Legal advice to East Asia Minerals has confirmed limited activities are permitted at its 85%-owned Miwah project on Indonesia’s Aceh province. Solicitors say the company’s 2009 mining business licences are still valid, making way for its exploration plan to commence in 2012.
East Asia Minerals’ director Edward C Rochette says the company is now directing all efforts towards the completion of the necessary permitting to ensure continued progress of the project.
The Miwah project is a high level, high sulphidation epithermal gold prospect within three contiguous IUP mining licences which the company is party to through cooperation agreements with its partners. It is also within a designated Indonesian government forestry area and therefore East Asia Minerals needs to obtain a two year forestry permit to conduct activities that will disturb the natural ecosystem.
Until the permit is issued, East Asia Minerals and its partners can conduct only grab or channel sampling and must not disturb the underlying forest.
The government has also imposed a forest moratorium designating primary forests in the Aceh province are to be protected, however the company is working to have the Miwah project area reclassified so it is not included in the protected category.
East Asia Minerals has also requested to have the project area removed from the ‘Protection Forest’ zone which would not permit an open-cut operation to commence.
Miwah has an inferred resource of 103.9 million tonnes averaging 0.94 grams/tonne gold and 2.68 grams/tonne silver for 3.14 million contained ounces of gold and 8.95 million ounces of silver in near and at surface mineralization.
The company is continuing to work towards the completion of its Indonesian standard feasibility study requirement under its IUP by November 2012.
In other news, East Asia has completed a share sale, netting $13 million in both brokered and non-brokered private placements.
The company has also been named as co-defendants in a civil claim by PT Atlas Mineral Exploration (PTAME), which filed an action after East Asia and three other companies couldn’t agree on terms of an acquisition of PTAME. East Asia says it will vigorously defend the lawsuit which is expected to be heard in February or March 2012.