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PMI Gold reports broad, high grade gold at Obotan, below existing open pit

May 25, 2011 2:28 PM ETPMVGF
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PMI Gold Corp (CVE:PMV) (ASX:PVM) reported Wednesday positive drill results from its Obotan gold project in Ghana, including broad widths of high grade gold mineralization.

The latest results from seven diamond drill holes were from the key Nkran deposit at the site, and were intersected within up to 150m below the base of the previously mined existing open pit.

Highlights included  125m at 2.18g/t gold, including 8.0m at 19.01g/t gold and 18.0m at 3.12g/t  gold in hole NKR11-036; 118m at 2.43g/t gold, including 23.0m at 3.66g/t gold and 16.0m at 2.91g/t gold in hole NKR11-038; and 52m at 3.37g/t gold, including 9.0m metres at 4.36g/t gold and 16.0m at 7.74g/t gold in hole NKR11-043.

The company said the results support PMI's goal of delineating an indicated resource down to approximately 350 metres below the surface, as they suggest the integrity of the deposit continues down dip.

According to PMI, broad spaced drilling below 350 metres indicates that the deposit actually continues to extend below 450 metres, the level tested by the deepest holes completed to date.

The Obotan project comprises four known deposits – the larger Nkran deposit and the smaller satellite deposits at Abore, Adubiaso and Asuadi.

Obotan was mined by Resolute before closing in 2002, after producing a total of 730,000 ounces at an average grade of 2.2 g/t gold.

“These latest drilling results highlight the potential to grow the resource inventory at Obotan,” said managing director Collin Ellison.

So far, PMI has completed 56 resource extension drill holes since the start of drilling at Nkran in 2010, with 25 drill holes reported to date, in addition to these latest seven drill holes.

The recently completed holes at Nkran are part of a broader ongoing 40,000 metre drilling campaign, designed to upgrade and expand the current gold resource. 

The results will be used for a new resource estimate, currently scheduled for the end of September, which will underpin a technical and economic study due out by the end of 2011. 

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