RE: RICH GOLD GRADES just released!!!PMI has completed 56 resource extension drill holes since the start of the drilling at Nkran in 2010 with 25 drill holes have been previously reported to date, in addition to these latest seven drill holes. Due to laboratory delays, the results from another 24 holes are still pending. PMI has been advised that this backlog is being addressed and data flow is beginning to improve.
Three diamond drill rigs are presently operating. One rig will remain at Nkran to continue the resource expansion programme and two drilling rigs have been relocated, one at each of the satellite deposits, Adubiaso and Asuadi.
The recently completed drill holes at Nkran are part of a broader ongoing circa 40,000m drilling campaign designed to upgrade and expand the current gold resource inventory at Obotan.? The Obotan drilling programme will be used for a new resource estimate currently scheduled for completion at the end of the September Quarter and will underpin a technical and economic study to be completed by the end of 2011.
"PMI is making steady progress in the transition from gold explorer to producer," Managing DirectorCollin Ellison said. "These latest drilling results highlight the potential to grow the resource inventory at Obotan.? Work is advancing on the pre-feasibility study with a team of world-class experts are being assembled to ensure the Company maximizes its opportunities."
As part of the geological appraisal of the Nkran deposit, suitable sites will be identified to drill metallurgical holes for a future metallurgical test work programme and geotechnical holes for a geotechnical programme.
Geological studies have commenced on Nkran and are providing valuable additional information to improve the understanding of the deposit and in particular the controls on the mineralisation and the directions for resource extensions.
PMI also plans to test for deeper, down-plunge extensions of the mineralisation below the limit of the current resource, greater than 450 metres below the surface (greater than 300 metres below the base of the open pit).
On behalf of the Board,
"Collin Ellison"
Managing Director & CEO