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Posts tagged ‘ghana’

Gold industry injected $210 billion into global economy last year

October 8th, 2013

by Cecilia Jamasmie | October 8, 2013 | Reprinted by permission of Mining.com

While the gold industry hasn’t had the chance to shine bright this year, a study published Tuesday reveals the sector contributed more than US$210 billion to the world’s economy in 2012, pretty much equivalent to the GDP of Ireland, the Czech Republic or Beijing.

The independent report by economists at PwC, commissioned by the World Gold Council, is the first to take into account the entire value chain from large-scale mining supply to consumer demand with the goal of quantifying how the precious metal contributes to local and global economic development.

To date, research of this kind has typically been confined to examining the value created by a particular project, event or company in a specific market segment or country.

Terry Heymann, director of the gold for development program at the World Gold Council, said the total economic contribution of gold is likely to be considerably greater than this study of large-scale gold mining indicates, if all global gold mining activity were able to be included.

Consumer demand

Consumer demand for physical gold—mainly in the form of jewellery, coins and small bars—contributed close to $110 billion to the global economy last year, shows the study.

Another key finding was the significance of gold mining to the economies of developing nations. Large-scale gold mining alone, says the study, made a contribution of over $78 billion to the economies of the top 15 mining countries last year, having the greatest impact in developing countries such as Papua New Guinea (15% of GDP), Ghana (8% of GDP) and Tanzania (6% of GDP).

Since early this year, however, gold miners have been seriously hit by weak gold prices, write-downs and blowout project costs, strikes and market speculation about the U.S. monetary stimulus.

Click image to enlarge.

Reprinted by permission of Mining.com

Five reasons China is coming to buy your gold mine

August 21st, 2013

by Frik Els | August 21, 2013 | Reprinted by permission of Mining.com

Chinese producers are aggressively looking at picking up gold companies and mines elsewhere as domestic demand reaches record highs.

Takeovers and asset purchases by Hong Kong and mainland miners increased to a record $2.2 billion in 2013 according to data compiled by Bloomberg.

Five reasons China is coming to buy your gold mine

Chinese companies like Zijin Mining Group and Zhaojin Mining Industry Co are in a good position to take a bite out of struggling North American and European-based producers because:

Chinese gold demand is soaring and at 1,000 tonnes will overtake Indian purchases this year, but domestic deposits are less than 5% of the global total.

Targets are cheap—the S&P/TSX Global Gold Index of the globe’s 49 biggest gold companies are down 31% this year alone.

Domestic Chinese producers enjoy some of the lowest cash costs—Zhaojin manages $549 an ounce, compared with a global average of $831.

Chinese and Hong Kong companies have access to cheap capital—Zijin got $4.9 billion in soft loans from a state bank for M&A.

The majors are actively looking to sell as debt levels increase and high-cost mines are mothballed—Barrick Gold TSX:ABX could dump as many as 12 of its mines.

Possible targets include:

While these companies are looking to get rid of a number of mines:

See also: $45bn and counting: China’s foreign mining misadventures

Reprinted by permission of Mining.com

To Africa and back

January 2nd, 2013

Wesdome, African Queen and SLAM release gold results from Quebec, Kenya and New Brunswick

by Greg Klein

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Wesdome Gold Mines TSX:WDO began the New Year by releasing gold assays from its Kiena Mine in Val-d’Or, Quebec. The company stated that underground exploration drilling demonstrates continuity of the mine’s S-50 (South Zone) mineralized system southeast and at depth.

Intercepts were provided as estimated true widths. Grades were cut to 34.28 grams per tonne. Highlights include:

  • 8.6 grams per tonne gold over 7.3 metres
  • 3.38 g/t over 10.7 metres
  • (including 6.61 g/t over 2.2 metres)
  • 3.82 g/t over 8.78 metres
  • 34.28 g/t over 0.85 metres
  • 3.72 g/t over 6.75 metres
  • 2.83 g/t over 5.42 metres
  • 11.4 g/t over 1.07 metres
  • 8.86 g/t over 1.53 metres.
Wesdome’s Kiena Complex produced an estimated 20,000 gold ounces in 2012.

Wesdome’s Kiena Complex produced
an estimated 20,000 gold ounces in 2012.

