PMI Gold acquires rights to purchase Edubia Lease, Ghana


    TSX Venture Exchange: PMV
    Frankfurt: WKN888063
    Issued & Outstanding: 67,611,311
    Fully Diluted: 94,750,999

    VANCOUVER, Aug. 16 /CNW/ - PMI Gold Corporation (TSX/V:PMV) - Douglas
MacQuarrie, President, announces that PMI Gold Corporation ("PMI Gold") has
reached agreement with Mr. Emmanuel Acquah the overall head of the Tuakwa
Biney Dehyena Family, whereby Adansi Gold Company (Gh) Limited ("Adansi Gold")
the 100% owned subsidiary of PMI Gold, has the right to acquire 100% of the
Edubia Mining Lease situated at Adubea in the Ashanti Region of Ghana, and
more particularly located 8 km northeast of our Nkran Mine.
    The 13 square kilometre lease was originally issued in January 1931 for a
term of ninety nine years to Mr. Joseph Edward Biney who was one of the
original indigenous owners of the concession that now hosts the world famous
AngloGold Ashanti Obuasi Mine. Since his death in 1937, this lease and other
leases have formed a part of his estate, and Mr. Acquah is the current
successor and administrator of the estate. The Family's title has recently
been acknowledged by the Government of Ghana and formal registration pursuant
to the newer mining legislation commenced.
    In the mid-1990's a license was granted over a much larger area, and work
programs consisting of sampling of old adits, extensive trenching and soil
sampling over the area of the lease, completed. Adit samples to 2.8 g/t Au
over 36 metres were reported in quartz stockwork systems hosted by Birimian
metasediments and granitic intrusives (Griffis et al, 2002, in Gold Deposits
of Ghana, pg 292). Some 213 short drill holes were completed, averaging 40
metres and with a maximum length of 126 m. Gold mineralization was outlined in
a zone from 20 to 60 metres wide and elongated northeasterly over a 700 metre
length. Localized drilling results indicated 1 to 5 metre true widths with
grades from circa 3.0 to 12.0 g/t Au.
    Adansi can earn a 100% interest in the lease by making cash payments of
US$100,000 (US$50,000 signing deposit paid); by paying a further US$100,000
upon the receipt of a positive pre-feasibility study recommending production;
and by reserving for the vendor a 0.5% net smelter returns royalty. In
addition, Adansi retains the first right of refusal on any other Biney leases
that form a part of the estate.
    Douglas R. MacQuarrie, President and CEO commented: "The acquisition of
the Edubia lease joins our Abirem and Abore concessions together and gives PMI
Gold an additional 4,500 metre long and highly prospective gold in soil
anomaly which is on strike with and part of a continuous 13,000 metre long
trend on our concessions which host the former Nkran mine and the African Star
deposit. Gold mineralization at Edubia may fit in with our model to develop
deep, underground resources, and its location just 8 km from our Nkran deposit
is particularly attractive. We look forward to exploring the balance of the
lease with our in-house geophysical crews, our pending Geotech VTEM survey and
further drilling."
    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
now controls 483 square kilometres along a 70 kilometre length of the
Asankrangwa Gold Belt in 12 concessions, including the former Obotan mine
which produced 730,000 ounces of gold prior to its closing in 2003; and has
options on a further 186 square kilometres in 2 concessions on the Ashanti
Gold Belt.
    This news release has been prepared by Douglas R. MacQuarrie,
P.Geo.(B.C.), a Qualified Person under National Instrument 43-101, and is
based on a review of previously published and historical information.

    On behalf of the Board,

    "Douglas R. MacQuarrie"

    Douglas R. MacQuarrie
    President & CEO


    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.

For further information:

For further information: Douglas R. MacQuarrie, President & CEO,
Telephone: (604) 682-8089, Toll-Free: (888) 682-8089, Facsimile: (604)
682-8094 or for European Investors: Florian Riedl-Riedenstein: Tel:
43-2774-28814, e-mail: or John Mullen: Tel: 41-522-428795,
e-mail: John or visit the PMI Gold Corporation website at (in German:

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