Mr. Collin Ellison reports
PMI GOLD -- LATEST DRILLING AT OBOTAN PROJECT CONFIRMS RECENT RESOURCE MODEL; FURTHER ROBUST RESULTS TO HELP UNDERPIN THE FUTURE POTENTIAL AT OBOTAN
AND THE FEASIBILITY RESOURCE UPDATE PLANNED FOR JANUARY QUARTER 2012
PMI Gold Corp. has released assays from an additional 35 diamond drill
holes for 7,614 metres from its Obotan project in Ghana (see attached tables).
Results for these holes were received after finalization of the Oct. 13, 2011, resource estimate and will be included in the planned
January, 2012, quarter revised resource estimate for the bankable
feasibility study.
Highlights:
- Results from latest resource extension and infill drilling at PMI
Gold's flagship Nkran deposit at the Obotan gold project (Ghana)
continues to confirm the internal continuity of the deposit and the
occurrence of a higher-grade core with further wide and high-grade
intersections, including 30 metres at 3.47 grams per tonne gold from 200 m and eight m at 51.17 g/t Au from 383 m;
- Confirmation of the steep, southerly plunging, higher-grade central
stockwork zone extending from below the base of the Resolute-mined
Nkran open pit, down to the lower limit of the drilled resource,
indicating deeper underground potential;
- Results in accord with the recently updated (October, 2011) resource
estimate and block model, and will be incorporated in a resource
re-estimate, planned for January quarter of 2012;
- Prefeasibility study scheduled for completion at end of calendar 2011;
- Three diamond core rigs currently active at Obotan on continued resource
definition drilling;
- Obotan, Kubi and Asankrangwa project exploration drilling to accelerate
in November with the arrival in country of two additional dedicated
drill rigs.
Drilling results, Obotan project
Obotan, which offers the opportunity for a near-term development
project, is the company's flagship gold project in southwest Ghana.
The project comprises four known deposits, the larger Nkran
deposit, and the smaller satellite deposits at Abore, Adubiaso and
Asuadai.
SRK OCTOBER, 2011, RESOURCE ESTIMATE FOR OBOTAN PROJECT
(based on a 0.5-gram-per-tonne-gold lower cut-off grade)
Measured Indicated Inferred
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
(millions) (g/t Au) (millions) (millions) (g/t Au) (millions) (millions) (g/t Au) (millions)
14.67 2.66 1.22 27.5 2.32 2 17.54 2.35 1.29
All resource numbers are rounded to two decimal places -- 10,000 tonnes.
Over three-quarters of these resources (2.5 million ounces, measured and indicated,
grading 2.54 g/t Au, and 1.02 million ounces, inferred, grading 2.54 g/t Au) fall within the
Nkran deposit.
The upper portion of the Nkran, Abore and Adubiaso deposits were
previously mined by Resolute Limited before closing in 2002, after
producing a total of 730,000 ounces at an average grade of 2.2 g/t
gold, during a period of low gold prices of less than $350 (U.S.) per ounce.
Approximately 590,000 ounces of Resolute's total production were from the
Nkran pit with no mining from the Asuadai deposit.
Since acquiring the Obotan project, PMI Gold has completed 225 resource
extension, confirmation and infill diamond drill holes for 59,084
metres of drilling, with emphasis on the larger Nkran deposit. Due to
laboratory delays, final assay results are still awaited for a large
number of holes which will be incorporated in a resource update planned
for the January, 2012, quarter as part of a bankable feasibility study.
New assay data received after the October, 2011, resource estimate
reinforce confidence in the resource model for each of the deposits and
confirm the potential for further conversion of resource ounces from
the indicated to measured categories and from the inferred to indicated categories.
SRK OCTOBER, 2011, RESOURCE ESTIMATE FOR NKRAN
(based on a 0.5-gram-per-tonne-gold lower cut-off grade)
Measured Indicated Inferred
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
(millions) (g/t Au) (millions) (millions) (g/t Au) (millions) (millions) (g/t Au) (millions)
11.1 2.76 0.98 19.7 2.42 1.52 12.6 2.54 1.02
Continuing resource definition drilling is primarily targeting at improving
resource confidence down to approximately 350 metres below the surface
or 200 metres below the Resolute open pit. Better intercepts for the eight holes completed at Nkran are:
- NKR11-063: 22 m at 3.28 g/t Au from 236 m,
30 m at 3.47 g/t Au from 200 m,
16 m at 3.41 g/t Au from 262 m;
- NKR11-064: nine m at 16.11 g/t Au from 243 m;
- NKR11-071: eight m at 51.17 g/t Au from 383 m;
- NKR11-074: 35 m at 3.11 g/t Au from 390 m.
The recent intersections confirm the internal continuity of the deposit
and the capacity of the central stockwork zone to comprise
considerable widths of medium- to high-grade gold mineralization. Further investigation of the resource model, and an improved
understanding of the geological and structural controls have reinforced
the interpretation of a steep southerly plunge of the central stockwork
zone which offers longer-term underground potential.
