Asia Gold Corp.
TSX VENTURE : ASG

Asia Gold Corp.

January 18, 2006 16:50 ET

Asia Gold Updates Gold Exploration Programs at Tashlaka Hill and Vladimirovo, Bulgaria

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2006) - Asia Gold Corp. (TSX VENTURE:ASG) is pleased to provide an update on the company's Tashlaka Hill and Vladimirovo gold exploration projects in Bulgaria. Asia Gold can earn up to an 80% interest in these projects pursuant to a joint venture agreement with Hereward Ventures Bulgaria (Hereward), a wholly owned subsidiary of Cambridge Mineral Resources plc (AIM:CMR). (see News Release dated November 17, 2005).

Tashlaka Hill

Tashlaka Hill on the Rosino license is a low-sulphidation epithermal gold prospect in the Tertiary Rhodope Metallogenic Belt of southeast Bulgaria. The prospect was explored by Niproruda, a Bulgarian State mining company between about 1981 and 1992. Hereward explored the prospect from 2001 to 2005. Exploration drilling includes 86 holes by Niproruda and 42 holes by Hereward. The table below summarizes the historical open-pit geological resources compiled by Niproruda (86 drill holes) at a cutoff grade of 0.5 grams per tonne (g/t) gold.



Total
Contained
Au grade Gold
Company Date Category Tonnes (g/t) (ounces)
--------------------------------------------------------------------

Niproruda 1990 CIS Classification: 4,800,000 1.49 229,600
C1, C2 and P1


This mineral resource estimate was not calculated according to the standards of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). The Niproruda estimate is based on the CIS classification system and the C1, C2 and P1 resource categories are approximately equivalent to a CIM inferred resource. Asia Gold intends to use the data from this resource estimate to assist the company in future exploration activity, but considers the reliability of this resource estimate to be low and will subject all data to further verification before relying on it. Barry W. Smee, Ph.D., P.Geo., an independent Qualified Person, audited the Tashlaka Hill assay database on behalf of Asia Gold and reports, "The analytical data from the Tashlaka Hill drilling can be used for preliminary resource estimates as the main analytical laboratory is using industry accepted analytical procedures and quality control methods.

The present analytical data from the Tashlaka Hill drilling does not meet the requirements of NI 43-101 for resource estimation beyond a preliminary assessment." Tashlaka Hill is currently an exploration project and the relevance of the historical resource estimate is to confirm the presence of widespread epithermal gold mineralization.

A higher grade zone of gold mineralization, the Tashlaka Hill Main Zone, was outlined by the Hereward drilling program within the low grade gold envelope. The structural control and full extent of the higher grade mineralization are not well understood. A detailed structural evaluation and additional drilling is required to fully evaluate the potential of the higher-grade Main Zone.

Tashlaka South

The Tashlaka South gold prospect is located about 500 metres southwest of Tashlaka Hill. A 5-hole diamond drilling program totaling 1,038 metres was completed in August 2005. This program was designed to test a zone of silicification within Paleogene conglomerates measuring 20-50 metres in width and about 650 metres in strike-length. The textures associated with the silicification at surface suggest the zone is within the upper part of a low sulphidation epithermal gold system.

Three of the five holes drilled in August intersected low grade gold mineralization (see Table below). However, all holes intersected the zone of silicification and the textural characteristics of the zone at depth, together with the high silver to gold ratio of the mineralization, suggest the potential for a higher grade gold horizon below the current level of drilling. Asia Gold plans to test this target with a new drilling program to start in March 2006.



---------------------------------------------------------------
Drill Hole No. From To Length (m) g/t Au g/t Ag
---------------------------------------------------------------
R238 97.0 99.0 2.0 1.05 14
---------------------------------------------------------------
R239a 223.6 232.6 9.0 1.29 40
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R240 120.2 138.2 18.0 0.45 12
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Vladimirovo

The Vladimirovo gold prospect is situated on the Polski Gradets license in eastern Bulgaria. Gold mineralization associated with silicified Triassic meta-sediments was discovered at Vladimirovo by Hereward in 2003. Trenching and 7 reverse circulation drill holes by Hereward in 2004 outlined a zone of gold bearing carbonate rocks with a strike length of 1.6 kilometres and true widths of up to 18 metres. The best intersections in the 2004 drill holes are tabulated below:



------------------------------------------------------
Drill Hole No. From To Length (m) g/t Au
------------------------------------------------------
PG001 78.8 89.7 10.9 0.30
------------------------------------------------------
91.2 94.6 3.4 1.28
------------------------------------------------------
PG002 46.0 55.0 9.0 3.21
------------------------------------------------------
72.0 84.0 12.0 2.24
------------------------------------------------------
PG003 34.0 38.0 4.0 2.06
------------------------------------------------------
PG004 79.0 81.0 2.0 1.55
------------------------------------------------------
98.0 102.0 4.0 0.77
------------------------------------------------------
PG007 74.0 82.0 8.0 4.11
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One diamond drill (PG008) hole totaling 150 metres was drilled in September 2005 to twin the reverse circulation hole PG002 drilled in 2004. Significant mineralized intervals in hole PG008 are tabulated below.



------------------------------------------------------
Drill Hole No. From To Length (m) g/t Au
------------------------------------------------------
PG008 41.70 49.60 7.9 1.67
------------------------------------------------------
63.60 64.60 1.0 1.13
------------------------------------------------------
68.60 69.60 1.0 4.26
------------------------------------------------------
81.60 82.60 1.0 1.20
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The gold bearing carbonate rocks are silicified and occur at the contact between a quartz-mica schist and an underlying marble. Silicification is typically massive, fine grained with local brecciation and re-silicification. The highest gold grades occur in areas of clay-filled brecciation and in clay-filled karst-like cavities indicating that secondary processes have locally enriched the gold grade. Asia Gold plans to further drill test the strike extension of the carbonate hosted gold mineralization following completion of the Tashlaka South drilling program.

Sampling and Analytical Procedures

Core samples from Tashlaka South and Vladimirovo were prepared and analyzed by Eurotest Control Plc. in Sofia, Bulgaria, an ISO 9001 certified laboratory. The samples were crushed to 90% passing 2mm and a 400g split was pulverized to 85% passing 75 microns. Gold less than 2.5 g/t was determined by AAS following an aqua regia digest, whereas gold more than 2.5 g/t was also assayed using normal fire assay procedures. The laboratory's internal QC meets industry accepted practice.

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 technical 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, 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.
    Steven Feldman
    Investors
    (604) 681-6799
    or
    Asia Gold Corp.
    Bob Williamson
    Media
    (604) 681-6799
    www.asiagold.com