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| | June 19, 2009
East Asia Minerals Closes Private Placement of $4.641 Million
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| | For Immediate release, June 19, 2009 TSXV: EAS
VANCOUVER, B.C. -- Friday, June 19, 2009 -- East Asia Minerals Corporation (TSXV-EAS) reports that it has received TSX Venture Exchange approval for its non-brokered private placement announced June 2, 2009. The Company will receive $4.641 million through the issuing of 9.1 million units at $0.51 per unit. Each unit shall consist of one common share and one-half of one non-transferable common share purchase warrant. Each whole warrant shall entitle the holder to purchase one common share at a price of $0.75 at any time on or before December 19, 2011. The common shares comprising the units and the common shares issuable upon the exercise of the share purchase warrants shall be subject to a hold period expiring on October 19, 2009.
"East Asia Minerals is pleased to have this new investment, which will be used to continue the growth of our Company" stated Michael Hawkins, President and CEO of East Asia Minerals. "In addition to this validation of the exciting growth potential of the Company, we are happy that our existing and new shareholders will also be able to share in the successes of East Asia Minerals as Miwah and our other gold focused projects advance in 2009 and beyond".
East Asia Minerals will use the proceeds of the offering for further exploration of the Miwah Gold Project, advancement of its Indonesia gold and copper portfolio, and unallocated working capital. The Company will pay a cash finder's fee to Axemen Resource Capital Ltd. -- a Limited Market Dealer, on a portion of the transaction.
About East Asia Minerals Corporation
East Asia Minerals (EAS-TSXV) 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 advanced to define NI43-101 compliant resources. The Company owns twelve uranium properties, including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, four phosphate properties, 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".
Miwah Background
The Miwah Gold Prospect was partially defined by approximately 3,000 metres of drilling in eleven 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 properly oriented drill holes.
The Company has commenced diamond drilling on the Miwah Gold Project. This initial drill program will comprise 10 holes for a total of 2,000 metres to provide a 3D validation along the full 1,200 metre strike of the Miwah gold-bearing silica zone, exposed along the Miwah ridge.
Based on the Company's work Miwah is resolving into two components; a large 1200 metre long, 300 to 400 metre wide, approximately 200 metre thick tabular zone, and vertical feeder zones that are beneath and cut through this. Within the tabular zone East Asia has over 2000 metres of rock sawn channel samples which average 1.2 g/t gold. However, ongoing sampling further verifies the Company's confidence that higher overall gold grades can be achieved due to the presence of multiple high grade rock sawn channel samples including 4.11 g/t gold over 200 metres at the eastern part of the gold zone, and 4.35 g/t gold over 27 metres at the western part. In addition to the tabular zone the Company has recently begun to characterize some of the feeder zones, with channel samples including 125.9 g/t gold over 23 metres and 19.15 g/t gold over 8 metres. These feeder zones have great potential to develop into substantial tonnages of higher grade gold mineralization.
Miwah demonstrates many features of the shallow part of a high-level high sulphidation epithermal gold system, including intense acid leaching, structural and lithological permeability controls to fracture fed mineralizing fluids, presence of structurally-controlled hydrothermal and phreatic breccias, disseminated mineralization of gold-silver greater than copper, and the elemental association of As, Sb, Bi, Ba, S and Te.
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).
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.
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.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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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| | You can view the Next News Releases item: Tue Jul 7, 2009, East Asia Minerals Updates High-Grade South Miwah Bluff Gold Discovery; 83.59 g/t Gold Over 24 Metres in Rock Sawn Channel Sampling
You can view the Previous News Releases item: Wed Jun 3, 2009, East Asia Discovers New Extension to Miwah Gold Zone, Grading Up to 125.9 g/t Gold Over 23 Metres
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