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TSX Venture Exchange: PMV
Issued & Outstanding: 251,100,685
VANCOUVER, May 13 /CNW/ - PMI Gold Corporation (TSX.V:PMV) - Douglas MacQuarrie, President & CEO, reports the Company has entered into a contract with Minelogix of Perth, Western Australia, wherein Minelogix will provide on an as needed basis, operational management to the Company with respect to the design, construction, commissioning and operating of our near term gold mine development opportunities in Ghana.
The principals of Minelogix have been involved in all phases of underground and large scale open cut mine development throughout the World and will form a key part of our new Operations team.
Minelogix' first task will be to develop the strategy to bring our Kubi gold project to fruition as a 60,000 oz Au per year, 750 tpd, selective, underground mining operation. This review will consider, amongst other issues, the relative economic merits of building our own purpose built mill, or utilizing other nearby toll milling options.
A scoping/pre-feasibility study on the Kubi Main deposit was completed by Golder Associates in May 2008 (please see http://www.pmigoldcorp.com/i/pdf/Kubi_Preliminary_Assessment_May08.pdf ). This study will be updated to incorporate an exploration decline rather than a shaft to access the resources for reserve definition and bulk sampling/metallurgical testwork purposes.
In addition, work has commenced on the Environmental Impact Study and Environmental Management Plan for the development of Kubi as an underground operation, as well as baseline studies for our Obotan project. A full Environmental Impact Statement and baseline study were completed in 2004 by AngloGold Ashanti to facilitate their surface mining operations at Kubi. Mining was completed in 2006 under a royalty arrangement and the two small pits backfilled. PMI Gold, on completion of the review and funding, anticipates driving the exploration decline from a bench in the old pit just above the current pit floor.
PMI Gold is continuing to source the CAPEX funding required to take Kubi to commercial production, and further details will be released when and as available.
In addition the Company announces that it has granted, subject to regulatory approval, five year incentive stock options expiring on May 12, 2015, to purchase a total of 1,300,000 common shares of the Company, at a price of $0.25 per share, to Consultants, Officers, Employees and Advisors.
Mining analysts have recently stated that West Africa will become the World's number 2 gold producing region, after China. Ghana is by far the largest gold producer in West Africa, and PMI Gold now controls four previous operating mines on 85 kilometres of Ghana's major gold belts, located near the centre of major mining infrastructure and 200 million ounces of historical production plus current gold resources. Our Kubi Gold Project adjoins the 60 million ounce AngloGold Ashanti Obuasi mine, the largest underground mine in West Africa with a 110 year, continuous mining history.
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, email: email@example.com; Or visit the PMI Gold Corporation website at www.pmigoldcorp.com