/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO
U.S. NEWS AGENCIES/
TSX Venture Exchange: PMV
Australian Securities Exchange: PVM
Priority drilling targets identified as regional exploration gathers
Initial 4,800m shallow auger drilling program completed at 90%-owned
Kubi Project as part of PMI's expanded regional exploration program in
Widespread zone of gold anomalism (+40ppb) so far confirmed over 1.2km
in an emerging target area located 1.4km SW of Kubi Main Zone deposit.
High gold values of up to 2,000ppb Au (2g/t Au) returned over strike
lengths of 100-200m, within the broader anomalous zone. Further results
Kubi is located on the north-east trending Ashanti Shear, which controls
the world-class Ashanti Obuasi Gold Mine (60Moz), 15km to the north,
and a series of cross-cutting east-northeast trending structures which
coincide with Perseus Mining's 6.6Moz Ayanfuri deposit, 12km to the
Additional drilling rigs contracted which will increase total drilling
capacity to 5 rigs by August, allowing exploration drilling to commence
at Kubi and Asankrangwa, which will complement resource drilling
currently underway at Obotan.
VANCOUVER, June 30, 2011 /CNW/ - PMI Gold Corporation (TSX-V: PMV; ASX:
PVM) is pleased to provide an update on its regional exploration
activities in Ghana which are gathering momentum with the first assay
results received as part of an ongoing auger drilling program at the Kubi Gold Project (please go to www.pmigoldcorp.com for figures and charts).
Kubi Auger Drilling Program
The recently completed first phase of shallow auger drilling program at
the Kubi Gold Project was focussed on the Ashanti Shear and was
designed to evaluate historical gold anomalous results along strike
from the previously reported 513 Prospect (see ASX/TSX announcements
dated 7 January 2010 and 10 December 2010) and the degree to which
previous soil sampling was influenced by transported overburden.
The auger drilling program was undertaken on an initial line spacing of
200m apart, with holes drilled at a 25m on-line spacing to depths of
3-5 metres. In-fill sampling was carried out on 100m spaced lines in
areas of anomalism. The saprolite horizon was sampled to overcome the
masking effects transported overburden.
A total of 38 lines were drilled, comprising 1,048 holes for total
drilling of 4,831 metres. To date, assay results have been received for
823 samples of the total 2,663 samples, representing approximately 35%
of the overall program. Further results will be reported when they are
Significant gold anomalism has been defined by a 40ppb Au threshold over
a total strike length of up 1.2km along the Ashanti Shear. Within this
anomaly peak zones of greater than 200ppb Au, with maximum gold
concentrations of up to 2,000ppb (2g/t Au), were delineated over strike
intervals of 100-200m.
The results received to date confirm the reliability of the historical
anomalous soil sampling results and provide additional detailed
information for carrying out further auger sampling plus follow-up
Aircore and RC drilling when two newly contracted drill rigs arrive on
site (estimated to be in August 2011). A second auger programme is
expected to commence following review of first phase results, and will
be extended into other tenement areas.
PMI Gold's Managing Director, Mr Collin Ellison, said the results of the
shallow auger program were very encouraging and highlighted the
significant exploration potential of the Kubi Project for further
occurrences of high grade gold mineralisation along the Ashanti Trend
as well as the parallel Kubi Trend.
"The auger drilling has confirmed the results of previous soil
geochemistry and defined priority areas for deeper drilling, which is
scheduled to commence within the next two months," he commented.
"In addition, we have been able to develop a clearer understanding of
the structural setting which will assist in delineating targets for
future drilling. The occurrence of the same series of east-northeast
trending structures that coincide with the Ayanfuri deposit are
considered to be of particular interest for future exploration," he
The Kubi Project is located 50km 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
endowment of about 60Moz, and 12km north east of the 6.6Moz (reported
Measured Indicated and Inferred Resources) Ayanfuri gold deposit (owned
by Perseus Mining).
Kubi overlies the north-easterly trending Ashanti Shear (which hosts the
Obuasi deposit), the Kubi Trend and a series of cross-cutting ENE
trending structures - a similar structural setting to that which hosts
the Obuasi and Ayanfuri deposits (see Figure 1 at www.pmigoldcorp.com).
Previous exploration at Kubi indicates that near-surface gold anomalism
is extensively distributed along these two trends. However, drilling
has only been carried out at isolated locations, and in particular at
the Kubi Main Deposit (NI-43-101 Mineral Resource estimate: Measured
and Indicated 233,000oz @ 5.48g/t Au, Inferred 115,000oz at 5.31g/t Au)
on the Kubi Trend, and more recently 1.4km to the south-west at 513
Prospect on the Ashanti Trend, which was discovered last year.
At Kubi, PMI Gold has a two-pronged strategy, namely:
a re-evaluation of the Kubi Main resource to better understand the
controls and internal distribution of the mineralisation and scope for
additional drilling to delineate resource extensions. PMI is aiming to
complete this work in the September 2011 Quarter; and
explore the highly prospective gold anomalous areas along strike from
the Kubi Main deposit and along the parallel Ashanti Trend commencing
at the 513 Prospect, which returned intersections last year including
4.75m (estimated true width 3.05m) @ 3.75g/t Au from 85m, 8.00m
(estimated true width 5.14m) @ 3.68g/t Au from 64m and 1.00m (estimated
true width 0.64m) @ 15.35g/t Au from 66m.
Regional Exploration Strategy
PMI Gold has been building up its exploration capacity, including the
engagement of additional drill rigs, following the recent appointment
of experienced Exploration Manager, Mr Thomas Amoah and the recruitment
of three field geologist and a surveyor/database officer, to initiate
regional exploration programs on the Asankrangwa Project and brown
fields targets at Obotan in parallel with the Pre-Feasibility
evaluation of the Obotan Gold Project.
Two additional drill rigs - one Reverse Circulation (RC) and one Rotary
Air Blast (RAB)/Aircore rig - are currently being custom constructed
and are scheduled to be shipped to Ghana by mid-August, increasing the
total number of available drill rigs to five (three Diamond Drill rigs
are already operating at PMI's Obotan Gold Project).
On behalf of the Board,
Managing Director& CEO
Kubi Resources: 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., as reported in the
December 3, 2010 technical report prepared by SEMS Exploration Services
Ltd., available at www.sedar.com.
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 Paul Abbott MSc. Consulting Geologists. 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 programme suggest that the reported results are
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.
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 mineralisation and geological merits of the
Obotan and Kubi projects 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 December 8, 2010. In
particular, statements relating to the Company's plans to complete a
pre-feasibility study on the Obotan project by the end of 2011 are
subject to various factors, including positive results from ongoing
exploration; expansion and upgrading of existing mineral resources
(which are currently primarily in the inferred resource category); and
completion of favourable geotechnical drilling programmes,
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 Obotan 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.
SOURCE PMI Gold Corporation
For further information:
| Canada: || Dianne Szigety, Corporate Secretary: 1 (604) 682-8089 Toll-Free: 1 (888) 682-8089 |
| Australia: || Collin Ellison, Managing Director & CEO: (+61) 401 888 323 |
or Nicholas Read / Paul Armstrong, Read Corporate: +61 8 9388 1474 Mobile: +61 419 929 046
or visit the PMI Gold Corporation website at www.pmigoldcorp.com