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Wide gold at Nkran bodes well for Resource Upgrade
PMI Gold Corporation (“PMI”, “Company”) continues to deliver wide, high-grade mineralised intercepts from infill resource drilling of the Nkran deposit, part of the Company’s 100%-owned Obotan Project in Ghana. The Company has now completed 56 diamond drill holes at Nkran, with 25 holes reported to date. Some of the latest results include 125m @ 2.18g/t Au from 271m; 118m @ 2.43g/t Au from 386m and 52m @ 3.37g/t Au from 201m.
Multiple broad zones of mineralisation have been intersected ~150m below the base of the Nkran open pit, which has a current resource of ~830koz at grade of ~2.6g/t. Given that the deposit remains open at depth, we expect this to increase significantly over time. Drilling is primarily focusing on the open pit potential down to ~350m depth, and should lead to an updated resource estimate during the September quarter 2011. Pending assays from a further 24 holes are expected in June and July 2011.
Accelerated exploration on-going
There are currently three drill rigs on site at Obotan with one rig continuing with resource drilling at Nkran and the other two rigs concentrating on delineating shallower oxide mineralisation at the nearby Adubiaso and Asuadi deposits. At Obotan, the Company controls 3 mineralised trends of ~70km each. Historic drilling has intersected a number of good grades and widths, yet the follow up work has been minimal. PMI Gold has secured another three drill rigs (2 x RC/diamond for resource-style drilling, and 1 x RAB/aircore for regional exploration), which are expected to commence operation in the second half 2011. We consider the potential for PMI’s ground to host multi-million ounce gold deposits is relatively high, with any such discovery likely to have a very material impact on the share price.
Near-term development opportunity