Kubi Project Update - New Kubi Exploration Drill Results
By Pmi Gold Corporation, PRNEThursday, December 9, 2010
VANCOUVER, December 10, 2010 - THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S.
NEWS AGENCIES
News Release No. 10-22 TSX Venture Exchange: PMV Issued & Outstanding:
144,797,557
December 10, 2010 Frankfurt: PN3N.F (pre ASX IPO/ Special
Warrant Issuances)
PMI Gold Corporation (TSX.V:PMV) ("PMI Gold" or "the Company") has
received updated National Instrument 43-101 ("NI 43-101") and JORC compliant
resource estimates for its Kubi and Obotan Gold
projects in Ghana.
KUBI GOLD PROJECT - RESOURCE MODEL RE-ESTIMATE
The Company has undertaken a re-estimate of the Kubi Main gold deposit to
better define the controls on the gold mineralization, and for use in future
feasibility studies. As part of this process the Company is also undertaking
additional metallurgical test work (Gekko Systems Pty Ltd. of Ballarat,
Australia).
SEMS Exploration Services Ltd. of Accra, Ghana ("SEMS") was contracted by
the Company to prepare an estimate of the Kubi Main mineral resource. The
Company will continue studies of the deposit to determine opportunities for
delineating additional resources, with conceptual underground mining studies
to be undertaken by CSA Global, Perth.
SEMS has been active in exploration, mineral resource estimations, and
mining studies in Ghana for the last eight years. The team includes the
former Chief Geologist for AngloGold Ashanti at the nearby Obuasi gold mine
(underground production of circa 400,000 oz Au per year). In this capacity,
their personnel were a part of the technical team involved in the previous
development and mining at Kubi by Ashanti Goldfields and subsequently
AngloGold Ashanti, from 1999 thru 2005.
The previous resource estimate by Golder Associates Africa (Pty) Ltd. in
2007 (see SEDAR) gave an Indicated Mineral Resource of 5.1 million tonnes
(at) 3.66 g/t containing 604,085 oz of gold, and was based on a geological
cut-off rather than specific cut-off grades. While this model is valid, the
Company and SEMS personnel are of the view that the deposit can be more
tightly defined for ongoing feasibility purposes using a combination of
geological and cut-off grade constraints. The deposit, which has been modeled
using DATAMINE software, adopted a lower cut-off grade of 2.0 g/t Au and a
top-cut of 25.0 g/t Au and a minimum true width of two metres. Summary
statistics and semi-variograms were constructed using one metre sample
composites of gold values that locate within mineralised domains. An inverse
distance squared method was used to interpolate grades into the model.
Resource classification was carried out using solid wireframes to flag blocks
as measured, indicated and inferred.
The SEMS model has produced a significant increase in the average mineral
resource grade within the Kubi deposit from 3.66 g/t Au to 5.48g/t Au and
resulted in increased confidence in the internal continuity of the
mineralization to include a measured category (see table below).
CATEGORY TONNAGE GRADE CONT'D GOLD
Tonnes (million) (Au g/t) Ounces
Measured 0.66 5.30 112,000
Indicated 0.66 5.65 121,000
Total Measured and Indicated 1.32 5.48 233,000
Inferred 0.67 5.31 115,000
Table One: Identified Mineral Resource (2.0 g/t Au cut-off) November 2010
for the Kubi Gold Project
MATERIAL TYPE TONNAGE GRADE CONT'D GOLD
Tonnes (million) (Au g/t) Ounces
Oxide 0.12 5.07 19,000
Fresh Rock 1.88 5.44 329,000
Table Two: Mineral Resource Estimates by Material Type (2.0 g/t Au
cut-off) November 2010
To view Figure 1: View of the Kubi Main Zone block model beneath open pit
- looking NNW, please view files.newswire.ca/917/PMI_maps_1210.pdf
The full text of the SEMS technical report entitled "Kubi Gold Project -
Independent Mineral Resource Estimation" is available on the SEDAR website
(www.sedar.com) under the Company's profile.
KUBI - 513 ZONE TYPE GOLD MINERALIZATION INTERSECTED 600 METRES SOUTH
Drill testing of the 513 Zone on Kubi has resulted in the discovery of
additional gold mineralization. Three exploration holes were drilled for a
total of 333 metres.
