News release
August 02, 2011
Strong Results from Obotan Gold Project Drilling
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
Latest intersections include 57.0m @ 3.48g/t Au & 26.0m @ 8.83g/t AuHighlights
- Further positive drilling results received from resource extension and in-fill drilling at the key Nkran deposit at PMI's flagship Obotan Gold Project in Ghana
- Broad intersections returned from the latest nine infill diamond holes including1 :
- 42.0m @ 2.83g/t Au from 393m, including:
- 11.0m @ 4.19g/t Au from 407m
- 57.0m @ 3.48g/t Au from 237m, including:
- 7.0m @ 8.02g/t Au from 249m
- 5.0m @ 10.31g/t Au from 289m
from 249m - 26.0m @ 8.83g/t Au from 315m, including:
- 9.0m @ 16.29g/t Au from 321m
from 321m - 23.0m @ 3.17g/t Au from 390m, including:
- 2.0m @ 23.77g/t Au from 398m
from 398m - 27.0m @ 2.23g/t Au from 419m, including
- 13.0m @ 4.06g/t Au from 425m
from 425m
- Broad widths of gold mineralisation with high grade sections intersected approximately 150 metres below the base of the previously mined Nkran open pit
- Aggressive extensional and resource in-fill diamond drilling programmes continuing at Obotan Gold Project
- 3 diamond drill rigs continue to operate at Obotan Gold Project
1 Note: a full list of drilling results from all nine holes for which assays have been received is provided in Table 1 on page 4 of this Release.
PMI Gold Corporation (TSX-V: PMV) (ASX: PVM) is pleased to report further positive drilling results from ongoing in-fill and resource extension drilling at the key Nkran deposit at its flagship 100%-owned Obotan Gold Project in Ghana, West Africa, where PMI is currently undertaking a Pre-Feasibility Study.
Strong results have been received from nine additional holes (see Table 1 on page 4 for a full list of intersections) including several broad intersections of high-grade gold mineralisation.
Eight of the nine infill holes intersected multiple zones of mineralisation from the parallel Western and Eastern Lodes and the broad, central stockwork zone within the Nkran deposit (see Figures 3, 4 & 5). The drill holes further confirm the internal integrity of the deposit and indicate the occurrence of higher grade zones within a broad, continuous, lower grade envelope.
The Obotan Gold Project comprises four known deposits - the larger Nkran deposit and the smaller satellite deposits at Abore, Adubiaso and Asuadai (see Figure 1). A resource estimate has previously been announced for Obotan Project (dated 31 August 2010, Prospectus dated 17 December 2010).
Obotan was previously mined by Resolute Mining Limited with production totaling 730,000oz at an average grade of 2.2 g/t gold, when the gold price averaged circa US$350/oz, to a depth of approximately 150 metres below the present surface, before closing in 2002.
The current drilling is focused on defining potential resources for exploitation by open pit and ultimately underground mining down the plunge of the deposit. A new resource estimate is currently scheduled for completion at the end of the September 2011 Quarter, and this will underpin the Pre-Feasibility Study currently underway with planned completion at the end of the year.
At Obotan, PMI has completed 180 resource extension and in-fill drill holes for 43,315 metres to date. Drilling in 2011, to the end of June, totals 86 holes for 22,343 metres. Assay results are outstanding for 27 of these holes, which will continue to be reported as received.
Reporting from the 2011 drilling programme has been hampered by significant delays in assay turn-around times from the contract laboratory in Ghana, due to the high levels of drilling activity in West Africa. These delays are being addressed and data flow is beginning to improve.
Three diamond drill rigs are presently operating at Obotan. Two rigs have been dedicated to the resource expansion programme and metallurgical sample drilling at Nkran, and one rig has been relocated to the Abore satellite deposit.
"PMI's planned transition from gold explorer to producer is progressing to plan," said Managing Director Collin Ellison. "These latest drilling results highlight the potential to grow the resource inventory at Obotan. Work is progressing according to schedule on the Pre-Feasibility Study."
"Geological studies which we initiated at Nkran earlier this year have been providing valuable additional information, giving us an improved understanding of the deposit and, in particular, the controls on the mineralisation and the directions to focus for potential resource extensions," he added.
On behalf of the Board,
"Collin Ellison"
Managing Director & CEO