Asia Gold Corp.
TSX VENTURE : ASG

Asia Gold Corp.

December 13, 2006 13:24 ET

Asia Gold Discovers a New Zone of Mineralization on the Kaputusan Porphyry Copper-Gold Prospect Bacan Island, Maluku, Indonesia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 13, 2006) - Asia Gold Corp. (TSX VENTURE:ASG) is pleased to announce that rock channel sample results from new trenches on the Kaputusan copper-gold porphyry prospect on Bacan Island, Indonesia, have outlined a new zone of mineralization 175 metres (m) west of the previously identified North and South Zones. (See News Release dated September 21, 2006.) A 178-m section of mineralization in a trench from the new West Zone grades 0.19% copper and 0.29 grams per tonne (g/t) gold in a strongly weathered tonalite host rock. This section includes a 28-m interval grading 0.17% copper and 0.84 g/t gold. A 3,000-m diamond drilling program to test the North, South and West Zones is planned to begin in January 2007.

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.

New Trench Sampling Results

Asia Gold reported the results of its initial trenching program in the Kaputusan North and South Zones on September 21, 2006. A follow-up program comprising 2,958 m in 15 hand dug trenches was completed in November 2006. These trenches expanded the initial program in the North and South Zones and resulted in the discovery of the new West Zone of porphyry style copper-gold mineralization (see the Asia Gold website for a trench location map).

The rock exposure sampled in the trenches is strongly weathered. Visible copper mineralization occurs as tenorite with minor malachite. Surface copper mineralization at Kaputusan is presumed to have been variably leached.

Highlights of the new trench results are reported in the following table. 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.




---------------------------------------------
Trench ID Length (m) Cu % Au (g/t)
---------------------------------------------
South Zone
---------------------------------------------
A(12) 64.00 0.48 0.42
---------------------------------------------
Including 40.00 0.57 0.45
---------------------------------------------
E(1) 154.00 0.10 0.40
---------------------------------------------
Including 22.00 0.13 1.50
---------------------------------------------
KP1 110.00 0.09 0.21
---------------------------------------------
Including 14.00 0.15 0.50
---------------------------------------------
North Zone
---------------------------------------------
KP3 374.00 0.20 0.16
---------------------------------------------
Including 68.00 0.42 0.38
---------------------------------------------
West Zone
---------------------------------------------
KP7 178.00 0.19 0.29
---------------------------------------------
Including 28.00 0.17 0.84
---------------------------------------------


Kaputusan Geology

A detailed geological mapping program of the Kaputusan porphyry system was conducted during the initial and follow-up trenching programs. The results confirm that the copper-gold mineralization is hosted by magnetite bearing tonalite porphyry stocks in all three mineralized zones. (See trench location and alteration map on the Asia Gold website.) The tonalite stocks exhibit strong sericite-clay-chlorite alteration. The best mineralization is associated with sheeted quartz veins controlled by structures with several different orientations. Key geological features of the Kaputusan prospect include intensive and mineralized sheeted veins, associated widespread sericite-clay-chlorite alteration and limited areas of potassic alteration. These features suggest a porphyry system with good potential for copper-gold mineralization at depth.

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.)

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 5 centimeters in width and 3 to 5 centimeters in depth. Individual samples are usually 4 to 6 kilograms. Sample bags are sealed on site using security tags and are shipped to the laboratory in Jakarta.

All samples were prepared and analysed 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).



---------------------------------------------
Trench ID Length (m) Cu % Au (g/t)
---------------------------------------------
South Zone
---------------------------------------------
A12 64.00 0.48 0.42
---------------------------------------------
Including 40.00 0.57 0.45
---------------------------------------------
A13 20.00 0.21 0.23
---------------------------------------------
E1 154.00 0.10 0.40
---------------------------------------------
Including 22.00 0.13 1.50
---------------------------------------------
Including 10.00 0.10 0.51
---------------------------------------------
F(1) 62.00 0.25 0.20
---------------------------------------------
F(2) 12.00 0.20 0.19
---------------------------------------------
F(3) 6.00 0.17 0.31
---------------------------------------------
KP1 110.00 0.09 0.21
---------------------------------------------
Including 14.00 0.15 0.50
---------------------------------------------
KP2 298.00 0.04 0.18
---------------------------------------------
Including 20.00 0.04 0.78
---------------------------------------------
Including 116.00 0.04 0.21
---------------------------------------------
North Zone
---------------------------------------------
G 104.00 0.21 0.18
---------------------------------------------
Including 38.00 0.28 0.23
---------------------------------------------
KP3 374.00 0.20 0.16
---------------------------------------------
Including 68.00 0.42 0.38
---------------------------------------------
Including 86.00 0.29 0.15
---------------------------------------------
KP5 18.00 0.11 0.09
---------------------------------------------
West Zone
---------------------------------------------
KP7 178.00 0.19 0.29
---------------------------------------------
Including 28.00 0.17 0.84
---------------------------------------------
Including 68.00 0.26 0.19
---------------------------------------------
KP9 8.00 0.04 0.17
---------------------------------------------



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