The ability to drill the upplunge portion of the higher-grade core of
the central stockwork zone, immediately below the base of the Resolute
pit, is constrained by the open pit preventing rig access. However,
reinterpretation of the resource-grade model, which includes old
Resolute drilling, has revealed that the higher-grade mineralization
extends downplunge from the base of the pit, which would be an
immediate benefit to a future of resumption of open-pit mining. The higher-grade shoots persist downplunge to the lower limit
of drilling of the resource (approximately 350 metres below the open
pit). A lower-grade (0.5 to 3.0 g/t Au) margin enveloping this zone
appears to narrow at depth.
As a second priority in the current drilling campaign, the company also
plans to test the deeper, downplunge extensions of Nkran
mineralization below the lower limit of the current resource to
facilitate the future evaluation of the underground potential of the
deposit.
Whilst the bulk of the current exploration program has focused on
resource drilling, interpretation of the Resolute and PMI geological,
geochemical and geophysical databases, supported by a recent external
structural analysis, has identified additional targets within the
multiple parallel gold-bearing shear zones which host the four known
deposits. These structures have an interpreted combined strike length
of over 30 kilometres within the Obotan project.
Initial success of this brownfields exploration is demonstrated in this
current program by diamond drill hole NKR11-067 which was sited 250
metres south of the Nkran pit to test for the presence of a new gold
shoot below near-surface Galamsey workings. The hole intersected
one metre at 15.05 g/t Au from 45 metres and three metres at 6.30 g/t Au from 173
metres before it was abandoned, due to technical difficulties, prior
to reaching its secondary target of testing for a downplunge extension
of the Nkran central stockwork. Follow-up drilling is planned.
These targets and other exploration targets within the Kubi project, and
the Asankrangwa project, which covers the southern 45-kilometre strike
extension of the Obotan project, will be subjected to sustained drill
testing upon the arrival in country in late 2011 of two PMI Gold
dedicated rigs (one reverse circulation/diamond and one air core/rotary air blast) plus the subsequent
arrival of a third rig (air core/RAB) later in 2011/early 2012.
SRK OCTOBER, 2011, RESOURCE ESTIMATE FOR ASUADAI
(based on a 0.5-gram-per-tonne-gold lower cut-off grade)
Measured Indicated Inferred
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
(millions) (g/t Au) (millions) (millions) (g/t Au) (millions) (millions) (g/t Au) (millions)
n/a n/a n/a 1.21 1.71 0.06 0.67 1.95 0.04
The unmined Asuadai deposit is located 10 km northwest of Nkran on the
same north-northeast-trending shear zone which hosts Nkran. Better
intercepts from the reported 17 holes testing shallow-dipping stacked
quartz veins outcropping on a small rise are:
- ASP11-009: 24 m at 2.32 g/t Au from 108 m;
- ASP11-015: seven m at 3.38 g/t Au from 71 m;
- ASP11-040: 11 m at 4.33 g/t Au from 90 m.
SRK OCTOBER, 2011, RESOURCE ESTIMATE FOR ADUBIASO
(based on a 0.5-gram-per-tonne-gold lower cut-off grade)
Measured Indicated Inferred
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
(millions) (g/t Au) (millions) (millions) (g/t Au) (millions) (millions) (g/t Au) (millions)
1.07 2.78 0.09 2.6 2.3 0.19 0.87 2.06 0.05
The Adubiaso deposit is located four km north of Nkran on a parallel western shear zone. The best intercept from the six reported holes is
from ADP11-25, five m at 3.76 g/t Au from 207 m.
SRK OCTOBER, 2011, RESOURCE ESTIMATE FOR ABORE
(based on a 0.5-gram-per-tonne-gold lower cut-off grade)
Measured Indicated Inferred
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
(millions) (g/t Au) (millions) (millions) (g/t Au) (millions) (millions) (g/t Au) (millions)
2.5 1.88 0.15 3.99 1.8 0.23 3.4 1.72 0.18
The Abore deposit is located 15 km north of Nkran on a shear zone west of
the Adubiaso structure which appears to correlate with the structure
that hosts Keegan Resources Inc.'s multimillion-ounce Esaase deposit to
the north of the project area. Best intercepts from the reported four holes include:
- ABP041: 7.45 m at 2.74 g/t Au from 120 m;
-
ABP046: 22 m at 1.62 g/t Au from 126 m.
Prefeasibility study
The Obotan prefeasibility study remains on target for completion in
December, 2011, to be immediately followed by a bankable feasibility
study scheduled for completion in mid-2012. These studies have been
significantly derisked by Resolute's successful mining history which
was carried out during a period of substantially lower gold prices, and
few reported mining and processing issues, and had a good correlation
between the resource model and grade control drilling.
