www.pmigoldcorp.com
After 6 years of land acquisition and exploration in Ghana, Africa's #2 gold producer, PMI Gold is now focused on bringing its projects to near term production. PMI Gold controls 12 concessions covering 537 sq km -- in the heart of Ghana's major gold belts. Our holdings on the Asankrangwa gold belt alone are more than 70 km long -- the equivalent length of the entire Carlin Trend in Nevada -- and cover 3 past producing large scale mines and dozens of small historical operations.
PMI Gold's latest Obotan drill results show potential for resource upgrade
PMI Gold Corp (CVE:PMV) (ASX:PVM) said Wednesday that it has received more encouraging drill results from its Obotan project in Ghana, confirming the potential to upgrade resources for both its Nkran and satellite Asuadai deposits. Hole ASP11-037 returned 27.0 metres of 1.36 g/t gold from 77 metres, including 2.0 metres of 4.34 g/t gold; and hole ASP11-013 intersected 23.0 metres of 1.63 g/t gold from 76 metres, including 1.0 metre of 18.25 g/t gold. Shares of the West Africa-focused junior resource company jumped over 11% on Wednesday, to trade at $0.5 as of 10:20am EDT.
Results form part of an ongoing resource extension and in-fill drilling program at the property, where three diamond drill rigs are currently operating. A new resource update for Obotan, where a pre-feasibility study is underway, is on track for late September, the company said.
At the flagship Nkran deposit, highlights of the latest results include 29.0 metres of 4.27 grams per tonne (g/t) of gold in hole NKR11-070, including 15.0 metres at 5.89 g/t gold from 480 metres.
Hole NKR11-065 also returned 7.0 metres of 11.96 g/t gold, including 2.0 metres at 40.88 g/t gold; and 10.0 metres of 15.04 g/t gold, including 2.0 metres at 66.68 g/t gold from the same hole.
PMI said the results from Nkran include several high-grade intersections that are around 150 metres below the base of the previously mined open pit. Holes indicate the presence of higher grade zones within a broad, continuous, lower-grade envelope, the company added.
At the satellite Asuadai deposit, which is located 11 kilometres north-northeast of Nkran, first results from this campaign showed multiple, broad intersections of gold mineralization, which remain open at depth.
"Work is progressing according to schedule on the pre-feasibility study," said managing director Collin Ellison, "and 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 project comprises four known deposits – the larger Nkran deposit, and the smaller satellite deposits at Abore, Adubiaso and Asuadai. Current drilling at the site is designed to both upgrade and boost resources through the development of mineral extensions along strike, down-dip, and along parallel structures to the known deposits.
The company said that further drilling is planned at Asuadai to strengthen the gold resource potential in the area.
Obotan was previously mined by Resolute Mining, with production totaling 730,000 ounces of gold, at an average grade of 2.2 g/t, before closing in 2002, when the gold price averaged around US$350 per ounce.
PMI has so far drilled 207 holes at Obotan for 49,993 metres, and plans to complete its pre-feasibility study by year-end.
