PMI Gold encouraged by drill results

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THE DRILL SERGEANT: Toronto and Australian-listed company PMI Gold Corporation has reported some positive drilling results from an ongoing in- fill and resource extension drilling program being undertaken at the Nkran deposit.

The Nkran deposit is part of the company’s 100 per cent-owned Obotan gold project in Ghana, West Africa, where PMI is currently undertaking a Pre-Feasibility Study.

“Work is progressing according to schedule on the Pre-Feasibility Study,” PMI Gold Corporation managing director Collin Ellison said in the company’s announcement to the Australian Securities Exchange.

“These latest drilling results continue to highlight the potential to grow the resource inventory at Obotan.

“PMI’s understanding of the deposit and, in particular, the geological controls on the mineralisation is aiding our targeting in the development of resource extensions.”

The Obotan gold project comprises four known deposits – the larger Nkran deposit and the smaller satellite deposits at Abore, Adubiaso and Asuadai.

PMI has also received encouraging results from the ‘greenfield’ satellite Asuadai deposit, where in-fill and down-dip extension drilling has confirmed broad zones of gold mineralisation which remain open at depth.

The current resource drilling program at Obotan Project has been designed to both upgrade PMI’s confidence in the resources and to increase the resources.

Results have been received from three holes from Nkran and four from Asuadai.

Nkran deposit drill results include several high-grade intersections approximately 150 metres below the base of the previously mined open pit:

– 29.0 metres at 4.27 grams per tonne gold from 466 metres, including 15.0 metres at 5.89 grams per tonne gold from 480 metres;

– 7.0m at 11.96g/t gold from 331m, including 2.0m at 40.88g/t gold from 336m; and

– 10.0m at 15.04g/t gold from 345m, including 2.0m at 66.68g/t gold from 352m.

The first Asuadai drill results of the current campaign included:

– 27.0m at 1.36g/t gold from 77m, including 2.0m at 4.34g/t gold from 80m; and

– 23.0m at 1.63g/t gold from 76m, including 1.0m at 18.25g/t gold from 80m.

PMI said the current drilling program is focused on defining potential resources for initial open-pit mining and ultimately underground mining down the plunge of the deposit.

A new resource estimate is currently scheduled for completion at the end of the September 2011 Quarter.

The company said this will underpin current Pre-Feasibility Study, which is planned for completion at the end of the year.