East Asia Minerals Corporation

East Asia Minerals Corporation

August 27, 2009 08:30 ET

East Asia Intersects 5.38 g/t Gold Over 20.3 Metres Including 9.25 g/t Gold Over 9 Metres in South Miwah Bluff Zone, and 64.4 Metres of 1.37 g/t Gold From Main Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2009) - East Asia Minerals Corporation (TSX VENTURE:EAS) reports that assays have been received for an additional three diamond drill holes at its flagship Miwah Gold Project in Aceh Province, Northern Sumatra. The results are from the first two drill holes into the new high-grade South Miwah Bluff gold discovery, and from one hole drilled towards the base of the shallow out-flowed, laterally extensive Main Miwah Gold Zone. At South Miwah Bluff drill hole EMD006 suffered poor core recovery (as low as 0% within the mineralized sample intervals), however the drilled diatreme breccia was completely mineralized along the western boundary and achieved 5.38 g/t gold over 20.3 metres. This included a 9-metre interval of 9.25 g/t gold and 2.7 metres of 18.98 g/t gold. Drill hole EMD005 also suffered poor core recovery (as low as 17.5% within the mineralized sample intervals), with the drilled diatreme breccia being completely mineralized and achieving 3.36 g/t gold over 21.4 metres. This included a 1-metre interval of 9.13 g/t gold at the western contact with porphyritic andesite. The very poor recoveries in EMD005 and 006 reflect the extremely vuggy nature of the mineralized zones, as evidenced in the nearby rock sawn channels which returned 83.59 g/t gold over 24 metres and 20.14 g/t gold over 12 metres. At the Main Miwah Gold Zone drill hole EMD004 encountered 1.37 g/t gold over 64.4 metres, validating a historic hole.

Holes EMD005-007 were drilled as short scout holes into the high-grade South Miwah Bluff Gold Zone, and positioned approximately 320 to 350 metres south of the EMD001-004 drill area. The holes were designed to test for continuity of mineralization at the western margin of this new discovery zone and to assist ongoing geological mapping of the broader diatreme, which remains open to the north, south and east. Holes EMD005-007 are 132 to 146 metres lower in elevation than the EMD001 drill pad.

EMD006 was drilled with a southerly azimuth (208 degrees) and 30 degree dip to test for continuity beneath a rock sawn channel sample grading 83.59 g/t gold over 24 metres. The hole commenced in gold mineralized diatreme breccia along the western margin of the gold mineralized diatreme breccia feeder and was pushed into the flanking propylitic porphyritic andesite. The complete package of diatreme breccia encountered by EMD006 is gold-bearing, further validating the potential of this new discovery and providing important geological information near the western margin of the large (650 metres long by 300 metres wide) gold-bearing diatreme breccia zone. A significant percentage of the mineralized interval was lost due to poor core recovery (for example two sample splits totalling 2.3 metres suffered 100% core loss), unlike the 95% to 96% recoveries from EMD001-004 in the Main Miwah Gold Zone.

EMD005 was drilled with a northwest azimuth (305 degrees) and 30 degree dip to test for continuity beneath a nearby rock sawn channel sample grading 20.14 g/t gold over 12 metres. The hole was commenced in gold mineralized diatreme breccia and pushed past the western margin into the flanking propylitic porphyritic andesite. The complete package of diatreme breccia encountered by EMD005 is gold-bearing. A significant percentage of the mineralized interval was lost due to poor core recovery (ranging from 17.5% to 100% over sample intervals).

EMD007 is a step out hole drilled with a west-northwest azimuth (300 degrees) and 47 degree dip to test the mineralized diatreme breccia north of EMD005. Assay results for EMD007 are pending.

