Asia Gold Corp.

Asia Gold Corp.

October 18, 2005 16:45 ET

Asia Gold Discovers Porphyry Copper-Gold Mineralization at Khongor Prospect in the Gobi Region of Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2005) - Asia Gold Corp. (TSX VENTURE:ASG) is pleased to announce the discovery of widespread porphyry copper-gold mineralization at the Khongor prospect in the Gobi region of southern Mongolia. Initial rock sampling and geological mapping have confirmed copper-oxide mineralization over an area of at least 1,250 metres in length and up to 325 metres in width. The Khongor prospect is located within the West Falcon Gobi Area, a joint-venture property with BHP Billiton World Exploration Inc. (BHP Billiton).

The Khongor porphyry copper-gold prospect was discovered by Asia Gold during a reconnaissance exploration program on the company's West Gobi project. Asia Gold is now establishing a winter camp at Khongor in order to support a detailed exploration program with follow-up drilling to test the potential of the porphyry system. The results of the limited reconnaissance work completed to date are reported below.

Reconnaissance Exploration Results

Continuous rock-chip samples have been collected from sample lines spread out over 350 metres across five areas of outcropping mineralization. The sample lines range in length from 18 metres to 60 metres and the individual samples are 3.0 metres in length. The most significant results from each of the sample lines are as follows:

Line No. From To Length (m) % Cu g/t Au
1 18.0 60.0 42.0 0.18 0.03
2 0.0 18.0 18.0 1.33 0.32
3 0.0 18.0 18.0 1.84 0.43
4 0.0 18.0 18.0 0.23 Trace
5 0.0 21.0 21.0 0.24 0.05

A total of 91 rock-grab samples also have been collected from the area of mineralization. Of these, 23 samples assay greater than 1% copper and 0.5 grams per tonne (g/t) gold with a maximum sample value of 6.0% copper and 0.9 g/t gold. 73 of the 91 samples assay more than 0.1% copper. The copper mineralization occurs primarily as disseminated and fracture-coating malachite with minor tenorite, azurite and chalcopyrite in association with quartz stockworks, quartz veinlets and several different host-rock lithologies.

The results of preliminary 1:5,000 scale geological mapping provide strong evidence of a previously unknown porphyry copper system at Khongor. This evidence includes extensive quartz stockwork zones, hydrothermal breccias, pervasive fracture-controlled pyrite and limonite, hydrothermal magnetite, multiple porphyritic intrusive bodies and pervasive alteration, including silicification, quartz-sericite and potassic alteration. Furthermore, a high density of dykes associated with the mineralized zone suggests the surface exposure at Khongor is at a high level within the porphyry system. Mapping confirms that the zone of surface copper mineralization remains open to the southeast.

Khongor was discovered by Asia Gold during a grass roots exploration program started in 2004 for porphyry copper and epithermal gold deposits. No indication of the copper-gold mineralization at Khongor is reported in the Mongolian-Russian survey databases and to date no evidence of any previous exploration has been found, suggesting that Khongor is a new discovery.

David Owens, President of Asia Gold, commented, "The widespread outcropping copper mineralization and associated hydrothermal alteration suggest Khongor has the potential to be a large porphyry copper system. We will now conduct detailed exploration and diamond drilling to better quantify the size and grade of this system."

All rock-chip and grab samples were prepared and analyzed by SGS Mongolia LLC of Ulaan Baatar, Mongolia. Base metals are measured using a three acid digest and AAS analysis and gold is measured using a 30g charge fire assay and AAS analysis. Results are reported by SGS in ppm copper and ppb gold and are converted to equivalent % copper and g/t gold by Asia 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.

The BHP Billiton Option

Khongor is located on the southern boundary of the West Falcon Gobi Area about 300 km west of Ivanhoe Mines' world class Oyu Tolgoi porphyry copper-gold deposit. Pursuant to an option agreement, BHP Billiton can earn a 50% interest in the West Falcon Gobi Area by spending US$2,000,000 on exploration prior to December 31, 2007, and earn an additional 20% by funding a feasibility study on one exploration target up to a maximum value of US$45,000,000. BHP Billiton plans to conduct a Falcon™ airborne gravity gradiometer survey over the West Falcon Gobi Area before February 2006. For further information, see the company's news release dated July 5, 2005.

The Asia Gold Option

Asia Gold's exploration to date at Khongor has been restricted to the West Falcon Gobi Area. The results have confirmed a large surface zone of copper-oxide mineralization and hydrothermal alteration extending at least to the southern license boundary of the West Falcon Gobi Area. At the license boundary the zone is projected to continue on-strike to the southeast into the adjacent Tsakhir license. Pursuant to a recent agreement with Solomon Resources and Gallant Minerals, Asia Gold has an option to earn up to a 70% interest in the Tsakhir license from Solomon Resources. For further information see the company's August 19, 2005, and September 29, 2005, news releases.

Planned Exploration Programs

Asia Gold and BHP Billiton are currently discussing plans to continue exploration of Khongor 'North' located within the West Falcon Gobi Area. Khongor 'South', the projected southeast strike extension of the prospect outside of the West Falcon Gobi Area, will be explored independently by Asia Gold pursuant to the option agreement with Solomon Resources and Gallant Minerals.

The first exploration program at Khongor South started in early October. This program includes geological mapping, rock sampling and a ground magnetometer survey. Results will be reported when the initial work is completed.

Qualified Persons

David C. Owens, President, and Richard Gosse, Vice President Exploration of Asia Gold, 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
    (604) 681-6799
    Asia Gold Corp.
    Bob Williamson
    (604) 681-6799