East Asia Minerals Intercepts 690.9 Metres of 0.4 g/t Gold, 0.3% Copper at Upper Tengkereng Porphyry; Grade Increases With Depth and Hole Bottoms in 58.9 Metres of 1.2 g/t Gold and 0.5% Copper
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/17/11 -- East Asia Minerals Corporation (TSX VENTURE: EAS) announces results from its second diamond drill hole at the Upper Tengkereng project, supporting the potential for a large and well-mineralized porphyry system and displaying characteristics of some of the world's more important gold-copper deposits. Upper Tengkereng is one of six gold-copper porphyry projects being advanced within the Company's highly prospective Barisan porphyry belt, Aceh Province, Indonesia. Drill hole UTD002 expands on the significant gold and copper porphyry mineralization intersected by the Company's previous and first hole at Upper Tengkereng. UTD002 encountered 0.39 g/t gold, 0.30% copper over the full 690.9 metres length of hole, including 0.36 g/t gold, 0.71% copper over 90 metres in the upper portion of the hole, and 1.17 g/t gold, 0.48% copper over 58.9 metres at the end of hole. The hole was stopped at 696.9 metres in high-grade mineralization due to excessive drill hole cave-in. The drill rig is being moved to the Company's Upper Ise-Ise gold-copper porphyry project located approximately 3 kilometres northeast of the Upper Tengkereng target area.
UTD002 was drilled with a 50 degree azimuth and 60 degree dip to test east of previous hole UTD001A (news release December 1, 2008) where recently mapped 5 to 10% quartz stockwork veining by volume, within advanced argillic alteration and coincident gold-copper surface geochemistry, indicates an improvement in mineralization. The presence of marbleized limestone further east suggests potential for a porphyry heat source at depth. UTD002 was cemented to support the poor ground conditions between 427 and 479 metres, however, it was ultimately stopped at 696.9 metres due to repeated blockage in clay and collapsed cement fragments. The Company notes it encountered similar difficulties and lost drill string with previous hole UTD001A.
The host rock is diorite porphyry. From surface to 120 metres the alteration is predominantly argillic, followed by QIP (quartz-illite-pyrite) to 378.6 metres. From 378.6 to 515.5 the porphyry is a mixture of phyllic and argillic altered intervals, followed by a predominance of phyllic alteration from 515.5 to 696.9 metres (end of hole). A post-mineral dyke was intersected from 596 to 636 metres (40 metres).
Quartz vein density is significant throughout and typically ranges from 5% to 30%. Increased sulphide content correlates well with increased quartz vein density. The sulphide minerals generally occur both within the quartz veins, as vug infill, and disseminated throughout the wall rock, and are frequently in the range of 0.2 to 0.7% chalcopyrite, 0.3 to 0.6% covellite, trace to 0.5% chalcocite, and 5 to 10% pyrite.
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From To Interval Gold Copper Copper
Hole Number (m) (m) (m) (g/t) (%) Equiv. (%)
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UTD-002 6.0 696.9 690.9 0.39 0.30 0.53
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Including 6.0 120.0 114.0 0.41 0.19 0.43
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And 172.0 340.0 168.0 0.28 0.57 0.73
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Including 250.0 340.0 90.0 0.36 0.71 0.92
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And 380.0 436.0 56.0 0.66 0.20 0.59
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And 576.0 596.0 20.0 0.87 0.26 0.77
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And 638.0 696.9 58.9 1.17 0.48 1.16
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Including 638.0 678.0 40.0 1.46 0.48 1.33
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(i) The copper equivalent uses a gold to copper ratio of 1:0.585 (1 gm gold = 0.585% copper); based on long-term prices of $2.25 per pound copper and $900 per ounce gold, assuming total recoveries of both metals.
As a grade comparison the Company notes that the Batu Hijau deposit in Indonesia contains 914 million tons of ore at an average grade of 0.40 g/t gold (366 tons gold) and 0.53% copper (4.8. million tons copper). In addition to similar gold grades as Batua Hijau, the Company also notes analogies to the Chilean Maricunga Belt where some of the best documented porphyry gold and gold-copper systems occur. Gold grades can be exceptional as in the case of Lobo - Marte in the north of the Maricunga Belt, ranging to very good in the south at Caspiche (indicated resource of 785MT at 0.57g/t gold, 0.20% copper, and inferred resource of 685MT at 0.45g/t gold, 0.25% copper) where there are similar grades as at Lower and Upper Tengkereng. Of note is that this is a mineralized belt and there is a suggestion that the increase in gold grade has a vector, in the case of Maricunga, to the north. This could also be the case for East Asia Minerals' Barisan Belt where there are gold-rich epithermals to the northwest such as at Abong.
The Company also refers the reader to the news release of December 1, 2008, for the announcement of initial drilling at the Upper Tengkereng project, and news releases of August 10 and September 15, 2010 for drilling of the Lower Tengkereng project, drilled approximately 1.5 kilometres away from Lower Tengkereng. The initial hole at Upper Tengkereng (UTD001A) was drilled due to ease of access and encountered 646.25 metres averaging 0.39 g/t gold and 0.21% copper, including a significant intersection of 268 metres of 0.57 g/t gold and 0.26% copper. Significant near surface gold mineralization was also intercepted, including 14 to 82 metres (68 metres) of 0.51 g/t gold and 0.21% copper.
The Upper and Lower Tengkereng targets occur as two large outcrop areas of similar porphyry gold-copper mineralization. The Company believes Upper and Lower Tengkereng are possibly contiguous, and part of one large system linked at depth, with the intervening area covered by shallow inter-bedded sedimentary and volcanic rocks.
Barisan Porphyry Geological Setting
East Asia Minerals' Barisan tenements encompass a cluster of six known porphyry centres within a 6.2 kilometre by 3 kilometre block (view map at www.EAminerals.com). Geological features observed in drill core from Lower and Upper Tengkereng confirm that this system shares many features of the world's best gold-rich porphyry copper deposits in the circum-Pacific rim. They include:
a. the association of gold-copper mineralization with composite porphyry
stocks emplaced into coeval andesitic volcanic rocks at shallow levels;
b. association of K-silicate alteration at depth which has undergone
partial overprinting with advanced argillic and intermediate argillic
assemblages;
c. strong positive correlation between quartz vein density and gold and
copper distribution mainly represented by disseminated chalcopyrite and
bornite;
d. hydrothermal magnetite associated with quartz veining is common at depth
but appears to have been destroyed at higher elevations by later-stage
overprinting hydrothermal alteration;
e. the mineralized system is telescoped in which later stage vuggy, banded
epithermal quartz veins overprint early porphyry-style veins.
Photogeological interpretation of stereoscopic ASTER and PULSAR satellite images of this region has identified additional porphyry targets, demonstrating the high prospectivity of this mineralized belt. These targets and the other known porphyry centers will be systematically explored.
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 reserve/resource references and is not treating them as NI 43-101 defined reserves/resources verified by a QP. Although the reference of reserves/resources is relevant to recognizing the potential of the Tengkereng project, it 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 seven 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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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
www.EAminerals.com