In commenting on the first results from the South Miwah Bluff Gold Zone, Michael Hawkins, President and CEO of East Asia Minerals Corporation stated "We believe we are potentially under-reporting gold from the high-grade margin of the South Miwah Bluff Gold Zone due to poor drill recovery. Despite the poor recovery issue, however, the Company's first two holes through the western margin of this newly discovered zone are strongly mineralized and support what we have seen with our surface mapping and rock sawn channel sampling. We have recognized a 10 to 20 metre wide high-grade gold zone running along the western margin of a larger gold-bearing diatreme breccia feeder that makes up the South Miwah Bluff Gold Zone. This gold-bearing diatreme breccia, as exposed at surface, is approximately 650 metres long and up to 300 metres wide, and our sampling and drilling to date has shown that the diatreme is strongly gold mineralized throughout. Hence we see the first two holes as being indicative of the huge potential of the South Miwah Bluff Gold Zone. These holes were a large step out from previous drilling, being more than 300 metres to the south of previously reported drilling in the Main Miwah Gold Zone."

The Company is addressing the weak drill core sample recovery and shall, as planned, recommence drilling in the South Miwah Bluff Gold Zone after the initial phase one 13-hole drill program.

In other news, the Company reports drill hole EMD004 within the Main Miwah Gold Zone returned 1.37 g/t gold over 64.4 metres, validating a historic hole. EMD004 was drilled with a west azimuth (270 degrees) and 30 degree dip to validate a historic hole which encountered 1.42 g/t gold over 71 metres (Refer to map on Company's website at www.EAminerals.com). EMD004 was collared from a pad located to the southwest of holes EMD001-003, more than 90 metres in distance and 60 metres lower in elevation within the lower part of the broad sheet-like and flat-lying Main Miwah Zone mineralized system. EMD004 underlies the higher-grade level of holes EMD001-003. Gold mineralization was encountered from 4.6 to 69.0 metres downhole. The mineralization is interpreted to be contiguous to surface, and is open to depth. In addition the mineralization remains open in all directions. At higher levels to the northeast EAS' hole EMD002 encountered 1.71 g/t gold over 158.0 metres, including 3.29 g/t gold over 66.0 metres, and EMD003 encountered 2.25 g/t gold over 142.9 metres, including 4.31 g/t gold over 51.0 metres. Core recovery in EMD004 was 96%.

The drill rig has returned to the Main Miwah Gold Zone where the program is continuing with EMD008. This is the Company's first hole in the eastern part of the laterally extensive gold system. EMD008 is collared 400 metres east of, and 90 metres higher in elevation than the EMD001 drill pad, and is designed to test an area where rock sawn channel sampling returned consistently strong gold mineralization averaging 4.11 g/t gold across a 200 metre long, semi-continuous channel (news release January 21, 2009). Sections of this 200 metre zone include 20 metres of 14.00 g/t gold, 10 metres of 3.70 g/t gold, 32 metres of 2.41 g/t gold and 20 metres of 1.45 g/t gold.

"The Miwah project demonstrates a robust gold system that continues to grow rapidly", stated Michael Hawkins, President and CEO of EAS. "Drilling in the Main Miwah Gold Zone is delivering solid results, and is demonstrating significant widths of 3 to 4 g/t gold in the higher levels of the mineralized system, with evenly distributed assays. The results from drill hole EMD004 not only validate the historical results, they support our interpretation of the Main Miwah Gold Zone as a thick, flat-lying sheet, with dimensions of approximately 1200 metres long, 200 metres high and 300 metres wide. Our extensive surface sampling of this indicates that the upper part of the Main Miwah Gold Zone is higher grade than the lower part of the system, and this too is supported by our drilling to date. Overall drill results from the Main Zone return higher grades than the adjacent surface samples, and the broad distribution of strong gold mineralization in rock sawn channels at Miwah Main Zone is, we believe, indicative of the size of the system we have discovered."

The initial drill program will comprise 10 holes for a total of 2,000 metres to provide a 3D validation along the currently defined 1,200 metre east-west extent of the main Miwah gold-bearing silica zone, and an additional 150 metres for 3 scout holes to the south. This program will provide a further indication of the gold resource potential and the framework for follow-up drilling.

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.

Based on the Company's work Miwah is resolving into two components; a large 1,200 metre long, 300 to 400 metre wide, approximately 200 metre thick tabular zone; and vertical diatreme breccia feeder zones that are beneath and cut through this. Within the tabular zone East Asia has over 2,000 metres of rock sawn channel samples which average 1.2 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 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 Intertech 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 (TSX VENTURE:EAS) 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 eleven 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 65,365,372 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.

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