East Asia Minerals Corporation
TSX VENTURE : EAS

East Asia Minerals Corporation

December 16, 2010 08:30 ET

East Asia Deepens EMD024 and Reports 6.59 g/t Gold Over 60 Metres, Within 2.55 g/t Gold Over 201 Metres; Scout Drilling at Sipopok Hits Miwah-Type Horizon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - East Asia Minerals Corporation (TSX VENTURE:EAS) announces that drilling has extended EMD024, which previously ended in high-grade gold mineralization due to drill rig limitations. EMD024 now reports 2.55 g/t gold over 201 metres, including 6.59 g/t gold over 60 metres, greatly increasing the thickness of the gold-bearing alteration package at the Miwah Gold Project in Aceh Province, Northern Sumatra, Indonesia. In addition, drill holes EMD047 to EMD049 continued to expand the gold bearing Main Zone north towards Moon River and to the east. At Sipopok scout drilling has commenced and the targeted Miwah-type horizon has been encountered.

EMD024 was completed at 500.4 metres, using the previously drilled due north azimuth and 55 degree dip. Previous drill hole EMD024 was terminated in high-grade gold mineralization at 209 metres due to drill rig limitations, and encountered 3.96 g/t gold from 98 to 209 metres (111 metres), including 15.74 g/t gold from 187 to 209 metres (22 metres), indicating increasing grade and thickness to the north. The penultimate and ultimate metre intercepts downhole graded 17.25 g/t gold and 20.6 g/t gold respectively (news release April 9, 2010). This extension hole also undercut EXD003, which encountered 1.31 g/t gold from 174.5 metres to the end of hole at 220.5 metres (46 metres), including 11.78 g/t gold from 217 to 220.5 metres (3.5 metres) where it finished in high-grade gold mineralization due to drill rig limitations. The penultimate 1.25 metre interval graded 30.37 g/t gold (news release September 21, 2010). 

The complete mineralized package in EMD024 assays 2.55 g/t gold from 98 to 299 metres (201 metres), including 6.59 g/t gold from 187 to 247 metres (60 metres). The alteration/mineralization is interpreted to be contiguous to gold-rich holes drilled to the south, and is open in all other directions and at depth. (Refer to N-S section and drill location map at www.EAminerals.com).

EMD047 was drilled with a 30 degree azimuth and 63 degree dip to test for continuity of mineralization northeast from EMD044 towards Moon River. The hole was completed at 350 metres and encountered 0.38 g/t gold from 130.7 to 330 metres (199.3 metres), including 0.67 g/t gold from 139 to 213 metres (74 metres) and 1.10 g/t gold from 157 to 172 metres (15 metres). The alteration/mineralization is interpreted to be contiguous to gold-rich holes drilled to the south, and is open in all other directions and at depth.

EMD048 was drilled with a 90 degree azimuth and 55 degree dip to test for continuity of mineralization due east from EMD045. The hole was completed at 220.5 metres and encountered 1.20 g/t gold from 138 to 220.5 metres (82.5 metres), including 1.76 g/t gold from 159 to 206 metres (47 metres). The alteration/mineralization is open to the north and at depth, and is interpreted to be contiguous to gold-rich holes drilled in all other directions.

EMD049 was drilled with a 205 degree azimuth and 55 degree dip to test for continuity of mineralization northeast from EMD041/046 (respectfully 1.02 g/t gold over 113.8 metres, including 3.87 g/t gold over 14 metres and 1.35 g/t over 16 metres; and 1.83 g/t gold over 86 metres, including 2.25 g/t gold over 60 metres at end of hole), towards Moon River. The hole was completed at 213 metres and encountered 1.09 g/t gold from 47.3 to 144 metres (96.7 metres), including 2.66 g/t gold from 113.7 to 134 metres (20.3 metres). The alteration/mineralization is open to the north, east and at depth, and is interpreted to be contiguous to gold-rich holes drilled in all other directions.

