Asia Gold Corp.

Asia Gold Corp.

November 17, 2005 17:00 ET

Asia Gold Acquires Four Gold Exploration Projects in Bulgaria from Ivanhoe Mines

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2005) - Asia Gold Corp. (TSX VENTURE:ASG) is pleased to announce the acquisition of Ivanhoe Mines' interest in a joint venture agreement with Hereward Ventures Bulgaria AD, a wholly owned subsidiary of Cambridge Mineral Resources Plc, to explore four mineral licenses in Bulgaria. The licenses have a total area of 445 square kilometres and are located within well established metallogenic belts prospective for epithermal gold, sediment hosted and intrusion related gold deposits.

Asia Gold can earn up to an 80% interest in the four licenses by completing work expenditures of US$4,000,000 in two stages. Stage one requires Asia Gold to complete expenditures of US$2,000,000 prior to May 27, 2007 in order to earn a 51% interest. To date, Ivanhoe Mines has completed stage one earn-in expenditures totaling US$1.14 million. Asia Gold will be required to fund a further US$0.86 million of exploration to complete the stage one earn-in. Upon completion of the first stage earn-in, Asia Gold has the option to earn an additional 29% interest in the four licenses, for a total of 80%, by completing further exploration expenditures totaling US$2,000,000 before May 27, 2009.

In consideration of the transfer of Ivanhoe's earn-in rights in the Bulgarian licenses, Asia Gold has agreed to grant Ivanhoe a 5% Net Profits Royalty interest in Asia Gold's interest in any future mine developed on the Bulgarian licenses, and to reimburse Ivanhoe for exploration expenditures of approximately US$334,000 incurred since June 1, 2005. The completion of the agreement with Ivanhoe is subject to the prior approval of the TSX-Venture Exchange.

The Bulgarian Licenses

The Rozino license (162 sq. kms) is located in southern Bulgaria within the Tertiary Rhodope Metallogenic Belt. The license includes the Tashlaka Hill low-sulphidation epithermal gold system. Previous work by the Bulgarian government and Hereward Ventures, including 118 drill holes, has outlined a broad zone of structurally controlled low grade gold mineralization. Diamond drilling has also identified discrete high-grade shoots within the broad mineralized zone. The structural control to the higher-grade mineralization is poorly understood and further technical work and drilling is required to test the potential for high-grade mineralization at Tashlaka Hill.

An epithermal breccia system has recently been recognized about 1.0 km. southwest of the Tashlaka Hill gold system. The breccia has a strike length of 500 metres and a width of up to 50 metres. A five-hole diamond drilling program to test the new breccia zone was completed in September 2005. The results of the drilling will be reported upon completion of analytical QA and QC.

The Tashlaka Hill gold mineralization is located about 20 km. east of the Ada Tepe (Krumovgrad) gold deposit, which is owned by Dundee Precious Metals Inc. An independent resource estimate for Ada Tepe prepared by RSG Global Pty Ltd. in February, 2005, for Dundee reported a NI 43-101 Measured and Indicated resource of 5.22 million tonnes at a gold grade of 5.0 g/t (based on a 1.0 g/t gold cutoff grade) containing 835,000 ounces of gold.

Intrusion related gold mineralization associated with Cretaceous granites is found at several locations on the Dobroselets license (93 sq. kms.) in southeastern Bulgaria. The most significant is the Chaira gold deposit which was discovered and drilled by the Bulgarian government in the 1980s. Reports by the Bulgarian geologists indicate that gold mineralization occurs in a sub-vertical sheeted vein system within a broad zone of quartz-sercite-carbonate-sulphide alteration measuring 1.5 km. by 2.5 km. Asia Gold plans to conduct a ground magnetics and an Induced Polarization survey over this zone prior to follow-up drilling.

Gold mineralization has recently been discovered on the Polski Gradets license (35 sq. kms.) in association with silicified Triassic carbonate rocks. Trenching and drilling by Hereward on the Vladimirovo prospect has outlined gold bearing carbonate rocks over a strike length of 1.6 kilometres and a width of up to 30 metres. Further work and follow-up drilling is required to establish the style and control of the gold mineralization.

The Gornoseltsi license (155 sq. kms.) in southern Bulgaria hosts several structurally controlled low sulphidation epithermal gold prospects. The most attractive of these prospects is the Dolnoseltsi prospect where a two-metre wide vein exposed in a recent trench exhibits strong epithermal textures including bladed carbonate pseudomorphs, crustiform-colloform banded veins and massive chalcedony.

There is a large inventory of historical exploration data for the four Bulgarian licenses. This inventory includes a resource estimate for the Tashlaka Hill and Chaira gold deposits, significant exploration drilling results at Polski Gradets and extensive soil geochemical anomalies at Gornoseltsi. The historical data has generally been prepared to international standards other than Canadian National Instrument 43-101 and Asia Gold will review the data in order to provide disclosure in compliance with NI 43-101 guidelines.

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

Ivanhoe Mines and BHP Billiton own approximately 47% and 7% 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 mineral properties in Bulgaria and Mongolia, 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.

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.
    Bill Trenaman
    Investors Contact
    (604) 681-6799
    Asia Gold Corp.
    Bob Williamson
    Media Contact
    (604) 681-6799