| ||Thu Jan 7, 2010|
Auger Drilling Confirms Additional Strike Potential, Kubi Project, Ghana
| ||THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES|
News Release # 10-01
January 7, 2010 - Vancouver BC - PMI Gold Corporation (TSX.V:PMV) -- the Company is pleased to announce that initial gold assay results from an auger soil drilling program on our Kubi Gold Project in Ghana have confirmed an additional 600 metres of strike potential to our new '513 Zone' discovery (previously reported results to 3.76 g/t gold over 4.75 metres).
The auger drilling program was completed to prioritize ground geophysical VLF-EM targets prior to diamond drill testing. Previous soil geochemical sampling over large areas of the property has been proven ineffective given generally widespread +4.0 metre thick cover. The auger holes were drilled on 12.5 metre centers and 50.0 metre line spacing across the four strongest VLF-EM anomalies, A1 thru A4, all located in the Target 1 area which includes the 513 Zone. The results from 188 of 230 auger drill holes completed have been received. Of the 412 samples assayed, 21 assayed greater than 100 ppb gold with a maximum of 1,780 ppb.
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. A map showing the regional setting of Kubi is available at: http://www.pmigoldcorp.com/i/maps/PMIdrillApr09.jpg and detail of the exploration target areas at: http://www.pmigoldcorp.com/i/maps/KubiCollarSep0909.jpg.
The Kubi Main Deposit, which the Company is currently sourcing funding to develop as a contract mining and custom milling underground operation (NI43-101 resource: 604,085 oz Indicated; 316,079 oz Inferred -- see http://www.pmigoldcorp.com/i/pdf/Kubi_Preliminary_Assessment_May08.pdf), is located 1.2 km to the east of the 513 Zone.
On behalf of the Board,
"Douglas R. MacQuarrie"
President & CEO
For further information please contact:
Douglas MacQuarrie, President & CEO
Telephone: 1 (604) 682-8089 Toll-Free: 1 (888) 682-8089 Facsimile: 1 (604) 682-8094
or for European Investors: Florian Riedl-Riedenstein: Tel: 43-2774-28814, e-mail: firstname.lastname@example.org
Or visit the PMI Gold Corporation website at www.pmigoldcorp.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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. We Seek Safe Harbour.
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