EMD050 was drilled with a 25 degree azimuth and 55 degree dip to test for continuity of mineralization north-northeast from recently completed EMD049. The hole was stopped at 159.6 metres due to drilling problems and encountered favourable alteration/mineralization from 16 to 21.5 metres, 69 to 109.1 metres, and locally from 123.5 to 126.3 metres, 140.5 to 144.9 metres and 153.7 to 156 metres. Assays are pending.

EMD051 is being drilled with a 45 degree azimuth and 50 degree dip to test for continuity of mineralization east from EMD024. To date the hole encountered favourable alteration/mineralization from 9.4 to 81.5 metres, intermittently from 81.5 to 145 metres, and from 145 metres through to the current depth of 227 metres where drilling is progressing well.

EMD052 is being drilled with a 215 degree azimuth and 60 degree dip to test for continuity of mineralization west from EMD024 and EXD003. To date the hole encountered favourable alteration/mineralization from 111.2 to 112.8 metres prior to entering a mixed favourable host from 112.8 to 127.3 metres. The hole re-entered the favoured host from 156.8 to the current depth of 160.7 metres where drilling is progressing well.

EXD005 was drilled with a 75 degree azimuth and 50 degree dip to test the extension of alteration/mineralization to the southeast of EXD004 where recent channel sampling encountered 1.23 g/t gold over 12 metres, including 3.04 g/t gold over 3 metres in the East Block M area. The target is located 400 metres east of drill hole EMD016. EXD005 was completed at 167.1 metres and encountered patchy favourable alteration/mineralization from 0.7 to 58.5 metres, and 69.5 to 92.4 metres. The alteration/mineralization is open in all directions and at depth. Assays are pending.

EXD006 was drilled with a 45 degree azimuth and 50 degree dip to test northeast from EXD003 (1.31 g/t gold over 46 metres, including 11.78 g/t gold over 3.5 metres at the end of hole) towards Moon River. The hole was completed at 350 metres, having encountered favourable alteration/mineralization at 255.3 to 262.8 metres and 268.6 to 276.4 metres, after drilling a localized area of quartz diorite intrusive from 163 to 242.4 metres. The favourably altered host rock was followed by breccia intercalated with quartz diorite intrusive from 276.4 metres to end of hole. Assays are pending.

Scout drilling has commenced at Sipopok. SPD001 is being drilled with a 215 degree azimuth and 65 degree dip to test for continuity and improvement in alteration/mineralization to the east and beneath recent rock sawn channel samples that assayed up to 1.26 g/t gold over 4 metres and 0.98 g/t gold over 4 metres. The hole encountered favourable alteration/mineralization from 2 to 6 metres, 12.4 to 17.8 metres, and 62.5 to 126 metres where drilling is in progress.

Whilst preparing a drill pad for initial testing of Sipopok, the scout drill rig was used to complete a short southwest directed hole beneath the high-grade western margin of South Miwah Bluff. SMD001 was drilled with a 225 degree azimuth and 60 degree dip, and completed at 120 metres depth. The hole encountered several intermittent zones of favourable silica alteration over the upper 20 metres. In addition, breccia intersected at 48.7 metres depth may be the dip extension from the targeted siliceous breccia sampled at surface. Assays are pending.

East Asia has diamond drill validated the 1.2 kilometre east-west outcropping width of the shallow, laterally extensive Miwah Main Zone, and has encountered significant gold mineralization in more than 95% of all holes analyzed to date. The Miwah Main Zone remains open in all directions with the Moon River area expanding the north-south potential to more than 600 metres, whilst remaining open further to the north towards Sipopok. Drilling has extended the Miwah Main Zone towards a similar northing as Moon River. Sampling west of the Miwah Main Zone in the Signal area has potentially expanded the east-west width another 600 metres and remains open. Recent sampling east of the Miwah Main Zone in the East Block M area has potentially expanded the east-west width another 400 metres and remains open.

