Asia Gold Corp.
TSX VENTURE : ASG

Asia Gold Corp.

October 11, 2005 12:29 ET

Asia Gold Discovers High-Grade Gold Veins at Naran Bulag in the Gobi Region, Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2005) - Asia Gold Corp. (TSX VENTURE:ASG) is pleased to announce the discovery of 13 quartz veins containing visible gold at Naran Bulag on a 100% owned exploration license in southern Mongolia. The veins occur over a distance of 2.5 kilometres and initial fire assay results indicate gold grades averaging between 30 grams per tonne gold (0.96 ounces per ton) and 165 grams per tonne gold (5.30 ounces per ton) in seven of the veins.

Reconnaissance Exploration Results

A total of 75 rock grab samples weighing 1-2 kilograms each were collected at Naran Bulag during the first reconnaissance exploration program. A more systematic follow-up program comprised 464 semi-continuous rock-chip samples collected from sample lines across the exposed vein surfaces. Each of these samples was collected over a 1.0 metre length and weighed 3-6 kilograms. These semi-continuous rock-chip samples provide a good estimate of the gold content of the veins, although they are less representative than true continuous channel samples.

The table below reports the most significant assay results from rock-chip sample lines across seven individual veins. Gold grade is reported for individual samples and as an average for the sample line.



-------------------------------------------------------------------
Average
Sample Gold Grade Gold Grade:
Vein Length (m) (g/t gold) Individual 1.0 m samples (g/t)
-------------------------------------------------------------------
A 4.0 39.1 5.5, 28.1, 49.0, 74.1
-------------------------------------------------------------------
B 8.0 44.5 47.3, 28.9, 25.7, 48.0, 64.4, 64.7,
35.3, 38.8
-------------------------------------------------------------------
C 5.0 34.4 22.7, 8.4, 53.2, 38.7, 49.2
-------------------------------------------------------------------
D 6.0 165.7 87.9, 169.5, 171.0, 474.0, 45.6, 46.8
-------------------------------------------------------------------
E 3.0 35.4 14.4, 63.1, 28.8
-------------------------------------------------------------------
F 9.0 47.0 61.8,101.0, 47.2, 47.8, 32.8, 5.9,
101.0, 10.2,15.8
-------------------------------------------------------------------
G 3.0 30.4 34.5, 27.4, 29.4
-------------------------------------------------------------------


The true widths and strike continuity of the veins are unknown at present due to extensive scree and wind blown cover in the Naran Bulag area. The interpreted dip of the veins is shallow to moderate and therefore the true vein thicknesses will be narrower than the lengths of the rock-chip sample lines reported in the table above. Exposed strike lengths of individual veins vary from 25 to 300 metres, but all veins are open in both strike directions.

Based on the initial exploration work the dimensions of the seven gold-bearing veins (A-G) are estimated as follows;



---------------------------------------------------------------
Outcrop Estimated Known Inferred
Vein width (m) dip (degrees) length (m) length (m)
---------------------------------------------------------------
A 0.3-4.0 40-60 300 greater than 400
---------------------------------------------------------------
B 0.5-9.0 10-20 25 greater than 300
---------------------------------------------------------------
C 1.0-6.0 20-30 200 greater than 350
---------------------------------------------------------------
D 0.5-6.0 20-40 180 greater than 180
---------------------------------------------------------------
E 0.3-3.0 10-20 25 greater than 25
---------------------------------------------------------------
F 0.5-9.0 10-20 25 greater than 25
---------------------------------------------------------------
G 1.0-8.0 20 25 greater than 25
---------------------------------------------------------------


The veins are composed of mesothermal buck quartz with trace amounts of sphalerite, chalcopyrite, tetrahedrite, pyrite and galena. Preliminary petrography on five samples indicates that most of the free gold is primary with minor secondary gold associated with secondary copper and iron minerals. All veins strike NW-SE and occur within a metamorphosed host rock. Several veins are exposed as parallel sets. (See Asia Gold's website for a plan map showing the location of veins A to G and the most significant rock-chip sample results for each vein.)

Naran Bulag was discovered by Asia Gold during grassroots exploration for porphyry copper and epithermal gold deposits. No indication of the gold is reported in the Mongolian-Russian survey databases and to date no evidence of any previous exploration has been found, suggesting that Naran Bulag is a genuine new discovery. A trenching program will commence this week to provide better exposure of the gold veins for detailed channel sampling and structural mapping. A drilling program will follow, conditional on the results of the trenching work.

"The occurrence of very high-grade gold at surface within a large area and over significant lengths in multiple veins is very promising. Further work is now required to evaluate the size potential of the veins and the continuity of mineralization," David Owens, President of Asia Gold, commented. "The discovery of widespread visible gold at surface in the Gobi region of Mongolia confirms the unrealized mineral potential of this vast region where Asia Gold owns exploration rights over an area of about 24,000 square kilometres."

Sample Preparation and Analysis

All 75 rock grab and 464 rock chip samples were prepared and analyzed by SGS Mongolia LLC of Ulaan Baatar, Mongolia. All samples were crushed and pulverized to 90% passing 75 microns and all preparation equipment was flushed by barren material after each sample was processed. Gold was determined by AAS following assay of a 30-gram charge. Samples that reported over 13,300 ppb gold were re-assayed by the same method but using different calibration ranges.

A total of 36 of the 75 rock-grab samples that assayed over 100 ppb gold were re-assayed in triplicate using separate 30-gram charges to check on repeatability due to the presence of abundant visible gold. As a further check on repeatability, screen fire assays were completed on 19 of the 75 rock-grab samples. The results of this work show that individual fire assays compare reasonably well to both the mean of the triplicate fire assays and the screen fire assays. Screen fire assays will be completed shortly for all of the 464 rock-chip samples that grade over 1.0 g/t gold.

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. SGS Mongolia operates an ISO accredited laboratory and is an international subsidiary of SGS SA.

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 Mongolian properties, 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
    (604) 681-6799
    or
    Asia Gold Corp.
    Bob Williamson
    Media
    (604) 681-6799
    www.asiagold.com