First Phase of Drilling Completed at Fromenda Prospect Intersects Further High Grade Gold Values

    




 /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO  U.S. NEWS AGENCIES/ 

 VANCOUVER, Aug. 22, 2012 /CNW/ - 

 Key Points: 




        --  First phase of drilling has now been completed at the Fromenda
            Prospect, located 15km south-west of PMI Gold's Obotan Project,
            intersects further high grade gold mineralization of up to
            38.18g/t Au.
        --  A total of 68 RC drill holes have been drilled for 6,775m.
            Assay results from the remaining 55 holes have now been
            received.
        --  The Fromenda Prospect lies within the Asankrangwa Gold Belt and
            sits on the prospective regional, north-east trending Fromenda
            Shear, which is parallel to the regional Nkran Shear to the
            west, at the intersection with favourable east-northeast
            trending cross-cutting structures.
        --  Significant results received include (true width is 60-70% of
            the downhole intersection lengths):
      o 26m @ 1.74g/t Au from 82m
      o 40m @ 2.06g/t Au from 55m
      o 17m @ 4.28g/t Au from 4m (including 3m @ 15.58g/t Au from 12m)
        --  Results further confirm the occurrence of a gold system over a
            strike extent in excess of 500m, which remains open down-dip.




 PMI Gold Corporation   is pleased to announce the  further positive results for the first phase of RC drilling carried out  at the Fromenda Prospect.  The Prospect is located within the Obotan  Exploration Area of Influence defined by a 15km trucking radius of the  Nkran Deposit where a feasibility study is due for completion planned  within the September Quarter, to evaluate a proposed 200,000oz per  annum operation. 

 The prospect is situated on the north-east trending regional Fromenda  Shear, which is interpreted from geophysical data to occur towards the  eastern margin of a regional, north-east trending structural corridor  which extends over the 70km strike extent of PMI's Asankrangwa  tenements. The corridor comprises a parallel series of at least three  continuous, shear zones (Abore, Nkran and Fromenda) interpreted to  control the regional distribution of gold mineralization, particularly  at intersections with cross-cutting east-northeast structures as  characterizes PMI's Obotan deposits to the north (NI43-101 and JORC  Code compliant Mineral Resource estimate of Measured Resources of  15.57M tonnes at a grade of 2.47g/t for 1.23Moz, Indicated Resources of  29.21M tonnes at a grade of 2.00g/t for 1.88Moz and Inferred Resources  of 21.91M tonnes at a grade of 1.99g/t for 1.40Moz). 

 Drilling at the Fromenda Prospect commenced in February 2012, with 68 RC  holes drilled for a total of 6,775m. The drilling program was planned  to evaluate the broader extent of the mineralized system at shallow  depths, with some infilling of the historical drill pattern over a  previously delineated gold in soil anomaly. The results of 13 holes  were released in April (refer to ASX/TSX release dated April 30(th) 2012). All outstanding assays have now been received, with significant  gold intercepts (0.5g/t Au) listed in Table 1. 

 Highlights of the remaining results include: 




        --  NBRC12-021 5m @ 1.33g/t Au from 36m
        --  NBRC12-030 2m @ 3.94g/t Au from 21m
        --  NBRC12-035 36m @ 1.74g/t Au from 82m (including 1m @ 11.78g/t
            Au from 86m)
        --  NBRC12-036 3m @ 2.07g/t Au from 116m
        --  NBRC12-038 40m @ 2.06g/t Au from 55m
        --  NBRC12-054 8m @ 6.80g/t Au from 18m (including 1m @ 38.18g/t Au
            from 25m)
        --  NBRC12-055 17m @ 4.28g/t Au from 4m (including 3m @ 15.58g/t Au
            from 12m)




 Drilling has delineated a gold system over a strike extent in excess of  500m (Figure 2). Many of the largest gold deposits in Ghana have short  strike lengths with substantial steep plunging deep roots. Gold is  hosted in a steeply dipping stockwork of quartz veins hosted by a  sequence of metavolcanics and sedimentary rocks (Figure 3). The  drilling results have confirmed the internal continuity of known  mineralization and extended it to depths in excess of 100m. It has also  shown that the gold mineralization is open along strike to both the  north and south, and is open down-dip offering the potential to be a  more extensive system than presently drilled. 

 PMI Gold's Managing Director and CEO, Mr Collin Ellison, said the  results from drilling at Fromenda clearly indicate the broader  potential for the Fromenda Shear within the Belt to host significant  gold mineralization. 

 "Further high grade values and broad intercepts received from the  Fromenda Prospect confirm this area as a high priority target.  Geological interpretations and modelling are ongoing to gain a greater  understanding of the structural controls on mineralization and enable  optimal planning of further drilling planned for later in the year." 

