PMI Gold Corporation
TSX VENTURE : PMV
FRANKFURT : PN3N
ASX : PVM

PMI Gold Corporation

June 20, 2012 14:45 ET

Final Results Received from Kaniago (Adansi) Aircore Program Continue to Highlight Oxide Gold Potential for PMI Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2012) - PMI Gold Corporation (TSX VENTURE:PMV)(FRANKFURT:PN3N)(ASX:PVM) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Key Points:

  • All assay results received from first pass Aircore exploration drilling undertaken by PMI at the Kaniago (Adansi) Prospect, located within a 15km area of influence of the Obotan Gold Project.
  • Mineralization associated with the Abore Shear which hosts Keegan Resources' Esaase Deposit.
  • Final assay results received confirm and extend previously reported gold anomalies. Encouraging results received include:
    • 1m @ 26.71g/t Au from 4m
    • 6m @ 1.22g/t Au from 52m
    • 10m @ 0.79g/t Au from 34m
  • Previously defined anomalies extended to strike lengths of up to 1,200m. These anomalies remain open to both the north and south, confirming the potential of the Abore Shear to host further significant mineralization.
  • A follow up RC drilling program is planned as part of PMI's major regional exploration push during 2012.

PMI Gold Corporation is pleased to announce the final assay results from its first pass Aircore exploration drilling program at the Kaniago (Adansi) Prospect have confirmed and extended previously reported gold anomalies (see ASX/TSX announcement dated 18th April 2012).

The Kaniago (Adansi) Prospect, a recent discovery by PMI, is strategically located within a 15km area of influence immediately west of the Company's flagship Obotan Gold Project in south-west Ghana (NI43-101 and JORC Code compliant Mineral Resource estimate of Measured Resources of 15.57M tonnes at a grade of 2.47g/t for 1.23Moz, Indicated Resources of 29.21M tonnes at a grade of 2.00g/t for 1.88Moz and Inferred Resources of 21.91M tonnes at a grade of 1.99g/t for 1.40Moz; Figure 1) where a feasibility study is due to be completed mid-2012. Drilling was designed to test a series of exploration targets along the Abore Shear generated by a low level detailed airborne magnetic survey and geological mapping previously undertaken by PMI. The Prospect was tested by a program of broadly spaced reconnaissance Aircore traverses (133 holes on three roadside traverses at 400m intervals) which commenced in January 2012. A total of 7,349m has been drilled.

Drilling targeted a brittle greywacke unit at the intersection of the Abore Shear with interpreted cross-cutting east-northeast striking structures. These cross-cutting structures are considered favourable hosts of gold mineralization in Ghana.

Results have been received for the final 70 holes from MinAnalytical Laboratory in Perth, Australia. Table 1 lists all anomalous intersections >0.1g/t. Encouraging intersections include:

  • KAAC12-035 6m @ 1.22g/t Au from 52m
  • KAAC12-088 10m @ 0.79g/t Au from 34m
  • KAAC12-089 6m @ 0.79g/t Au from 36m
  • KAAC12-119 1m @ 26.71g/t Au from 4m

These results confirm and extend the previously reported series of narrow sub-parallel northeast trending anomalies of greater than 0.1g/t Au. The strike lengths of these anomalies now range from 400m to 1,200m and all are open to the north and south (Figure 2). Initial Aircore drilling has focused on the supergene potential of the Prospect, however preliminary interpretations indicate mineralization is also open at depth (Figure 3) increasing the exploration potential of the area.

The gold prospectivity of the Abore Shear, within the Asankrangwa Gold Belt has been reinforced by the delineation of Keegan Resources' Esaase Gold Deposit, located 12.5km north of Obotan along the Abore Shear.

PMI holds the largest strategic ground package by a single company in the Asankrangwa Gold Belt, extending over an area of 511km2 and covering 65km of the 150km length of the belt. The PMI tenements encompass three known major structural trends (Abore, Nkran, and Fromenda Shears) enhancing the prospectivity of the tenements threefold.

This initial work at Kaniago (Adansi), with plans for follow up drilling later in the year, are integral in PMI's commitment to a major phase of regional gold exploration in the Asankrangwa Belt. The early exploration results clearly confirm the broader potential of the Abore, Nkran and Fromenda Shears within the Belt to host significant gold mineralization.

PMI Gold's Managing Director and CEO, Mr Collin Ellison, said the results enhanced the exploration potential for oxide gold at Kaniago (Adansi), identifying priority targets for further follow-up drilling due to be completed later this year.

"We are very pleased that the Company's vigorous and sustained exploration approach this year has intersected additional mineralised zones from first pass reconnaissance drilling at the new Kaniago discovery," Mr Ellison said. "We will continue to focus further drilling on high priority targets with the intention of generating additional sources of oxide mineralisation to feed the centrally located processing facility at Obotan.

Four drill rigs continue to operate elsewhere within Asanko, Obotan and Kubi Projects as part of our continued exploration push into the second half of 2012. We are currently working to clear a backlog of 11,180 drill samples which remain to be processed and assayed. To the end of May 73,408 m of drilling has been completed out of +100,000m planned regional exploration program."

