, which is host to the majority of West African gold deposits. This part of the Birimian has a growing gold endowment, and Pasofino has a ground holding of over 1,400km2. 

Pasofino, through its wholly-owned subsidiary ARX Resources Limited, owns 100% of the Dugbe Gold Project. The project’s mineral development agreement, issued by the government of Liberia, secures mining rights and terms for 25 years.  

The company is currently updating its feasibility study, which was last conducted back in 2022 when gold was priced a lot lower, to bring it to a "bankable" status – which will support the raising of project financing – and to file an updated NI 43-101 technical report. A NI 43-101 is a document required by the Canadian Securities Administrators that lays out the scientific and technical information about a mineral project, including exploration, development and production. Pasofino said the N 43-101 is necessary if the company wants to file an application for a Class A Mining License in the second quarter of 2026.

Moving Forward 

Pasofino plans to update all aspects of the study with respect to costs and gold price assumptions, as well as optimize all processes to maximize recoveries and project economics. The miner aims to get a construction decision within eighteen months. Given that gold prices have more than doubled since the original feasibility study, the new study should have much better economics. Gold production at Dugbe should commence in two and a half to three years, as per the company's estimates. 

Pasofino also reported that in addition to the existing deposits, there are many gold prospects within the Dugbe Project, including the Bukon Jedeh area and the DSZ target on the Tuzon-Sackor trend. The miner said it discovered a broad zone of surface gold mineralization in trench and outcrop along strike from Tuzon. At this and several of the other prospects no drilling has been carried out to date, according to Pasofino. 

The price of gold is up double digits year-to-date and Pasofino thinks it’s sitting on a gold mine in West Africa. With a fresh capital raise underway, the gold miner is gearing up to get its  feasibility study done, a mining license approved and gold production commencing. How's that for striking gold?

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