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Encouraging Shallow Gold Intersections Recorded at PMI Gold’s Afiefiso Prospect, Ghana

PMI Gold Corporation
30 July 2012 | Business & Finance

Key Points
• Drilling completed and all assay results received from first pass Aircore exploration drilling undertaken by PMI at the Afiefiso Prospect, located 12km south-west of the Obotan Gold Project.

• Shallow mineralization intersected over previously defined gold in soil anomaly.

• Afiefiso lies within the Asankrangwa Gold Belt and located near the junction of the prospective Fromenda Shear with favourable east-northeast trending cross-cutting structures.

• Aircore drilling program represents first exploration campaign by PMI at Afiefiso.

• Encouraging results include:
o 16m @ 1.73 g/t Au from 11m (including 3m @ 7.58 g/t Au from 19m)

o 15m @ 1.16 g/t Au from 48m (including 2m @ 4.99 g/t Au from 48m)

o 3m @ 13.64 g/t Au from 12m (including 1m @ 40.57 g/t Au from 12m)

PMI Gold Corporation (TSX-V: PMV) (ASX: PVM) is pleased to announce drilling has been completed and all assay results returned from its first pass Aircore exploration drilling program at the Afiefiso Prospect (Figure 1), a high priority target identified and tested in the Company's +100,000m regional exploration push undertaken during the half year to June 2012.

The Afiefiso Prospect is a new discovery strategically located within a 15km area of influence south-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).

Drilling was designed as a first-pass test of a strong (>100ppb) gold in soil geochemical anomaly, defined by previous explorers, which extends over a length of 2km striking north-east and is 200-500m wide. The soil anomaly is situated in a similar geological setting to the Obotan gold deposits, at the junction of the regional, north-east trending Fromenda Shear and interpreted east-northeasterly cross-cutting structures within a sequence of meta-sedimentary rocks. The program comprised broadly spaced reconnaissance Aircore traverses (145 holes on four traverses at 200-800m intervals; Figure 2) which commenced in March 2012. A total of 10,018m has been drilled into the prospect.

The prospective north-east trending Fromenda Shear is interpreted from geophysical data to form the eastern margin of a regional structural corridor which extends over the 70km strike extent of PMI's Asankrangwa tenements. The corridor comprises a parallel series of at least three continuous shear zones (Abore, Nkran and Fromenda) interpreted to control the regional distribution of gold mineralization, particularly at intersections with cross-cutting east-northeasterly structures, similar to the interpreted overall structural setting of PMI's Obotan deposits to the north. At Obotan, the Company's tenements mainly cover the Nkran and Abore shears which are interpreted to control the Nkran, Abore, Asuadai and Adubiaso deposits to the west of the lesser explored Fromenda Shear.

Regionally, gold mineralisation was intersected in drilling during the 1990's by a range of companies along the entire strike extent of all north-east trending structures comprising the corridor, and now consolidated for the first time as a single project owned by PMI Gold (Figure 1). Based on the historical exploration results, prospects along the Fromenda Shear are considered by PMI to represent high priority exploration targets.

The recent reconnaissance aircore drilling program carried out at Afiefiso prospect intersected multiple zones of anomalous gold at shallow depths (<100m), striking parallel to the Fromenda Shear over a length of up to 1,600m and downhole widths of2-12m (Figure 2). All assay results have been received for the 145 holes from MinAnalytical Laboratory in Perth, Australia. Table 1 lists all anomalous intersections >0.1g/t Au. Encouraging shallow gold intersections recorded include:

• AFAC12-001 16m @ 1.73 g/t Au from 11m (including 3m @ 7.58 g/t Au from 19m)

• AFAC12-003 6m @ 0.72 g/t Au from 21m
• AFAC12-011 15m @ 1.16 g/t Au from 44m (including 2m @ 4.99 g/t Au from 48m)

• AFAC12-016 9m @ 0.97 g/t Au from 49m (including 2m @ 2.76 g/t Au from 50m)

• AFAC12-073 3m @ 13.64 g/t Au from 12m (including 1m @ 40.57 g/t Au from 12m)

Along with earlier announced drilling results from the Fromenda Prospect (refer to Announcement dated April 30, 2012), the recent results from Afiefiso further highlight the potential of the Fromenda Shear to host gold mineralization, and the success of utilising the historical soil geochemical data notwithstanding the obscuring effects of alluvial and cultural processes.

PMI Gold's Managing Director and CEO, Mr Collin Ellison, said the results from the first pass exploration drilling at Afiefiso has identified further shallow encouraging gold values, highlighting the potential to discover satellite sources of oxide mineralisation within economic haulage distance to the proposed processing facility at Nkran to supplement mill feed from the four main Obotan deposits (Nkran, Asuadai, Adubiaso and Abore).


“Our extensive regional exploration push has involved drilling nearly 86,000m for the first half of 2012 at the Obotan, Asanko and Kubi Projects. Early results from Kaniago, Fromenda and Afiefiso within the Obotan Area of Influence, and the 513 Prospect at the Kubi Project have identified some significant and encouraging gold zones. Further assay results are still outstanding from drilling which has been completed at the Kubi Gold Project and at the Diaso Prospect, another high priority target within the Asanko Project. We expect to receive these results in the coming weeks and prioritise the prospects for further follow up drilling for the second half of 2012.”

On behalf of the Board,
"Collin Ellison"
Managing Director & CEO

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