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 to identify the most suitable heap-leaching locations.
- Geotechnical drilling to provide the most up to date and accurate core samples for pit wall design, fragmentation of ore and ore excavation rates.
- Hydro-geological surveying 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.
All drilling required for the IFS was completed by the end of December 2017 and the metallurgical test results are as follows:
- Bottle Roll Test of the Cyanide Soluble assay results showed gold recoveries of 85% and silver recoveries of 96%.
- Agglomeration test results have been completed in January with the majority of the samples tested agglomerating very well
- Carbon Column Test work after two weeks in the column reached 80% recovery of gold.
- Acid Forming test work of overburden rock samples taken from the geotechnical drilling core commenced on January 27th 2018
The IFS and environmental report are targeted for completion by the end of the first quarter of 2018.
Long Term Sangihe Project report was prepared and submitted to the Indonesian government in December 2017
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, 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.
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.
CEO, Terry Filbert is back in Indonesia and has many meetings scheduled with various consultants and government officials pertaining to both the Sangihe and Miwah projects and the Company will have further updates for its shareholders in the coming weeks.
On behalf of the Board of Directors of East Asia Minerals,
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.
# # #