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 Ashanti Gold Belt
Kubi Gold Project Purchased from Nevsun in October 2007  PMI Gold has purchased all of the shares of Nevsun Resources (Ghana) Ltd. ("NS Ghana"), a Barbados registered company, which holds the Kubi Gold Project interests, for 9 million shares in the capital stock of PMI Gold, and US$3million. In addition, Nevsun retains the right to a seat on the Board of Directors of PMI Gold. Local artisanal miners first developed Kubi in the 1920s with eight adits being driven. In 1988 BHP (now BHP Billiton), during a major reconnaissance soil survey along the western margin of the Ashanti gold belt, outlined strong gold anomalies near the old workings and completed a program of ground geophysics and drilling. NS Ghana optioned the property from BHP in 1993. Subsequently, they completed extensive exploration at Kubi in the mid through late 1990's, and defined gold mineralization in a near vertical 1.0 to 15.0 metre thick gold, garnet, and sulfide rich horizon. Diamond core drilling in 217 holes totalling 70,000 metres has defined the mineralized zone over an 1,800 metre long by up to 700 metre deep block contained within a northeast trending shear zone at the contact between Birimian and Tarkwaiian metasediments. In 1999, NS Ghana transferred the property to Ashanti, who in return for cash and royalty payments to NS Ghana, mined from two small pits 58,696 ounces of gold in 500,230 tonnes of oxide ore grading 3.65 g/t gold, with the recovered grade 28% higher than Ashanti's modelled grade. In 2006/2007 Ashanti backfilled the pits and completed the bulk of the reclamation, with the final phase pending PMI Gold's near term development plans. The western part of the property, comprising the Kubi Mining leases, have now been returned to NS Ghana. Golder Pre-Feasibility/Scoping Study Supports 14-year Underground Mine The Golder Report commissioned by PMI Gold and released in June 2008, indicates that the Kubi Project can be developed as a profitable underground mining operation with shaft access, producing 35,000 to 50,000 ounces of gold per year from a thoughput of 500 to 1,000 tonnes of ore per day. A later report prepared by Golder and GBM Engineering proposed a decline access, 1,000 to 1,500 tad and capital costs were estimated at US $78.5 million including US $30 million for a treatment plant. Cash costs of US$336 per ounce were estimated for the first five years. An N.I. 43-101 compliant Indicated Resources statement estimated 604,085 ounces of gold. (Mineral resources that are not reserves do not have demonstrated economic viability). Their mineral resource estimate using multiple indicator kriging is based on data from 212 diamond drill holes in the NS Ghana database less the resource already mined by AngloGold Ashanti:
Within the zone estimated above, a core of higher-grade material can be determined and this will be the initial target for ongoing studies.  Golder has recommended moving forward with detailed proposals for a full feasibility study, including environmental, geo-technical, shaft and mine design, condemnation drilling, equipment selection, infrastructure development, further metallurgical testing to permit optimizing the recovery process, water and tailings management, and final mine rehabilitation as well as debt financing. PMI Gold is developing a Direct Shipping Option , which would require lower funding requirements. Driving a decline from a bench on the south east side of the existing pit and trucking ore to available toll mills, the pre-production, sustaining and working capital reduce funding requirement to US $16 million. The proposed vertical shaft and on-site treatment plant would be funded from future profits. An internal non N.I. 43-101 compliant sectional analysis by Management indicates steeply north plunging ore shoots, with over 300,000 ounces of the current indicated resources grading greater than 6.00 g/t Au, which will be the target for further development. Kubi Drilling Phase Two Drill Program Started Spring 2009 Second phase of the drilling program on our Kubi Gold project in Ghana will commence the third week in July. The first phase consisted of a 1,005 metre, 8 hole program. Initial gold assay results have been received and indicate that several new gold bearing structures have been intersected. The best results to date are: 1.0m @ 1.98 g/t Au at a depth of 90.0m in hole KV-09-501 (within a section grading 1.0 g/t over 5.0m from 89.0 to 94.0m); 1.0m @ 1.40 g/t at a depth of 55.0m (within a section grading 1.0 g/t over 3.0m) and 1.0m @ 2.49 g/t Au at a depth of 82.0m in hole KV-09-502; and 1.0m @ 1.32 g/t Au at a depth of 61.5m in KV-09-508. Please see drill collar map at: http://www.pmigoldcorp.com/i/maps/PMIdrillJuly13.jpg Table 1 - Drill Collar co-ordinates:
These initial results are considered encouraging. Drill testing of airborne and ground confirmed EM targets has located significant shear zones -- some of which are associated with gold-quartz-sulfide mineralization. Phase II of the program will comprise 25m step outs on some of the above noted intersections to test for stronger grades and widths and also to continue to 'wildcat' test other EM conductors. A map showing the regional setting of Kubi is available at: http://www.pmigoldcorp.com/i/maps/PMIdrillApr09.jpg, and a detail of the exploration target areas at: http://www.pmigoldcorp.com/i/maps/PMIdrillApr09c.jpg, and a detail photo of drill core from KV09-501 at http://www.pmigoldcorp.com/i/maps/KV09_501_83to96m.jpg Auger Drilling Confirms Additional Strike Length Potential at Kubi