Competent person statement
Scientific and technical information contained in this news release has
been reviewed and approved by Collin Ellison, CEng, a qualified
person as defined under National Instrument 43-101. Fieldwork was
supervised by Thomas Amoah (exploration manager). HQ core and NQ core were logged, sawn and sampled on site, with half samples sent to SGS
Laboratory in Tarkwa and analyzed for gold by fire assay -- AA on a 50-gram sample charge or by screened metallic AA finish. Internal quality control consisted of inserting both blanks and standards into the sample stream,
and multiple reassays 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 gold cut-off of 0.5 g/t at the beginning and the end of the
intercept, and allowing for no more than three consecutive metres of
less than 0.5 g/t Au internal dilution. Intercepts above 5.0 g/t Au metres are reported separately. Grade-times-width intercepts of less than
5.0 g/t Au metres were not reported. True widths are estimated from
60 per cent to 70 per cent of the stated core length.
Significant gold intercepts (greater than five g/t Au metres) are presented in attached tables.
NKRAN
Hole ID From To Interval Weighted-average
(m) (m) (m) grade (g/t Au)
NKR11-053 147.42 153 5.58 4.03
NKR11-053 220 240 20 1.17
NKR11-063 200 230 30 3.47
Including 200 202 2 10.83
Including 207 209 2 8.07
Including 215 219 4 11.35
NKR11-063 236 258 22 3.28
Including 241 243 2 24.68
NKR11-063 262 278 16 3.41
NKR11-063 307 315 8 1.89
NKR11-064 64.5 72 7.5 0.56
NKR11-064 198 201 3 3.25
Including 199 200 1 8.7
NKR11-064 235 237 2 1.74
NKR11-064 243 252 9 16.11
Including 250 252 2 67.68
NKR11-064 282 283 1 5.76
NKR11-064 329 332 3 2.12
NKR11-064 367 369 2 7.38
NKR11-064 401 405 4 1.43
NKR11-064 410 433 23 1.7
Including 412 417 5 3.14
Including 429 433 4 3.45
NKR11-067 44 45 1 15.05
NKR11-067 173 176 3 6.3
Including 173 174 1 11.8
NKR11-071 331 348 17 1.61
Including 343 344 1 11.55
NKR11-071 356 368 12 3.75
NKR11-071 383 391 8 51.17
Including 384 387 3 127.98
NKR11-071 414 418 4 6.02
Including 414 417 3 7.69
NKR11-072 NSR
NKR11-074 379 382 3 6.58
Including 381 382 1 17.3
NKR11-074 390 425 35 3.11
Including 395 397 2 7.63
Including 400 405 5 8.23
Including 414 417 3 8.04
NKR11-074 432 435 3 1.5
NKR11-075 379 382 3 2.12
NKR11-075 388 403 15 1.38
NKR11-075 407 410 3 1.79
ADUBIASO
Hole ID From To Interval Weighted-average
(m) (m) (m) grade (g/t Au)
ADP11-011 166 168 2 0.79
ADP11-014 203 210 7 1.11
ADP11-022 170 172 2 1.2
ADP11-025 164 168 4 2.08
ADP11-025 173 178 5 0.72
ADP11-025 207 212 5 3.76
ADP11-026 166 169 3 1.95
ADP11-026 172 175 3 1.25
ADP11-026 182 186 4 1.94
ADP11-026 188 190 2 6.74
ADP11-029 NSR
ASUADAI
Hole ID From To Interval Weighted-average
(m) (m) (m) grade (g/t Au)
ASP11-009 NSR
ASP11-011 67 73 6 2.13
ASP11-012 32 39 7 1.21
ASP11-012 60 72 12 0.81
ASP11-014 108 132 24 2.32
Including 130 132 2 15.74
ASP11-014 140 145 5 1.19
ASP11-015 53 59 6 1.18
ASP11-015 64 71 7 3.38
Including 69 71 2 7.14
ASP11-019 22.5 25.5 3 1.28
ASP11-019 28.5 53.34 24.84 0.82
ASP11-019 67.06 80 12.94 1.18
ASP11-024 126 128 2 1.09
ASP11-024 133 135 2 1.5
ASP11-027 NSR
ASP11-029 NSR
ASP11-030 NSR
ASP11-031 105 108 3 1.62
ASP11-032 48.77 65 16.23 0.97
ASP11-034 NSR
ASP11-036 66 71 5 1.97
ASP11-036 94 103 9 1.11
ASP11-037 77 104 27 1.36
Including 80 82 2 4.34
ASP11-039 131 140.7 9.7 2.17
ASP11-039 155 168 13 1.24
ASP11-040 80 85 5 0.96
ASP11-040 90 101 11 4.33
Including 90 91 1 41.67
ABORE
Hole ID From To Interval Weighted-average
(m) (m) (m) grade (g/t Au)
ABP11-041 112.55 120 7.45 2.74
Including 112.55 114 1.45 7.66
ABP11-041 142 148 6 1.04
ABP11-044 147 151 4 1.26
ABP11-044 175 177 2 6.55
ABP11-044 190 192 2 1.38
ABP11-044 200 205.58 5.58 0.62
ABP11-045 90 96 6 0.94
ABP11-045 109 111 2 1.54
ABP11-045 133 139 6 0.91
ABP11-046 126 148 22 1.62
Including 131 134 3 5.5
ABP11-046 166 172 6 0.72
ABP11-046 184 186 2 0.78
We seek Safe Harbor.
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