26 August 2008
PMI Gold Corporation Chairman David Buckle, has announced that the Company's subsidiary Adansi Gold Company (Gh) Limited has acquired the Kaniago (Adansi) License by direct application to the Minerals Commission of Ghana.
Kaniago, which is 23 kilometres long and from 1.3 to 3.5 kilometres wide centered on the Ofin River, joins together Abore Abirem (Obotan), Switchback, Fromenda, and Diaso Afiefiso concessions, now giving PMI Gold a continuous 70 kilometres of the central Asankrangwa gold belt. This completes the aggressive land acquisition programme commenced by PMI Gold in 2003.
The concession covers a 54 square kilometre part of the former 390 square kilometre Dunkwa Continental Mining Lease where dredging activities were active from 1930 for nearly 70 years on the Ofin, and Ankobra Rivers (Asankrangwa gold belt) and the Oda and Jeni Rivers (Ashanti gold belt, southwest of Kubi gold project). During this period some 1.45 million ounces of gold were recovered, with dredge production peaking in the early 1960's at 69,000 ounces per year (Minerals Commission, 2002).
Of prime interest to PMI Gold, the concession covers five northeast trending and deep seated gold mineralized trends, including the Juabo - Nkran (Obotan) - Edubia trend; the Switchback - Abore Mine - Keegan trend; and the MEM - Fromenda - Miradani Mine trend.
Historical reports from the dredging indicated increased gold grades in the Ofin River near the Miradani Mine (Ghana Geological Survey Annual Report 1964-1965 ) suggesting a local source for the gold. The intersection of the strong northeast gold trends with the north trending Ofin River linear is considered to be a prime exploration target for deep seated gold mineralization.
PMI Gold is continuing to advance its Kubi Gold Project in Ghana towards production, and controls four previous operating gold mines on 712 square kilometres of leases and concessions located along the prolific Ashanti and Asankrangwa gold belts.
Ghana is Africa's second largest gold producer and has attracted over $7 billion in foreign direct investment into the minerals and mining sector over the last decade. Ghana is a destination of choice because of its long gold mining history, prospective resource base, reasonable taxation and stable government.
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