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| | October 14, 2008
East Asia Minerals Drills 56 Metres of 1.41 g/t Oxide Gold at Binebase, and Updates Indonesia Strategy
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| | For Immediate release, October 14, 2008 TSXV: EAS
VANCOUVER, B.C. -- Tuesday, October 14, 2008 -- East Asia Minerals Corporation (TSXV-EAS) reports that drilling is continuing to encounter strong near surface oxide gold mineralization at its Binebase Gold Project located on Sangihe Island, Sulawesi, Indonesia. Significant intersections of 56.15 metres of 1.41 g/t gold including 27.9 metres of 2.45 g/t gold in hole BID-48, 16.0 metres of 4.04 g/t gold in hole BID-51, and 29.0 metres of 1.24 g/t gold in BID-52 provide added confidence to the resource drilling of this leachable near-surface oxide deposit. The Binebase Gold Zone continues to grow, and remains open to the north, east and southeast.
Binebase Drilling Update
Recent diamond core drilling by EAS has returned thick mixed oxide/sulphide gold intersections along the northeast trending coastal zone, including 27.9 metres of 2.45 g/t gold and 41.92 g/t silver in hole BID-48, and 16.0 metres of 4.04 g/t gold and 18.18 g/t silver in hole BID-51. These drill intercepts are contained within a northwest trending elongated body of mostly near-surface oxide material at Binebase, thus far measuring 700 metres long by 300 metres wide (map at www.EAminerals.com). Holes BID-48 to BID-53 consistently encountered the near surface oxide blanket of limonite-silica-clay mineralization, with intercepts of up to 56.15 metres of 1.41 g/t gold and 32.82 g/t silver (see results below). The gold-bearing oxide zone remains open to the north, east and southeast.
Hole Number From (m) To (m) Interval (m) Gold (g/t) Silver (g/t) Mineralization Type
BID048 7.10 63.25 56.15 1.41 32.82 Oxide
Including 7.10 35.00 27.90 2.45 41.92 Oxide
BID049 0 19.80 19.80 0.68 15.90 Oxide
Including 10.30 15.80 5.50 1.33 19.56 Oxide
BID051 0 16.00 16.00 4.04 18.18 Sulphide
BID052 0 29.00 29.00 1.24 42.41 Oxide
Including 5.90 24.00 18.10 1.54 58.21 Oxide
BID053 10.20 31.80 21.60 0.34 16.36 Sulphide
Results of a recent ground magnetic survey at Binebase shows a close spatial association of gold-bearing mineralization with a northwest trending, fault bounded trough defined by a distinctive magnetic "low". This geophysical data, along with surface sampling and geological data, provides encouragement that the main Binebase Gold Zone extends to the north, east and southeast.
Bawone Update
Elsewhere in the Binebase-Bawone gold-bearing system, results of a recent ground magnetic survey at Bawone shows a close spatial association of gold-bearing sulphide mineralization with linear magnetic lows (view map at www.EAminerals.com). This geophysical data provides confidence that the strike of the main Bawone sulphide gold zone extends to the southeast of hole BOD-50 (1.97 g/t gold, 10.15 g/t silver over 30.80 metres, and ending in strong mineralization) in an area masked by shallow cover. A new hole is being drilled to complete the section where BOD-50 stopped in gold mineralization. Furthermore, the magnetic survey highlighted similar potential linear extensions to the northwest, southwest and further southeast of the main drill area, defining areas that will be targeted in the next phase of drilling. The largest of these is located further southeast of the main drill area, and is more or less on strike with the main Bawone sulphide gold zone. If this target is also gold mineralized it would extend the Bawone sulphide gold zone for a total potential strike length of about 900 metres or double the currently known extent of gold-mineralization.
Additionally, for the intervening kilometre between the Binebase and Bawone gold zones, testing for the continuity of the gold system beneath shallow tuff cover has yet to be undertaken. In this zone, the only window through shallow post mineral tuff indicates that the mineralized zone persists along strike, and that the Binebase-Bawone deposits may be contiguous.
Drilling at Sangihe is now testing high-potential geophysical targets at the Bawone sulphide gold zone. These targets have the potential to double the potential size of the Bawone epithermal gold system.
Indonesia Exploration Update and Response to Market Conditions
"The Sangihe and Abong drill programs are progressing extremely well, with nearly a 100% success rate for encountering significant gold mineralization at both the Sangihe (Binebase-Bawone) and the Abong projects where the Company has drilled 170 holes totalling approximately 13,250 metres during the past 12 months", stated Michael Hawkins, President and CEO of EAS. "Despite both systems continuing to grow and remaining open in several directions, the Company will soon complete the initial gold resource drilling stage, after which we anticipate that drill rigs will be stood down. To date, we have reduced the number of drills at Sangihe to one, and have replaced the core drill at Abong with a reverse circulation drill to cut drilling costs in half. Moving forward, East Asia Minerals anticipates using a single drill to scout test our potentially world class gold-copper porphyry systems. This will be followed in the New Year by similar confirmation drilling of the large Miwah gold system, where previous explorers, and EAS surface work, has indicated high potential for between 3-5 MOz of contained gold in a large, exposed, high sulphidation epithermal gold deposit."
After completion of the resource drilling for Sangihe and Abong, the Company will have a significant gold inventory in two projects that show excellent growth potential, and a strong cash position enabling it to conduct value-adding exploration of its potentially world class porphyry and epithermal projects in Aceh for the next several years.
The Company's current strategy is therefore to reduce the intensity of drilling and number of drills to decrease the cash burn rate during the current market conditions, whilst continuing to drill high probability targets with the objective of substantially increasing asset value. Based on very encouraging drilling at the Upper Tengkereng gold-copper porphyry project (September 22, 2008 news release), and the great results being generated from the Miwah deposit, the Company is optimistic that this strategy will continue to significantly build the fundamental value of the Company. The first drill hole at Upper Tengkereng is now in excess of 300 metres depth and is continuing in the altered and gold-copper mineralized porphyry that commenced from surface, with strong porphyry alteration, quartz veining and sulphide mineralization still being encountered at depth. Initial assays from upper portions of the hole are expected in the coming weeks.
Outside of drilling, the Company will continue with low-cost surface programs to maintain its tenements in good standing and to fine tune future drill targets within the prolific EAS Indonesia epithermal gold, gold-copper porphyry and copper oxide portfolio.
Samples reported were assayed at PT SGS Indoassay (SGS Group) in Balikpapan. David Royle, B.Sc. (Hons), FAusIMM, CP, the designated QP within the meaning of 43-101, has reviewed and approves the content of this release.
About East Asia Minerals Corporation
East Asia Minerals is an Asian-based, Canadian mineral exploration company with gold and 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. Two of these, the Sangihe (Binebase-Bawone) and Barisan 1 (Abong) gold projects are being drilled to define NI43-101 compliant resources. The Company owns ten uranium properties, including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, and a 75% interest in the Khok Adar copper oxide discovery in Mongolia. East Asia currently has 55,645,372 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]
or
Nick Kohlmann, Corporate Communications
Toronto
T: +1-416-792-8734
E: [email protected] |
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