Asia Gold Corp, Thursday January 19, 2006 4:29 pm ET
Asia Gold Signs Agreement to Explore the Kaputusan Porphyry
Copper-Gold Prospect Bacan Island, Maluku, Indonesia
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2006) - Asia Gold
Corp. (TSX VENTURE:ASG - News) is pleased to announce the signing of a
Memorandum of Understanding (MOU) with PT Harita Multi Karya Mineral (HMKM), a
member of the Harita Group of Indonesia, to set up a joint venture to explore and
develop the Kaputusan porphyry copper-gold prospect on Bacan Island, Maluku,
Indonesia. The Kaputusan prospect is within a 25,775-hectare KP (Kuasa
Pertambangan) exploration lease granted to HMKM in January, 2005. The entire lease
is within 15 kilometres of the ocean and the prospect is accessed by new logging
roads.
Under the terms of the MO! U, an Indonesian subsidiary of Asia Gold can earn an
85% interest in the Kaputusan KP prospect from HMKM by spending US$300,000 on
exploration during the first year of the joint venture. Thereafter, the 15% interest held
by HMKM is free carried to commercial mine production.
Porphyry copper-gold mineralization was discovered at Kaputusan during a joint
Indonesian-German regional exploration program carried out between 1977 and 1979.
A follow-up program during 1983-1984 included 5,550 metres of trenching and 1,575
metres of NQ-BQ diamond drilling in 10 vertical holes. Five trenches were re-sampled
by Newcrest Mining Limited (Newcrest) between 1993 and 1997. Surface
mineralization has been mapped and trenched over an area measuring approximately
1,500 metres by 1,000 metres.
Nine of the ten Indonesian-German drill holes intersected weak to moderate
copper-gold mineralization. The drillin! g did not define the limit of mineralization in any
direction. The best three reported drill intercepts are as follows;
-------------------------------------------------------------------- Drill Hole No. From To Length (m) %
Copper g/t Gold -------------------------------------------------------------------- BH003 6.0 54.0 48.0
0.37 0.65 -------------------------------------------------------------------- BH004 27.0 90.0 63.0 0.36
0.14 -------------------------------------------------------------------- BH007 6.0 204.0 198.0 0.28 0.31
---------------------------------------------------------------------
The grades reported in the drill holes may be unrepresentative since the average core
recovery in the mineralized zones was only 41%. The best mineralization in surfac! e
trenches graded 0.5% copper and 0.39 g/t gold over 80 metres, including a 44 metre
interval grading 0.6% copper and 0.77 g/t gold. This 44-metre interval graded 0.6%
copper and 0.5 g/t gold when re-sampled by Newcrest.
"An exploration program over 20 years ago led to the discovery of widespread
porphyry copper-gold mineralization at Kaputusan, however, the exploration was
terminated before the size or grade of the porphyry system could be established,"
stated David Owens, President of Asia Gold. "We now have the opportunity to
evaluate the true potential of this strategically well located copper-gold deposit using
modern exploration technology and a better understanding of the geological setting
and controls to the porphyry style mineralization."
Asia Gold plans to start exploration of Kaputusan in February. The first phase
program will include surface geological mapping, stream sediment geochemistry ! and
an Induced Polarization geophysical survey. A follow-up drilling program is planned
conditional on the results of the first phase of exploration.
The Kaputusan prospect is a typical Western Pacific island arc porphyry copper-gold
system. It is located in the active Halmahera volcanic arc and the mineralization is
hosted by a potassic altered and magnetite bearing tonalite porphyry stock. Copper
and gold mineralization is associated with a quartz vein stockwork. Copper leaching
and secondary enrichment is evident.
David C. Owens, President, and Richard Gosse, Vice President Exploration, both
qualified persons as defined by National Instrument 43-101, supervised the preparation
of the technical information in this release.
Ivanhoe Mines and BHP Billiton own approximately 47% and 7% respectively of the
issued and outstanding shares of Asia Gold.
Forward-Looking Statements: Statements in this release that are forward-looking
statements, including the planned exploration of the company's mineral properties in
Indonesia, are subject to various risks and uncertainties concerning the specific
factors disclosed under the heading "Risk Factors" and elsewhere in the company's
periodic filings with Canadian securities regulators. Such information contained herein
represents management's best judgment as of the date hereof based on information
currently available.
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy or this release.
Contact: Steven Feldman Asia Gold Corp. - Investors (604) 681-6799 Bob Williamson
Asia Gold Corp. - Media (604) 681-6799 www.asiagold.com
|
