Further Anomalous Gold Results from Auger Sampling at Kubi Project, Ghana

/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES/

Highlights:

  • Continued auger sampling defines additional, 1.5 to 2.0km long gold in soil anomalies on the NE trending Kubi and Ashanti Shears.
  • The addition of the new anomalies shows that a NE corridor of gold anomalism at Kubi has been delineated over a 5km strike extent so far.
  • In the region of "513" Prospect gold anomalies occur on a series of NE trends indicating that they may be controlled by an array of structures not identified previously.
  • Numerous ENE aeromagnetic-based structures, considered as an additional favourable control for gold mineralization in Ghana, regularly cut across the soil anomalies.
  • Auger sampling will continue with follow-up aircore/RAB drilling scheduled to commence in Q1 2012.

VANCOUVER, Jan. 30, 2012 /CNW/ - PMI Gold Corporation (TSX-V: PMV; ASX: PVM) is pleased to advise that further anomalous gold results were received from the auger drilling to the north of the Kubi Forest Zone on the Kubi Gold Project in Ghana (Figures 1 and 2). The addition of these results, show that recent auger sampling carried out by PMI has delineated gold anomalies over a 5 km strike extent of the NE trending Ashanti and Kubi shears.

Consistent with the results reported further south, around "513" Prospect (Figures 2 and 3), the new anomalies have maximum gold concentrations in excess of 2g/t Au in saprolite clays, well-defined NE trends coinciding with the Ashanti and Kubi shears and extend semi-continuously over strike extents of up to 2km and widths of 50 to 100 metres.

It is important to note that the auger anomalies around the "513" Prospect (Figure 3) occur as a multiple series of NE trends within the corridor bounded by the Ashanti and Kubi shears. In addition, extensions of auger sample lines indicate that well defined gold anomalies extend well to the west of the Ashanti Shear. These findings suggest that gold bearing NE structures may occur as a more complex array than originally considered, broadening the overall prospectivity.

A series of ENE structural corridors, which are also considered as another favourable ingredient for controlling gold mineralisation in Ghana, have been interpreted from aeromagnetic data to regularly cut across the gold anomalous corridor (Figure 2).

The positive results have provided a series of drill targets that can now be followed up by a combination of aircore/RAB and RC drilling to initially explore for shallow gold mineralisation in the bedrock as sources of the surface Au anomalism. It is anticipated that the drilling will commence in Q1 2012 and auger sampling will be continued to delineate further Au anomalies.

Kubi Project Auger Program

The Kubi Gold Project, which represents PMI Gold's second developing project, is located 65km east of PMI Gold's Obotan Gold Project, 15km immediately south along strike from the world-class Obuasi gold mining complex (owned by AngloGold Ashanti), which has a pre-mine resource of about 60Moz, and 12km north east of the 6.6Moz Edikan Gold Mine (owned by Perseus Mining).

Previous exploration at Kubi principally focussed on the Kubi Main Deposit (Measured Resource of 0.66 million tonnes grading 5.30 g/t gold for 112,000oz; Indicated Resource of 0.66 million tonnes grading 5.65g/t gold for 121,000oz; Inferred Resource of 0.67 million tonnes grading 5.31 g/t gold for 115,000oz) on the Kubi Shear (Figure 2) and on geophysical anomalies.  Deeper drilling has only been carried out at isolated locations and has not yet tested the gold anomalous auger targets.  Much of the Ashanti and Kubi Shear Zones remain untested by drilling.

The Company's exploration activities in 2011 focussed on carrying out a 10,000 metres auger drilling program over the Ashanti and Kubi shears. This has proved to be very successful in providing a new targeted focus to explore for new occurrences of gold mineralisation. The success of this program justifies its continuation over the remainder of suitable areas on the project and follow-up aircore/RAB and RC drilling.