 On behalf of the Board, 

 "Collin Ellison" Managing Director & CEO 

 Competent Person Statement 

 Exploration Results: 

 The information in this announcement that relates to Exploration Results  is based on information compiled by Thomas Amoah, who is employed by  Adansi Gold Company (Gh) Ltd, a wholly owned subsidiary of PMI Gold  Corporation. Mr Amoah, who is a Member of the Australian Institute of  Geoscientists (MAIG), has sufficient experience which is relevant to  the style of mineralization and type of deposit under consideration and  to the activity which he is undertaking to qualify as a Competent  Person as defined in the 2004 Edition of the 'Australasian Code for  Reporting Exploration Results, Mineral Resources and Ore Reserves'.  Mr  Amoah consents to the inclusion in this report of the matters based on  his information in the form and context in which it appears. 

 Scientific and technical information contained in this news release has  been reviewed and approved by Thomas Amoah-n, MAIG, MSEG. a "qualified  person" as defined under National Instrument 43-101.  Field work was  supervised by Mr Amoah (VP-Exploration). Drill cuttings were logged and  sampled on site, with 3kg samples sent to the MinAnalytical prep  laboratory on site, and analyzed for gold by fire assay-AA on a 50 gram  sample charge or by screened metallics AA finish in MinAnalytical  laboratory in Perth.  Internal QC consisted of inserting both blanks  and standards into the sample stream and multiple re-assays of selected  anomalous samples. Where multiple assays were received for an interval,  the final value reported was the screened metallic assay if available,  or in lieu of that the average of the other results for the interval.  Results from the QC program suggest that the reported results are  accurate. Intercepts were calculated with a minimum 0.5 g/t Au cut off  at the beginning and the end of the intercept and allowing for no more  than three consecutive metres of less than 0.5 g/t Au internal  dilution. True widths are estimated at from 60% to 70% of the stated  core length. 

 Obotan Resource Estimate 2012: 

 Information that relates to Mineral Resources at the Obotan Gold Project  is based on a resource estimate that has been completed by Mr Peter  Gleeson, who is a full time employee of SRK Consulting, Australia.  Mr Gleeson is a Member of the Australian Institute of Geoscientists  (MAIG) and has sufficient experience which is relevant to the style of  mineralisation and type of deposit under consideration and to the  activity which he is undertaking to qualify as a Competent Person as  defined in the 2004 Edition of the Australasian Code for Reporting of  Exploration Results, Mineral Resources and Ore Reserves' and as a  Qualified Person (by ROPO) as defined in terms of NI43-101 standards  for resource estimation of gold.  Mr Gleeson has more than 5 years'  experience in the field of Exploration Results and of resource  estimation in general. Mr Gleeson consents to the inclusion of matters  based on information in the form and context in which it appears. 

 Cautionary Note Regarding Forward-looking Statements  

 This news release includes certain forward-looking statements or  information.  All statements other than statements of historical fact  included in this release, including, without limitation, statements  relating to the potential mineralization and geological merits of the  Obotan, Kubi and Asanko Projects and the plans, objectives or  expectations of the Company with respect to the advancement of these  projects and completion of scoping and pre-feasibility studies, are  forward-looking statements that involve various risks and  uncertainties.  There can be no assurance that such statements will  prove to be accurate and actual results and future events could differ  materially from those anticipated in such statements.  Important  factors that could cause actual results to differ materially from the  Company's plans or expectations include risks relating to the actual  results of current exploration activities; fluctuating gold prices;  possibility of equipment breakdowns, delays and availability;  exploration cost overruns; availability of capital and financing;  general economic, market or business conditions; regulatory changes;  timeliness of government or regulatory approvals; and other risks  detailed herein and from time to time in the filings made by the  Company with securities regulators, including in the section entitled  "Risk Factors" in the Company's Annual Information Form dated September  20, 2011.  In particular, statements relating to the Company's plans to  complete a feasibility study on the Obotan Gold Project by the end of  June 2012 are subject to various factors, including positive results  from ongoing exploration; expansion and upgrading of existing mineral  resources; and completion of favourable geotechnical drilling programs,  metallurgical test work, mine plan engineering, environmental and  community relations assessments, and preliminary economic assessments.   Due to the uncertainty which may attach to inferred mineral resources,  it cannot be assumed that all or any part of the inferred mineral  resources will be upgraded to indicated or measured mineral resources  as a result of continued exploration. The Company expressly disclaims  any intention or obligation to update or revise any forward-looking  statements whether as a result of new information, future events or  otherwise except as otherwise required by applicable securities  legislation. 

