East Asia Minerals has completed a 4600-metre drilling campaign at its Sangihe Island Gold-Silver Project in North Sulawesi aimed at upgrading mineralization and testing resource extensions. Evaluation of the results is by Mining Associates of Brisbane while Ausenco, also from Brisbane, is undertaking metallurgical studies to determine processing options.
“We had very positive results from drilling at Sangihe and look forward to the complete analysis,” says East Asia’s CEO Ed Rochette. “Talks are progressing with a number of parties about establishing a joint venture (JV) or investing directly into the project and we are confident that we will be able to move forward.”
Sangihe is held under a Contract of Work (CoW) permit, allowing access and development for 26 years with an existing NI 43-101-compliant inferred resource of 27.3 million tonnes at an average of 0.95 grams/tonne gold and 13.58 grams/tonne silver for 836,718 ounces of gold and 11,927,237 ounces of silver.
Company officials have also announced that its JV partner has requested that the Miwah project in North Sumatra be placed into suspension. The exploration licences, or IUPs, at Miwah were effective from November 2012 and extended for 12 months.
Additional drilling and completion of an Indonesian standard feasibility study are required before the IUPs expire, at which point East Asia could seek further licences on the properties. By suspending the project, the company maintains exploration rights and the remaining time on IUPs while halting expenditures. East Asia believes the remaining time on the IUP extensions is sufficient to complete the required work at Miwah and it has subsequently filed a suspension notice with the Ministry of Mines.
“While our Miwah project is on hold, management is continuing to work with and is making progress with all levels of government to change the forestry classification there.
Our opinion is that our land position has been an active exploration site for more than 20 years and should not have been designated as protected forest,” says Ed Rochette.
East Asia’s Miwah property is an epithermal gold target on the northern tip of Sumatra in Aceh province, consisting of 2000 hectares within the 30,000 hectares of the Miwah IUPs. East Asia filed an NI 43-101 technical report on May 2011 identifying a resource at Miwah of 103.9 million tonnes using a cut-off of 0.2 grams/tonne and an average grade of 0.94 grams/tonne of gold for 3.1 million ounces.