VANCOUVER, B.C. – April 2, 2018 East Asia Minerals Corporation (TSXV-EAS) (the “Company”) announces approval of the PT Tambang Mas Sangihe (“TMS”) Work Plan and Budget 2018 (“RKAB 2018”) by the Indonesian Ministry of Energy and Mineral Resources (“MEMR”).
The approval of the TMS RKAB 2018 is the first significant milestone for the development of the Sangihe Project into an operational gold mine with the second significant milestone to achieve being the approval of the Indonesian Feasibility Study (“IFS”) and AMDAL Environmental Report (“AMDAL Report”), both of which will be submitted to the MEMR for approval this month. Following the approval of the IFS and AMDAL Report, the final milestone to be achieved will be the approval of a production license for the Sangihe Project.
The AMDAL Report has been completed and been reviewed by the Company. The IFS should be completed early April.
Since the last update provided to shareholders on February 14, 2017, the Company has also:
- commenced the search for new office space in Jakarta to accommodate the increase in staff required for the construction and production phase;
- started the search for used drill rigs to be used for exploration infill drilling once production has commenced;
- received additional carbon column test results for hole BIM23 of 100% gold recovery and 19% silver and hole BIM52 of 91% gold recovery and 25% silver;
- successfully renewed, for five years, the business domicile (licence) for TMS;
- commenced the search to locate potential office, guesthouse, warehouse and storage facilities on Sangihe Island; and
- commenced the interview process to hire a human resource manager, general manager and accounting manager in preparation for the construction and production activity on Sangihe island.
In mid-March, senior management & the CEO of the Company visited Sangihe Island and accomplished the following:
- launched drone to take aerial photographs and videos for mapping purposes of the Bowone mine site, Binebase mine site and construction launch site;
- inspected the geotechnical and hydrogeological drill hole which had been drilled at the Bowone camp;
- examined some of the core from the hole and noted that the water table level in the drill hole is more than adequate for production purposes; and
- met with the head of the Bowone Village who has indicated his support for the project.
Terry Filbert, CEO commented, “We are very pleased with the progress made in the last few months and are well positioned to immediately commence construction once the AMDAL and IFS reports are approved by the Indonesian government.
The Company’s focus is on completing the IFS and AMDAL Report as once they are submitted and accepted by the 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 in 2018. The IFS is not a feasibility study as defined by the Canadian Institute of Mining, Metallurgy and Petroleum and as required by National Instrument 43-101 (“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.
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 NI 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
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.