 Neither the TSX Venture Exchange nor its Regulation Services Provider  (as that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

  

 Table 1: Significant Gold Intercepts (0.5 g/t Au) NOTE : True widths are approximately 60-70% of the length of the stated  intersection lengths 




     _____________________________________________________________________________
    |           |        |        |     |   |       |Depth|Depth|Interval|Weighted|
    |   Hole ID |Easting |Northing| RL  |Dip|Azimuth|From | To  |  (m)   |  Avg.  |
    |           | (UTM)  | (UTM)  |(UTM)|   |       | (m) | (m) |        | Grade  |
    |           |        |        |     |   |       |     |     |        | (g/t)  |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-013 |602431.8|684430.3|167.7|-50|   135 |   8 |   9 |     1  |   1.33 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-014 |602400.1|684467.1|170.8|-50|   135 |   4 |   6 |     2  |   0.55 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-016 |602213.4|684790.5|152.1|-50|   135 |   2 |   3 |     1  |   0.90 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |           |        |        |     |   |       |  47 |  48 |     1  |   0.98 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-017 |602251.6|684753.7|159.5|-50|   131 |  78 |  80 |     2  |   0.56 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-018 |602285.5|684723.0|164.3|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |           |        |        |     |   |       |   5 |   6 |     1  |   1.04 |
    |NBRC12-019 |602321.2|684681.9|172.0|-50|   135 |_____|_____|________|________|
    |           |        |        |     |   |       |  43 |  46 |     3  |   0.77 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-020 |602367.8|684642.9|192.3|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-021 |602394.7|684608.3|198.7|-50|   135 |  36 |  41 |     5  |   1.33 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |           |        |        |     |   |       |  23 |  24 |     1  |   3.68 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |           |        |        |     |   |       |  27 |  28 |     1  |   0.96 |
    |NBRC12-022 |602421.7|684572.8|192.6|-50|   135 |_____|_____|________|________|
    |           |        |        |     |   |       |  43 |  46 |     3  |   1.61 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |           |        |        |     |   |       |  72 |  74 |     2  |   1.14 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-023 |602458.3|684543.7|188.2|-50|   135 |  58 |  62 |     4  |   1.86 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-024 |602526.0|684473.1|171.6|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-025 |602493.9|684506.0|176.4|-50|   135 |  48 |  49 |     1  |   1.30 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-026 |602545.0|684619.7|206.7|-50|   136 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-027 |602578.8|684585.2|198.2|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-028 |602607.5|684553.0|191.1|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-029 |602476.2|684695.4|210.3|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |           |        |        |     |   |       |   0 |   2 |     2  |   0.87 |
    |NBRC12-030 |602799.3|684914.7|150.9|-50|   135 |_____|_____|________|________|
    |           |        |        |     |   |       |  21 |  23 |     2  |   3.94 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-031 |602830.4|684878.7|151.5|-50|   135 |  48 |  49 |     1  |   1.11 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-032 |602865.8|684845.1|155.2|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |           |        |        |     |   |       |  12 |  16 |     4  |   0.80 |
    |NBRC12-033 |602673.1|684851.9|190.5|-60|   135 |_____|_____|________|________|
    |           |        |        |     |   |       |  53 |  57 |     4  |   0.61 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |           |        |        |     |   |       |  16 |  17 |     1  |   1.75 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |           |        |        |     |   |       |  24 |  27 |     3  |   2.21 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |NBRC12-034 |602683.9|684891.4|194.7|-60|   135 |  58 |  59 |     1  |   1.18 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |           |        |        |     |   |       |  72 |  73 |     1  |   1.97 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |           |        |        |     |   |       | 117 | 118 |     1  |   1.52 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |           |        |        |     |   |       |  16 |  17 |     1  |   1.29 |
    |NBRC12-035 |602610.1|684882.8|206.0|-60|   135 |_____|_____|________|________|
    |           |        |        |     |   |       |  82 | 108 |    26  |   1.74 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |                            including          |  86 |  87 |     1  |  11.78 |
    |_______________________________________________|_____|_____|________|________|
    |NBRC12-036 |602640.1|684889.0|201.5|-60|   135 | 116 | 119 |     3  |   2.07 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |           |        |        |     |   |       |  57 |  61 |     4  |   0.61 |
    |NBRC12-037 |602630.0|684864.9|202.3|-60|   135 |_____|_____|________|________|
    |           |        |        |     |   |       |  73 |  75 |     2  |   3.19 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |           |        |        |     |   |       |  55 |  95 |    40  |   2.06 |
