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-- Posted Friday, 24 October 2003 | Digg This Article
PMI VENTURES LTD: RETURN ON CAD 10,000 INVESTMENT | | | Purchase Date | No. of Shares | Purchase Price | Cost (CAD) | Price Today | Value Today | January 17, 2003 | 14'000 | 0.75 | 10'500.00 | | | Total | 14'000 | 0.75 | 10'500.00 | 0.80 | 11'200.00 | Profit | | | | | 700.00 | Profit (in %) | | | | | 7% |
GOLD MINING IN GHANA WHERE PAST PRODUCTION IS IN EXCESS OF 40 MILLION OUNCES Business Summary PMI Ventures Ltd. has entered into an agreement to acquire an 85% interest in an extensive portfolio of Ghanaian properties. To date, prospecting, trenching, and limited shallow drilling have indicated that these properties contain numerous historical gold showings and anomalies. PMI Ventures Ltd. selected targets to be drilled in the first quarter of 2003. West Africa: the Properties PMI Ventures Ltd. has entered into a letter of agreement with Goknet Mining Company Limited, a privately-held Ghanaian corporation, to acquire up to 85% of Goknet’s interest in exploration concessions/applications, covering a length of approximately 50 kilometers, and an area of some 486 square kilometers, along the axis of the Asankrangwa Gold Belt of south-western Ghana. The Asankrangwa Gold Belt extends beyond 150 kilometers in length, and lies along the central axis of the Kumasi Basin, approximately, 250 kilometers northwest of Accra, and about midway between the Ashanti and Sefwi Gold Belts. The Asankrangwa Gold Belt already hosts the Obotan operation of Resolute Amansie, Ltd. of Australia that has to date produced over 1 million ounces of gold from shallow open-pit operations. Past production of the Ashanti Belt lying 40 kilometers to the east of Goknet’s project area is in excess of 40 million ounces of gold, principally from the Ashanti and Tarkwa gold mines, while present resources are estimated at an additional 40-50 million ounces of gold. The Sefwi Gold Belt, lying 30 kilometers to the west, hosts three producing gold mines with historic production of about 5 million ounces of gold, and current reported gold resources on the order of 12 million ounces. 
The Republic of Ghana GHANA is a country situated in West Africa near the equator and on the Greenwich meridian, bounded on the north and north-west by Burkina Faso (Upper Volta), on the east by Togo, on the south by the Atlantic Ocean, and on the west by the Ivory Coast. Ghana is well known for its friendly people and its aclaimed hospitality. Formerly a British colony known as the Gold Coast, Ghana was the first black nation in sub-Saharan Africa to achieve independence, led by Osagyefo Dr. Kwame Nkrumah in 1957. Government Ghana has had four republics with intermittent military rules. The first ran from March, 1957 to Feburary, 1966, President Dr Kwame Nkrumah; the second was from October, 1969 to January, 1972, Prime Minister Dr. Busia; the third was from June, 1979 to September, 1981, President Dr. Hilla Limann.The fourth has seen two presidents, former President, Flt Lt Jerry John Rawlings (Rtd), from June 1993 to January 7, 2001 and Mr. John Agyekum Kufuor January 7, 2001 to present. Ghana’s Economy is one of the most developed countries in tropical Africa. The GNP per capita is above average for western Africa. Ghana's economy is based mainly on agriculture and mining. Agriculture accounts for nearly half of the GDP and employs over 50% of the work force. The main export crop is cacao. Coffee, palm products, and tropical fruits are exported in small quantities. Agricultural products include cassava, yams, corn, sorghum, and rice. Goats and sheep are the principal livestock reared. Timber is an important export. Fishing is significant to the domestic market. Mineral exports, chiefly gold, manganese, diamonds, and bauxite, account for a large part of the country's earnings. Petroleum is extracted in small quantities offshore between Saltpond and Cape Coast, and exploration in other areas is under way. Industry, mining, and construction, account for about one-seventh of the GDP and employ about one-eighth of the work force. 
