PMI Gold retires debt - Next phase Kubi drilling commences - Obotan oxide review
09:41 EDT Wednesday, October 21, 2009
globeinvestor.com
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/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO
U.S. NEWS AGENCIES/
TSX Venture Exchange: PMV
US PMVGF.PK
Frankfurt/Berlin: AOJMW7
Issued & Outstanding: 185,444,570
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VANCOUVER, Oct. 21 /CNW/ - PMI Gold Corporation (TSX.V:PMV) - the Company is pleased to announce that it has paid in full all amounts outstanding to Trafalgar Capital Specialized Investment Fund, FIS with respect to a$3.5 million bridge loan originally advanced on July 8th, 2008. Mr. Jeffrey Sternberg , who joined the Board to assist us with the loan, has tendered his resignation. We would like to take this opportunity to thankMr. Sternberg and Trafalgar Capital for their assistance with our purchase of the Kubi Gold project in Ghana.
In addition, the Company announces that the next phase of exploration drilling at Kubi will commence shortly, with a series of drill holes designed to test along strike and down dip of gold mineralization which was previously noted in hole KV-09-513 (please see our News Release dated September 9, 2009: pmigoldcorp.com ).
New drill targets are also being developed with a program of auger drilling to test for gold mineralization at the base of the alluvium in areas defined by our recent ground electromagnetic geophysics. Much of the Kubi project area is covered by circa 5 metre thick surficial deposits that geochemically mask underlying gold mineralization. The significant gold mineralization in hole KV-09-513, first outlined by the ground electromagnetic survey, had no definable surface geochemical signature.
The Company is also commencing a third party review of near surface gold resources that may remain at our Obotan Gold project inGhana, with respect to a potential toll milling operation. Resolute Amansie Limited -- a subsidiary of Resolute Mining of Australia -- between 1997 and 2002, mined a total of 730,000 oz. of gold from Obotan at an average grade of 2.2 g/t.
Resolute published a final estimate of mineral resources at Obotan, post mining, in their 2003 Annual Report, filed with the Australian Stock Exchange: asx.com.au . For further information on our Obotan Gold Project, please also see our news release dated June 30, 2009: pmigoldcorp.com .
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On behalf of the Board,
"Douglas R. MacQuarrie"
Douglas R. MacQuarrie
President & CEO
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.
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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.
%SEDAR: 00005434E
For further information: Douglas MacQuarrie, President & CEO, Telephone: (604) 682-8089, Toll-Free: 1 (888) 682-8089, Facsimile: (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 |
