PMI Gold Corporation - First holes reported from 28 drill hole program,
Obotan Project, Ghana

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

TSX Venture Exchange: PMV

US PMVGF.PK

Frankfurt/Berlin: AOJMW7

Issued & Outstanding: 197,340,954

VANCOUVER, Dec. 23 /CNW/ - PMI Gold Corporation (TSX.V:PMV) - the Company is pleased to announce the results from the first two drill holes in the Adubiaso pit area, located 4.0 km north northwest of the Nkran deposit on our Obotan Project in Ghana. These holes are the first of a proposed 28 drill hole program to validate the previous drill data base at Obotan. When the program is completed, an initial NI 43-101 mineral resource estimate will be prepared.

The quality control (QC) holes, ADP09-002 and ADP09-005 were drilled between/in the vicinity of holes drilled by the previous operator Resolute Amansie Limited prior to their completion of mining in December 2002. To that date, the Obotan mine produced a total of 730,000 ounces of gold from the Nkran, Adubiaso and Abore pits at an average grade of 2.2 g/t.

The current QC drill results (italics) are presented in the table below, along with intersections (calculated from historical data) from below the bottom of the pit:

    
    Table 1 - Significant Gold Intercepts from below or beside the Adubiaso
Pit:

    -------------------------------------------------------------------------
                                                                Weighted Avg.
                                                      Width     Grade g/t Au
    Drill Hole       From Metres    To Metres        Metres           (uncut)
    -------------------------------------------------------------------------
    ADP09-002             110.50       114.60          4.10             1.59
    -------------------------------------------------------------------------
    ADP09-005             101.00       107.00          6.00             5.67
    -------------------------------------------------------------------------
      including           101.00       101.50          0.50            17.20
    -------------------------------------------------------------------------
      including           105.50       106.00          0.50            24.95
    -------------------------------------------------------------------------
      including           106.00       106.50          0.50            18.60
    -------------------------------------------------------------------------
    DD269                  43.50        52.50          9.00             2.55
    -------------------------------------------------------------------------
      including            43.50        44.50          1.00            13.45
    -------------------------------------------------------------------------
    DD521                 134.00       135.00          1.00            12.16
    -------------------------------------------------------------------------
                          142.30       179.00         36.70             2.45
    -------------------------------------------------------------------------
      including           144.00       145.00          1.00            22.97
    -------------------------------------------------------------------------
      including           151.00       152.00          1.00            14.78
    -------------------------------------------------------------------------
      including           155.00       156.00          1.00            11.39
    -------------------------------------------------------------------------
    DD523                  72.00        75.00          3.00             6.93
    -------------------------------------------------------------------------
    RC167                  69.00        71.00          2.00            12.10
    -------------------------------------------------------------------------
    RC168                  81.00        86.00          5.00             2.15
    -------------------------------------------------------------------------
    RC267                  58.00        60.00          2.00             6.23
    -------------------------------------------------------------------------
    RC274                  88.00       128.00         40.00             5.88
    -------------------------------------------------------------------------
      including            89.00        90.00          1.00            23.90
    -------------------------------------------------------------------------
      including            91.00        92.00          1.00            16.60
    -------------------------------------------------------------------------
      including            93.00        94.00          1.00            11.10
    -------------------------------------------------------------------------
      including           105.00       106.00          1.00            29.90
    -------------------------------------------------------------------------
      including           107.00       108.00          1.00            42.70
    -------------------------------------------------------------------------
    RC291                 141.00       146.00          5.00             2.40
    -------------------------------------------------------------------------
    RC295                 110.00       119.00          9.00             6.72
    -------------------------------------------------------------------------
      including           114.00       115.00          1.00            22.80
    -------------------------------------------------------------------------
      including           117.00       118.00          1.00            25.50
    -------------------------------------------------------------------------
    RC296                  98.00       102.00          4.00             2.86
    -------------------------------------------------------------------------
    RC304                  48.00        51.00          3.00             6.51
    -------------------------------------------------------------------------
      including            50.00        51.00          1.00            12.85
    -------------------------------------------------------------------------
    RC307                  91.00        96.00          5.00             2.81
    -------------------------------------------------------------------------
    RC308                 112.00       133.00         21.00             3.49
    -------------------------------------------------------------------------
      including           119.00       120.00          1.00            29.80
    -------------------------------------------------------------------------
    RC323                  66.00        69.00          3.00            13.24
    -------------------------------------------------------------------------
      including            68.00        69.00          1.00            37.27
    -------------------------------------------------------------------------
    RC324                  82.00        94.00         12.00             4.13
    -------------------------------------------------------------------------
      including            82.00        83.00          1.00            10.80
    -------------------------------------------------------------------------
      including            90.00        91.00          1.00            22.45
    -------------------------------------------------------------------------
    RC366                  74.00        87.00         13.00             1.87
    -------------------------------------------------------------------------
    RC367                  99.00       101.00          2.00            20.21
    -------------------------------------------------------------------------
    RC435                 108.00       118.00         10.00             2.56
    -------------------------------------------------------------------------
      including           117.00       118.00          1.00            16.62
    -------------------------------------------------------------------------
    RC436                  51.00        53.00          2.00             4.98
    -------------------------------------------------------------------------
                          109.00       121.00         12.00             3.57
    -------------------------------------------------------------------------
      including           110.00       111.00          1.00            13.89
    -------------------------------------------------------------------------
    RC488                  81.00        82.00          1.00            25.85
    -------------------------------------------------------------------------
                           97.00       101.00          4.00             6.70
    -------------------------------------------------------------------------
      including            97.00        98.00          1.00            11.97
    -------------------------------------------------------------------------
                          139.00       143.00          4.00             2.27
    -------------------------------------------------------------------------
    RC451                 100.00       116.00         16.00             3.00
    -------------------------------------------------------------------------
      including           110.00       111.00          1.00            10.96
    -------------------------------------------------------------------------
      including           114.00       115.00          1.00            10.79
    -------------------------------------------------------------------------
    RC583                  54.00        57.00          3.00             2.62
    -------------------------------------------------------------------------
    RC585                  58.00        61.00          3.00             4.25
    -------------------------------------------------------------------------
    RC587                  55.00        61.00          6.00             2.21
    -------------------------------------------------------------------------
    RC589                  58.00        60.00          2.00             7.36
    -------------------------------------------------------------------------
    RC590                  37.00        40.00          3.00            14.26
    -------------------------------------------------------------------------
      including            39.00        40.00          1.00            34.45
    -------------------------------------------------------------------------
    RC590                  52.00        53.00          1.00             8.95
    -------------------------------------------------------------------------
    RC635                  34.00        37.00          3.00             4.20
    -------------------------------------------------------------------------
                           57.00        63.00          6.00             2.14
    -------------------------------------------------------------------------
    RC637                  51.00        53.00          2.00             5.28
