Drilling to resume this Quarter at emerging satellite prospect 7km NE of proposed Obotan plant
· Recent drilling at Dynamite Hill has extended the strike extent of mineralization to over 600m, with mineralization remaining open along strike and down-dip.
· Broad widths of gold mineralization intersected in the final holes of follow-up 10-hole Reverse Circulation (RC) drilling program.
· All assay results have been received. Significant results (>0.5g/t Au) (true widths are estimated between 60% to 70% of the stated drill intercept unless otherwise specified) include:
· 41m @ 1.99g/t Au from 93m
· 24m @ 2.08g/t Au from 101m (including 1m @ 9.68g/t Au from 104m and 1m @ 18.48g/t Au from 118m)
· 25m @ 1.63g/t Au from 24m (including 2m @ 7.25g/t Au from 28m)
· 20m @ 1.20g/t Au from 32m and 14m @ 3.20g/t Au from 64m (including 1m @ 22.32g/t Au from 65m)
· Dynamite Hill Prospect strategically located 7km north-east of the proposed processing facility at Nkran, within PMI’s 100% owned Adubea Mining Lease – within economic trucking distance of the proposed treatment plant.
· Further drilling currently being planned for the September Quarter leading to a maiden JORC Mineral Resource estimate by year-end as part of PMI Gold’s recently announced multi-pronged strategy to optimise and enhance the Obotan Project.
PMI Gold Corporation (TSX: PMV) (ASX: PVM) is pleased to announce that drilling is scheduled to resume this Quarter at the emerging Dynamite Hill discovery at its 100%-owned Obotan Gold Project in south-west Ghana as part of a program designed to deliver a maiden JORC/NI 43-101 compliant Mineral Resource by the end of this year.
Dynamite Hill, which was discovered earlier this year following a series of broad, high-grade gold intersections from RC drilling (see TSX/ASX Release – 6 June 2013), is strategically located between the Nkran and Asuadai deposits, 7km north-east of the proposed processing facility at Nkran, within the Adubea Mining Lease (Figure 1).
Following the initial round of drilling earlier this year, a further 10 RC holes have been drilled for 1,352 metres to test the north-east strike extension of mineralization defined in the first phase (see TSX/ASX Release – 6th June 2013). Holes were drilled on a 50 metre traverse spacing, 50m apart (Figure 2), to an average depth of 135m (maximum depth of 217m).
Samples were submitted to MinAnalytical Laboratory in Perth, Western Australia, and Performance Laboratory in Bibiani, Ghana, for 50g Fire Assay treatment with Atomic Absorption Spectrometry (AAS) finish. All assay results have been received. Significant intercepts >0.5g/t Au are listed in Table 1. Highlights include:
· DYRC13-031: 20m @ 1.20g/t Au from 32m and 14m @ 3.20g/t Au from 64m, including:
o 1m @ 22.32g/t Au from 65m
· DYRC13-032: 41m @ 1.99g/t Au from 93m
· DYRC13-033: 25m @ 1.63g/t Au from 24m, including:
o 2m @ 7.25g/t Au from 28m
· DYRC13-034: 31m @ 1.21g/t Au from 33m
· DYRC13-035: 24m @ 2.08g/t Au from 101m, including:
o 1m @ 9.68g/t Au from 104m and 1m @ 18.48g/t Au from 118m
Drilling has extended the mineralized gold system to over 600m along strike (Figure 2) and to a depth of nearly 180m (Figure 3). Current interpretations indicate mineralization is still open along strike and down dip. The interpretation is encouraging as many of the largest gold deposits in Ghana have short strike lengths with substantial steep plunging deep roots.
Planning is currently underway for further RC drilling to test the internal continuity of the defined mineralized trend, along with testing the along strike and down-dip extents. Drilling will also be designed to test the second anomalous gold corridor 300m to the east of the main mineralized trend, identified in the first phase of drilling. It is anticipated drilling will commence in the coming month.
Ongoing drilling at the Dynamite Hill prospect has the potential to define an alternative source of oxide feed within economic haulage distance of the Obotan mill, and is emerging as an important component of the Company’s multi-pronged strategy to optimise and enhance the Obotan Project (see TSX/ASX Release – 19 July 2013).
The addition of further high-grade oxide material to the Project’s resource inventory has important strategic implications for the project, including the potential to defer some or all of the capitalised pre-stripping required in the early stages of project development.
Together with the Adubiaso and Abore deposits, the four deposits which comprise the Obotan Gold Project have a NI43-101 and JORC compliant Mineral Resource estimate of: Measured Resources of 15.57M tonnes at a grade of 2.47g/t Au for 1.23Moz, Indicated Resources of 29.2M tonnes at a grade of 2.00g/t Au for 1.88Moz and Inferred Resources of 21.91M tonnes at a grade of 1.99g/t Au for 1.4Moz.
PMI Gold’s Managing Director and CEO, Mr Collin Ellison, said the Company was very pleased with the results from Dynamite Hill, which was rapidly emerging as a potential source of high-grade oxide feed located in close proximity to the proposed processing plant.
“The Dynamite Hill Prospect is a high priority drill target for PMI Gold. We will continue to test the overall extent of mineralization in the coming months with the aim of calculating a maiden JORC/NI 43-101 compliant Mineral Resource towards the end of the year and incorporating Dynamite Hill into the overall development configuration and economics of the Obotan Project.
“This fits well with our other project optimisation and enhancement initiatives at Obotan, as announced earlier this month (see TSX/ASX Release -19 July 2013), and is consistent with the focus of our exploration efforts on advanced exploration opportunities which offer clear potential for the delineation of JORC/NI 43-101 compliant Mineral Resources and Ore Reserves in the near term. Dynamite Hill clearly fits the bill in all respects.”
Visit the PMI Gold Corporation website at www.pmigoldcorp.com