Asia Gold eyes Yagaan (January 26, 2004)

Vancouver — Newly formed Asia Gold (ASG-V) has uncovered a high-sulphidation epithermal gold system on its Western Gobi property in southern Mongolia.

The prospect, known as Yagaan, is in a 4.9-by-1.1-km anomaly, and the main target is marked by an elongated ridge of silicified volcanics. The upper part of the ridge comprises silica, alunite, kaolinite and sericite alteration with local hydrothermal brecciation.

The junior collected 98 grab samples, 11 of which returned more than 1 gram gold per tonne over an area measuring 300 by 150 metres. The company obtained a high gold value of 21.4 grams.

A 1.2-km arsenic geochemical anomaly is partially coincident with the high gold values. Mineralization occurs in a zone within the silicified volcanics containing up to 20% sheeted and stockwork quartz veins. The veins display banded, colloform and vuggy textures.

Situated 300 km west of the provincial capital of Dalanzadgad, the Yagaan target is part of the 35,812-sq.-km Western Gobi property. Roughly 400 km to the east is Ivanhoe Mines‘ (IVN-T) Oyu Tolgoi copper-gold porphyry deposit. Ivanhoe owns 51.1% of Asia Gold’s 14.6 million outstanding shares.

Asia Gold intends to advance the Western Gobi project by means of mapping, geochemical sampling, trenching, ground geophysics, and finally drilling.