BELLINGHAM, WASHINGTON--(Marketwire -08/10/11)- Pengram Corporation (OTCQB: PNGM.PK - News)(PINK SHEETS: PNGM), today announced newly updated corporate developments as well as a summary outlook for the second half of 2011.
Overview Summer 2011
Pengram continues to execute on its business plan of acquiring highly prospective mineral properties on which previous work has confirmed the existence of gold mineralization with the objective of developing the properties either directly or through joint ventures with other mining companies. Except for specially selected properties, the Company prefers the JV model to leverage its opportunities for success and ensure exploration is accomplished without having to fund advanced exploration or development until a pre-determined result is achieved.
Recent increases in the price of gold, presently above $1,700 per ounce, confirms Pengram management has correctly focused on the right resource sector as higher prices provide a rising tide effect that can transform lower grade gold deposits into newly or increasingly commercial grade assets.
Even in a rising gold price environment, the Company has established a solid track record of identifying highly prospective properties with proven gold mineralization and: 1) Negotiating favorable terms to acquire, option or JV these properties that provide major financial upside for subsequent discovery and development; and, 2) Structuring agreements with exploration JV partners that strongly incent these partners while providing Pengram shareholders with strong financial upside relative to its costs of capital or property acquisition.
By building a portfolio of carefully selected properties, the opportunities for commercial grade discovery are substantially increased, while the risks of not finding such deposits are lowered through diversification.
In the second quarter ended June 30, the Company achieved progress on several fronts.
-- On May 18, Pengram announced that, pursuant to an exploration agreement with Manado Gold Corp. dated September 15th 2010, the first phase of work on the Clisbako Property in British Columbia Canada, is complete. Monado Gold Corp. has spent in excess of the $100,000 it was required to spend on exploration of the property for Phase 1. The Clisbako Property is located in the Cariboo Mining Division of British Columbia, consisting of approximately 3,388 hectares. "We are extremely pleased with the exploration on Clisbako to date. Like Golden Snow, Clisbako is in a highly prospective area," stated Richard Donaldson, CEO of Pengram. "We now have two properties that have been taken up by partners willing to put up the financial resources necessary to develop the claims." -- On May 17, the Company announced it has eliminated approximately $110,000 of outstanding indebtedness through the distribution of non- core assets. -- On April 25, Pengram announced the appointment of Mr. Howard Metzler as a director. Mr. Metzler obtained his B.Sc. Geology from Boise State University in 1976 and has been registered with the Idaho State Board of Registration for Professional Geologists since 1981. Mr. Metzler has over 30 years experience in exploration geology primarily on high grade vein and disseminated gold-silver deposits in Northern Nevada. For the past 20 years, he has been self-employed as a consulting geologist. Mr. Metzler's expertise continues to help Pengram evaluate properties, particularly in Nevada where Pengram is considering a number of potential acquisitions.
Outlook: Second Half 2011
Looking ahead to the second half of 2011, the Company is actively working its numerous industry connections, and conducting due diligence, to locate excellent gold properties and negotiate favorable acquisition terms.
Additionally, the Company and its JV partners are ramping up exploration programs on several properties (see "Pengram Portfolio Development Update" below).
Further, Pengram intends to reinforce its senior management team with industry experts from the fields of geology, resource executive management and corporate finance.
Pengram Portfolio Development Update
Updates on Pengram's property portfolio are as follows:
The Clisbako Property consists of ten mineral claims covering approximately 8,400 acres in British Columbia's interior plateau. The Clisbako Property is located approximately 125 kilometers west of Quesnel, British Columbia. The area is a prolific producer of mines. The proposed Prosperity mine with an estimated in ground resource of 5.3 billion pounds of copper and 13.3 million ounces of gold is located 100 kilometers to the south of the Clisbako Property. The Gibraltar Mine which will, by the end of 2010, produce annually 115 million pounds of copper and 1.4 million pounds of molybdenum, is approximately 150 kilometers to the east of the Clisbako Property. The former producing Blackdome Mine which has a similar style of epithermal mineralization is located 120 kilometers south-east of the Clisbako Property. Recently Richfield Ventures' Blackwater gold project located 70 km northwest of the Clisbako property announced results of 71m at 3.13 g/t Au and 81m at 4.33 g/t Au near surface.
