East Asia Minerals Provides Update on Miwah Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/13/11 -- Further to its press release dated August 15, 2011, East Asia Minerals Corporation (TSX VENTURE: EAS) ('EAS' or the 'Company') wishes to provide an update as to the status of its Miwah project located in Aceh Province, Indonesia.
East Asia Minerals Corporation has received updated advice from its legal counsel in Indonesia confirming that the mining business licenses granted in relation to the Miwah project are still valid, which allow the holders of the licenses in the Miwah project access rights to conduct limited activities on the Miwah project. Activities will be limited until additional permits are received. Further, the legal counsel in Indonesia has also confirmed that the cooperation agreements which establish the Company's interest in the Miwah project in Indonesia are valid and that the counsel is not aware of any material defects in such agreements for its Miwah project. East Asia Minerals has outlined an exploration plan below to move forward on the Miwah project during 2012.
Edward C. Rochette, CEO and Director, elaborated, 'Having clarified the path forward, the Company is directing all efforts towards the completion of all necessary permitting.'
EAS owns an 85% indirect equity interest in the Miwah project. The Miwah project lies within three contiguous Izin Usaha Pertambangan ('IUP'), also referred to as mining business licenses, which the Company is party to through cooperation agreements with its partners. The IUPs were issued in November 2009 by the Regent of Pidie Regency of the Province of Aceh, Indonesia.
The IUP itself does not grant its holder the complete set of permits or licences required to carry out mining activity. In order to conduct mining activity, the IUP holder is separately responsible for applying and receiving any other permits required, which may include, but are not limited to, forestry access permits and land owner consents.
Given the Miwah project is located within a designated forestry area by the Ministry of Forestry of the Republic of Indonesia ('MoF'), the IUP holder is responsible for obtaining a forestry borrow-use permit from the MoF, allowing it to conduct activities in designated forestry areas that would involve disturbing the underlying forest. Exploration forestry borrow-use permits granted by the MoF are generally valid for a period of two years, after which a new application must be submitted.
As the IUP holders in the Miwah project ('Miwah Companies') currently do not have a forestry borrow-use permit, the activities conducted at Miwah project are limited to activities that do not disturb the underlying forest. Should the land area permit it, such activities could include grab or channel sampling or other activities that do not have an impact on the forest area.
Further, a forest moratorium affecting land in Aceh Province and other areas of Indonesia including part of the Miwah project area has been imposed by the regulatory authorities in Indonesia designating such areas as 'primary forests'. The Company has applied to the Governor's office for guidance and instruction in respect of how the affected Miwah area can be re-designated as not forming part of the 'primary forest' and how this designation affects the ability of the Company to apply for the necessary borrow-use permits in respect of the Miwah project. The Company understands that it is required to have the affected portions of the Miwah project area re-designated as not part of the 'primary forest' area before the borrow-use permits can be properly applied for. In order to progress this request, the Company is required to complete an on-site survey together with the regulatory authorities. This surveying is currently in process and expected to be completed within next few months. Once the Company has received the recommendation of the Governor in respect of re-designating the affected areas of the Miwah project, application will be made to the Ministry of Forests for final permit approvals that will allow the Miwah Companies to resume drilling activities at Miwah. Until these permits are issued, the Company can carry out limited exploration activities under the supervision of the relevant forestry officials. On this basis, the Company is continuing to work towards the completion of its Indonesian standard feasibility study requirement under its IUP by November 2012.
If and when, a decision is made to proceed with the construction of a mining operation at Miwah project, further considerations would need to be taken into account with regards to the forestry situation at the project. The current Miwah project resource is entirely located in an MoF designated area called a Protection Forest. Under current laws, any mining operations in a Protection Forest are limited to underground mining methods that do not cause any change to the natural function of the underlying Protection Forest area.
Under current laws, the forest designation at Miwah would need to be changed in order to allow open-pit mining methods to be employed at the project. A forest designation as a Production Forest or alternatively a re-classification to non-forest designation would allow open-pit mining methods at Miwah. Such a process to reclassify a forest designation can only be initiated by the relevant Provincial Governor and requires the approval from the House of Representatives. The Company has held preliminary discussions with the Governor of Aceh Province, Indonesia with regards to a potential reclassification of the forest designation at Miwah. These discussions are at a preliminary stage.
EAS' immediate focus at Miwah project is on (a) having the forest moratorium affecting certain land comprising part of the Miwah project area re-designated; (b) applying for and receiving a forestry borrow-use permit that would allow the Miwah Companies to re-initiate drilling; and (c) completing an Indonesian standard feasibility study that is required for submission to relevant government entities by November 2012 in compliance with their current IUPs.
With regards to the proposed spin-outs of the Sangihe project and the Mongolian properties, East Asia Minerals has let the Sangihe Gold Corp. and East Asia Energy Corp.'s prospectuses lapse as it continues to work through the asset transfer approval process. East Asia Minerals will reassess the status of the spin-outs once final approvals are received.
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 three advanced gold and gold-copper properties located in Aceh Province, Sumatra, and Sangihe Island, North Sulawesi. The Company owns nine uranium properties, including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, and two phosphate properties in Mongolia. East Asia currently has 84,221,582 shares outstanding. Its shares are listed for trading on the TSX Venture Exchange under the symbol 'EAS'.
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Caution Regarding Forward Looking Statements
Certain statements in this News Release, which are not historical in nature, constitute 'forward looking statements' within the meaning of that phrase under applicable Canadian securities law. These statements relate to the Company's plans and intentions with respect to permitting issues at the Miwah property. When used in this News Release, such statements use words such as 'focus', 'may', 'will', 'expect', 'intend', 'anticipate' and other similar terms. These statements reflect management's current assumptions and expectations regarding future results, performance or events as of the date hereof and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Forward looking statements involve significant risks and uncertainties and should not be read as guarantees of future or performance results. Accordingly, readers should not place undue reliance on any forward looking statement.
Forward looking statements are based on assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made. The Company believes that the assumptions and expectations reflected in such forward looking statements are reasonable. Assumptions have been made regarding, among other things, the Company's future exploration and development activities; timely receipt of third party or regulatory approvals; and the Company's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used and that these factors and assumptions may be incomplete or incorrect.
Forward looking statements are also subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward looking information. Those risks include 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; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, permitting and licensing risks; and general market and mining exploration risks.
Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities
laws or an exemption from such registration is available.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
East Asia Minerals Corporation
Mark Patchett
Investor Relations
+1-604-684-2183
patchett@eaminerals.com
www.EAminerals.com