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| | May 05, 2010
East Asia Minerals Updates Progress and Plans for Indonesia
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| | For Immediate Release, May 5, 2010 TSXV: EAS
VANCOUVER, B.C. -- Wednesday, May 5, 2010 -- East Asia Minerals Corporation (TSXV-EAS) reports that drilling is progressing well at the Miwah Main Zone in Aceh Province, Indonesia, as is planning towards drilling of the Bahu and Lower Tengkereng gold-copper porphyry systems. With the May 5, 2010 closing of a $18.85 million non-brokered private placement, and with strong drill results continuing to define gold over a large area at Miwah, the company shall accelerate the arrival of a third drill rig to site. The private placement will also facilitate accelerating activities defining drill targets at its porphyry projects. The entirety of this important private placement went to two well-known and respected gold funds, both of whom are significant long term shareholders of East Asia Minerals. The Company is pleased to state that it appreciates their continued support as it moves forward.
At the Miwah Gold Project, the most recently reported assays from EMD024 yielded 3.96 g/t gold over 111 metres, including 15.74 g/t gold over 22 metres, and indicated increasing grade and thickness to the north. At this time samples from EMD025 to EMD027 are being analyzed. In addition drill hole EMD028 has been recently completed, and EMD029 and EMD030 are in progress. EMD029 is being drilled with a due south azimuth and 60 degree dip to test for the extension of alteration and mineralization from high-grade hole EMD024. It is a 200 metres north step-out from EMD024 and is progressing well, having encountered visually altered and mineralized rock from 60.9 to 69.7 metres, and from 108 metres to the current depth of 139 metres downhole depth. EMD030 is just commencing and is being drilled with a 45 degree azimuth and 47 degree dip from the EMD028 location to test for the extension of silicification and mineralization to the north of EMD021 (Refer to drill location map at www.EAminerals.com).
Elsewhere at the Miwah Gold Project, drill target generation adjacently south of the Miwah Main Zone to include the South Miwah Bluff Area is near completion. This work is being undertaken by the same reconnaissance team conducting follow-up of the new Signal area to the west of the Miwah Main Zone. A separate team is also progressing well with drill target definition in the Moon River and Sipopok areas. With the recent injection of significant funds into the company's treasury, planning to bring in a third machine has been accelerated to test these targets.
East Asia has drill validated the 1.2 kilometre east-west outcrop width of the shallow, laterally extensive Miwah Main Zone, and has encountered gold mineralization in all of its holes. The Miwah Main Zone remains open in all directions with the Moon River area expanding the north-south potential to more than 600 metres, whilst remaining open further to the north towards Sipopok. Drilling has extended the Miwah Main Zone towards a similar northing as Moon River. Sampling west of the Miwah Main Zone in the Signal area has potentially expanded the east-west width another 600 metres and remains open.
At the Company's other advanced Indonesian gold projects, detailed work is nearing finalization for drilling at the Lower Tengkereng and Bahu porphyry gold-copper projects. East Asia plans to drill one to two holes in each of these projects to demonstrate the potential of these large porphyry gold systems.
Work at the Lower Tengkereng project has provided confidence to improve on grades from the limited historic drilling. Surface channel sampling by East Asia at Lower Tengkereng, including 31 metres of 0.77 g/t gold plus 0.03% copper and 116 metres of 0.33 g/t gold plus 0.04% copper, confirms the presence of gold-rich porphyry mineralization. These results are significantly better than the historical drill intercepts from the upper 90 metres of the Lower Tengkereng porphyry system, beneath which 339 metres of 0.5 g/t gold plus 0.2% copper were encountered. Historic drill and current surface results at Lower Tengkereng are also better than results from Upper Tengkereng located 1.5 kilometres northeast. At Upper Tengkereng East Asia drilled a 646.25 metre hole averaging 0.39 g/t gold plus 0.21% copper (0.68 g/t gold equivalent*), including 268 metres of 0.57 g/t gold plus 0.26% copper (0.92 g/t gold equivalent*) from 318 to 586 metres. Significant near surface gold mineralization was also intercepted, including 14 to 82 metres (68 metres) of 0.51 g/t gold plus 0.21% copper (0.80 g/t gold equivalent*).
Work at the Bahu project is near completion to provide drill targets in an area where porphyry gold mineralization and alteration have been defined over a 1.6 by 0.9 kilometres area. This project has not been previously drilled. Channel sampling of intense quartz vein stockwork (in excess of 20% quartz vein density) has encountered 30 metres at 0.71 g/t gold with 0.034% copper, 36 metres at 0.65 g/t gold with 0.031% copper, 40 metres at 0.59 g/t gold, and 46 metres at 0.75 g/t gold with 0.027% copper.
