East Asia Minerals Corporation

East Asia Minerals Corporation

June 03, 2009 08:30 ET

East Asia Discovers New Extension to Miwah Gold Zone, Grading Up to 125.9 g/t Gold Over 23 Metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 3, 2009) - East Asia Minerals Corporation (TSX VENTURE:EAS) reports that ongoing mapping and sampling of the Company's flagship Miwah Gold Project in Aceh Province, Northern Sumatra, has discovered a new bonanza grade extension to the Miwah Gold Zone, and has encountered additional high-grade gold mineralization at the eastern portion of the main body. Drill pad preparation is in progress with the drill rig mobilized to commence the initial ten-hole program along the full strike length of the impressive Miwah Gold Zone.

Initial rock chip sampling of a newly discovered southwesterly extension to the Miwah Gold Zone has encountered several gold-rich channels, including 125.9 g/t gold over 23 metres and 19.15 g/t gold over 8 metres. Infill rock sawn channel sampling in the east area of the Miwah Gold Zone has encountered several new high-grade gold sections, including 3.62 g/t gold over 28 metres and 3.76 g/t gold over 8.45 metres.

Miwah Update

Concurrent to ground preparations for the upcoming drill program, geological teams are continuing with sampling of the main Miwah Gold Zone, regionally in areas such as the highly prospective Sipopok Gold Zone 1.5 kilometres to the NNE, and in areas where mapping and sampling are defining direct extensions to the Miwah Gold Zone. Assays results from 223 rock sawn and rock chip channel samples have been recently received for the newly discovered South Miwah Bluff feeder zone and the eastern portion of the Miwah Gold Zone.

Air photo interpretation defined the South Miwah Bluff zone, which is a subdued north-northeast trending ridge comprising a number of subsidiary feeder structures. The main feeder structure occurs as a southwesterly extension to the high-grade structure mapped at the western area of the Miwah Gold Zone, which will be tested during the upcoming EAS drill program. This zone is a new EAS discovery not recognized by previous explorers, and further demonstrates the robust upside of the large Miwah tenement.

The South Miwah Bluff zone occurs as interspersed boulders and sub-cropping strongly silicified blocks of andesite crystal tuff and tuff breccia. Similar to the main Miwah Gold Zone the dominant alteration is vuggy silica with sugary and massive silica, with moderate to strong oxidization, rare (less than 1%) remnant sulphide minerals (pyrite & enargite) and native sulphur.

Results from recent sampling has both increased the known size of the Miwah Gold Zone and confirmed the presence of high-gold grade feeder structures to the south. The discovery of the South Miwah Bluff bonanza gold zone has opened up the southwest portion of Miwah prospect by an additional 350 metre by 250 metre area with very promising potential to further increase the southerly strike. The discovery of bonanza gold grades hosted in NNE trending structures south of the Miwah Gold Zone suggests that these are feeding gold mineralization into the larger receptive horizons being targeted by the upcoming drill program. These gold mineralized structures also suggest very good starting potential for future mining activities to generate faster returns on investment and aid in cash flow for ramping up production from the larger outflow zones. In addition to drilling of the main Miwah Gold Zone, ongoing exploration efforts will define drill targets within the new discovery for testing immediately following the current program.

Channel Sample Highlights:

Block M Area Length (metres) Gold (g/t)
Trench (RC) 129 28.00 3.62
Trench (RC) 139 21.00 2.11
Trench (RC) 149 10.70 2.40
Trench (RC) 150 10.00 2.33
Trench (RC) 155 8.45 3.76

South Miwah Bluff Zone Length (metres) Gold (g/t)
Trench (RO) 154 8.00 4.97
Trench (RO) 158 23.00 125.84
Trench (RO) 159 9.00 4.79
Trench (RO) 160 8.00 19.15

Progress towards the upcoming drill program along the main Miwah Gold Zone is on schedule. The drill rig has been mobilized and drilling will commence soon. The initial drill program will comprise 10 holes for a total of 2,000 metres to provide a 3D validation along the currently defined 1,200 metre strike of the Miwah gold-bearing silica zone, exposed along the impressive Miwah ridge.

This program will provide a further indication of the gold resource potential and the framework for follow-up drilling. While well over 2,000 metres of rock saw channel samples averaging 1.2 g/t gold have been collected by EAS across the entire system, the ongoing sampling further verifies the Company's confidence that higher overall gold grades can be achieved due to the presence of multiple high grade rock saw channel samples including 4.11 g/t gold over 200 metres at the eastern part of the gold zone, and 4.35 g/t gold over 27 metres at the western part (refer to previous news releases). Initial drill results from the program are expected in July with drilling continuing for approximately three months and beyond with follow-up drilling.

Miwah Background

The Miwah Gold Zone was partially defined by approximately 3,000 metres of drilling in eleven 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 clearly 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 properly oriented drill holes.

Rock saw channel sampling by EAS in 2008 within a well defined, one square kilometre zone of high sulphidation alteration averaged 1.2 g/t gold and +3 g/t silver from over 2,000 metres of samples. Better gold mineralization, including 4.11 g/t gold over 200 metres, is closely related to massive, residual vuggy silica-sulphide forming an impressive resistant, east-northeast trending cliff traced 1,200 metres along strike, averaging 300 metres wide and up to 200 metres high.

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 Intertech assay laboratories in Jakarta. Michael Hawkins, M.Sc., MAusIMM, the designated QP within the meaning of 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 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 twelve uranium properties, including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, four phosphate properties, and a 75% interest in the Khok Adar copper oxide discovery in Mongolia. East Asia currently has 55,645,372 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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