Drill holes KV09-510 to 519 (previously announced) were drilled on
targets generated by airborne and ground geophysical EM surveys. This
resulted in discovery of significant gold mineralization in the "513 Zone",
which is hosted in garnetized metagabbro (similar to the garnet zone of the
Kubi Main deposit located 1.3 km to the north east). Following this discovery
auger geochemical sampling along the EM anomaly trends defined a gold anomaly
extending some 600 metres to the south. Drill hole KV10-521, reported below,
returned significant gold grades to 3.68 g/t over an estimated true width of
5.14 metres in a similar garnetized metagabbro.
Drill Hole From (metres) To (metres) Intercept Estimated Weighted
Length True Average
(metres) Width g/t Au
(metres) Uncut
KV09-513 71.25 73.75 2.50 1.60 1.29
KV09-517 85.25 90.00 4.75 3.05 3.76
Including 85.25 85.75 0.50 0.32 11.95
KV09-518 98.00 104.50 6.50 2.75 0.58
KV10-520 No significant
results
KV10-521 64.00 72.00 8.00 5.14 3.68
Including 66.00 67.00 1.00 0.64 15.35
Including 71.00 72.00 1.00 0.64 10.30
KV10-522 75.40 77.00 1.60 0.80 0.68
KV10-522 96.00 99.00 3.00 1.50 1.19
KV10-522 113.00 119.60 6.60 3.30 0.80
Table Four: Drill Hole Assay Results December 2010 Kubi Gold Project -
513 Zone
The 513 Zone is located on the altered eastern margin of the Ashanti
shear which hosts the AngloGold Ashanti Obuasi mine (pre-mining 60 million
ounce resource) located ~10 km to the north of the Kubi Gold project. These
drill results, on the Ashanti shear structure, are considered to be very
encouraging given that drilling by previous operators was primarily focused
to the east on the sub-parallel Kubi shear zone that hosts the Kubi Main gold
deposit, and as a result the Ashanti structure has only been superficially
explored to date. Recent airborne geophysical surveys have clearly outlined
the location and interpreted alteration associated with the Ashanti shear
zone. Additional drilling to determine the economic significance of this
discovery, and auger drilling to extend the prospective zone a further 4 km
south to the Offin River where extensive alluvial gold dredging operations
have operated in the past, will commence in the New Year.
Scientific and technical information contained in this news release
relating to the Kubi gold project resource estimate has been reviewed and
approved by Simon E. Meadows Smith, BSc Geology, Managing Director of SEMS
Exploration Services Ltd., who is a "qualified person" within the meaning of
NI 43-101. All other scientific and technical information contained in this
news release, including the Kubi gold project exploration update, has been
reviewed and approved by Douglas R. MacQuarrie, P.Geo. (B.C.), the President
and CEO of the Company, who is a "qualified person" under NI 43-101.
Field work was supervised by Paul Abbott MSc., Consulting Geologist. HQ,
and NQ core was 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. Internal QC consisted of inserting both blanks and standards
into the sample stream and multiple re-assays of selected anomalous samples.
Where multiple assays were received for an interval, the final value reported
was the average of all results for the interval. Results from the QC program
suggest that the reported results are accurate.
On behalf of the Board,
"Douglas R. MacQuarrie"
President & CEO
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. We Seek Safe Harbour.
About PMI Gold
Mining analysts have recently stated that West Africa will soon
become the World's second largest gold producing region after China,
with Ghana by far the largest gold producer in West Africa. PMI Gold
controls four previous operating mines on 85 kilometres of Ghana's
major gold belts all located near the centre of near 200 million
ounces of historical gold production and current resources.
Continuity of the mineralization to include a measured category (see
table below).
To view Figure 2: Kubi Gold Project Drill Hole Locations, Compilation
Map, Kubi Gold Project, please visit
files.newswire.ca/917/PMI_maps_1210.pdf
For further information:
Douglas MacQuarrie, President & CEO, Telephone: 1 (604) 682-8089
Toll-Free: 1 (888) 682-8089 Facsimile: 1 (604) 682-8094 or for European
Investors: Florian Riedl-Riedenstein: Tel: 43-2774-28814, e-mail:
frram@aon.at Or visit the PMI Gold Corporation website
at www.pmigoldcorp.com
Douglas MacQuarrie, President & CEO, Telephone: 1 (604) 682-8089 Toll-Free: 1 (888) 682-8089 Facsimile: 1 (604) 682-8094 or for European Investors: Florian Riedl-Riedenstein: Tel:
43-2774-28814, e-mail: frram at aon.at
