PMI to look at Obotan development

PMI Gold Corporation has appointed several engineering and consultancy firms to undertake a pre-feasibility study for its Obotan gold project in Ghana.

PMI appointed GR Engineering Services, SRK Consulting, Knight Piesold Consulting and CSA Global as key advisers for the study.

In a statement to the Australian Securities Exchange, PMI said the appointment of the pre-feasibility team was a significant step towards its objective of becoming a significant West African gold producer.

"The appointment ensures that PMI Gold remains on track for a resource upgrade at its Obotan gold project in September 2011," PMI's statement said.

The company said exploratory drilling was ongoing at Obotan, with three rigs mobilised on site.

At 1:54PM (WST) PMI's stock had dropped 1.2 per cent, to trade at 42.5 cents.