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Junior Mining Weekly | 12
18 October 2011
PMI GOLD CORP.
(PMV : TSX-V : C$1.03 | NOT RATED)
Nicholas Campbell 1.604.643.7027
Chris Lerch 1.604.643.1655
Figure 11: PMV : TSX-V Figure 12: PMV : TSX-V
Shares O/S (M): 198.7
Shares FD (M): 260.7
Working Cap. (M): $23.0
Market Cap. (M): C$204.7
Co. Website: www.pmigoldcorp.com
Past 12 months – purchased: $72,400
Past 12 months – sold: $76,500
Since July 21/11– acquisitions: 10,000 shares
Source: Company reports, StockCharts.com Source: INK Research
PMI Gold Corp. is an exploration company under the stewardship of Collin Ellison, Managing Director and CEO. Collin
Ellison was instrumental in the development of Wega Mining ASA’s Inata gold mine in Burkina Faso, which was acquired
by Avocet Mining PLC (AVM : AIM | Not rated) in 2009. PMI holds exploration and mining leases on the Ashanti and
Asankrangwa gold belts of Ghana.
• PMI provided an update on its exploration program at the Obotan Gold Project located in SW Ghana on the
Asankrangwa gold belt. The project hosts a recently re-estimated NI 43-101 compliant resource estimate of 14.67
million tonnes grading 2.66 g/t gold (containing 1.22 million Au ounces) in measured resources, 27.50 million tonnes
grading 2.32 g/t (containing 2.00 million Au ounces) in indicated resources, and 17.54 million tonnes grading 2.35 g/t
(containing 1.29 million Au ounces) in inferred resources. These results are based on a 0.5g/t lower gold cut-off grade.
• The Obotan project was previously operated by Resolute Mining Ltd. (RSG : AIM | Not rated), which closed in 2002
after producing 730,000 ounces at an average grade of 2.2 g/t gold. Drilling has focused around the Nkran Resource as
it is the largest of the deposits and has shown to continue at depth and along the strike to the SE with numerous wide
and high-grade intersections being recorded. The Nkran deposit extends for some 700 metres along strike (NE-SW)
and is drilled to a depth of 550 metres below surface (still open). Previous drill results include 153 metres at 2.37 g/t
gold (including 46 metres at 5.23 g/t gold) and 80.08 metres at 7.49 g/t gold (including 20.86 metres at 17.61 g/t gold).
These high grade results may demonstrate the potential for underground development.
• A Pre-Feasibility Study (PFS) is currently underway with completion expected by December 31, 2011. Results from an
additional 75 holes (18,783metres) will be incorporated in future re-estimate planned for Q1/12. The final feasibility
and development decision is targeted for mid-2012.
An analyst has not visited the properties held by PMI Gold Corp.
Investment risks & disclaimer
The commercialization risks associated with mineral exploration and development are high. We are not providing
estimates, an investment rating, or target price for PMI Gold Corp. |
