PMI Gold Corporation
TSX VENTURE : PMV

PMI Gold Corporation

July 05, 2005 12:47 ET

PMI Ventures Ltd.: 2005 Exploration Program Underway on Major New Targets

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 5, 2005) - PMI Ventures Ltd. (the "Company") (TSX VENTURE:PMV), is pleased to announce that follow up work programs have started on our Ashanti II Gold Project in SW Ghana. This program will test major structural targets defined by SRK Consulting (Canada) Inc.

Grid preparation, in advance of detailed ground geophysics and follow up diamond drilling, has commenced. The work is being concentrated on a 14 kilometre long by 3 kilometre wide grid which covers eleven targets in the central part of the 400 square kilometre concession area.

These targets are situated along a strongly deformed section of the Asankrangwa Shear Zone ("ASZ2"), a major crustal fault, at its intersection with strong E-W trending ("D4") shear structures which can be traced to the Obuasi gold deposit, and are locally intruded by granitoid intrusions. These intrusions are considered excellent targets for Obuasi (AngloAshanti), Chirano (RedBack), Obotan (Resolute) or Ahafo (Newmont) style gold mineralization. Only one of these targets has been partially drill tested, with previous assay results grading to 16.01 g/t Au over 4 metres.

Surveying will commence on the northeast end of the grid to cover the margins of the large Diaso intrusion, a 2.6 kilometre long by 1.1 kilometre wide granitoid, and work to the southwest to cover the Juabo granite. A previous IP survey conducted on the southwest margin of the Diaso intrusion to test an area with moderate intensity old "Ashanti" style shafts outlined two, near surface, IP highs over a distance of 850 metres confirming potential near surface sulfide mineralization. The current program is expected to fully define the margins of the intrusion and test the structures to greater depths.

At Kukunapi on the east side of the Juabo granite, limited diamond drilling has shown D4 structures to contain visible gold and sulfide mineralization with grades to 10.6 g/t Au over 2.25 metres, and intersected narrow granitic dykes cut by stockwork quartz stringers carrying low grade gold mineralization with grades to 1.34 g/t Au over 3 metres.

Eagle Drilling Inc. have been contracted to drill up to 4,000 metres (subject to completion of further financing) with drilling to commence after the initial results of the IP work have been analysed. First drill results are expected by late August (weather permitting).

The technical information contained in this release and the technical work is being supervised by Douglas R. MacQuarrie, President, P.Geo., who is a Qualified Person as defined by National Instrument 43-101. Please visit www.pmiventures.com to view project maps and other details.

On behalf of the Board,

Douglas R. MacQuarrie, President

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.

Frankfurt/Berlin WKN 888063

Issued & Outstanding: 33,291,967

Fully Diluted: 48,656,434


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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