East Asia Minerals extends Miwah Main zone to the West

Drilling at the Miwah project in Indonesia’s Aceh province in northern Sumatra has extended gold mineralization to the west of the main zone, sending shares of East Asia Minerals (EAS-V)  up 67¢ or 9.75% to close at $7.54. The company has traded in a 52-week range of 45¢-$8.73 per share.

Hole EMD028 encountered 1.73 grams gold per tonne over 85.5 metres, including 2.08 grams gold over 49 metres in the uppermost level. This hole extends west from section EMD018/019, where up to 4.08 grams gold over 81 metres including 9.29 grams gold over 21 metres was previously drilled. The new hole extends the west potential of the main zone by 130 metres.

Mineralization is open to the west, where EMD032 is starting, and is interpreted to be contiguous towards previous holes drilled to the north, south and east. EMD027 was drilled with a due south azimuth and 55 degree dip, to confirm thickness and test for gold grade variation in the vuggy silicification between holes EMD023and EMD024. It was completed at 200 metres down-hole depth. Gold grading 0.62 gram per tonne was struck over 147 metres, including 1.28 grams gold over 33 metres.

East Asia has drill validated the 1.2 km east-west outcropping width of the shallow, laterally extensive Miwah Main zone, and has encountered mineralization in all of the holes.

The Miwah Main zone remains open in all directions with the Moon River area expanding the north-south potential to more than 600 metres, while remaining open further to the north towards Sipopok. Sampling west of the Miwah Main zone in the Signal area has potentially expanded the east-west width another 600 metres and remains open, the company says.

In 1997 previous owners drilled 12 holes or about 3,100 metres and all holes intersected significant alteration and mineralization with intercepts including 71 metres of 1.4 grams gold and 58 metres of 1.1 grams gold. “The previous explorer suggested potential for 100 million tonnes at 1.1 to 1.2 grams gold,” East Asia states in a press release. “But a review of the historical data indicates that early drilling was parallel to higher grade (greater than 5 grams gold) structures at surface.”

Under East Asia Mineral’s program, Miwah is “resolving into two components; a large 1,200-metre long, at least 450-metre wide, roughly 200 metre thick tabular zone; and vertical diatreme breccia feeder zones that are beneath this and cut through it.”

The company believes higher overall gold grades can be achieved because high-grade rock sawn channel samples exist throughout the strike, including 4.11 grams gold over 200 metres at the eastern part of the main gold zone and 4.35 grams gold over 27 metres at the western part.

Recent drilling has supported this belief, with rock sawn channel samples including 83.59 grams gold over 24 metres and 20.14 grams gold over 12 metres. These feeder zones have potential to develop into good tonnages of higher grade gold mineralization in an area adjacent to the main gold zone, the company says.

The Miwah property is in a very similar volcanic setting to the Martabe gold-silver deposit in North Sumatra and shares a likeness in size, style and geometry of alteration with the Pierina gold deposit in Peru, the company claims.