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| | December, 2008
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| | Dear Shareholders
On behalf of the Board of Directors and your dedicated management team, I present East Asia Minerals Corporation's 2008 Annual Report.
In addition to detailing the exceptional progress that the Company has made on the delineation of its outstanding mineral assets, in response to the economic downturn which is being felt by the mining industry, in particular the exploration sector, I feel it is important to inform our shareholders of the pro-active steps we have taken to assure the Company's future, and our continued growth.
Whilst we have taken immediate and significant action to reduce our spending in these difficult times, we also understand the importance of continuing to grow the Company and its asset base. Hence we plan in 2009 to continue to conduct efficient and focused exploration of our exceptional portfolio. We believe that ultimately the strength of our portfolio, which includes projects with obvious world-class potential, and the proven ability of our exploration and management teams, will differentiate us from other companies in the sector. We are confident of being able to recover from the share price pressure that the market has applied to all companies in our sector, regardless of their relative merits, and are positioning ourselves for future rapid and substantial growth.
The Company has a strong treasury. We will complete value adding exploration with optimal use of our funds being a priority. We have also taken action to reduce our corporate costs. With these measures in place I trust that our Shareholders will stay with us during these difficult times, so that they may share in our future successes.
During 2008 our technical team was exceptionally successful in quantifying the potential of our initial drilling projects. At the Sangihe Island (Binebase-Bawone) project where we drilled 79 holes, and at the Abong project in Sumatra where we completed 130 drill holes, we have successfully delineated large near-surface gold deposits that remain open in several directions. Whilst it is not currently recognized by the market, we believe our drilling has demonstrated that these projects have very substantial real asset value, and we intend to further quantify that value by delivery, sometime during the first half of 2009, of the initial NI43-101 compliant resources for these projects. Whilst additional drilling will no doubt substantially increase the resources for these projects, we intend to await improved market conditions before resumption of drilling.
Elsewhere, toward the end of the year we were very pleased to deliver results of our first porphyry drill hole from the Upper Tengkereng porphyry project. This hole returned a 646 metre intercept of gold-rich porphyry mineralization. Our results represented a significant increase in grade over the historical drilling results. This is particularly significant as Upper Tengkereng was drilled first in our porphyry program because of logistical considerations and each of the five other known porphyry centres in our portfolio have even better historical results and surface indications than Upper Tengkereng. We are therefore very confident of being able to demonstrate that our porphyry portfolio has great potential to add huge value to EAS. We intend to conduct limited drill tests of the other porphyries sometime during 2009.
In addition, our exploration team began to deliver to the market towards the end of the year, the first of the rock sawn channel samples from the Miwah high sulphidation epithermal gold project. The results from this project have been outstanding and we believe that this project has true world-class (+5 MOz contained gold) potential. As truly world-class projects always have substantial value, regardless of prevailing market conditions, we are shifting the focus of our exploration efforts to Miwah during 2009. We are very excited about the potential of this project, and are looking forward to drilling the first of our holes during the first half of 2009.
We have therefore, during 2008, made substantial progress, and are well placed moving forward. The quality of our assets is increasingly recognized by our peers and we have, during the last year, received unsolicited approaches from many of the major companies in our industry. However, we remain committed to preserving the upside for our shareholders until the true value of our outstanding portfolio is unlocked.
East Asia Minerals Corporation's management and technical team are determined to successfully survive this period of market turbulence, and where some see adversity, we see opportunity. We are dedicated to maximizing value to our shareholders. We wish to thank our shareholders who have stayed the course with us over the past years and welcome new shareholders.
Michael Hawkins
President and CEO
December 15, 2008 |
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