One of Wesdome’s three operating gold mines, Kiena’s 2012 production is estimated at 20,000 ounces. The company expects another 20,000 ounces from its Eagle River operation and 10,000 ounces from the Mishi open pit, both near Wawa in central Ontario. As of December, Wesdome’s year-to-date cash flow was $10.5 million.

Wesdome opened January 2 at $0.87, two cents above the previous close. The stock nudged a day’s high of $0.90 before returning to an 87-cent close.

More January 2 gold results came from African Queen Mines’ TSXV:AQ Odundu Property, part of its Rongo Gold Fields Project in Kenya. The company stated that initial drill and trenching results indicate extensive, low-grade near-surface mineralization.

True widths weren’t provided for the drill results. One intercept began at a down-hole depth of 27 metres, while the furthest stopped at 171 metres. Drill assays include:

  • 1.03 grams per tonne gold over 26.35 metres

  • (including 5.27 g/t over 0.6 metres)
  • (including 2.87 g/t over 2.87 metres)
  • 1.17 g/t over 12 metres
  • (including 2.97 g/t over 2 metres)
  • 1.08 g/t over 11 metres
  • (including 5.96 g/t over 0.6 metres)
  • 0.89 g/t over 10 metres
  • 1.45 g/t over 5.16 metres
  • (including 3.21 g/t over 0.8 metres)
  • (including 2.31 g/t over 0.93 metres).

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Week in review

December 14th, 2012

A mining and exploration retrospect for December 8 to 14, 2012

by Greg Klein

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U.S. politicians ponder windfall royalties

The United States has joined the list of countries considering additional ways to mine miners, according to a Wednesday Reuters story. Some American politicians are talking about royalties as high as 12.5%, the same benchmark applied to certain other resources, including oil and gas.

Reuters said the proposal would get about $700 million during the lifespan of Freeport-McMoRan’s copper-molybdenum operations in Colorado, Arizona and New Mexico. Last year alone, the royalty could have taken $150 million from Barrick’s TSX:ABX Goldstrike mine in Nevada, according to Reuters’ figures. Barrick told the news agency the company’s taxes have already jumped four-fold over five years.

Democrat Representative Raul Grijalva, a proponent of the 12.5% levy, sees it differently. “As we face these fiscal challenges, these are the pennies that we should pinch,” Reuters quoted him. Along with some other U.S. federal politicians, Grijalva also wants to review miners’ tax breaks.

Previous attempts to raise miners’ taxes have failed, Reuters stated, “as the industry has strong political allies.” The story added that “state and local governments often catch a windfall from mining revenue.”

Ivory Coast hikes taxes but overestimates profits, miner says

A mining and exploration retrospect

A new tax on Ivory Coast gold extraction underestimates cash costs by nearly 50%, according to at least one source. New legislation that applies to 2012 production assumes cash costs of $615 an ounce, Reuters stated on Friday. The tax on “profits” above that amount will fluctuate with the yellow metal’s price. At $1,600, that comes to 17%. The rate will be lower for companies that pay the country a corporate tax, the news agency added. Randgold Resources CEO Mark Bristow called the new levy, expected to raise $79.8 million, a “punitive tax,” Reuters said.

In a December 7 Bloomberg report, Endeavour Mining TSX:EDV spokesperson Nouho Kone said Ivory Coast gold production can actually cost between $1,000 and $1,200 an ounce. “The worst-case scenario would be to see companies shut down their mines in the short term,” he told Bloomberg. Reuters stated that Perseus Mining TSX:PRU put its $160-million Sissingue project on hold last September “pending clarification of the fiscal regime applicable to the project.”

Maybe Ghana too

Ghanaian President John Dramani Mahama’s re-election brings to mind his previous effort to impose a 10% tax on windfall profits, Monday’s Financial Post reported.

The government had already raised miners’ corporate taxes from 25% to 35% and imposed “a uniform regime for capital allowance of 20% for five years of mining,” the FP stated. But the government’s intended windfall tax had been shelved due to industry pressure, according to a Wednesday Reuters dispatch.

Reuters added that government discussions with gold miners are underway “to loosen up so-called ‘stability agreements’ held by some firms that lock in royalty and tax rates.” This year Ghana raised gold royalties from 3% to 5%, but the stability agreement exempted companies like AngloGold Ashanti and Newmont Mining TSX:NMC, the news agency stated.

