In light of the termination of its merger with Keegan Resources, PMI Gold has announced an update on its Obotan project development in Ghana, noting that substantial progress had been made over the past months.“PMI has continued its focus on the development of the Obotan project, with a clear objective of progressing the project design, major contracts and financing towards a production decision. We are committed to achieving our goal of first production by the second half of 2014, said PMI Gold‘s MD and CEO,” Collin Ellison. As a result, the company says it has commenced with an early works programme that includes the approval of the Obotan mining leases by Ghana‘s minister of Lands and Natural Resources and an environmental permit application process that has progressed well with discussions regarding permit conditions currently at an advanced stage. Further, a permit approval has been received for the dewatering of the Obotan open pits, while a detail design and quotation for the pit dewatering system was underway to ensure the mining pre-strip operations proceed unhindered.
The company also revealed its purchase of the SAG and ball mills, which were the most significant long-lead items with a minimum of 12 months delivery time, while completion of a further geotechnical programme that confirmed the suitability of the plant and tailings dam sites was also achieved.PMI says it has finalised rounds of negotiations with shortlisted project construction engineering contractors prior to the awarding of Obotan construction contracts and it has also finalised negotiations with shortlisted mining contractors prior to the awarding of Obotan mining contracts. Meanwhile, PMI said that it continues to explore its highly prospective licences in the Asankrangwa and Ashanti gold belts in Ghana and that exploration had continued its focus on the development of mineralised targets within the Asankrangwa and Kubi licences.