East Asia Minerals bullish on Indonesia (June 16, 2008)

Trench sampling at its Miwah gold project, in Indonesia’s Aceh province, has returned intersections as promising as 14 metres of 9.41 grams gold per tonne, East Asia Minerals (EAS-V, EAIAF-O) says.

Other high-grade intervals include 6 metres grading 6.62 grams gold per tonne and 6 metres at 5.23 grams gold.

All three results were related to northeast-trending, structurally controlled breccia zones that are largely untested by drilling.

These higher-grade structures or feeder zones are enveloped by broad areas of lower-grade gold mineralization up to 100 metres wide, the company reports.

So far, the chip channel-sampling program has focused on a 200 by 150-metre area in the southwestern corner of the property.

Other results include 20 metres grading 0.85 gram gold; 10 metres grading 3.85 grams gold; and 6 metres grading 2 grams gold.

East Asia Minerals notes that Miwah is within the same arc as Oxiana’s (OXFLY-O, OXR-A) highsulphidation Martabe gold deposit in North Sumatra, which has a resource of about 6 million oz. gold and 60 million oz. silver at average grades of 1.9 grams gold per tonne and 24.9 grams silver.

Construction permits have been issued for Martabe, and first production is slated for the end of 2009. Martabe will be an open-pit, carbon-in-leach operation, forecast to have a lifespan of about nine years.

East Asia says its Miwah property contains a large, high-sulphidation epithermal alteration and mineralization system measuring 800 by 1,000 metres that is geologically similar to Martabe’s.

Miwah was partially explored by previous owners in the 1990s. At that time, the property was defined by about 3,000 metres of drilling in 11 holes. All holes drilled during that program intersected significant alteration and mineralization with intercepts including 71 metres at 1.4 grams gold and 58 metres at 1.1 grams gold, the company says.

The most recent results are from a virtually undrilled breccia target west of the principal area that was drill-tested by the previous explorer.

The recent trench results, as well as historical work along with surface mapping and sampling, will now guide the company in selecting drill targets later this year.

East Asia Minerals has gold and copper exploration properties in Indonesia, as well as uranium exploration properties in Mongolia.

In Indonesia, East Asia Minerals has a 70-85% interest in six gold and gold-copper properties in Aceh province, Sumatra, and on Sangihe Island in North Sulawesi.

Two of these — the Sangihe (Binebase-Bawone) and Barisan 1 (Abong) projects — are being drilled to define National Instrument 43-101-compliant resources.

The company’s 10 uranium properties in Mongolia, meanwhile, include the advanced Ingiin-Nars, Ulaan Nuur and Enger projects, and a 75% interest in the Khok Adar copper-oxide discovery.

Recently, East Asia traded at about $1.30 per share. It has a 52-week range of $1-2.95.

The company has 55.6 million shares outstanding.