Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

PMI Gold confirms significant targets at Kubi; follow-up drilling to begin next month

|Includes: PMI Gold Corp. (PMVGF)

In a recent update to shareholders, PMI Gold Corp (CVE:PMV) confirmed a 1.2 kilometre long gold anomaly zone found at its 90% owned Kubi project in southwestern Ghana, after it received results from an initial shallow auger drill program.

The company said the 4,800 metre first phase auger drill program defined a widespread zone of gold anomalies by a 40 parts per billion gold threshold over 1.2 kilometres, in an emerging target area located southwest of Kubi Main Zone deposit.

To date, assay results have been received for 823 samples of the total 2,663 samples, representing approximately 35% of the overall program.

Specifically, the program returned 2.0 grams per tonne (g/t) gold over strike lengths between 100 metres to 200 metres.

"The auger drilling has confirmed the results of previous soil geochemistry and defined priority areas for deeper drilling, which is scheduled to commence within the next two months," said managing director, Collin Ellison.

"In addition, we have been able to develop a clearer understanding of the structural setting which will assist in delineating targets for future drilling.

"The occurrence of the same series of east-northeast trending structures that coincide with the Ayanfuri deposit are considered to be of particular interest for future exploration."

The Kubi gold deposit is located on the northeast trending Ashanti shear zone, 50 kilometres east of the company's Obotan Gold project and 12 kilometres north east of the 6.6 million ounce Ayanfuri gold deposit, owned by Perseus Mining. The main Kubi deposit has estimated measured and indicated resources of 233,000 ounces, and inferred resources of 115,000 ounces.

The recently completed shallow auger drilling program at the Kubi project was designed to test historical gold anomalous results along strike from the previously reported 513 Prospect.

Last year, the 513 Prospect, which is contained in the southeastern region of the auger survey area, intersected 3.75 g/t gold over 4.75 metres, 3.68 g/t gold over 8.0 metres and 15.35 g/t gold over 1.0 metre.

PMI Gold said it plans to commence an expanded second auger drilling program following the review of all the first phase results.

Two new aircore and reverse circulation (RC) drill rigs are scheduled to arrive on site mid-August to better delineate resource extensions of the main Kubi deposit mineralization, bringing the number of rigs up to five.

The second phase program will also explore the gold anomalous areas along strike from the Kubi Main deposit and along the parallel Ashanti Trend, commencing at the 513 Prospect.