The auger drilling program was undertaken on an initial line spacing of 200m, with holes drilled at a 25m on-line spacing to depths of 3-6 metres, depending on the depth of overburden. Additional in-fill auger drilling was carried out on 100m spaced lines in areas of anomalism. The saprolite horizon was sampled to overcome the masking and spurious effects of the transported overburden.  Samples were assayed by 'bottle-roll' technique using up to 2kg samples with a 24-hour residence time at SGS Laboratories.  Results were reported with a detection limit of 2ppb.  Results were contoured using 20, 40 and 80 divisions with several values over 1,000ppb.

A total of 4,230 assays results have been received and a further 521 results are outstanding.

On behalf of the Board,
"Collin Ellison"
Managing Director & CEO

Competent Person Statement

SEMS Exploration Services Ltd completed the Kubi Project resource estimation on behalf of PMI Gold Corporation. SEMS Exploration Services Ltd has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they undertook to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves'.  SEMS Limited consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Exploration Results:

The information in this announcement that relates to Exploration Results is based on information compiled by Collin Ellison, who is employed by PMI Gold Corporation. Mr Ellison, who is a Member Institute of Material, Minerals and Mining of UK, a 'Recognised Overseas Professional Organisation' (ROPO) included in a list promulgated by the ASX from time to time, has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves'.  Mr Ellison consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Scientific and technical information contained in this news release has been reviewed and approved by Collin Ellison, C.Eng. a "qualified person" as defined under National Instrument 43-101.  Field work was supervised by Thomas Amoah (VP-Exploration). Auger samples were sent to SGS Laboratory in Tarkwa, and analyzed for gold by bottle-roll technique using 1 kg sample and a 24 hour residence time. Samples were assayed for gold (2ppb detection limit) and Arsenic (20ppm detection limit).  Internal QC consisted of inserting both blanks and standards into the sample stream and multiple re-assays of selected anomalous samples. Where multiple assays were received for an interval, the final value reported was the screened metallic assay if available, or in lieu of that the average of the other results for the interval. Results from the QC program suggest that the reported results are accurate.

Cautionary Note Regarding Forward-looking Statements

This news release includes certain forward-looking statements or information.  All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Kubi project and the plans, objectives or expectations of the Company with respect to the advancement of these projects and completion of scoping and pre-feasibility studies, are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities; fluctuating gold prices; possibility of equipment breakdowns, delays and availability; exploration cost overruns; availability of capital and financing; general economic, market or business conditions; regulatory changes; timeliness of government or regulatory approvals; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators, including in the section entitled "Risk Factors" in the Company's Annual Information Form dated September 20, 2011.  Statements relating to the Company's plans are subject to various factors, including positive results from ongoing exploration; expansion and upgrading of existing mineral resources; and completion of favourable geotechnical drilling programs, metallurgical test work, mine plan engineering, environmental and community relations assessments, and preliminary economic assessments.  Due to the uncertainty which may attach to inferred mineral resources, it cannot be assumed that all or any part of the inferred mineral resources at Kubi will be upgraded to indicated or measured mineral resources as a result of continued exploration. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

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.

PDF with caption: "Figure 1: Kubi Gold Project Location Plan showing Surrounding Deposits, Figure 2: Kubi Exploration - Gold Geochemical Anomalies resulting from Additional Auger Sampling Results, and Figure 3: Kubi Exploration - Map 1: Previously Announced Auger Sampling Results". PDF available at: http://stream1.newswire.ca/media/2012/01/30/20120130_C7757_DOC_EN_9426.pdf

SOURCE PMI Gold Corporation

For further information:

Investor Relations Canada: 
Rebecca Greco, Fig House Communications 
P. +1 (416) 822-6483  
E. fighouse@yahoo.com 
Investor Relations Australia:
Nicholas Read/Paul Armstrong, Read Corporate
P. +61 8 9388 1471 
M. +61 419 929 046
PMI Contact Canada:
Marion McGrath, Corporate Secretary
P. +1 (604) 684-6264
Toll-Free: 1 (888) 682-8089
PMI Contact Australia:
Collin Ellison, Managing Director & CEO
P. +61 8 6188 7900
or visit the PMI Gold Corporation website at www.pmigoldcorp.com

 

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