On behalf of the Board,

Collin Ellison, Managing Director & CEO

Competent Person Statement

Exploration Results:

The information in this announcement that relates to Exploration Results is based on information compiled by Thomas Amoah, who is employed by Adansi Gold Company (Gh) Ltd, a wholly owned subsidiary of PMI Gold Corporation. Mr Amoah, who is a Member of the Australian Institute of Geoscientists (MAIG), has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves'. Mr Amoah consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Scientific and technical information contained in this news release has been reviewed and approved by Thomas Amoah-n, MAIG, MSEG. a "qualified person" as defined under National Instrument 43-101. Field work was supervised by Mr Amoah (VP-Exploration). Drill cuttings were logged and sampled on site, with 3kg samples sent to the MinAnalytical prep laboratory on site, and analyzed for gold by fire assay-AA on a 50 gram sample charge or by screened metallics AA finish in MinAnalytical laboratory in Perth. 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 screened metallic assay if available, or in lieu of that the average of the other results for the interval. Results from the QC program suggest that the reported results are accurate. Intercepts were calculated with a minimum 0.1 g/t Au cut off at the beginning and the end of the intercept and allowing for no more than three consecutive metres of less than 0.1 g/t Au internal dilution. True widths are estimated at from 60% to 70% of the stated core length.

Obotan Resource Estimate 2012:

Information that relates to Mineral Resources at the Obotan Gold Project is based on a resource estimate that has been completed by Mr Peter Gleeson, who is a full time employee of SRK Consulting, Australia. Mr Gleeson is a Member of the Australian Institute of Geoscientists (MAIG) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and as a Qualified Person (by ROPO) as defined in terms of NI43-101 standards for resource estimation of gold. Mr Gleeson has more than 5 years' experience in the field of Exploration Results and of resource estimation in general. Mr Gleeson consents to the inclusion of matters based on information in the form and context in which it appears.

Cautionary Note Regarding Forward-looking Statements

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Obotan, Kubi and Asanko Projects and the plans, objectives or expectations of the Company with respect to the advancement of these projects and completion of scoping and pre-feasibility studies, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities; fluctuating gold prices; possibility of equipment breakdowns, delays and availability; exploration cost overruns; availability of capital and financing; general economic, market or business conditions; regulatory changes; timeliness of government or regulatory approvals; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators, including in the section entitled "Risk Factors" in the Company's Annual Information Form dated September 20, 2011. In particular, statements relating to the Company's plans to complete a feasibility study on the Obotan Gold Project by the end of June 2012 are subject to various factors, including positive results from ongoing exploration; expansion and upgrading of existing mineral resources; and completion of favourable geotechnical drilling programs, metallurgical test work, mine plan engineering, environmental and community relations assessments, and preliminary economic assessments. Due to the uncertainty which may attach to inferred mineral resources, it cannot be assumed that all or any part of the inferred mineral resources will be upgraded to indicated or measured mineral resources as a result of continued exploration. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

Table 1: Significant Gold Intercepts (>0.1g/t Au)
Note : True widths are approximately 60% to 70% of the lengthof the stated intersection lengths.
Hole ID Easting
(UTM)
Northing
(UTM)
RL
(UTM)
Dip Azimuth Depth
From
(m)
Depth
To
(m)
Interval
(m)
Weighted
Avg.
Grade
(g/t)
KAAC12-006 605446.6 702593.0 181.9 -50 135 48 51 3 0.13
KAAC12-026 605331.5 702135.6 201.5 -50 135 8 11 3 0.24
KAAC12-030 605162.6 702284.4 173.3 -50 135 44 48 4 0.13
KAAC12-035 605355.0 701667.6 185.8 -50 135 0 3 3 0.21
6 13 7 0.37
36 38 2 0.56
52 58 6 1.22
KAAC12-036 605375.3 701608.0 183.8 -50 135 0 5 5 0.22
KAAC12-040 605812.0 702801.8 153.0 -50 135 19 24 5 0.1
KAAC12-069 605568.6 702400.1 183.1 -50 135 39 41 2 0.18
KAAC12-071 605531.0 702260.4 176.7 -50 135 36 38 2 0.34
KAAC12-075 606310.6 701854.8 162.7 -50 135 21 23 2 0.15
KAAC12-080 606145.6 702030.1 165.7 -50 135 11 15 4 0.82
KAAC12-088 605846.6 702282.2 173.0 -50 135 28 31 3 0.3
34 44 10 0.79
47 49 2 0.36
KAAC12-089 605810.4 702319.0 175.0 -50 135 0 5 5 0.16
36 42 6 0.79
KAAC12-108 606864.5 701360.9 162.7 -50 135 12 14 2 0.13
KAAC12-114 607073.0 701144.2 147.3 -50 135 56 58 2 0.2
KAAC12-119 607251.3 700975.0 151.6 -50 135 4 5 1 26.71
KAAC12-126 607516.9 700750.4 172.1 -50 135 61 62 1 0.79
73 74 1 1.35

To view accompanying Figures 1 to 3, visit the following link: http://media3.marketwire.com/docs/PMI_Figure1to3.pdf

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.

Contact Information

  • Investor Relations Canada:
    Rebecca Greco
    Fig House Communications
    +1 (416) 822-6483
    fighouse@yahoo.com

    Investor Relations Australia:
    Nicholas Read/Paul Armstrong
    Read Corporate
    +61 8 9388 1474 or M. +61 419 929 046

    PMI Contact Canada:
    Marion McGrath
    Corporate Secretary
    +1 (604) 684-6264 or Toll-Free: 1 (888) 682-8089
    +1 (604) 684-6242 (FAX)

    PMI Contact Australia:
    Collin Ellison
    Managing Director & CEO
    +61 8 6188 7900
    www.pmigoldcorp.com