PMI Gold drills 44.5 metres @ 2.61 g/t au at Nkran, Ghana



    /NOT FOR RELEASE OR DISTRIBUTION IN THE USA/

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

    VANCOUVER, Aug. 29 /CNW/ - PMI Gold Corporation (TSX/V:PMV) - Douglas
MacQuarrie, President, announces that PMI Gold Corporation ("PMI Gold") has
received final assay results from the recent eight hole, 2,539 metre drill
program completed on our Obotan project, Ghana.
    Highlights from the drilling are 44.5 m of 2.61 g/t gold in hole NK07-001
which tested the down dip extension of the Nkran pit orebody 330 m below the
base of the previously mined pit; and 2.7 m of 8.91 g/t gold in NK07-005
collared 170 m to the south of the southern end of the pit.

    
    Table 1 - Drill Collar co-ordinates:

    HOLEID     GRIDE    GRIDN     WGS84E    WGS84N   AZIMUTH   DIP   DEPTH M
    ------     -----    -----     ------    ------   -------   ---   -------
    NK07-001    9510    10000     611408    700592       133   -50    648.00
    NK07-002    9550     9800     611303    700408       133   -50    104.60
    NK07-003    9545     9825     611317    700430       133   -50    637.03
    NK07-004   10018     9625     611552    699975       133   -50    199.95
    NK07-005    9986     9625     611528    699995       133   -50    212.14
    NK07-006   10020     9650     611571    699998       133   -50    169.47
    NK07-007   10020     9675     611587    700017       133   -50    169.47
    NK07-008    9700    10700     611995    701003       133   -50    398.07
    (*)note NK07-003 was a retest of NK07-002 which was not completed


    Table 2 - Significant Gold Intercepts:

    -------------------------------------------------------------------------
    Drill Hole     From Metres       To Metres        Width     Weighted Avg.
                                                     Metres     Grade g/t Au
                                                                   (uncut)
    -------------------------------------------------------------------------
    NK7-001            581.60           626.05          44.45           2.61
    -------------------------------------------------------------------------
      including        581.60           584.65           3.05           3.58
    -------------------------------------------------------------------------
      including        588.50           600.00          11.50           5.95
    -------------------------------------------------------------------------
      including        593.60           598.50           4.90           9.12
    -------------------------------------------------------------------------
      including        593.60           594.50           0.90          26.27
    -------------------------------------------------------------------------
      including        597.50           598.50           1.00          19.10
    -------------------------------------------------------------------------
      including        605.40           609.80           4.40           1.85
    -------------------------------------------------------------------------
      including        619.00           626.05           7.05           3.55
    -------------------------------------------------------------------------
    NK07-005            56.39            59.13           2.74           8.91
    -------------------------------------------------------------------------
    NK07-006            38.10            39.62           1.52           8.22
    -------------------------------------------------------------------------
    NK07-007            28.96            31.09           2.13           3.51
    -------------------------------------------------------------------------
    NK07-008           125.20           127.00           1.80           3.13
    -------------------------------------------------------------------------
    NK07-008           350.00           351.00           1.00           6.68
    -------------------------------------------------------------------------
    

    Douglas R. MacQuarrie, President and CEO commented: "Our first deep drill
test beneath the Nkran pit has increased our confidence in the structural and
grade continuity of the Nkran West Zone underground gold mineralization.
Previous intersections in hole RCD787A located 100 metres up dip from the new
intersection in NK07-001 gave 52 metres of 3.07 g/t Au (true width estimated
at 45 metres); and RCD756 located 80 m down dip, returned 41 metres of 3.27
g/t Au (estimated 24 metre true width). On section 10,000N, gold
mineralization has been outlined to a depth of 425 metres below the pit and
with true widths varying from 20 to 45 metres. Within this bulk mineralized
zone there are significant high grade drill intersections including 7.0 metres
of 12.28 g/t Au; 8.0 metres of 10.00 g/t Au; 5.0 metres of 23.00 g/t Au; and
4.0m of 10.00 g/t Au. In order to prove the viability of this zone for bulk or
selective mining, further detailed drilling will be required, preferably from
underground drill stations as suggested by RSG Global in their recent concept
study report on the Nkran mineralization. We are also encouraged by the new
gold values intersected to the north and south of the pit. A complete review
of the Nkran database in conjunction with the results from the Geotech VTEM
survey which will be flown in September will prioritize targets for further
drilling."
    This news release has been prepared by Douglas R. MacQuarrie, P.Geo.
(B.C.), a Qualified Person under National Instrument 43-101. Oriented NQ, and
HQ core was logged, sawn and sampled on site, with half samples sent to SGS
Analabs Pty. Ltd. in Bibiani, and analyzed for gold by fire assay-AA on a 50
gram sample charge. 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 average of all results for the interval. Results from the QC
program confirmed that the reported results are accurate. Intercepts were
calculated with a minimum 2.0 g/t Au cut off at beginning and end of the
intercept and allowing for no more than six consecutive metres of less than
1.0 g/t Au. Internal intercepts above 10 g/t Au are reported separately. Grade
x Width intercepts of less than 5 g/t metres were not reported.
    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.

    On behalf of the Board,

    "Douglas R. MacQuarrie"

    Douglas R. MacQuarrie
    President & CEO

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    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.

    %SEDAR: 00005434E




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, e-mail: frram@aon.at or John Mullen, Tel: 41-522-428795,
e-mail: John Mullen@bluewin.ch Or visit the PMI Gold Corporation website at
www.pmigoldcorp.com (in German: http://pmi.goldseiten.de)

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