*The Upper Tengkereng gold equivalent used a copper to gold ratio of 1:1.36 (1% copper = 1.36 gm gold); based on then current metal market prices, and assuming total recoveries of both metals.
Miwah Background
The Miwah Gold Prospect was partially defined by approximately 3,100 metres of drilling in twelve holes by a previous explorer in 1997. All holes drilled during this program intersected significant alteration and mineralization with intercepts including 71 metres of 1.4 g/t gold and 58 metres of 1.1 g/t gold. The previous explorer suggested potential for 100 Mt at 1.1 to 1.2 g/t gold, however a review of the historical data indicates that early drilling was parallel to higher grade (greater than 5 g/t gold) structures at surface. Hence, in addition to greater mineralized tonnage, significantly higher overall grades are anticipated from better geological understanding, results of the Company's detailed sampling, and from the ongoing drill program which is based on increased geological understanding. An example is the intersection of 3.96 g/t gold over 111 metres, including 15.74 g/t gold over 22 metres from East Asia's diamond drill hole EMD024.
Based on the Company's work Miwah is resolving into two components; a large 1,200 metre long, at least 450 metre wide, approximately 200 metre thick tabular zone; and vertical diatreme breccia feeder zones that are beneath and cut through this. At Miwah Gold Zones, East Asia has almost 2,500 metres of rock sawn channel samples which average 2.35 g/t gold. Grade expectations in Main Miwah Gold Zone exceed 1.5 g/t gold. Ongoing sampling verified the Company's confidence that higher overall gold grades can be achieved due to the presence of multiple high grade rock sawn channel samples throughout the strike, including 4.11 g/t gold over 200 metres at the eastern part of the Main Miwah Gold Zone, and 4.35 g/t gold over 27 metres at the western part. Recent drilling has supported this.
In addition to the tabular zone the Company has begun to characterize some of the diatreme breccia feeder zones, with rock sawn channel samples including 83.59 g/t gold over 24 metres and 20.14 g/t gold over 12 metres. Recent drilling has supported this. These feeder zones have great potential to develop into substantial tonnages of higher grade gold mineralization in an area adjacent to the Main Miwah Gold Zone.
The Miwah Property is in a very similar volcanic setting to the Martabe gold-silver deposit, also located in North Sumatra (Purnama and Baskara resources: 127.8 million tonnes at 1.4 g/t gold (5.5 million ounces gold) and 15 g/t silver (60 million ounces silver), and the alteration system is of a comparable size. Miwah also exhibits a likeness to the size, style and geometry of the alteration system developed at the Pierina gold deposit in Peru (67.7 Mt grading 2.98 g/t gold and 22 g/t silver, giving a total 6.49 million ounces gold and 47.9 million ounces silver).
Samples reported were assayed at Intertek assay laboratories in Jakarta. Lionel Martin, P.Geo., the designated QP within the meaning of NI 43-101, has reviewed and approves the content of this release. East Asia has not verified the classification of the resource references and is not treating them as NI 43-101 defined resources verified by a QP. Although the references of resources are relevant to recognizing the potential of the Miwah project, they should not be relied upon.
About East Asia Minerals Corporation
East Asia Minerals (EAS-TSXV) is an Asian-based, Canadian mineral exploration company with gold and gold-copper exploration properties in Indonesia, and uranium exploration properties in Mongolia. In Indonesia the Company has a 70 to 85% interest in six advanced gold and gold-copper properties located in Aceh Province, Sumatra, and Sangihe Island, North Sulawesi. The Company owns eight uranium properties, including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, and two phosphate properties in Mongolia. East Asia currently has 71,455,372 shares outstanding. Its shares are listed for trading on the TSX Venture Exchange under the symbol "EAS".
Forward Looking Statements - This News Release contains forward looking information within the meaning of the British Columbia Securities Act, the Ontario Securities Act and the Alberta Securities Act, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with our expectations, metal recoveries, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration or development activities or the completion of new or updated feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations (including uranium, fuel, steel and construction items), currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The words anticipate, believe, estimate and expect and similar expressions, as they relate to us or our management, are intended to identify forward looking statements relating to the business and affairs of the Company. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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FOR FURTHER INFORMATION, visit the Company's website at www.EAminerals.com, or contact:
Michael Hawkins, President and CEO Vancouver T: +1-604-684-2183 E: [email protected]
Nick Kohlmann, Corporate Communications Toronto T: +1-416-792-8734 E: [email protected] |
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