The Company is pleased to provide an update on current exploration activities relating to the ongoing Indonesian Feasibility Study (IFS), AMDAL Environmental report status, geotechnical and metallurgical work being conducted at its Sangihe gold property in Indonesia.
The Company’s focus is on completing Indonesian Feasibility Study (IFS) and AMDAL Environmental reports as once they are submitted and accepted by the Indonesian Mining Department (MEMR), construction of the mining facilities and infrastructure can begin at the Sangihe project. The company anticipates making a decision for gold processing and production to begin by mid 2018. The Indonesian Feasibility Study is not a Feasibility Study as defined by CIM as required by NI 43-101 but is required under Indonesian law in order to obtain a licence to construct a production facility. The Company cautions readers that the any production decision made by the Company will 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 IFS, which is being conducted by Resindo Resources and Energy, an Indonesian consulting firm, is well underway and comprised of several elements:
Metallurgical drilling of three twin holes has been completed during the month of October. These holes identify the most suitable heap-leaching locations. Samples obtained are currently undergoing Metallurgy Bottle Roll Test work at Geoservices Laboratory. Cyanide Soluble assay results received for the metallurgy samples submitted showed gold recoveries of 85% and silver recoveries of 96%.
Drilling of six geotechnical holes, has commenced with hole number three in progress. This drilling is a required component for Indonesian Feasibility Study (IFS) in order to provide the most up to date and accurate core samples for pit wall design.
Hydro-geological surveying is complete and is designed to help locate and identify the water table level in the pit design and best water sources needed for upcoming drilling, heap-leaching and ultimately gold production.
The Company is very pleased with the drilling progress considering the weather conditions have been less than favorable. The monsoon season started earlier than normal this year making the drilling process difficult which could ultimately delay the final AMDAL and IFS reports by a few weeks.
Overall Site Layout including the location of heap leach pads, processing plant and waste dump areas has been completed. The Overall Site Layout was designed to be very concise and therefore has a total footprint area of 42 hectares which is 0.1% of the 42,000 hectares Sangihe gold property total area.
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.
Sangihe Project
The Sangihe gold-copper project is located on the island of Sangihe off the northern coast of Sulawesi and has an existing National Instrument 43-101 inferred mineral resource of 114,700 indicated and 105,000 inferred ounces of Gold. The Company’s 70-percent interest in the Sangihe-mineral-tenement contract of work (“CoW”) is held through PT Tambang Mas Sangihe (PTTMS). The remaining 30-percent interest in PTTMS is held by three unaffiliated Indonesian corporations. The term of the Sangihe CoW agreement is for 30 years upon commencement of the production phase of the project.
EAST ASIA MINERALS CORPORATION
Per: “Terry Filbert”
Terry Filbert, Chairman & CEO
For further information, contact Mark Sommer at 1-604-684-2183, info@eastasiaminerals.com or visit the Company’s website at www.eastasiaminerals.com
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.