Unions lose bid to block foreign workers from staffing B.C. mine

HD Mining International called it a “massive victory,” the Globe and Mail reported Friday. A federal court judge has allowed the company to import Chinese workers for its proposed Murray River coal mine in British Columbia. Two unions had applied for an injunction blocking the work permits after learning that HD Mining planned to staff its underground operation exclusively with Chinese workers—which would total over 400 at full production.

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Week in review

November 2nd, 2012

A mining and exploration retrospect for October 27 to November 2, 2012

by Greg Klein

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No one ever said mining’s risk-free

A Chinese gang leader has been sentenced to death for illegal mining and a number of assaults. A story covered by China Daily and Industrial Minerals on Wednesday reported that Pan Guangjuan and his gang had been running a rare earths operation in Guangdong province from November 2011 to February 2012. On conviction he was also fined $24,000 and deprived of his political rights for life. The death sentence comes with a two-year reprieve.

Other countries have been cracking down too—not only on illegal mining, but illegal mining by Chinese. On Monday prosecutors in the Philippines dropped charges against two Chinese after police and military raided gold dredging operations. According to Reuters, small-scale gold mining, legal and illegal, is widespread in the Philippines but up to 90% of production is smuggled to China via Hong Kong.

A mining and exploration retrospect

In Ghana over 90 Chinese were arrested last month during a crackdown in which a teenage boy died, the Financial Times reported. A previous Ghanaian raid on illegal miners resulted in 38 Chinese being deported last September. Chinese are playing an increasing role in illegal mining in Ghana, partly because of their access to Chinese dredging equipment, the FT stated. The story quoted an official for the Ghana Chamber of Mines, who said, “There are environmental issues, poor working conditions and child labour problems because they use Ghanaian children. They pay them whatever they want, and there are no contracts or safety standards.”

Another government official quoted by the FT said, “Most of these Chinese illegal miners are heavily armed and shoot at anyone that gets near them.”

Are gold reserves lent out, sold short or stored safely?

Over 60 countries store gold in underground vaults at New York’s Federal Reserve Bank. Now a GATA-esque movement is growing in the country that is, theoretically, the world’s second-largest gold owner. On Tuesday Spiegel reported that a member of Germany’s governing coalition, Peter Gauweiler, has finally found limited success in his long campaign to repatriate his country’s gold. The Frankfurt-based central bank will bring home 150 tons of gold over three years for inspection. The Bundesbank also plans to count and weigh the gold bars stored in New York.

The move responds to a damning indictment from Germany’s Federal Audit Office, which criticized the Fed for refusing access to German auditors. Hardly reassured by the planned audit, politician Heinz-Peter Haustein told media that “all the gold has to be shipped back,” Spiegel reported.

Not surprisingly, the Gold Anti-Trust Action Committee was all over the story this week. An article by Lars Schall covered a Thursday speech given by Bundesbank executive Andreas Dombret. He told his New York audience that Germany’s “bizarre public discussion” will soon pass.

“We are confident that our gold is in safe hands with you,” Schall quoted him. “The days in which Hollywood Germans such as Gert Frobe, better known as Goldfinger, and East German terrorist Simon Gruber masterminded gold heists in U.S. vaults are long gone. Nobody can seriously imagine scenarios like these, which are reminiscent of a James Bond movie with Goldfinger playing the role of a U.S. Fed accounting clerk.”

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PMI reports Ghana Gold Assays up to 3.33 g/t over 5m, 1.39 g/t over 8m

August 22nd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningPMI Gold Corp TSXV:PMV announced assays from its Kubi South Prospect, 1.5 kilometres south of the Kubi Main Deposit at its Kubi Project in Ghana. Highlights include

5.23 g/t gold over 1 metre
2.42 g/t over 2 metres
(including 4.1 g/t over 1 metre)
1.39 g/t over 8 metres
(including 2.56 g/t over 2 metres)
3.33 g/t over 5 metres
5.3 g/t over 2 metres
0.68 g/t over 4 metres
1 g/t over 2 metres
1.5 g/t over 2 metres
0.67 g/t over 10 metres
2.72 g/t over 1 metre
1.01 g/t over 3 metres

Managing Director/CEO Collin Ellison commented, “Assays from the exploration drive from the first half of 2012 continue to come in, with some very encouraging numbers. The results from each of the prospects will be evaluated, with further followup drilling on high-priority targets planned for the second half of 2012.”

