PMI Gold grabs three Ghanaian mines

Vancouver – PMI Gold (PMV-V, PMVGF-O) is expanding its presence in Ghana, by acquiring three past producing gold mines in the West African country.

The Vancouver junior said it has snapped up the former Obotan, Abore and Adubiaso mines, which were previously operated by Resolute Amansie, a subsidiary of Aussie-company Resolute Mining (RSG-A, RMGGF-O), from 1997 until 2002 when it shut down due to a weak gold price. Cumulatively, the mines produced 880,000 ozs. of gold at an average grade of about 2.2 grams gold per tonne.

“With this acquisition, PMI now holds 470 sq. km, in 11 concessions over a 70-km length of the Asankrangwa gold belt,” states the company. It believes there is an exploration target of one to two million ozs. of gold, grading from three to six grams below Obotan’s 140-metre deep Nkran pit.

Company officials could not be reached for comment. But PMI said in a statement it is taking that view based on deep drilling results and projections to 400 metres below the deepest intersection. It said its assumptions are also based on internal studies by Resolute regarding underground mining scenarios to co-exist with its surface mining operations. However, given the then very low gold prices, the underground option was not pursued.

The initial 1997 bankable feasibility study on the Obotan deposits reviewed 38 million tonnes of material grading 1.96 grams gold, about 2.8 million contained ozs.

PMI plans a full technical review and scoping study.