East Asia Minerals Corporation (TSXV:EAS) (the “Company”) announces that Mining Associates Pty Ltd (“MA”) has provided an updated resource estimate for East Asia Mineral’s Binebase-Bawone gold deposit at the Sangihe Project. The Sangihe Project is a 42,000 hectare tenement on Sangihe Island, Sulawesi, Indonesia, located in the volcanic island arc that extends northwards over 400 km from the north eastern arc of Sulawesi to Mindano in the southern Philippines. Both oxide and sulphide of gold mineralization are present at the Binebase and Bawone deposits.
Based on 127 of a total of 153 diamond drill holes drilled at Binebase and Bawone , Indicated and Inferred resources using a 0.25g/t gold cut-off for oxide material and 1.0g/t gold cut-off for sulphide material were derived. Indicated resources are estimated at 3.16 million tonnes averaging 1.13 g/t gold and 19.4 g/t silver for 114,700 ounces gold and 1,972,400 ounces silver in near and at surface oxides and sulphides. Inferred resources are estimated at 2.54 million tonnes averaging 1.29 g/t gold and 13 g/t silver for 105,000 ounces gold and 1,055,600 ounces silver in near and at surface oxides and sulphides.
Mineral Resources are contained within two separate bodies, the Binebase and Bawone deposits, separated by approximately one kilometre of shallow untested cover. At a 0.25 g/t gold cut-off, 82 percent of the oxide material, including Indicated and Inferred gold ounces, is contained in the Binebase portion of the deposit. At a 1.0 g/t gold cut-off, 85 percent of the sulphide material, including Indicated and Inferred gold ounces, is contained in the Bawone portion of the deposit.
Close-spaced drilling is required to upgrade Inferred resources to the Indicated classification, while step-out drilling is required to determine the extents of the gold and silver mineralization which remains open at both prospects.
“Our goals for Sangihe are to complete the requirements for the Federal Indonesian Mining Department for the production license issuance by the end of 2017 and the continuation of exploration with a view to increase the resource base of the project. Our initial focus regarding production will be the oxide gold resource. The Binebase and Bawone resources are open for further drilling. In addition, we plan to do further work to assess several high-grade surface gold zones which have been identified on this large property,” said Terry Filbert, CEO of East Asia Minerals. Other areas of the large Sangihe property that warrant follow-up include the results from trenches dug perpendicular to strike orientation set out below.
- Kelapa where trench results include 14 metres at 34.8 g/t gold, 10 metres at 9.11 g/t gold, 6 metres at 9.19 g/t gold, 6 metres at 7.34 g/t gold, and 14 metres at 1.1 g/t gold;
- Brown Sugar where trench results include 7.8 metres at 15.6 g/t gold and 195.0 g/t silver, 4 metres at 16.0 g/t gold and196.0 g/t silver, and 1.8 metres at 17.9 g/t gold and 251.0 g/t silver and an East Asia drill hole at the Brown Sugar zone gave 16 metres at 2.7 g/t gold and 33.2 g/t silver;
- Sede where trench samples include 13.4, 15.0 and 42.6 g/t gold at Zone One, and 7.78, 11.2 and 16.0 g/t gold at Zone Two;
- Kupa where trench results include 122.0, 82.4 and 73.8 g/t gold;
- Bonzos where trench results include 5 metres at 2.93 g/t gold and 35.0 g/t silver.
The foregoing campaign shall be carried out on a time scale to consider a production decision in 2018. The Company cautions readers that the any production decision made by the Coimpany will probably not be based on a NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability and as such, there may be involved increased uncertainty and various technological and economic risks outlined in the “forward looking statement” below.
The reader is referred to the Company’s website at www.EastAsiaMinerals.com where previous news releases of exploration and drilling at Sangihe may be found. The complete NI 43-101 Resource Estimate can be accessed on the East Asia Minerals website here, or on the SEDAR website at www.sedar.com.
Resource Estimation Methodology
The mineral resource estimate for the Binebase-Bawone gold deposits were completed by independent consultant Mining Associates Pty Ltd. Drill hole samples were analyzed for silver and gold at SGS (Indonesia) prior to 2013 and PT Intertek Utama Services after January 1st 2013. All sample results are monitored with an appropriate QA/QC program and passed the quality checks. The presence of potential outlier sample data was evaluated and top cuts applied for silver and gold according to the deposit (Binebase or Bawone) and the block model classification of high grade (HG) or low grade (LG). The Binebase HG top cuts used were 10.5g/t for gold and 300g/t for silver. The Bawone HG top cuts used were 9.2g/t for gold and 60g/t for silver. The Binebase LG top cuts used were 2.6g/t for gold and 300g/t for silver. The Bawone LG top cuts used were 1.4g/t for gold and 30g/t for silver.
Resource estimation was constrained by domains consisting of 3D wireframes/solids. Drill hole data was displayed in section and elevation slices showing assays and geology. Intercepts were selected and coded for each domain based primarily on a grade greater than 0.3 g/t Au and less than 1 g/t Au for low grade, and more than 1 g/t Au for high grade.
Solids were extended laterally for approximately half the drill spacing, typically about 12.5 m, where mineralization was not closed off by drilling. The depth of extrapolation below drill holes was also typically about half the average drill spacing, about 12.5 m. Two sulphide breccia veins at Binebase were extended vertically 15 m below their respective lowest drill hole intercept points. Bawone mineralization was extended vertically 15 m below the lowest drill hole intercepts.
The grade of blocks measuring 15 metres (x) by 15 metres (y) by 5 metres (z) were estimated using the Ordinary Kriging method with Gemcom Surpac (v6.4.1) software. A sub-block size of 1.875 m (x), 1.875 m (y) and 0.625 m (z) was used to increase the resolution of the model at the edges of domains and to better represent narrow, high grade mineralization. Block size selection was based on kriging neighbourhood analysis “KNA”.
Mineral resources were estimated using informing sample 2 metre downhole composites across the mineralization at Binebase and Bawone. Estimation parameters were based on directional variograms for gold and silver for each domain except for Binebase high and low grade silver. Omnidirectional variograms were used for Binebase silver estimates
Tonnages at Binebase and Bawone were calculated from block volumes and 385 density measurements used in this mineral resource estimate. Densities used in this mineral resource estimate were equal to the mean of the domained sample population rounded to two decimal places. Density values for Binebase range from 1.83 t/m3 to 2.28 t/m3. Density values for Bawone range from 2.11 t/m3 to 2.63 t/m3.
Frank Rocca, BAppSc.(Geology), MAusIMM, Chief Geologist of East Asia Minerals Corp. is the Qualified Person as defined under NI 43-101 who has reviewed and approves the content of this release.
A copy of this 43-101 report can be found on www.sedar.com.
For further information please contact:
For further information, visit the Company’s website at www.eastasiaminerals.com
East Asia Minerals Corporation
Terry Filbert, Chairman & CEO
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.
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 include, but are not limited to, statements or information concerning future work programs, results and timing of any work programs, the Company’s performance or events as of the date hereof. These statements reflect management’s current assumptions and expectations 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. Those risks include the interpretation of drill results; 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, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project’s output will not be salable at a price that will cover the project’s operating and maintenance costs. 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. Accordingly, readers should not place undue reliance on any forward-looking statement. 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.