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 Edubia Mining Lease In August 2007, PMI Gold acquired the 13 square km Edubia Mining Lease which Adansi Gold Company (100% owned subsidiary) has the right to acquire for 100% interest subject to a 0.5% NSR royalty to the vendor. The Edubia Lease was originally issued in 1931 for a term of 99 years to one of the original indigenous owners of the concession that now hosts the world-famous AngloGold Ashanti Obuasi mine. Upon his death, the estate and title was formally acknowledged by the Government of Ghana and formal registration pursuant to the newer mining legislation commenced. In the mid-1990's a license was granted over a much larger area, and work programs consisting of sampling of old adits, extensive trenching and soil sampling was completed. Adit samples to 2.8 g/t Au over 36 metres were reported in quartz stockwork systems hosted by Birimian metasediments and granitic intrusives (Griffis et al, 2002, in Gold Deposits of Ghana, pg 292). Some 213 short drill holes were completed, averaging 40 metres and with a maximum length of 126 metres. Gold mineralization was outlined in a zone from 20 to 60 metres wide and elongated northeasterly over a 700 metre length. Localized drilling results indicated 1 to 5 metre true widths with grades from 3.0 to 12.0 g/t Au. Adansi can earn a 100% interest in the lease by making cash payments of US$100,000 (paid); by paying a further US$100,000 upon the receipt of a positive pre-feasibility study recommending production; and by reserving for the vendor a 0.5% net smelter returns royalty. In addition, Adansi retains the first right of refusal on any other Biney leases that form a part of the estate. Douglas R. MacQuarrie, President and CEO comments: "The acquisition of the Edubia lease joins our Abirem and Abore concessions together and gives PMI Gold an additional 4,500 metre long and highly prospective gold in soil anomaly which is on strike with and part of a continuous 13,000 metre long trend on our concessions which host the former Nkran mine and the African Star deposit. Gold mineralization at Edubia may fit in with our model to develop deep, underground resources, and its location just 8 kilometres from our Nkran deposit is particularly attractive. We look forward to exploring the balance of the lease with our in-house geophysical crews and further drilling. "  Click to enlarge Drill Plan |
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