PMI intersects high-grade gold at Dynamite Hill prospect

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THE DRILL SERGEANT: PMI Gold Corporation (ASX: PVM) has received results from a first pass Reverse Circulation (RC) exploration drilling program at the newly discovered Dynamite Hill prospect.

The drilling has intersected shallow gold mineralisation within the limits of the company’s 100 per cent-owned Obotan gold project in the southwest of Ghana.

PMI has drilled a total of 2,796 metres from 28 holes and has received assay results for 26 of these.

Results of greater than 0.5 grams per tonne gold include:

–    10 metres at 13.65g/t gold from 50 metres, including 1 metre at 102.72g/t gold from 55 metres;

–    23m at 4.89g/t gold from 42m, including 2m at 18.91g/t gold from 55m and 3m at 8.96g/t gold from 60m;

–    16m at 2.14g/t gold from 36m, including 1m at 16.91g/t gold from 37m; and

–    11m at 9.19g/t gold from 132m, including 4m at18.22g/t gold from 133m.

True widths are estimated between 60 to 70 per cent of the stated drill intercept.

The Dynamite Hill prospect is located between the Nkran and Asuadai deposits, 7km northeast of the proposed processing facility at Nkran, within the Adubea Mining Lease.

 

Location of the Dynamite Hill prospect within PMI’s tenements. Source: Company announcement

 

Together with the Adubiaso and Abore deposits, the four deposits which comprise the Obotan Gold Project have a JORC-compliant Mineral Resource estimate of: Measured Resources of 15.57 million tonnes at a grade of 2.47g/t gold for 1.23 million ounces, Indicated Resources of 29.2 million tonnes at a grade of 2g/t gold for 1.88 million ounces and Inferred Resources of 21.91 million tonnes at a grade of 1.99g/t gold for 1.4 million ounces.

“We are genuinely excited with the results from the first phase of drilling at our newly discovered Dynamite Hill prospect,” PMI Gold managing director and CEO Collin Ellison said in the company’s announcement to the Australian Securities Exchange.

“Dynamite Hill provides the potential for an oxide resource which is within PMI’s existing mining lease and within easy trucking distance of the future Obotan processing plant.

“In addition, it offers the opportunity to provide an alternative ore feed to the Obotan project, which may assist in deferring some or all of the capitalised pre-stripping required in the early stage of the project’s development.”