    |NBRC12-038 |602599.5|684852.7|207.6|-60|   135 |_____|_____|________|________|
    |           |        |        |     |   |       | 128 | 131 |     3  |   0.93 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |           |        |        |     |   |       |  30 |  31 |     1  |   2.02 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |NBRC12-039 |602569.9|684870.7|210.3|-60|   135 |  88 |  96 |     8  |   0.73 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |           |        |        |     |   |       | 133 | 134 |     1  |   1.02 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-040 |602367.6|684792.7|168.1|-50|   135 |  76 |  81 |     5  |   1.60 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-041 |602392.0|684763.3|174.3|-50|   135 |   9 |  11 |     2  |   0.95 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-042 |602424.0|684715.7|191.7|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-043 |602512.2|684886.4|197.3|-60|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |           |        |        |     |   |       |  35 |  36 |     1  |   1.8  |
    |NBRC12-044 |602690.9|684944.8|185.3|-60|   135 |_____|_____|________|________|
    |           |        |        |     |   |       |  69 |  72 |     3  |   1.86 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-045 |602533.3|684882.8|202.3|-60|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-046 |602143.3|684364.5|164.5|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-047 |602185.2|684347.5|175.7|-61|   139 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-048 |602247.8|684260.1|236.7|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-049 |602214.3|684297.4|180.8|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-050 |602309.2|684339.7|156.4|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-051 |602234.9|684406.6|163.0|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |           |        |        |     |   |       |  15 |  18 |     3  |   0.99 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |NBRC12-052 |602272.1|684369.7|227.3|-55|   135 |  61 |  62 |     1  |   1.29 |
    |           |        |        |     |   |       |_____|_____|________|________|
    |           |        |        |     |   |       |  84 |  88 |     4  |   0.57 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-053 |602207.1|684445.5|166.1|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |           |        |        |     |   |       |   8 |   9 |     1  |   3.57 |
    |NBRC12-054 |602640.5|684854.1|197.7|-60|   135 |_____|_____|________|________|
    |           |        |        |     |   |       |  18 |  26 |     8  |   6.8  |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |                            including          |  25 |  26 |     1  |  38.18 |
    |_______________________________________________|_____|_____|________|________|
    |           |        |        |     |   |       |  56 |  57 |     1  |   2.19 |
    |NBRC12-054 |602640.5|684854.1|197.7|-60|   135 |_____|_____|________|________|
    |           |        |        |     |   |       |  83 |  84 |     1  |   1.34 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-055 |602617.0|684821.3|198.2|-55|   135 |   4 |  21 |    17  |   4.28 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |                            including          |  12 |  15 |     3  |  15.58 |
    |_______________________________________________|_____|_____|________|________|
    |NBRC12-056 |602782.9|684949.0|152.0|-50|   135 |  49 |  50 |     1  |   2.98 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-057 |602747.6|684993.1|154.0|-55|   135 |  49 |  51 |     2  |   0.63 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-058 |602694.8|685020.9|151.8|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-059 |603006.8|684843.5|156.4|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-060 |602974.2|684877.6|154.7|-60|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-061 |602936.1|684916.6|152.5|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-062B|602907.1|684941.9|213.7|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-063 |602868.3|684995.5|149.9|-50|   135 |  27 |  28 |     1  |   3.02 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-064 |602841.8|685035.9|148.9|-50|   135 |  47 |  48 |     1  |   0.86 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-065 |602764.6|685095.2|148.6|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-066 |602803.1|685064.2|148.8|-50|   135 |      No Significant Result  |
    |___________|________|________|_____|___|_______|_____________________________|
    |NBRC12-067 |601937.4|683865.5|153.4|-60|   135 |   3 |   4 |     1  |   0.79 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|
    |NBRC12-068 |602639.8|684945.3|186.1|-60|   135 | 132 | 133 |     1  |   6.77 |
    |___________|________|________|_____|___|_______|_____|_____|________|________|






SOURCE  PMI Gold Corporation




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PDF available at:  http://stream1.newswire.ca/media/2012/08/22/20120822_C8844_DOC_EN_17150.pdf




PMI Gold Corporation


CONTACT:  Investor Relations Canada: Rebecca Greco, Fig House Communications P. [phone]  E. [e-mail] Investor Relations Australia:Nicholas Read/Paul Armstrong, Read CorporateP. [phone] M. [phone]PMI Contact Canada:Marion McGrath, Corporate SecretaryP. [phone] Toll-Free: 1 [phone]PMI Contact Australia:Collin Ellison, Managing Director & CEOP. [phone]  or visit the PMI Gold Corporation website at www.pmigoldcorp.com 


    

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