 | | | Published : August 16th, 2007 | Acquires Rights to Purchase Edubia Lease, Ghana |
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| | Thursday, August 16, 2007
PMI Gold Acquires Rights to Purchase Edubia Lease, Ghana
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August 16, 2007, Vancouver BC - PMI Gold Corporation (TSX/V:PMV) - Douglas MacQuarrie, President, announces that PMI Gold Corporation ("PMI Gold") has reached agreement with Mr. Emmanuel Acquah the overall head of the Tuakwa Biney Dehyena Family, whereby Adansi Gold Company (Gh) Limited ("Adansi Gold") the 100% owned subsidiary of PMI Gold, has the right to acquire 100% of the Edubia Mining Lease situated at Adubea in the Ashanti Region of Ghana, and more particularly located 8 km northeast of our Nkran Mine.
The 13 square kilometre lease was originally issued in January 1931 for a term of ninety nine years to Mr. Joseph Edward Biney who was one of the original indigenous owners of the concession that now hosts the world famous AngloGold Ashanti Obuasi Mine. Since his death in 1937, this lease and other leases have formed a part of his estate, and Mr. Acquah is the current successor and administrator of the estate. The Family's title has recently been acknowledged by the Government of Ghana and formal registration pursuant to the newer mining legislation commenced.
In the mid-1990's a license was granted over a much larger area, and work programs consisting of sampling of old adits, extensive trenching and soil sampling over the area of the lease, completed. Adit samples to 2.8 g/t Au over 36 metres were reported in quartz stockwork systems hosted by Birimian metasediments and granitic intrusives (Griffis et al, 2002, in Gold Deposits of Ghana, pg 292). Some 213 short drill holes were completed, averaging 40 metres and with a maximum length of 126 m. Gold mineralization was outlined in a zone from 20 to 60 metres wide and elongated northeasterly over a 700 metre length. Localized drilling results indicated 1 to 5 metre true widths with grades from circa 3.0 to 12.0 g/t Au.
Adansi can earn a 100% interest in the lease by making cash payments of US$100,000 (US$50,000 signing deposit paid); by paying a further US$100,000 upon the receipt of a positive pre-feasibility study recommending production; and by reserving for the vendor a 0.5% net smelter returns royalty. In addition, Adansi retains the first right of refusal on any other Biney leases that form a part of the estate.
Douglas R. MacQuarrie, President and CEO commented: "The acquisition of the Edubia lease joins our Abirem and Abore concessions together and gives PMI Gold an additional 4,500 metre long and highly prospective gold in soil anomaly which is on strike with and part of a continuous 13,000 metre long trend on our concessions which host the former Nkran mine and the African Star deposit. Gold mineralization at Edubia may fit in with our model to develop deep, underground resources, and its location just 8 km from our Nkran deposit is particularly attractive. We look forward to exploring the balance of the lease with our in-house geophysical crews, our pending Geotech VTEM survey and further drilling. "
Ghana is Africa's second largest gold producer and has recently attracted US$1.5 billion in committed foreign investment due to its long mining history, prospective resource base, reasonable taxation and stable government. PMI Gold now controls 483 square kilometres along a 70 kilometre length of the Asankrangwa Gold Belt in 12 concessions, including the former Obotan mine which produced 730,000 ounces of gold prior to its closing in 2003; and has options on a further 186 square kilometres in 2 concessions on the Ashanti Gold Belt.
This news release has been prepared by Douglas R. MacQuarrie, P.Geo.(B.C.), a Qualified Person under National Instrument 43-101, and is based on a review of previously published and historical information.
On behalf of the Board,
"Douglas R. MacQuarrie"
Douglas R. MacQuarrie
President & CEO
For further information please contact:
Douglas R. 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 John Mullen: Tel: 41-522-428795, e-mail: John Mullen@bluewin.ch
Or visit the PMI Gold Corporation website at www.pmigoldcorp.com (in German: http://pmi.goldseiten.de)
NOT FOR RELEASE OR DISTRIBUTION IN THE USA.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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.
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