PMI Gold Corporation is pleased to announce results from a first pass Reverse Circulation (RC) exploration drilling program at the newly discovered Dynamite Hill Prospect have intersected significant shallow gold mineralization, strategically located within the limits of the Company’s 100%-owned Obotan Gold Project in the southwest of Ghana.

The Dynamite Hill Prospect is located between the Nkran and Asuadai deposits, 7km northeast of the proposed processing facility at Nkran, within the Adubea Mining Lease. Together with the Adubiaso and Abore deposits, the four deposits which comprise the Obotan Gold Project have a NI43-101 and JORC compliant Mineral Resource estimate of: Measured Resources of 15.57M tonnes at a grade of 2.47g/t Au for 1.23Moz, Indicated Resources of 29.2M tonnes at a grade of 2.00g/t Au for 1.88Moz and Inferred Resources of 21.91M tonnes at a grade of 1.99g/t Au for 1.4Moz.

The Dynamite Hill Prospect was discovered through systematic testing of historical geochemical anomalies (>80ppb Au) and identifying favourable geological and structural settings through aeromagnetic interpretation. The soil geochemical anomaly at the Dynamite Hill Prospect was followed up with surface geological mapping and tested with a series of trenches and an Induced Polarisation (IP)/Resistivity ground geophysical survey completed earlier this year. This has enabled drilling to target the most prospective zones of the anomaly.

A total of 28 RC holes were drilled for 2,796m testing brittle greywacke and felsic units at the intersection of the Nkran Shear with an interpreted cross-cutting east-northeast striking structure. These cross-cutting structures are considered favourable hosts of gold mineralization in Ghana. Holes were drilled on a 50m to 100m traverse spacing, 25m to 50m apart (Figure 2), to an average depth of 80m (maximum depth of 217m). Samples were submitted to MinAnalytical Laboratory in Perth, Western Australia, and Performance Laboratory in Bibiani, Ghana, for 50g Fire Assay treatment with Atomic Absorption Spectrometry (AAS) finish. Assay results have been received for 26 of the 28 holes.

Drilling has identified a 5m to 20m wide mineralized gold system extending 400m along strike and to a depth of nearly 180m. Current interpretations indicate mineralization is still open along strike to the northeast and down dip. A second mineralization zone has also been intersected 300m to the east. The extents of this zone are unknown. Gold mineralization is hosted in a stockwork of quartz veining within an intercalated sequence of steeply dipping, strongly altered greywackes and phyllites, with minor felsic intrusions. The depth of weathering is between 20m in the south and deepens to 50m in the north.

Work planned for the Dynamite Hill Prospect includes extending the IP/Resistivity survey. Further RC drilling is also planned for the September 2013 quarter and will be designed to test the veracity of these results, along with testing the strike and down-dip extents of the known mineralization. Drilling will also be designed to test the second zone of mineralization 300m to the east of the main mineralized trend.

PMI holds the largest strategic ground package by a single company in the Asankrangwa Gold Belt, extending over an area of 511km2 and covering 65km of the 150km length of the belt. The PMI tenements encompass three known major structural trends (Abore, Nkran, and Fromenda Shears) enhancing the prospectivity of the tenements threefold. PMI Gold’s Managing Director and CEO, Mr Collin Ellison, said the discovery of the Dynamite Hill Prospect highlighted the prospectivity within the area of influence around the Obotan Gold Project for delineating further sources of oxide ore to supplement feed to the mill.

“We are genuinely excited with the results from the first phase of drilling at our newly discovered Dynamite Hill Prospect. Our systematic approach towards exploring PMI’s tenements within the richly endowed Asankrangwa Gold Belt continues to successfully identify new mineralised systems and is a testament to the success of the strategy being employed and the expertise of the PMI exploration teams.” “Dynamite Hill provides the potential for an oxide resource which is within PMI’s existing mining lease and within easy trucking distance of the future Obotan processing plant.  In addition, it offers the opportunity to provide an alternative ore feed to the Obotan Project, which may assist in deferring some or all of the capitalised pre-stripping required in the early stage of the Project’s development.”