Recent News: PMI VENTURES LTD. ANNOUNCES FURTHER DRILL RESULTS OF ITS SECOND DRILL PROGRAM
PMI Ventures Ltd. has announced continued encouraging results from its second drill program on the package of exploration concessions and applications which comprise its Ashanti II Gold Project located along a 50-km length of the axis of the Asankrangwa Gold Belt in southwestern Ghana. Altogether, nine drill holes totaling 931 meters have been completed in the program. All nine drill holes are located in the Fromenda Grid 'B’area in the northeastern part of the exploration area, where four holes were previously completed in the initial drill program conducted during May 2003. Drill holes 03FBDDH 5 and 6 were drilled on section 21+00N; hole 7 on section 21+25N; and holes 8 and 9 on section 21+50N. Drill hole 10 was drilled 300m to the south-west on section 18+00N, and drill holes 03FBDDH11, 12 and 13 were drilled 25 meters under, 25 meters north east, and 25 meters south-west, respectively, of an earlier drill hole completed in 1997 that returned 17 g/t gold over a 2-meter intercept on section 17+00N. The company is most encouraged by these results from the second drill program in the Fromenda Grid 'B'area, since they continue to demonstrate that the shear structure that hosts the gold mineralization is laterally continuous and contains near surface mineralized sections with gold grades of between 1.13 g/t gold and 4.97 g/t gold over widths ranging from 6.50 meters (21.32 feet) to 41.00 meters (134.50 feet), and in the drill holes completed to date the average mineralized intersection is 1.70 g/t gold over 17.9 m (57.74 feet) . The deepest hole completed to date has tested the mineralized zone to a true depth of 72 meters (236 feet). Hence, to date 475 meters of strike length of the gold mineralized zone have now been partially tested by the limited drilling reported to date in the 2003 program. Gold mineralization in the Fromenda Grid 'B'area has been shown by earlier soil sampling, geophysical surveys and reconnaissance drill programs to have a potential strike length of over 1.5 kilometers. Two target types have been outlined - steeply dipping shear hosted auriferous quartz reefs of the Ashanti Obuasi type; and gently dipping replacement/stockwork type gold mineralization in favorable sediments adjacent to or overlying the quartz reefs. This mineralized zone will be explored by a much larger drill program comprising approximately 80 reverse circulation (RC) drill holes totaling 6,000 meters. This drill program is expected to commence in mid October 2003. An additional 2000 meters of RC drilling will also be completed during that program to test four other high potential targets outlined in the Fromenda Grid 'A'and Fromenda School Zones located 4 kilometers north and 3 kilometers north-east respectively from the Grid 'B'area; in the L34N IP anomaly located 8 kilometers to the west- south- west; and in the Nugget zone 8 kilometers to the west of Fromenda Grid 'B'. Each of these targets is situated on, or proximal to, major gold mineralized structures and have not been previously drill- tested. Initial work programs have also commenced on the Goknet #1 concession - which has just been granted to the Goknet Mining Company Limited by the Government of Ghana and is included in the option agreement with PMI. Areas with active Galamsey (native mining) activities covering an area of 2 by 3 kilometers will be covered with a detailed IP survey and anomalous zones tested with a subsequent drill program. Douglas R. MacQuarrie, P.Geo. (B.C.), the VP of Exploration for the company and Goknet Mining Company Limited, supervised and directed all work associated with the drilling program. Sample analyses, including repeats, randomly placed blanks and standards were completed at SGS Analabs Pty. Limited at Bibiani, utilizing industry standard 50g fire assay and screened metallics fire assay techniques, with atomic absorption finish. ICP analyses are being conducted at Acme Analytical in Vancouver. In addition, random duplicate samples were submitted to a referee laboratory for overall QA purposes. The company has an option to earn up to 85% of the interest that Goknet Mining Company Limited, a privately held Ghanaian mineral exploration company, holds in nine exploration concessions and applications, covering an area of approximately 380 sq. km. Goknets'contractual interests in the concessions vary from 85% to 100%, and are subject to a 10% non-participating interest in favor of the Government of Ghana. PMI has an option to earn up to 85% of the interest that Goknet Mining Company Limited, a privately held Ghanaian mineral exploration company, holds in nine exploration concessions and applications, covering an area of 380 sq. km. Goknets' interests vary from 85% to 100%, and are subject to a 10% non-participating interest in favor of the Government of Ghana. Fundamental Considerations: Company Highlights The Goknet land holdings that are the subject of the letter of agreement contain numerous historical gold showings and gold anomalies that have been identified by prospecting, trenching and limited shallow drilling by earlier exploration programs. Structural interpretation by Goknet has outlined a series of north-east trending, deep-seated thrust faults that are intimately associated with known gold mineralization and will be the focus of the ongoing exploration. The drill program continues to deliver encouraging results and management is confident that it is only a matter of time until substantial reserves and resources can be proven up. Investments in exploration companies at an early stage, however, must be considered risky, and only investors who can afford to take such risks should consider investing.
Technical Considerations 
The gold price remains in a solid up-trend, which started in March 2001, aiming towards the price target of USD 450 sometime next year. 
After last year’s price surge which lifted the price from 10 cents to 80 cents, the share price went into a consolidation. On October 17, the share price jumped to a new high of 90 cents, based on good drilling results. Further good drilling results will propel the share price even higher. Our recommendation: Speculative Buy!
Peter Zihlmann www.pzim.com investment@pzim.com October 24, 2003 ********************************************************************************************************** Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company’s share price. GoldSeek.com did not receive any compensation for this report and does not hold a position in PMI at the time of this publication. Disclaimer: The author’s objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information, nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock. **********************************************************************************************************
-- Posted Friday, 24 October 2003 | Digg This Article
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