View Company Profile

Marion McGrath
Corporate Secretary
604.684.6264
888.682.8089

Collin Ellison
Managing Director/CEO
61.8.6188.7900

by Kevin Michael Grace

Golden Star reports Ghana Results up to 32 g/t Gold over 26m

May 2nd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGolden Star Resources Ltd TSX:GSC announced assays from its Wassa Mine in Ghana. Highlights include

32 g/t gold over 26 metres
4.8 g/t over 20.1 metres
11.9 g/t over 6.8 metres
9.5 g/t over 6.3 metres
3.2 g/t over 15 metres
1.6 g/t over 26.2 metres
4.4 g/t over 9.3 metres
3.2 g/t over 11.3 metres

Golden Star holds a 90% equity interest in Golden Star (Bogoso/Prestea) Ltd and Golden Star (Wassa) Ltd, which respectively own the Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana.

President/CEO Tom Mair commented, “The Wassa operations have been considered by most observers to have a limited mine life but our operations and exploration teams have long recognized the potential of this area through the mining of the Wassa deposits over the years. Deep drilling programs are beginning to unlock the full potential of the Wassa area. Once we have completed our resource models during the second half of the year we should be able to get a better view of the future of Wassa Mine.”

View Company Profile

Contact:
Bruce Higson-Smith
Senior VP of Finance and Corporate Development
800.553.8436

by Greg Klein

Pelangio reports Ghana Gold Assays as high as 17.65 g/t over 3m

April 25th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningPelangio Exploration Inc TSXV:PX announced assays from its Manfo Property in Ghana, West Africa. Results include

1.88 g/t gold over 31 metres (including 17.65 g/t over 3 metres)
1.06 g/t over 20 metres
0.97 g/t over 47 metres (including 1.92 g/t over 14 metres)
1.41 g/t over 29 metres (including 3.05 g/t over 8 metres)
1.06 g/t over 63 metres (including 3.78 g/t over 8 metres)
0.96 g/t over 22 metres

VP Corporate Development Brendan Cahill tells ResourceClips.com, “Manfo consists of 100-square kilometres on Ghana’s Sefwi Belt. It is about 14 kilometres from Newmont’s [TSX:NMC] Ahafo Mine—that’s a 19-million ounce total-resource deposit, grading about 1.6 grams per tonne and producing up to 600,000 ounces a year at $550 per ounce. So it’s a huge deposit. We have very similar geology at Manfo and have made five discoveries since mid-2010.

That’s what the goal is at Manfo: find as many of these near-surface, open-pittable deposits as possible—Brendan Cahill

”The results we put out today [were from] 31 holes—about 7,500 metres—of mostly infill drilling on the zone. There was some high grade—17.5 grams over 3 metres—and we’re seeing a higher- to high-grade zone running through about 550 metres of the zone so far. The rest of the results [showed] more good, bulk-tonnage grades in the area of 1.5 g/t to 1.9 g/t over 15 to 30 metres and some broader widths up to 60 metres. The key thing about today’s news is looking forward. Pokukrom East is just one of the targets that we’re drilling right now. We did some IP surveying late last year, and we’re seeing a host of new targets based on that—20 new targets. We’ve drilled, or are drilling, nine of them so far. And that’s what the goal is at Manfo: find as many of these near-surface, open-pittable deposits as possible.

“We’re looking towards the end of the year for a resource,” Cahill continues. “That’s aimed to be on Pokukrom East and West and Nfante West. So three of the five targets. But by the time we get to the resource we hope to have another three to five new zones to be drilled going into 2013.” He adds, “We’re working on the metallurgy right now, but [a PEA] isn’t scheduled yet. But, obviously, you go down the path, and that would be the next step.”

Regarding infrastructure at the property, Cahill reports, “There are great roads running to the property, no problem with access to water. The hydro line goes to Ahafo and runs through the northeast corner of our property. So it has everything you need. And it’s just a fantastic place to work. There’s an educated local population, and you’ve got the labourers, engineers and geologist you need. We’ve got a great geological team over there.

“We have enough cash to carry us through to the end of the year. We’re being careful with it, obviously, as everyone is in this market. So we’re going to keep an eye on the budget and see how the market turns.”

Does Cahill think Pelangio is fairly valued? “In this market I don’t know what fair value is. There are companies that are worth less than us—companies that have been hit worse than we have. We’ve held in there, but that’s because we’ve got a quality asset. When the market turns we expect our asset to be better valued than other ones.”

