/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
VANCOUVER, March 12, 2012 /CNW/ - PMI Gold Corporation (TSXV: PMV) (ASX: PVM) (the "Company") announces that as a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify and retract certain technical disclosures.
The Company's corporate presentation entitled "Ghana's Next Major Gold Producer" (the "Corporate Presentation"), as well as third party research reports that had been posted on the Company's website, including a report from RBC Capital Markets dated January 24, 2012 (the "RBC Report") and a report from E.L.& C. Baillieu dated February 1, 2012 (the "Baillieu Report"), included certain NI 43-101 non-compliant disclosures. The Company has now taken the following actions to clarify these non-compliant disclosures:
- The Company is issuing this press release to retract and restate its NI 43-101 non-compliant disclosure.
- All analyst reports, including the RBC Report and the Baillieu Report have been removed from the Company's website.
The NI 43-101 non-compliant disclosures in the Corporate Presentation which the Company retracts and restates are as follows:
- The Corporate Presentation added inferred resources to other categories of resource. The addition of the inferred resource to the other categories of resource is contrary to s. 2.2(c) of NI 43-101. The Company wishes to restate this disclosure as follows: "The current Obotan Gold Project resource estimate is Measured: 14.67 Mt @ 2.66 g/t Au for 1,220,000oz, Indicated: 27.50 Mt @ 2.32 g/t Au for 2,000,000oz, and Inferred: 17.54 Mt @ 2.35 g/t Au for 1,290,000oz. The current Kubi Project resource estimate is Measured: 0.66 Mt @ 5.30 g/t Au for 112,000oz, Indicated: 0.66Mt @ 5.65 g/t Au for 121,000oz, and Inferred: 0.67 Mt @ 5.31 g/t Au for 115,000oz".
- The Corporate Presentation disclosed the Company's NI 43-101 compliant preliminary feasibility study for the Obotan Gold Project, but it also disclosed a pre-tax NPV using a spot gold price whereas the Company's NI 43-101 compliant preliminary feasibility study only assumed a gold price of between US$1,100 and a US$1,500. The Company wishes to retract this disclosure.
The RBC Report and the Baillieu Report included the following NI 43-101 non-compliant disclosures which the Company retracts:
- The RBC Report states a result of economic analysis on a historical resource. This disclosure is prohibited by section 2.3(1)(b) of NI 43-101, and is not in accordance with the current Kubi Project resource estimate noted above. The Company has retracted this disclosure by removing the RBC Report and all other third party analyst reports from its website.
- The RBC Report discloses a potential exploration target of a certain quantity, which quantity is restricted by s.2.3(1)(a) of NI 43-101, has not been disclosed by the Company, and is not in compliance with s.2.3(2) of NI 43-101. The Company has retracted this disclosure by removing the RBC Report and all other third party analyst reports from its website.
- The RBC Report discloses an additional potential exploration target and makes certain assumptions regarding "mining inventory". On that basis, the RBC Report increases the NPV for the Obotan Gold Project beyond the NPV disclosed in the Company's NI 43-101 compliant pre-feasibility study for the Obotan Gold Project. This disclosure is prohibited by s.2.3(1)(b) of NI 43-101. The Company's NI 43-101 compliant preliminary feasibility study in fact showed a pre-tax NPV of US$680.5M and a post-tax NPV of US$416.4M assuming a US$1,300/oz gold price, 5% discount rate and contract mining scenario. The Company retracts the non-compliant NPV related disclosure in the RBC Report by removing the RBC Report and all other third party analyst reports from its website.
- Page 12 of the RBC Report makes assumptions about the results of a pending feasibility study thereby adding to the Obotan Gold Project valuation. The Company has not made these assumptions and retracts this non-compliant disclosure by removing the RBC Report and all other third party analyst reports from its website.
- The Baillieu Report assumes a gold price at the start of production at the Obotan Gold Project, which gold price was greater than the gold price assumptions made in the Company's NI 43-101 compliant technical report for the Obotan Gold Project which assumed gold prices of between US$1,100 AND US$1,500. The Company retracts this disclosure by removing the Baillieu Report and all other third party analyst reports from its website.
- Both the RBC Report and the Baillieu Report include share price guidance which is not permitted disclosure under the Securities Act (British Columbia). The Company retracts this disclosure by removing the RBC Report and Baillieu Report and all other third party analyst reports from its website.
PMI advises investors to review the Company's NI 43-101 compliant technical reports for the current resource and reserve estimate on its material mineral projects and to not rely upon the economic analysis, assumptions and exploration potential set out in the RBC Report or Baillieu Report.
On behalf of the Board,
Managing Director & 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.
For further information:
Investor Relations Canada:
Rebecca Greco, Fig House Communications
P. +1 (416) 822-6483
E. [email protected]
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