HomeGoldObatan gold project set to get green light in Q3 of 2012

Obatan gold project set to get green light in Q3 of 2012

Visible gold on
this rock segment
at Obatan
Toronto, Canada — 12 April 2012 – PMI Gold Corporation “’ an international gold company which is exploring and developing three emerging mining centres in Ghana “’ has taken another significant step towards the imminent completion of the feasibility study on its Obotan Gold Project in Ghana.

Making this announcement here, the company explained that extensive infill drilling had provided an updated resource estimate confirming the integrity of the gold inventory underpinning the project. The measured and indicated resource amounted to 3.11Moz, with an additional inferred resource of 1.4Moz.

The company statement revealed that the revised resource calculation had taken into account a further 28,835m of drilling. The drilling had been predominantly infill, as well as some extensional drilling on all four (Nkran, Adubiaso, Abore and Asuadai) Obotan deposits.

The assay results from this drilling programme have been incorporated in the final resource estimate undertaken as part of the feasibility study that is currently in progress.

The estimate comprises: measured resources “’ 15.57Mt at 2.47g/t for 1.23 million ounces; indicated resources “’ 29.21Mt at 2.00g/t for 1.88 million ounces; and inferred resources “’ 21.91Mt at 1.99g/t for 1.40 million ounces

PMI says the latest resource estimate provides further confidence regarding the integrity of the total gold inventory, and in particular the integrity, high grade and internal continuity of the Nkran deposit, which forms the larger part of the total resource base.

The feasibility study remains on track for completion in the middle of this year, with a development decision scheduled for the September quarter. This would put Obotan on course for full production in 2014.

A revised reserve estimate for Obotan will be undertaken within the next stage of the feasibility study.

Source: PMI Gold Corporation. For more information, click here.