He concludes, “We’re in Ghana; there have been more 5-million-ounce discoveries made, permitted, developed and gone into production in the last 15 years there than probably anywhere else in the world. The government is very supportive. All the majors—except perhaps African Barrick—are there. They’re there because they know they can produce at good costs, and they’re not going to have problems politically or, for that matter, geologically. Manfo’s on the Sefwi Belt, one of the up-and-coming gold belts in the world, just down the road from Ahafo, and we have very similar geology. We’ve got the infrastructure; we’ve got discoveries and lots of exploration potential going forward. It’s a great place to be.”

View Company Profile

Contact:
Ingrid Hibbard
President/CEO
905.875.3828

or Warren Bates
Senior VP Exploration
905.875.3828

by Ted Niles

Rich And Stable

April 20th, 2012

Abzu Has Two Potentially Big Gold Properties in Ghana

By Ted Niles

Investor opinion is divided on West Africa. On the one hand, it is a place of extraordinary mineral potential; on the other, it is a region with a high level of geopolitical risk. The March 22 coup by Mali’s military is only the latest example. But Peter Klipfel, President of Abzu Gold Ltd TSXV:ABS, has reason to believe that Mali is the exception in the region and that neighbouring Ghana is both rich in minerals and politically secure.

“For the last 15 years now, Ghana has had a very stable government and parliamentary process,” Klipfel reports. “You have an emerging middle class that has expectations of its country and society. They are an entrepreneurial bunch. And for the most part, what you see is a legitimate and fair rule of law and order. If there ever was an issue, I take faith in the fact that it would go a lot better than it might if you were somewhere like Venezuela.”

Abzu Has Two Potentially Big Gold Properties in Ghana

Klipfel is not alone in this opinion, for Ghana, Africa’s second-largest gold producer, is not short of players. The country has seen a steady influx of juniors over the last decade, and majors active there include Gold Fields, AngloGold Ashanti, Kinross TSX:K and Newmont TSX:NMC. “If you look at Newmont,” Klipfel says, “they see the end coming someday for their Carlin Trend and some of their other deposits. For 10 years now, they’ve been pumping money into their Ahafo Project with the expectation that it is going to be their company maker in the future. That they’ll keep the company going strong from Ghana is, to me, a huge vote of confidence both in the country and its politics.”

Confidence that Abzu hopes to translate into success of its own. Abzu‘s properties in Ghana fall into two categories: concessions that it owns exclusively (six) and those that it holds in joint venture with Kinross Gold TSX:K (10). Of the 16, it has selected two for its flagship operations: Nangodi and Asafo, both highway-adjacent and with access to power and water.

The 142-square-kilometre Nangodi concession is located in the country’s north, on the Bole-Nangodi Belt—also host to Endeavour Mining’s TSX:EDV Youga Mine in Burkina Faso. An historical producer, Nangodi was acquired by Kinross when it bought out Red Back Mining in 2010. Abzu is currently earning a 51% interest in the property by spending $3 million over three years. “When we first picked up [Nangodi], it had the lowest hanging fruit available in terms of past work,” Klipfel says. “[It was] something we could sink our teeth into—get drill rigs going on and come up with what we thought would be good results.”

And that they’ve done. In 2011, the company undertook a 27-hole drill campaign, expanding on the 31 holes drilled in the 1990s by Australian miner Africwest Gold. Assays announced December 1, 2011, include

  • 1.91 grams per tonne gold over 44 metres (including 4.75 g/t over 15 metres)
  • 1.15 g/t over 73 metres (including 7.9 g/t over 4 metres)
  • 3.06 g/t over 10.7 metres
  • 1.99 g/t over 44.5 metres
  • 2.25 g/t over 24 metres
  • 1.61 g/t over 16 metres
  • 1.53 g/t over 66 metres (including 4.65 g/t over 15 metres)
  • 17.93 g/t over 3 metres
  • 41.6 g/t over 1 metre
  • 1 g/t over 12 metres

Klipfel comments, “We’ve expanded on the area that [Africwest] drilled and taken it from about a 600-metre zone to 1.2 kilometres—about 60-metres wide and drilled at a depth of 200 metres. Mineralization there is the sort that will go to great depths, like many of the other vein deposits in Ghana.”