Significantly, all 21 of the anomalous gold samples occur in a distinct linear trend from the 513 Zone in the north, 600 metres southerly to the center of the A3 target area. The southern most 200 metres of this trend is highly anomalous and will be targeted with diamond drilling on completion of additional financing. No significant gold anomalies were outlined on the A2 target. A detail map of the Target 1 area auger drilling and previous soil sample results plotted on the VLF and Resistivity ground geophysics maps are available at: http://www.pmigoldcorp.com/i/maps/A1A3soilsVLF.pdf and at http://www.pmigoldcorp.com/i/maps/A1A3soilsN2Resistivity.pdf. Gyimigya & Dunkwa In September 2008, the Company acquired two new concessions adjoining to the north and south of our current Kubi Mining Leases. The new prospecting license is in two parts, known as the Gyimigya and Dunkwa and cover 8.20 and 26.26 sq km respectively. Gyimigya adjoins immediately to the south of the AngloGold Ashanti Obuasi mine concession. The new property covers a part of the former 390 sq km Dunkwa Continental Mining Lease. Gold dredging activities were active from 1930 for nearly 70 years on the Ofin, and Ankobra Rivers (Asankrangwa gold belt) and the Oda and Jeni Rivers (Ashanti gold belt, southwest of Kubi). The dredging operation was based in Dunkwa, and during this period some 1.45 million ounces of gold were recovered, with dredge production peaking in the early 1960's at 69,000 ounces per year (Minerals Commission, 2002). Previous work on the PMI Gold 'Kubi' concessions, consisting of soil sampling, ground IP, magnetic and radiometric surveys, airborne magnetic and electromagnetic surveys, trenching, 27 exploration adits and shafts, and 499 RAB drill holes (14,296 m), 229 RC drill holes (19,274 m) and 230 DDH drill holes (70,634 m) has outlined two strong gold trends: the Kubi trend which hosts the Kubi gold deposit and which is currently being evaluated for underground production (see PMI Gold news release dated April 10, 2008); and the Ashanti trend which 20 km to the north of Kubi hosts the AngloGold Ashanti Obuasi gold mine (26 million ounces of gold produced to date with current reserves and resources of over 30 million ounces). Of particular interest to PMI Gold, are a series of airborne electromagnetic conductive targets that were outlined by the 1994 survey: which are in areas of elevated gold in soils; and occur on, near or between the defined Ashanti and Kubi trends. One of these targets coincides with the main Kubi gold resource, however there are some 20 km of defined conductors that have not yet been drill tested; and an additional 4 km of strike length of the Ashanti and Kubi trends that have not yet been surveyed. These targets will be the focus of further drilling once adequate financing is completed. Ofoase Concession In late 2005, PMI Gold optioned this 84 square kilometre concession from Goknet Mining Company of Accra, Ghana. It is located 20 kilometres due west of Newmont's 7 million ounce Akyem gold project and 45 kilometres northeast of AngloGold Ashanti's 30 million ounce Obuasi mine. The concession is primarily underlain by: Tarkwaiian meta-sedimentary rocks including quartz pebble "Banket" type conglomerates, quartz (tourmaline, ilmenite, pyrite) sandstones and siltstones; Birimian meta-volcanics; and granite -- on the south and west margin of the Banso batholith. Previous regional work conducted by the Ghana Geological Survey outlined gold anomalies in silt samples from streams draining the concession area. In 1999, a further 33 stream sediment samples were taken. Fire assay results on the 2kg samples were reported to range from 0.019 to 16.074 g/t Au, with 20 samples assaying greater than 1.0 g/t Au. Since acquiring the Ofoase option, PMI Gold has completed 516 line kilometres of helicopter borne high resolution DIGHEM V EM/Magnetometer surveys over the entire concession, and in the southeastern corner of the concession near the highly anomalous 16 g/t silt sample - 1242 soil samples, test lines of IP/Resistivity surveys, geological mapping and trenching, and 3 short diamond drill holes totalling 271 metres. The holes were drilled to test down dip from surface trenching where gold grades to 4.2 g/t in grab samples of Tarkwaiian conglomerate had been noted. Results from this drilling were discouraging with no further work planned on this particular target area. Further work on the Ofoase and Bankame properties were planned for 2008 but with Golder Associates currently completing their initial assessment of the mining potential of our Kubi Gold Project and an initial resource estimate at our Obotan Gold Project, in January 2008, we entered into a letter agreement with Golden Lion Resources (Ghana) Ltd. ("Golden Lion") and Goknet Mining Company (Ghana) Limited ("Goknet"), whereby Golden Lion will purchase a 100% interest, subject to the government of Ghana's 10% free carried interest, in these concessions. Adansi is the operator and currently holds an option interest in the concessions. Mono Minerals Limited ("Mono"), the registered owner of Ofoase, has also agreed to assign all its underlying rights in the Ofoase concession to Golden Lion. Golden Lion Resources Ltd., a company to be listed on the Australian Stock Exchange, has agreed to pay one million shares in its capital stock and a 2% NSR royalty interest, as to 50% to each of Adansi and Goknet, within 14 days of the listing of GLR on the ASX. This agreement is subject to the entering into of a Final Agreement incorporating the terms of the letter agreement; the listing of GLR on the ASX; and the requisite consent of the Minister of Lands, Forestry and Mines of Ghana. The GLR shares issued pursuant to this agreement may also be subject to an escrow period pursuant to the rules of the ASX. 
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