Vancouver, British Columbia, East Asia Minerals Corporation (the “Company”). (TSXV:EAS) (the “Company”) provides the following update on the Miwah project in Indonesia.
The Miwah project is located in the Province of Aceh approximately 130 km southeast of Banda Aceh, with the total area of 30,000Ha (“Miwah Project”). The Company holds an 85% indirect equity interest in the Miwah project. The Miwah project lies within three contiguous Izin Usaha Pertambangan Eksplorasi (“IUP Exploration”), which the Company is party to through cooperation agreements with its partners. The IUPs were initially issued in the form of Mining Concession (Kuasa Pertambangan) and were converted into IUPs in November 2009 by the Regent of Pidie Regency of the Province of Aceh, Indonesia. The remaining 15 percent interest in the Miwah project is held by unaffiliated Indonesian corporations.
The IUP Exploration does not grant its holder the complete set of permits or licences required to carry out mining activity. In order to conduct mining activity, the IUP holder is separately responsible for upgrading the IUP Exploration to the IUP Operation Production, applying and receiving any other permits required, which may include, but are not limited to, environmental license, forestry access permits and land owner consents.
The Company previously was unable to fund certain annual payments, including the deadrents, property taxes and other payment obligation and has not completed its environmental impact analysis and feasibility study, and perform the required activities on the Miwah Project due to Indonesian governmental forestry related restrictions. The Company continues to ascertain the legal status of these IUPs Exploration under the laws and regulations of Indonesia.
In furtherance of its efforts on the Miwah project, the Company has been holding various meetings with federal and regional government officials discussing the process required to bring the Miwah Project current and in compliance with both local and federal authorities. A review and evaluation on the Miwah Project may be conducted by the regional government officials in order to resolve the status of the IUPs Exploration.
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 266,000 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.
The Company will continue to focus the majority of it’s efforts on the Sangihe project by completing Indonesian Feasibility Study (IFS) and environmental impact assessment (AMDAL) reports. Once they are submitted and approved by the Ministry of Energy and Mineral Resources (MEMR), construction of the mining facilities and infrastructure can begin at the Sangihe project. The Company anticipates gold processing and production to begin by mid of 2018 which will generate revenue which will then be directed towards further development of both Sangihe and the Miwah project.
The Company cautions readers that the any production decision made by the Company 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.
East Asia Minerals Corporation
Terry Filbert, Chairman & CEO
For further information, contact Mark Sommer at 1-604-684-2183, email@example.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.