Asia Gold Corp.
TSX VENTURE : ASG

Asia Gold Corp.

August 25, 2005 16:45 ET

Asia Gold Starts Drilling Program to Test Copper-Gold Targets in the Gobi Region, Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2005) - Asia Gold Corp. (TSX VENTURE:ASG), is pleased to announce the start of a reverse-circulation (RC) drilling program to test the Bayan Goya porphyry copper-gold target and adjacent induced polarization (IP) anomalies, and the Zurumtai copper-gold prospect, both of which are in the company's 24,748-square-kilometre (km2) West Gobi Project area in southern Mongolia.

Bayan Goya

Bayan Goya was discovered during reconnaissance exploration in late 2004. Copper oxide mineralization occurs within altered volcanic tuffs and siltstones over a strike length of 1.5 kilometres and a width of up to 300 metres. A total of 324 rock-chip/grab samples have been collected at Bayan Goya including 83 samples with 0.10 to 0.98% copper (average 0.2% copper) with 0 to 5.5 g/t gold (average 0.2 g/t gold).

Copper mineralization is associated with microdiorite intrusions, quartz stockwork, fine-grained pyrite, intense silicification and pervasive sericite, chlorite and epidote alteration. The mineralization occurs along a prominent northwest trending ridge and is open to the northwest beneath a broad alluvial fan.

A ground magnetic survey completed in June 2005 shows that the Bayan Goya prospect lies along the south flank of a prominent northwest-trending linear magnetic high feature that is largely covered by alluvium. A recent IP survey has identified a number of chargeability anomalies that are coincident and along strike of the mineralized ridge, and a second anomaly about 500 metres south of the ridge.

The prospect is in the 3,629-km2 sub-division of the West Gobi Project area that was optioned to BHP Billiton Worldwide Exploration Inc. in June, 2005 (see Asia Gold's news release of July 5, 2005). Under the terms of the Option Agreement, Asia Gold has the right to continue exploring the Bayan Goya prospect subject to a back-in right in favor of BHP Billiton.

Zurumtai

RC scout-drilling will begin later this month at the Zurumtai copper prospect, about 30 kilometres south of Bayan Goya in the West Gobi Project area. The drilling will test a major, east-west trending, copper-bearing shear zone, which is up to 100 metres wide and exposed over a length in excess of three kilometres.

Copper oxide mineralization was discovered at Zurumtai during reconnaissance exploration in 2002. Asia Gold has since collected 183 rock-chip/grab samples, including 35 samples with 0.10 to 5.5% copper (average 1.1% copper) with 0 to 0.19 g/t gold (average 0.02 g/t gold). Of the 35 samples, 14 have greater than 1% copper (average 2.3% copper and 0.04 g/t gold).

Asia Gold also provides an update on the exploration activities at some of the company's other prospects in Mongolia.

Khuvsgul Project Geochemical Survey

A regional stream sediment sampling program was completed last month on the company's 100% owned Khusvgul Project in north central Mongolia. A total of 304 samples were collected from priority target areas covering approximately 725 km2 within the 4,370-km2 project area. The samples included coarse and fine fraction sediments as well as pan concentrates. Complete sample results are expected later this month. The Khuvsgul Project area is about 100 kilometres southwest of the two-million ounce, black-shale-hosted Zun Kholba gold deposit in Russia.

West Gobi Project Geochemical and Reconnaissance Survey

A three-stage regional stream sediment survey is in progress on the West Gobi Project. Stage 1 and Stage 2 were completed in April and August respectively. Approximately 1,500 stream sediment samples are expected to be collected by the end of Stage 3 in mid-September. The Stage 1 survey identified three copper anomalies and one multi-element anomaly. Follow-up of these anomalies is in progress.

ASTER satellite images have been purchased for the entire area of the West Gobi Project. Dr. Mark Hinman, Chief Geologist, interpreted the ASTER data and identified 48 anomalies in the eastern half of the property for a follow-up ground reconnaissance program. This program started in April and is expected to be completed this field season. ASTER targets are followed-up using helicopter supported exploration teams and also by mobile, ground based geologists.

All rock-chip/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 % copper and g/t gold by Asia Gold. SGS Mongolia LLC is a subsidiary of SGS Limited, an ISO accredited Australian company. Fine fraction stream sediment samples were prepared and analyzed by ISO accredited Acme Laboratories Ltd. of Vancouver, Canada. The sampling and analytical programs were conducted pursuant to international standard QA/QC procedures.

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) 688-5755
    or
    Asia Gold Corp.
    Bob Williamson
    Media
    (604) 688-5755
    www.asiagold.com