New concession optioned - Ashanti Gold Belt



    /NOT FOR RELEASE OR DISTRIBUTION IN THE USA./

    
     TSX Venture Exchange: PMV     US PMVGF.PK
     Frankfurt/Berlin: AOJMW7      Issued & Outstanding: 57,631,456
                                          Fully Diluted: 75,615,356
    

    VANCOUVER, Jan. 31 /CNW/ - PMI Gold Corporation (TSX/V:PMV) - Douglas
MacQuarrie, President, announces that it has reached agreement with Goknet
Mining Company Limited of Accra, Ghana to explore their recently acquired 101
square kilometre Bankame reconnaissance license.
    The license adjoins to the north of our Ofoase concession, and is located
on the Ashanti Gold Belt 20 kilometres northwest of Newmont's 8.5 million
ounce Akyem gold project; 50 kilometres northeast of Anglo Gold Ashanti's
55 million ounce Obuasi Mine; 10 km south of the 1.2 million ounce Konongo
Mine; and shares its western boundary with AMI Resources Praso concession.
    Bankame is primarily underlain by granite of the Banso batholith, with
minor Birimian and Tarkwaiian series meta-sedimentary rocks located around its
western margin. The Banso granite has an anomalously high radiometric
potassium signature and based on the contact metasomatism noted in the
surrounding meta-sediments is interpreted to be post Tarkwaiian in age. The
batholith is bisected by a late stage, north south trending dolerite dyke and
northwest - southeast trending faults.
    Previous regional work conducted by the Ghana Geological Survey has noted
a few gold anomalies in silt samples from streams draining the Bankame area.
PMI Gold will commence exploration by completing regional silt sampling for
gold and other anomalous minerals. In the past granitic terranes were
purposely not explored for gold, however with Newmont's major success in the
granites at their new Ahafo mine (10.6 million ounces) structurally prepared
granitic terranes are now known to have significant potential.
    PMI can earn up to an 80% direct interest in the concession from Goknet
by undertaking all exploration, keeping the concession in good standing,
making payments of US$5,000 per year and reserving a 2%NSR royalty on behalf
of Goknet.
    Ghana is Africa's second largest gold producer and has recently attracted
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 properties now include the former Nkran, Adubiaso and Abore mines,
which collectively produced 730,000 ounces of gold prior to their closing in
2003. The concessions cover 657 square kilometres on two of Ghana's major gold
belts.

    On behalf of the Board,

    "Douglas R. MacQuarrie"

    Douglas R. MacQuarrie
    President & CEO

    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.
    %SEDAR: 00005434E




For further information:

For further information: Douglas R. MacQuarrie, President & CEO; Malcolm
Ashford, Vice President, Corporate Communications, (mobile (604) 765-4775),
Telephone: (604) 682-8089, Toll-Free: (888) 682-8089, Facsimile: (604)
682-8094; Or visit the PMI Gold Corporation website at www.pmigoldcorp.com or
in German: http://pmi.goldseiten.de

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PMI Gold Corporation

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