Miwah Background

The Miwah Gold Prospect was partially defined by approximately 3,100 metres of drilling in twelve holes by a previous explorer in 1997. All holes drilled during this program intersected significant alteration and mineralization with intercepts including 71 metres of 1.4 g/t gold and 58 metres of 1.1 g/t gold. The previous explorer suggested potential for 100 Mt at 1.1 to 1.2 g/t gold; however a review of the historical data indicates that early drilling was parallel to higher grade (greater than 5 g/t gold) structures at surface. Hence, in addition to greater mineralized tonnage, significantly higher overall grades are anticipated from better geological understanding, results of the Company's detailed sampling, and from the ongoing drill program which is based on increased geological understanding. An example is the intersection of 3.96 g/t gold over 111 metres, including 15.74 g/t gold over 22 metres from East Asia's diamond drill hole EMD024.

Based on the Company's work Miwah is resolving into two components; a large 1,200 metre long, at least 450 metre wide, approximately 200 metre thick tabular zone; and vertical diatreme breccia feeder zones that are beneath and cut through this. At Miwah Gold Zones, East Asia has almost 2,500 metres of rock sawn channel samples which average 2.35 g/t gold. Grade expectations in Main Miwah Gold Zone exceed 1.5 g/t gold. Ongoing sampling verified the Company's confidence that higher overall gold grades can be achieved due to the presence of multiple high grade rock sawn channel samples throughout the strike, including 4.11 g/t gold over 200 metres at the eastern part of the Main Miwah Gold Zone, and 4.35 g/t gold over 27 metres at the western part. Recent drilling has supported this. In addition to the tabular zone the Company has begun to characterize some of the diatreme breccia feeder zones, with rock sawn channel samples including 83.59 g/t gold over 24 metres and 20.14 g/t gold over 12 metres. Recent drilling has supported this. These feeder zones have great potential to develop into substantial tonnages of higher grade gold mineralization in an area adjacent to the Main Miwah Gold Zone.

The Miwah Property is in a very similar volcanic setting to the Martabe gold-silver deposit, also located in North Sumatra (Purnama and Baskara resources: 127.8 million tonnes at 1.4 g/t gold (5.5 million ounces gold) and 15 g/t silver (60 million ounces silver), and the alteration system is of a comparable size. Miwah also exhibits a likeness to the size, style and geometry of the alteration system developed at the Pierina gold deposit in Peru (67.7 Mt grading 2.98 g/t gold and 22 g/t silver, giving a total 6.49 million ounces gold and 47.9 million ounces silver).

Samples reported were assayed at Intertek assay laboratories in Jakarta. Lionel Martin, P.Geo., the designated QP within the meaning of NI 43-101, has reviewed and approves the content of this release. East Asia has not verified the classification of the resource references and is not treating them as NI 43-101 defined resources verified by a QP. Although the references of resources are relevant to recognizing the potential of the Miwah project, they should not be relied upon.

About East Asia Minerals Corporation

East Asia Minerals (TSX VENTURE:EAS) is an Asian-based, Canadian mineral exploration company with gold and copper exploration properties in Indonesia, and uranium exploration properties in Mongolia. In Indonesia the Company has a 70 to 85% interest in six advanced gold and gold-copper properties located in Aceh Province, Sumatra, and Sangihe Island, North Sulawesi. Two of these, the Sangihe (Binebase-Bawone) and Barisan 1 (Abong) gold projects, are being advanced to define NI43-101 compliant resources. The Company owns eight uranium properties, including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, and two phosphate properties in Mongolia. East Asia currently has 76,040,872 shares outstanding. Its shares are listed for trading on the TSX Venture Exchange under the symbol "EAS".

Forward Looking Statements - This News Release contains forward looking information within the meaning of the British Columbia Securities Act, the Ontario Securities Act and the Alberta Securities Act, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with our expectations, metal recoveries, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration or development activities or the completion of new or updated feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations (including uranium, fuel, steel and construction items), currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The words anticipate, believe, estimate and expect and similar expressions, as they relate to us or our management, are intended to identify forward looking statements relating to the business and affairs of the Company. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

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