The company believes that the deposit has “multimillion-ounce” potential. Klipfel explains, “You put a box around what we’ve defined so far—1,000 metres by 50 metres by 200 metres—at the grades we’re seeing, and that would give you two million ounces right there. That, of course, is our hope.” Ground geophysics and trenching work are ongoing at the site, and a minimum of 5,000 metres of drilling is planned to begin in June. An NI 43-101 resource estimate for Nangodi is expected to be released in 4Q.

Klipfel says that the company’s relationship with Kinross is good. “We’ve kept them apprised of things, and they’re happy with the work we’ve done. We’ve already exceeded the first-year expenditure [ie, $500,000], and we’re only eight months into the deal.”

Abzu‘s other flagship property—the 152-square-kilometre, 100%-owned Ahafo concession—is located in Ghana’s south on the eastern edge of the Kibi Belt. While not one of the company’s Kinross joint ventures, it too has a pedigree in that it was acquired and explored by Newmont in the early 2000s. On the basis of Newmont‘s work, plus their own geophysical work, Abzu determined three targets. A 13-hole drill program on the first of those targets returned October 20, 2011, assays including

We undertook 10,000-plus metres of drilling on four different campaigns in seven months last year. We went from blank pieces of paper to two flagship-level projects with multimillion-ounce potential —Peter Klipfel

  • 0.67 g/t over 20 metres
  • 4.08 g/t over 1 metre
  • 0.85 g/t over 12 metres
  • 0.6 g/t over 30 metres
  • 1.28 g/t over 3.5 metres
  • 4.72 g/t over 20 metres (including 62.2 g/t over 1.1 metres)

“We were jumping up and down for joy as far as a shotgun blast coming up with nine out of 13 holes with good intercepts,” Klipfel declares. “We’ve tagged on to something, and now we need to figure out what it is.” He believes that Ahafo, like Nangodi, has significant resource potential. However, before a resource estimate can be considered a trenching program and a further 4,000 metres of drilling in 2012 (planned for 2Q and 3Q respectively) are needed to better understand this project.

With about $1 million in the bank, Klipfel says that his company is due for a financing which will either be done publicly or by private placement “in the next month or so.” He continues, “We want to put about 50% of our effort and money into Nangodi, 35% into Asafo and 15% into the other [properties]. Hopefully, we can get another discovery going by the end of the year.”

Klipfel concludes, “I haven’t been able to be as aggressive about the exploration as I’d like early this year because we’re in budget-minded mode. We undertook 10,000-plus metres of drilling on four different campaigns in seven months last year. We went from blank pieces of paper to two flagship-level projects with multimillion-ounce potential. Including the joint venture with [Kinross], we’ve expanded our concessions from three to 16. I only hope our future allows us to grow like that and come up with goods like we have at Asafo and Nangodi.”

At press time, Abzu Gold had 59.2 million shares trading at $0.21 for a market cap of $12.4 million. Its other concessions in Ghana are located on the Sefwi, Asankrangwa and Ashanti Belts.

Disclaimer: Abzu Gold Ltd is a client of OnPage Media and the principals of OnPage Media may hold shares in Abzu Gold.

PMI reports Ghana Results as high as 4.25 g/t Gold over 72m

February 22nd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningPMI Gold Corp TSXV:PMV announced assays from its Obotan Gold Project in Ghana. Highlights include

4.25 g/t gold over 72 metres
(including 7.68 g/t over 6 metres)
3.47 g/t over 60 metres
(including 14 g/t over 6 metres)
3.09 g/t over 65 metres
(including 20.49 g/t over 1 metre)
4.21 g/t over 28 metres
(including 5.56 g/t over 15 metres)
1.22 g/t over 63 metres
(including 4.72 g/t over 5 metres)
1.36 g/t over 61 metres
(including 4.82 g/t over 7 metres)

Obotan has an October 2011 resource estimate update of 14.67 million tonnes grading 2.66 g/t for 1.22 million gold ounces measured, 27.5 million tonnes grading 2.32 g/t for 2 million gold ounces indicated and 17.54 million tonnes grading 2.35 g/t for 1.29 million gold ounces inferred. The estimate uses a 0.5 g/t cutoff.

View Company Profile

Contact:
Marion McGrath
Corporate Secretary
604.684.6264
888.682.8089

Collin Ellison
Managing Director/CEO
61.8.6188.7900

by Greg Klein