Asia Gold Corp.
TSX VENTURE : ASG

Asia Gold Corp.

January 29, 2007 12:24 ET

Asia Gold Corp.: Trench Results Continue to Expand the Kaputusan Porphyry Copper-Gold Prospect Bacan Island, Maluku, Indonesia

Drilling to Commence in February

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 29, 2007) - Asia Gold Corp. (TSX VENTURE:ASG) is pleased to announce new trench results from Kaputusan that expand the zones of porphyry style copper-gold mineralization by approximately 400 metres in the North Zone and approximately 150 metres in the South Zone. (See news releases dated September 21, 2006 and December 13, 2006.) A 3,000 metre diamond drilling program to test the North, South and West Zones is planned to begin in the second week of February 2007.

In the North Zone, a 152 metre (m) section of mineralization in Trench 16B that is open to the east and west, grades 0.20% copper and 0.18 grams per tonne (g/t) gold in potassic and propylitically altered tonalite host rock. This section includes a 60-m interval grading 0.31% copper and 0.36 g/t gold. In the South Zone, a 34-m section in the new Trench 11B grades 0.14% copper and 0.15 g/t gold. The host rock is also a potassic altered tonalite. These results increase the north-south extent of copper-gold mineralization at Kaputusan to 1.8 kilometres. The mineralization is still open to the north and south.

New Trench Results

KP18, a new trench in the North Zone, hosts a highly significant mineralized section of 192 m grading 0.26% copper and 0.14 g/t gold that includes a 66-m interval grading 0.38% copper and 0.25 g/t gold. This section is open to the south. Trench KP13, located 5 m north of KP18, hosts a 65-m mineralized interval grading 0.41% copper and 0.26 g/t gold. The 5 m interval between trenches KP18 and KP13 was not sampled. The copper-gold mineralization in the new trenches is associated with strong sheeted to stockwork quartz veins hosted by weathered potassic altered tonalite porphyry and altered tonalite porphyry dykes intruding andesitic volcanics. The mineralization occurs as both oxides and sulphides.

The following table highlights the significant new trench results. A complete list of anomalous trench results (defined as greater than 0.1% Cu or greater than 0.1 g/t Au) is attached as Table 1. (See the Asia Gold website for a trench location map.)



---------------------------------------------
Trench ID Length (m) Cu % Au (g/t)
---------------------------------------------
NORTH ZONE
---------------------------------------------
KP10 28.00 0.15 0.07
---------------------------------------------
including 8.00 0.25 0.10
---------------------------------------------
KP13 65.00 0.41 0.26
---------------------------------------------
KP16B 152.00 0.20 0.18
---------------------------------------------
including 60.00 0.31 0.36
---------------------------------------------
KP18 192.00 0.26 0.14
---------------------------------------------
including 66.00 0.38 0.25
---------------------------------------------
KP19 114.00 0.39 0.16
---------------------------------------------
including 32.00 0.56 0.18
---------------------------------------------
SOUTH ZONE
---------------------------------------------
KP11 10.00 0.15 0.15
---------------------------------------------
KP11B 34.00 0.14 0.15
---------------------------------------------
E West Ext 16.00 0.07 0.26
---------------------------------------------


Project History

The Kaputusan copper-gold porphyry prospect was discovered during a joint Indonesian-German (BGR) regional exploration program in the late 1970s. Follow-up by BGR in 1983-84 included 5,550 metres of trenching and 1,575 metres of NQ-BQ diamond drilling in ten vertical holes. Copper-gold mineralization was intersected in nine of the holes; however, the average core recovery in the mineralized zones was only 41%. (For highlights of drill results see news release dated January 19, 2006.)

Asia Gold has earned an 85% equity interest in an Indonesian joint venture company that controls Kaputusan. The joint venture property comprises two contiguous exploration leases with a total area of 25,771 hectares. The joint venture partner is PT Harita Multi Karya Mineral (HMKM), a member of the Harita Group of Indonesia. The Harita Group is a diversified industrial company with operating nickel and coal mines in Indonesia. The 15% interest held by HMKM in the joint venture company is free carried to commercial mine production.

Sampling and Analytical Procedures

Trenches were dug manually using hand-hoe and crowbar. Channel samples were collected by hammer and chisel along a horizontal channel of about five centimeters in width and three to five centimeters in depth. Individual channel samples are 2.0 metres in length (except for trench KP14 where they were 4.0 metres in length) and typically weighed four to six kilograms.

Sample bags are sealed on site using security tags and are shipped to the laboratory in Jakarta.

All samples were prepared and analyzed by PT Intertek Utama Services (ITS) Laboratory of Jakarta, Indonesia. Samples were crushed and totally pulverized to 90% passing 75 microns and all preparation equipment was flushed by barren material after each sample was processed.

Seven elements were analysed: Au by 50 gram Fire Assay, and Ag, Cu, Pb, Zn, As, and Mo by AAS.

Asia Gold conducts a QA-QC program that is independent from the analytical laboratory by inserting blind standards, blanks and duplicate samples into all batches of samples for analysis. ITS operates an ISO-accredited laboratory and is an international subsidiary of Intertek Caleb Brett.

David C. Owens, Executive Vice President, Metals Division, and Richard Gosse, Vice President Exploration, both qualified persons as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.

Ivanhoe Mines and BHP Billiton own approximately 45% and 10% respectively of the issued and outstanding shares of Asia Gold.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the planned exploration of the company's Kaputusan joint venture in Indonesia, are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available.

Table 1.

Anomalous New Trench Results (greater than 0.1% Cu or greater than 0.1 g/t Au).



-----------------------------------------------------
Length Mineralized
Trench ID (m) Interval (m) Cu % Au (g/t)
-----------------------------------------------------
NORTH ZONE
-----------------------------------------------------
KP7 Ext 48 16.00 0.13 0.08
-----------------------------------------------------
KP10 100 28.00 0.15 0.07
-----------------------------------------------------
including 8.00 0.25 0.10
-----------------------------------------------------
KP12 150 62.00 0.13 0.08
-----------------------------------------------------
and 10.00 0.15 0.06
-----------------------------------------------------
and 4.00 0.18 0.10
-----------------------------------------------------
KP13 193 86.00 0.27 0.05
-----------------------------------------------------
and 65.00 0.41 0.26
-----------------------------------------------------
KP14 86 6.00 0.14 0.11
-----------------------------------------------------
KP16A 100 72.00 0.15 0.05
-----------------------------------------------------
KP16B 220 152.00 0.20 0.18
-----------------------------------------------------
including 60.00 0.31 0.36
-----------------------------------------------------
and 50.00 0.17 0.06
-----------------------------------------------------
KP18 260 52.00 0.14 0.05
-----------------------------------------------------
and 192.00 0.26 0.14
-----------------------------------------------------
including 66.00 0.38 0.25
-----------------------------------------------------
KP19 114 114.00 0.39 0.16
-----------------------------------------------------
including 32.00 0.56 0.18
-----------------------------------------------------
SOUTH ZONE
-----------------------------------------------------
KP11 50 10.00 0.15 0.15
-----------------------------------------------------
KP11B 80 34.00 0.14 0.15
-----------------------------------------------------
E West Ext 94 16.00 0.07 0.26
-----------------------------------------------------
E East Ext 76 64.00 0.06 0.16
-----------------------------------------------------


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy or this release.

Contact Information

  • Asia Gold Corp.
    Steven Feldman
    Investors
    (604) 681-6799
    or
    Asia Gold Corp.
    Bob Williamson
    Media
    (604) 681-6799
    Website: www.asiagold.com