/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES/
TSX Venture Exchange: PMV
Issued & Outstanding: 252,170,060
VANCOUVER, June 17 /CNW/ - PMI Gold Corporation (TSX.V:PMV) - Douglas MacQuarrie, President & CEO, reports that the quality control (QC) drilling program to confirm the historical Obotan drill data base, has now been completed, with final data compilation underway. This new data will allow for the preparation of a maiden NI43-101 report on the gold resource and is expected to be completed by early August, 2010.
A total of 3,600 metres of QC drilling in 28 holes and 3,443 metres of additional resource definition drilling in 25 holes have been completed. Two drill rigs are currently on site, continuing with additional resource definition drilling. On completion of this additional drilling, expected in late 2010, an updated resource estimate for Obotan will be prepared, and a scoping level economic study commissioned to evaluate the best economic model for further development.
At our Kubi gold project engineering pre-design work with respect to building a 750 tpd underground mine and mill facility have commenced. This work will build on our previous scoping/pre-feasibility level studies that indicated a strong economic basis for advancing the project to production. The Company is continuing to source the CAPEX funding required to take Kubi to commercial production, and further details will be released when and as available.
The Company also announces that the high resolution magnetic and radiometric survey which commenced in late May has now been 50% completed. The survey will cover our two major concession areas - Obotan and Kubi - and will form the base for an expanded exploration program to locate additional targets for follow up drilling.
West Africa is projected to become the World's number 2 gold producing region after China. Ghana is by far the largest gold producer in West Africa with an estimated 55% of its total gold resources and 44% of its projected annual production. PMI Gold now controls four previous operating mines on 85 kilometres of Ghana's major gold belts, located near the centre of some 200 million ounces of historical gold production, current resources and major mining infrastructure.
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: 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, email: firstname.lastname@example.org; Or visit the PMI Gold Corporation website at www.pmigoldcorp.com