East Asia Announces NI43-101 Resource Estimate for Miwah; Growth Potential Verified by Open Sections and Drilling Outside Resource Block
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/09/11 -- East Asia Minerals Corporation (TSX VENTURE: EAS) is pleased to announce that Mining Associates Pty Ltd ('MA') has provided an initial NI43-101 compliant resource estimate for the Miwah Gold Project in Aceh Province, Northern Sumatra, Indonesia.
Based on 71 diamond drill holes the Inferred Resources, using a 0.20 g/t gold cut-off, are estimated at 103.9 million tonnes averaging 0.94 g/t gold and 2.68 g/t silver for 3.14 million ounces gold and 8.95 million ounces silver in near and at surface mineralization.
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Grade Contained Metal
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Tonnage Au Ag AuEq(i) Au Ag AuEq(i)
Cut-Off Grade Au (g/t) (Mt) (g/t) (g/t) (g/t) (Moz) (Moz) (Moz)
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greater than 0.2 103.9 0.94 2.68 0.98 3.14 8.95 3.28
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greater than 0.4 84.9 1.08 2.96 1.13 2.95 8.09 3.07
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greater than 0.6 61.1 1.31 3.36 1.36 2.57 6.60 2.68
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(i) Gold equivalents have been calculated assuming the two year trailing
average metal prices and used a gold price of $US1,185 per ounce, and a
silver price of $US20 per ounce for a silver to gold equivalency ratio of
56.42:1. Gold (Au) recovery is assumed 95% and silver (Ag) recovery is
assumed 85%.
The resource estimate is contained within the Miwah Main Zone portion of the large Miwah Gold Project, and remains open for expansion. The reported NI43-101 inferred resource block measures 1300 metres east-west, up to 600 metres north-south, and 300 metres thick from the summit of the Miwah hill. Closer spaced drilling is required to upgrade Inferred Resources to the Indicated classification, whilst step-out drilling is required to determine the extents of the gold and silver mineralization which remain open.
During the course of the estimation work the independent consults, Mining Associates, noted and were impressed with the high level of professionalism with which the field programs were organised and executed.
'This initial resource estimate is encouraging for the Miwah project, especially because exploration drilling was largely stopped during the resource drilling campaign,' said Michael Hawkins, President and CEO of East Asia Minerals. 'Combined with the Sangihe project we have now defined in excess of 4 million ounces of shallow NI43-101 compliant gold resources. The Miwah and Sangihe gold deposits remain open for resource expansion with drills turning at both projects. Elsewhere on these projects there are several surface gold zones being primed for initial and follow-up drilling. The Company also anticipates completion of metallurgical, environmental and scoping studies at Miwah by year end. With a strong treasury, we are fully financed to move these programs forward.'
The Company also notes significant gold-bearing drill intersections that remain open at the outer limits of and adjacent to the resource block, verifying the potential to quickly expand the initial resource estimate.
The gold-bearing Miwah Horizon remains open past drill holes EMD056 and EXD004 potentially expanding the resource block to the east, past drill holes EMD054/061/066 potentially expanding the resource block to the west, and past drill holes EMD047/050/051/060/064/065 potentially expanding the resource block to the north. Gold mineralized in holes EMD067/068 has not been included in the initial reported resource estimate and also expands the upside to the WNW.
Exploration drilling remains in progress with the objective to generate the next phase of data required to provide an update to the initial Miwah resource estimate (Refer to Miwah drill hole location map and table of gold-silver assays at www.EAminerals.com). The reader is referred to the Company's website at www.EAminerals.com where previous news releases of exploration and drilling at Miwah and Sangihe may be found.
Resource Estimation Methodology
The mineral resource estimate for the Miwah Main Zone gold deposit was completed by independent consultant Mr Ian A. Taylor, BSc (Honours Economic Geology), MAIG, MAusIMM, of Mining Associates, using accepted, industry standard methods that conform with National Instrument 43-101. Drill hole samples have been analyzed for silver and gold at Intertek assay laboratories in Jakarta, Indonesia. All sample results are monitored with an appropriate QA/QC program and passed the quality checks. The presence of potential outlier sample data was evaluated and top cuts applied for silver and gold, each lode was assessed independently and grade cuts applied accordingly, no samples were removed from the data set.
The grade of blocks measuring 12.5 metres by 12.5 metres by 2.5 metres were estimated in un-folded space using the Ordinary Krige algorithm as utilised by Surpac Geological Software (v6.1.4). The un-folded model was refolded into original 3D space; block volumes were checked against wireframe volumes and tonnage and grade was validated against an ordinary kriged 3D model, as expected the unfolded model performed better, better reflecting the nature and distribution of gold and silver grade.
Sample data was composited to two metres between the geological boundaries. A minimum of three samples and a maximum of 18 samples were used in the grade estimation of any particular block (88% of the blocks were informed by the maximum number of samples). Blocks were informed using anisotropic search ellipses as defined by variograms ranges, in three directions. The majority of domains were estimated using search ellipses with a 260 metres and 200 metres major axis radius for gold and silver respectively, a major to semi-major axis ratio of 1:2 and a major to minor axis ratio of 1:4 was applied to both gold and silver searches.
The tonnage at Miwah was calculated from block volumes based on a mathematical relation between grade and measured rock densities (drill core). At Miwah bulk density is related to the oxidation state of the rock. The oxidation states of each block were estimated using indicator kriging. Density was assigned based on the proportion of each oxide state in the block. The average bulk density of all material types is 2.39.
Blocks were classified as Inferred mineral resources based on geological and grade continuity, the nominal drill spacing at Miwah is 75m centers. A technical report on the Miwah gold deposit will be filed with SEDAR within 45 days of this release.
Mr Ian A. Taylor, BSc (Honours Economic Geology), MAIG, MAusIMM, of Mining Associates, the designated Independent QP within the meaning of NI 43-101, has reviewed and approves the content of this release that relate to Miwah Main Zone Inferred Resource.
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. The Company owns seven uranium properties, including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, and two phosphate properties in Mongolia. East Asia currently has 77,962,872 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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Contacts:
East Asia Minerals Corporation - Vancouver
Michael Hawkins
President and CEO
1-604-684-2183
Hawkins@EAminerals.com
East Asia Minerals Corporation - Toronto
Nick Kohlmann
Corporate Communications
1-416-792-8734
Kohlmann@EAminerals.com
East Asia Minerals Corporation - Vancouver
Mark Patchett
Investor Relations
1-604-637-8154
patchett@eaminerals.com
www.EAminerals.com