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"PMI Gold is continuing to explore at Kubi to find new high grade ore shoots to add to the already defined 604,085 ounce indicated gold resource at the Kubi Main zone which was the subject of a NI 43-101 assessment by Golder Associates Ltd. In addition, we control four previously operating gold mines on 746 square kms of leases and concessions in Ghana which are slated for further exploration."
Douglas MacQuarrie, President & CEO
President's Letter May 2009
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| | Tue Nov 7, 2006
PMI Gold Corporation Acquires Three Past Gold Producers in Ghana
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| | News Release #06-17
November 7, 2006, Vancouver BC - PMI Gold Corporation (TSX/V:PMV) - Douglas MacQuarrie, President, announces the acquisition of the former Obotan, Abore and Adubiaso Mines in Ghana, West Africa. These mines are located on the new 89 sq km Abore and Abirem Prospecting Licence which have been offered to and accepted by PMI Gold.
The mines were previously operated by Resolute Amansie Limited - a subsidiary of Resolute Mining of Australia. Between 1997 and 2002 the Obotan mine produced a total of 730,000 ounces of gold from the Nkran pit at an average grade of around 2.2 g/t. In addition, the Abore and Adubiaso pits, located 12.5 km north and 4.0 km north northwest respectively of Nkran, together produced a further 150,000 ounces at similar grades. With this acquisition, PMI now holds 470 sq km, in 11 concessions over a 70 km length of the Asankrangwa Gold Belt.
The Lycopodium Group completed a bankable feasibility study on the Obotan deposits in 1997 reporting 38 million tonnes at 1.96 g/t gold for 2.823 million ounces of contained gold. The plant operated at up to 2Mtpa and incorporated a coarse and fine crusher feeding a SAG mill, gravity concentrators, CIL circuit and a desorption plant. Mining commenced in 1997, and was shut down in December 2002 primarily because of the low $320 per ounce gold price. In 2003 the mill was sold and the decision taken to rehabilitate the site and return the lease to the Government, which occurred in July 2006.
PMI Gold believes there is an exploration target of one to two million ounces of gold grading from 3.0 to 6.0 g/t below the Nkran pit based on deep drilling results and projections to 400 m below the deepest intersection. This assumption is conceptual in nature and there has not been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The above assumption is based on the following:
1) Resolute had previously completed internal studies concerning underground mining scenarios to co-exist with their surface mining, however given the then very low gold prices the underground option was not pursued. In their studies, a combination of longhole open stope, jumbo cut and fill, airleg open stope, hand-held cut and fill, and shrinkage stoping methods were envisaged with access via a decline from near the base of the pit. These preliminary studies were based on 58 drill holes which intersected +3.0 g/t Au mineralized material below the level of the pit. The pit is currently water filled and measures some 830m long by 430m wide and is up to 140m deep.
2) Two major near vertical gold bearing structures have been partially outlined by the previous drilling - called the Western and Eastern high grade lodes. Most of the deep diamond core drilling targeted these lodes under the south end of the pit. Using a top assay cut of 30.0 g/t Au and estimating true widths to be 55% of the mineralized intersection lengths, 30 drill intersections beneath the level of the pit exceed 22.5 gram Au per tonne metres. These intersections have an average indicated true width of 4.4 metres and weighted average gold grade of 10.02 g/t Au. The deepest down plunge intersection was 4.0 metres true width, grading 8.95 g/t Au, and located 326 metres below the pit.
3) Other results of these studies indicate that:
- higher grades are contained within lower grade envelopes and dilution won't be critical
- screen fire assay retests conducted on high grade intersections indicate a significant coarse gold component to the high grade zones which may not be reflected in the current assay database
- metallurgical test work on drill core composites from beneath the pit indicated recoveries of +96.6% on leached concentrator tails with +75% of the gold reporting to the gravity circuit; and that the assay database may be significantly under calling the grades of the high grade lodes as the metallurgical leach tests returned a 52% upgrade over the original screened 50 gram gold fire assays
- modelling suggests that the majority of the high grade mineralization is within structures which are vertical with good continuity horizontally and vertically
- the Western zone, also referred to as the Galamsey Reef, has not been closed off to the south or at depth
Given the indicated grades, widths and potential strike lengths noted above, and the additional exploration potential at depth and elsewhere on this new license, the Company is genuinely excited about this acquisition and looks forward to commencing a full technical review and scoping study.
Additional funds will be required to advance this project to the pre-feasibility stage and continue exploration of our other holdings. The exercise of outstanding private placement warrants and options would finance our short term requirements.
Ghana is Africa's second leading gold producer and has recently attracted some US$1.5 billion in committed foreign investment due to its long mining history, prospective resource base, reasonable taxation and stable government. PMI Gold's Ashanti II Gold Project is strategically situated near the middle of Ghana's Golden Triangle - outlined by Newmont's new Ahafo and Akyem mines on the north and east and Goldfield's Tarkwa mines on the south.
This news release has been prepared by Douglas R. MacQuarrie, P.Geo.(B.C.), a Qualified Person under National Instrument 43-101, and is based on numerous visits to the property and the mine while in operation, pit tours, examination of selected drill core, and a review of technical reports.
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.
NOT FOR RELEASE OR DISTRIBUTION IN THE USA.
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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| | You can view the Next News Releases item: Thu Dec 7, 2006, 4.4 G/T AU Over 13.5 Metres Reported At Switchback North, Ghana
You can view the Previous News Releases item: Thu Oct 26, 2006, PMI GOLD CORP. -- DRILL UPDATE -- VISIBLE GOLD NOTED IN TRENCHES, NEW CFO -- EGM MEETING RESULTS
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