Extensive exploration on the Clisbako Property was completed in prior years by previous owners including mining giant, Phelps Dodge. The work programs included soil sampling, rock sampling, trenching, IP Geological Surveys and 34 shallow drill holes totaling approximately 16,000 feet. These programs have confirmed the existence of anomalous gold values throughout the property and pathfinder mineralogy that persists to depth suggesting that potential exists for high precious metal values at depth. The potential for bonanza mineralization at depth makes this property an excellent candidate for drilling.
Pengram entered into a joint venture with a British Columbia based exploration company (the "Joint Venture Partner"). Under the terms of the agreement, the Joint Venture Partner can earn up to 75% interest in the property by making payments, issuing shares and completing work programs on the Clisbako Property. Pengram will retain a 25% interest in the property and is covered for its share of work programs until expenditures of $650,000 CDN have been made on the property.
The Joint Venture Partner completed a $100,000 work program in the fall of 2010 which confirmed the anomalous gold values. Based on that program, the Joint Venture Partner plans to proceed with a two-phase program at an estimated cost of approximately $745,000 CDN including geophysical and magnetic surveys and diamond drilling to depths of at least 250-300 metres.
Pengram holds three properties in the State of Nevada known as the Golden Snow Property, the Fish Claims and the CPG Claims. Prior to April 2011, these properties were all held under one option agreement. In April, 2011, Pengram negotiated with the optionors three separate option agreements to permit development of the properties independently. Details of the properties are as follows:
Golden Snow is located in Eureka County, Nevada and is situated near several existing gold mines. Eight miles north of the Golden Snow Project is the East Archimedes Gold Mine where Barrick Gold Corporation is currently mining a Carlin type sediment hosted gold deposit (677,000 ounces mined, 1.1 million ounces resource/reserve, as reported by the Geological Society of Nevada 2006 Special Publication #43). It abuts Timberline Resources Corp.'s Lookout Mountain property. In Timberline's most recent technical report dated May 2, 2011, gold resource estimate is 286,000 oz measured and indicated plus 206,000 oz inferred. Drilling continues by Timberline tending toward the Golden Snow Property.
Substantial exploration has been conducted on the Golden Snow property including geologic mapping, 932 soil samples and detailed ground-based gravity geophysical surveys. Based on this work, several distinct target zones have been outlined and it is interpreted that the Ratto Ridge Fault zone, which controls the mineralization on Timberline's South Eureka property, continues south onto the Golden Snow property. These target areas are well located and the property is drill ready.
Pengram has entered into a joint venture with a Nevada exploration company on the Golden Snow Property. Under the terms of the agreement, the joint venture partner can earn 75% by Pengram up to $175,000 and expending up to $1,750,000 to do exploration work on the Golden Snow Property over a three year period.
The CPG Project consists of 44 unpatented mining claims covering approximately 1.3 square miles within Mineral County, Nevada. The CPG Project is located approximately 29 miles east of Schurz, Nevada in Mineral County, Nevada at the north end of Bovard Mining District.
The CPG Project is an early stage exploration property. Subject to financing, Pengram intends to commence exploration work on the property in the next 90 days.
The Fish Claims consists of 57 unpatented lode mining claims covering approximately 1.9 square miles. The Fish Claims is located on the northeastern flank of Lone Mountain on the Lone Mountain District, Esmeralda County, Nevada about 12 miles west of the historic mining town of Tonopah, Nevada and is accessible by road. The Fish Claims lies within the Walker Lane structural belt of western Nevada. The Fish Claims currently represents an early stage exploration property. Subject to financing, Pengram intends to commence exploration work on the property in the next 90 days.
Manado Gold Property (Indonesia)
Due to problems with obtaining title in Indonesia, Pengram is not proceeding with the Manado Gold Property and is considering litigation against the vendor who has purported to terminate Pengram's rights when Pengram had met all its obligations, but could not proceed because the vendor was not able to deliver a proper title to the property.
Forward Looking Statement
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. The statements by our officers, and other statements regarding: optimism related to the business; expanding acquisition, exploration and development activities; and completing, a binding agreement for mineral project acquisitions; as well as the prospects, forecasts and projections for such mineral projects owned; and other statements in this news release are forward-looking statements. Such statements are based on current expectations, estimates and projections about Pengram's business. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry Pengram operates in and other risk factors listed from time to time in Pengram's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. In particular, there is no assurance that Pengram will complete additional joint ventures or that the joint ventures it enters will be completed or properties commercialized. The forward-looking statements contained in this news release speak only as of the date on which they are made, and Pengram does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
- joint ventures
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