    -------------------------------------------------------------------------
                           80.00       110.00         30.00             6.08
    -------------------------------------------------------------------------
      including            82.00        83.00          1.00           131.40
    -------------------------------------------------------------------------
      including            96.00        97.00          1.00            14.95
    -------------------------------------------------------------------------
    RC648                 101.00       105.00          4.00            22.47
    -------------------------------------------------------------------------
      including           101.00       102.00          1.00            62.93
    -------------------------------------------------------------------------
      including           102.00       103.00          1.00            23.77
    -------------------------------------------------------------------------
    RC651                  28.00        29.00          1.00             6.02
    -------------------------------------------------------------------------
    RC856                  91.00        93.00          2.00             3.23
    -------------------------------------------------------------------------
                          120.00       123.00          3.00             2.99
    -------------------------------------------------------------------------
    RC986                  84.00        99.00         15.00             2.82
    -------------------------------------------------------------------------
      including            97.00        98.00          1.00            13.53
    -------------------------------------------------------------------------
    RC989                  78.00        94.00         16.00             3.69
    -------------------------------------------------------------------------
      including            78.00        79.00          1.00            21.50
    -------------------------------------------------------------------------
      including            87.00        88.00          1.00            16.43
    -------------------------------------------------------------------------
    RCD278                133.00       140.00          7.00             4.51
    -------------------------------------------------------------------------
      including           135.00       136.00          1.00            15.00
    -------------------------------------------------------------------------
    RCD289                126.30       134.30          8.00             2.07
    -------------------------------------------------------------------------
    RCD327                135.00       140.00          5.00             5.32
    -------------------------------------------------------------------------
      including           139.00       140.00          1.00            14.75
    -------------------------------------------------------------------------
    RCD330                116.00       124.00          8.00             2.09
    -------------------------------------------------------------------------
    RCD333                136.00       145.00          9.00             2.94
    -------------------------------------------------------------------------
                          156.30       162.00          5.70             2.50
    -------------------------------------------------------------------------
      including           161.00       162.00          1.00            10.24
    -------------------------------------------------------------------------
    RCD337                126.00       144.00         18.00             4.53
    -------------------------------------------------------------------------
      including           135.00       136.00          1.00            41.05
    -------------------------------------------------------------------------
    RCD363                105.00       123.00         18.00             2.14
    -------------------------------------------------------------------------
      including           120.00       121.00          1.00            11.60
    -------------------------------------------------------------------------
    RCD368                111.00       113.00          2.00             3.13
    -------------------------------------------------------------------------
                          120.00       122.00          2.00            18.90
    -------------------------------------------------------------------------
    RCD411                118.00       122.00          4.00             3.47
    -------------------------------------------------------------------------
    RCD412                152.00       155.00          3.00             3.67
    -------------------------------------------------------------------------
    RCD413                123.00       124.00          1.00             6.92
    -------------------------------------------------------------------------
                          201.80       207.00          5.20             3.83
    -------------------------------------------------------------------------
    RCD414                214.00       216.50          2.50             5.97
    -------------------------------------------------------------------------
    RCD417                133.00       134.00          1.00             8.59
    -------------------------------------------------------------------------
                          203.80       214.00         10.20             3.93
    -------------------------------------------------------------------------
      including           203.80       204.20          0.40            28.78
    -------------------------------------------------------------------------
      including           211.00       212.00          1.00            14.41
    -------------------------------------------------------------------------
    RCD419                139.00       141.00          2.00            32.59
    -------------------------------------------------------------------------
                          197.00       203.00          6.00             3.30
    -------------------------------------------------------------------------
      including           202.00       203.00          1.00            13.44
    -------------------------------------------------------------------------
    RCD422B               170.00        182.8         12.80             2.68
    -------------------------------------------------------------------------
      including           173.00       174.00          1.00            12.11
    -------------------------------------------------------------------------
    RCD425                179.00       181.00          2.00             2.89
    -------------------------------------------------------------------------
    RCD426                159.00       161.00          2.00             3.51
    -------------------------------------------------------------------------
    RCD433                162.50       170.00          7.50             2.87
    -------------------------------------------------------------------------
      including           162.50       163.00          0.50            25.26
    -------------------------------------------------------------------------
                          181.00       183.00          2.00             5.11
    -------------------------------------------------------------------------
    RCD447                123.10       125.00          1.90             3.23
    -------------------------------------------------------------------------
    RCD453                115.00       118.20          3.20            22.13
    -------------------------------------------------------------------------
      including           117.30       118.20          0.90            68.25
    -------------------------------------------------------------------------
                          132.10       134.50          2.40             2.37
    -------------------------------------------------------------------------
                          137.60       139.80          2.20             4.17
    -------------------------------------------------------------------------
                          149.80       172.00          22.2             1.57
    -------------------------------------------------------------------------
    RCD455                110.00       128.00         18.00             3.05
    -------------------------------------------------------------------------
      including           125.60       126.60          1.00            17.50
    -------------------------------------------------------------------------
                          135.50       138.10          2.60             2.19
    -------------------------------------------------------------------------
    RCD456                127.00       131.00          4.00             5.34
    -------------------------------------------------------------------------
                          147.00       149.00          2.00             6.13
    -------------------------------------------------------------------------
                          173.00       174.00          1.00            29.48
    -------------------------------------------------------------------------
    RCD578                131.00       139.60          8.60             2.10
    -------------------------------------------------------------------------
    RCD631                109.00       110.00          1.00            10.56
    -------------------------------------------------------------------------
                          160.00       164.00          4.00             3.29
    -------------------------------------------------------------------------
                          180.00       190.00         10.00             3.73
    -------------------------------------------------------------------------
      including           184.00       185.00          1.00            13.56
    -------------------------------------------------------------------------
                          202.00       204.00          2.00             5.84
    -------------------------------------------------------------------------
                          209.60       213.00          3.40             3.73
    -------------------------------------------------------------------------
      including           209.60       210.00          0.40            30.78
    -------------------------------------------------------------------------
    RCD633                115.00       119.00          4.00             4.82
    -------------------------------------------------------------------------
      including           115.60       116.00          0.40            40.40
    -------------------------------------------------------------------------
    RCD946                304.00       306.00          2.00             3.24
    -------------------------------------------------------------------------
    

