PMI Gold Corporation (TSX.V: PMV, ASX:
PVM) is pleased to advise that highly
experienced mining executive Collin Ellison has
been appointed as Chief Executive Officer.
The appointment of Mr Ellison, who has a
long and distinguished career in resource project development and operation,
reflects PMI's planned transition from a successful explorer to a substantial
West African gold producer.
As part of this process, Douglas
MacQuarrie will switch from Managing Director and Chief Executive Officer to
Executive Director. Mr MacQuarrie has been instrumental in PMI acquiring a
significant land holding in Ghana and the
Company's exploration success to date. He will retain an active role in this
aspect of the Company's development going forward.
PMI envisages that following the
Company's Annual General meeting in Perth, Australia today, (Thursday, January 20), Mr Ellison
will also join the Board as Managing Director.
Mr Ellison is a mining engineer with 35
years' experience in resource project evaluation, development and operation
around the world. His previous roles include CEO/President of TSX-V companies
Asia Mineral Resources Ltd, which developed a nickel project in Vietnam, and
Goldbelt Resources Ltd, which explored and developed gold projects in Burkina Faso.
Mr Ellison was also Project Director for
Western Mining Corporation's Olympic Dam expansion study and held senior
management positions with companies including Eagle Mining Corporation, where
he helped develop the Nimary Gold Mine, later acquired by Great Central
Mines, ZincOx Resources Plc, where he helped develop the Shiamerden Oxide
Zinc Project, later acquired by Glencore International, and Goldbelt
Resources Limited, which developed the Inata Gold Project, later acquired by
Wega Mining.
Mr Ellison has also been Operations
Manager at gold projects such as Freeport-MacMoran's Karonie,
Australmin-Newcrest Mining's Tuckabianna and Orion-Gasgoine's Yilgarn Star.
PMI Chairman Peter
Buck said Mr Ellison's appointment was aimed at strengthening the
Company's development expertise to maximise shareholder returns from its
advanced Obotan and Kubi gold assets in Ghana.
Mr Buck said Mr Ellison's vast
development experience would be invaluable to PMI as it prepared to conduct a
Pre-Feasibility Study at its flagship Obotan Project, which has resources of
1.2 million ounces1, and a Scoping Study on its Kubi Project,
which has resources of 348,000 ounces2.
"PMI is making the shift from a
pure exploration company to one with substantial development opportunities
which we are confident have the potential to underpin the Company's
transition to major gold production status," he said.
"Mr Ellison's knowledge and
experience will help steer the Company during this evolution, ensuring we
take full advantage of the outstanding opportunities we have."
Mr Buck also thanked Mr MacQuarrie for
his work as Managing Director and Chief Executive Officer and said he looked
forward to his ongoing contribution.
"Mr Ellison's appointment, combined
with the $35 million capital raising that
accompanied the Company's ASX listing in December, have left PMI ideally
positioned for strong growth," Mr Buck said.
"PMI has a substantial resource
inventory, an aggressive exploration program, a healthy balance sheet and a
strong, experienced management team. We are now looking forward to the next
stage in the Company's development."
On behalf of the Board,
Peter Buck
Chairman
About PMI Gold
PMI Gold Corporation (TSX.V: PMV, ASX:
PVM) controls four previous operating mines
on 85 kilometres of Ghana's major gold belts which were successfully mined at
much lower gold prices, all located near the centre of near 200 million
ounces of historical gold production and current resources.
OBOTAN GOLD PROJECT: At PMI's flagship Obotan Gold Project,
where previous mining yielded 730,000 ounces of gold at a grade of 2.2 g/t
(at gold prices below US$350 per ounce), in 2010 PMI Gold announced a maiden
+1 million ounce gold mineral resource estimate1 and the
commencement of an aggressive drilling campaign. Based on the previous
production history at Obotan, PMI plans to quickly advance the project to the
scoping study stage and then, subject to additional positive exploration
results and expansion and upgrading of mineral resources, to pre-feasibility,
targeted for completion in late 2011.
KUBI GOLD PROJECT: PMI's Kubi Gold Project2
adjoins the 60 million ounce AngloGold Ashanti Obuasi mine, the largest
underground mine in West Africa with a 113
year, continuous mining history. Recent airborne geophysical surveys have
outlined significant targets, and exploration drill testing of geophysical
targets is proving successful with the discovery of the 513 gold zone - 1.4
km to the SW of the Kubi Main gold deposit.
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.
- Indicated Resource of 3.06 million tonnes grading 1.59 g/t
gold for 156,000 oz; Inferred Resource of 15.64 million tonnes grading
2.1 g/t gold for 1,053,000 oz., as reported in the December
8, 2010 technical report prepared by Hellman & Schofield Pty.
Ltd., available at www.sedar.com.
- Measured Resource of 0.66 million tonnes grading 5.30 g/t gold
for 112,000oz; Indicated Resource of 0.66 million tonnes grading 5.65g/t
gold for 121,000oz; Inferred Resource of 0.67 million tonnes grading
5.31 g/t gold for 115,000oz., as reported in the December
3, 2010 technical report prepared by SEMS Exploration Services
Ltd., available at www.sedar.com.
Scientific and technical
information contained in this news release has been reviewed and approved by
Douglas R. MacQuarrie, P.Geo.(B.C.), a "qualified person" as
defined under National Instrument 43-101.
The information in this announcement
that relates to Exploration Results, Mineral Resources or Ore Reserves is
based on information compiled by Donald Allen,
who is a Member or Fellow of the Association of Professional Engineers of BC,
a 'Recognised Overseas Professional Organisation' (ROPO) included in a list
promulgated by the ASX from time to time. Donald Allen
is employed by PMI Gold Corporation. Donald Allen
has sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004 Edition
of the 'Australasian Code for Reporting Exploration Results, Mineral
Resources and Ore Reserves'. Donald Allen
consents to the inclusion in this report of the matters based on his
information in the form and context in which it appears.
Cautionary Note Regarding
Forward-looking Statements
This news release includes certain forward-looking statements or
information. All statements other than statements of historical fact
included in this release, including, without limitation, statements relating
to the potential mineralisation and geological merits of the Obotan and Kubi
projects and the plans, objectives or expectations of the Company with
respect to the advancement of these projects and completion of scoping and
pre-feasibility studies, are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from the Company's plans
or expectations include risks relating to the actual results of current
exploration activities; fluctuating gold prices; possibility of equipment
breakdowns, delays and availability; exploration cost overruns; availability
of capital and financing; general economic, market or business conditions;
regulatory changes; timeliness of government or regulatory approvals; and
other risks detailed herein and from time to time in the filings made by the
Company with securities regulators, including in the section entitled
"Risk Factors" in the Company's Annual Information Form dated December 8, 2010. In particular, statements
relating to the Company's plans to complete a pre-feasibility study on the
Obotan project by the end of 2011 are subject to various factors, including
positive results from ongoing exploration; expansion and upgrading of
existing mineral resources (which are currently primarily in the inferred
resource category); and completion of favourable geotechnical drilling
programs, metallurgical test work, mine plan engineering, environmental and
community relations assessments, and preliminary economic assessments.
Due to the uncertainty which may attach to inferred mineral resources, it
cannot be assumed that all or any part of the inferred mineral resources at
Obotan will be upgraded to indicated or measured mineral resources as a
result of continued exploration.
The Company expressly disclaims any
intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise except as
otherwise required by applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.
|