| ||Fri Jul 7, 2006|
Mr. Peter Hooper appointed as Non Executive Chairman
| ||Exploration Update|
PMI Gold Corporation (TSX/V:PMV) advises that Mr. Peter Hooper has been appointed as Non Executive Chairman of the Company. Mr. Pearce Bowman has stepped down from his role as Executive Chairman and CEO in order to take up a new role as CEO of Queensland Energy Resources Ltd., a private company with extensive oil shale leases in Queensland, Australia. Mr. Bowman remains as a Director of the Company.
Mr. Hooper, who is currently a Director, brings an extensive background at the Executive level and 30 plus years of experience in the International, African and Canadian gold mining and capital management sectors. The Company is also pleased to announce that Mr. Douglas R. MacQuarrie, has been appointed as CEO. Both appointments were effective July 3rd , 2006.
A total of 2,580 metres of diamond drilling in 13 holes, have been completed on the Ashanti II Gold Project in Ghana, with drilling scheduled to restart in mid July after a short break. The program is testing geophysical, geological and geochemical/old workings targets over a 50 km strike length of the Asankrangwa Gold Belt; and on the Ofoase concession located on the Ashanti Gold Belt.
As a result of deep surface weathering, generally flat topography and widespread alluvial, elluvial and laterite cover, the Company is 'blanketing' target areas with Induced Polarization (IP) surveys in areas with favourable deep seated structures that have indications of gold mineralization (previous mineralized drillholes; old galamsey workings; mineralized showings or soil anomalies). Major structures and sulphide concentrations within 100 to 200 metres of the surface will be detected by the IP surveys and subsequently drill tested for gold mineralization.
To date only 3 out of 17 target areas selected by SRK Consulting in their 2005 project review have been partially tested for gold mineralization. The Company plans to continue exploring the other target areas on a one by one basis.
Switchback North Concession
Five holes (1,564 metres) were completed. Three holes were located to 'fence' a drill section across the entire 800 metre width of the previously outlined gold in soil anomaly, and two to test distinct IP, rock and soil geochemical and geological targets. Wide intersections of strongly foliated carbonaceous "spotted phyllite" interbedded with siltstones, plus quartz veining, were noted. Coarse pyrite, locally from 2 to 5%, is associated with the spotted phyllites and is the likely source of the regional IP anomalies. This type of spotted phyllite unit is associated with gold mineralization on the Ashanti II concessions, and at the former Obotan and Adubiaso mines located 7 km to the east and northeast respectively.
Table 1 -- Drill Results Switchback North (Weighted Average assay greater than 1 g/t Au)
Hole ID Collar Collar Intercept Intercept Intercept AU ASSAY
Azimuth/Dip Grid E Grid N FROM (m) TO (m) LENGTH(m) g/t Au
135/-45 9430 54500 NSV
135/-45 9525 54680 NSV
135/-45 9775 54800 85.10 85.75 0.65 1.64
154.80 155.15 0.35 1.03
178.20 178.40 0.20 1.85
213.30 213.60 0.30 2.02
090/-45 9512 54320 16.80 20.90 4.10 2.79
22.90 26.40 3.50 1.05
35.20 37.45 2.25 1.37
090/-45 9545 53905 NSV
*NSV = no significant gold values
The gold intersections in SBN003 are associated with sulphide mineralization in regionally continuous, northeast trending, west dipping shear zones with quartz veining -- along strike and down dip of a series of old workings and shafts. Additional testing of these targets along strike is recommended.
Hole SBN004 was drilled to test a moderate IP and gold in soil geochemical anomaly. A sheared and mineralized quartz reef intermixed with graphitic phyllite and saprolite was intersected, from 4.0 metres to 37.5 metres down hole. Gold values within the quartz reef are associated with shearing, pyrite and arsenopyrite mineralization and carbonate alteration. As this is the first drill intersection on this reef no estimate of true width can be made. IP surveys and prospecting suggest a possible N10E strike to the zone. In order to better define the zone in preparation for additional drilling, a detail fill in soil geochemical survey is currently underway.
Three holes totalling 271 metres 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 previously noted in trenching. Results were discouraging with the best intersection grading 1 metre @ 0.12 g/t Au in quartzite breccia/conglomerate at a contact with sandstone. Only weak amounts of sulfides and tourmaline were noted. Elevated gold grades at surface appear related to supergene enrichment of the primary low grade gold intersected at depth. No further work is currently planned on this Banket Hill area target, however regional field work has commenced to follow up on other high gold in silt anomalies located elsewhere on the 84 sq km concession.
Agyaka Manso Concession
A total of 4 holes were drilled in two areas separated by some 5 km along a well defined shear zone which is 1.4 km west of and sub parallel to the main ASZ2 (Asankrangwa Shear Zone 2) structure. This area has been the subject of widespread galamsey workings.
Appiahkrom Area: Two holes totalling 261 metres were completed. The holes were drilled to test under active galamsey workings - where grab samples of narrow (less than 1 metre) banded quartz reefs in graphitic phyllite gave assays from 0.07 to 52 g/t Au. The dip extension of the zone and a possible sub-parallel zone was intersected with both holes - but assays and widths were generally disappointing, with best intersections grading: 8.4 g/t Au over 0.20 metres at a depth of 51.2 metres down hole; 2.18 g/t Au over 0.50 m at a depth of 76 metres; and 1.3 g/t Au over 0.9 metres at a depth of 81.4 metres.
Based on the drill results, a 'blanket' IP survey totalling 41 line km was completed over the area centered on the Appiahkrom workings to confirm its geophysical signature and locate stronger zones of mineralization. This survey has outlined several moderate IP anomalies associated with strong N30E and N80E trending structures in the vicinity of galamsey workings. In particular, the Agye Agye galamsey zone located 1.8 km to the east of Appiahkrom is coincident with a strong IP high anomaly and on the main ASZ2 shear. Further drilling is planned to test these new targets.
Donkokrom Area. Two holes totalling 333 metres were completed. These holes were spotted to test weak to moderate IP/resistivity targets under extensive alluvial galamsey workings. No significant structures or assays were returned. No further work is currently planned in this area.
Sample analyses were completed at SGS Analabs Pty. Ltd. at Bibiani, and analyzed for gold by fire assay-AA on a 50 gram sample charge. Selected samples were rerun with 24 hour bottle roll leach assays confirming the earlier values. Random blanks were also added to the sample stream. The work program was under the direction of Douglas R. MacQuarrie, P.Geo. (B.C).
On behalf of the Board,
"Douglas R. MacQuarrie"
Douglas R. MacQuarrie
President & CEO
For further information please contact:
Douglas R. MacQuarrie, President & CEO
Telephone: 1 (604) 682-8089 Toll-Free: 1 (888) 682-8089 Facsimile: 1 (604) 682-8094
Or visit the PMI Gold Corporation website at www.pmigoldcorp.com or in German: http://pmi.goldseiten.de
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements.
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