Douglas R. MacQuarrie, President and CEO commented: "Our first two drill holes at the Adubiaso pit site have confirmed that significant near surface gold mineralization remains at this location. It is also particularly encouraging to note strong gold grades and widths under the pit. This suggests potential exists for developing "deep" resources in plunging ore shoots as is typical at our Nkran deposit and elsewhere in Ghana. Drilling at Adubiaso is expected to resume early in the New Year."

Please see the following link for the Adubiaso Pit - Drill Collar Plan map: http://www.pmigoldcorp.com/i/maps/AdubiasoDrillPlanNRDec2309.pdf.

This news release has been prepared by Douglas R. MacQuarrie, P.Geo.(B.C.), a Qualified Person under National Instrument 43-101. Field work was supervised by Paul Abbott MSc, a member of the Geological Society of South Africa with 21 years relevant experience in West Africa. HQ, and NQ core was logged, sawn and sampled on site, with half samples sent to SGS Analabs Pty. Ltd. in Bibiani, and analyzed for gold by fire assay-AA on a 50 gram sample charge. 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 average of all results for the interval. Results from the QC program suggest that the reported results are accurate. Confirmation of the historical drill hole data base is ongoing and the data is believed to be reliable, however it is presented as received by PMI Gold Corporation. Intercepts were calculated with a minimum 1.0 g/t Au cut off at the beginning and the end of the intercept and allowing for no more than six consecutive metres of less than 1.0 g/t Au. Internal intercepts above 10.0 g/t Au are reported separately. Grade x Width intercepts of less than 10.0 g/t meters were not reported. True widths are estimated at 70% to 80% of the stated core length.

On behalf of the Board,

"Douglas R. MacQuarrie"

President & CEO

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.

SOURCE PMI Gold Corporation

For further information: For further information: Douglas R. MacQuarrie, President & CEO, Telephone: (604) 682-8089, Toll-Free: 1-888-682-8089, Facsimile: (604) 682-8094 or for European Investors: Florian Riedl-Riedenstein, Tel: 43-2774-28814, e-mail: frram@aon.at or visit the PMI Gold Corporation website at www.pmigoldcorp.com

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