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Re: News Releases - Wednesday, May 05, 2010
East Asia Minerals Closes Non-Brokered Private Placement of
$18.85 Million
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For Immediate release, May 5, 2010 TSXV: EAS
VANCOUVER, B.C. -- Wednesday, May 5, 2010 -- East Asia Minerals
Corporation (TSXV-EAS) reports that it has received TSX Venture
Exchange approval for its non-brokered private placement announced
April 30, 2010. The Company will receive $18.85 million through the
issuing of 2.5 million shares at $7.54 per share. This non-brokered
financing is for common shares only, with no warrants attached, and no
fees are being paid. The issued common shares shall be subject to a
hold period expiring on September 6, 2010
"East Asia Minerals is pleased to have this important investment, which
will be used to continue the growth of our Company through advancement
of the large Miwah Gold Project, and the several other gold projects in
Indonesia that will be highlighted with upcoming
Diamond drilling"
stated Michael Hawkins, President and CEO of East Asia Minerals. "In
addition to this validation of the continued growth potential of the
Company, we are happy that this investment has been made by two of our
existing major, long term and supportive investors".
East Asia Minerals will use the proceeds of the offering for further
exploration of the Miwah Gold Project, advancement of its Indonesia
gold and gold-copper portfolio, and unallocated working capital.
Miwah Background
The Miwah Gold Prospect was partially defined by approximately 3,100
metres of drilling in twelve holes by a previous explorer in 1997. All
holes drilled during this program intersected significant alteration
and mineralization with intercepts including 71 metres of 1.4 g/t gold
and 58 metres of 1.1 g/t gold. The previous explorer suggested
potential for 100 Mt at 1.1 to 1.2 g/t gold, however a review of the
historical data indicates that early drilling was parallel to higher
grade (greater than 5 g/t gold) structures at surface. Hence, in
addition to greater mineralized tonnage, significantly higher overall
grades are anticipated from better geological understanding, results of
the Company's detailed sampling, and from the ongoing drill program
which is based on increased geological understanding. An example is
the intersection of 3.96 g/t gold over 111 metres, including 15.74 g/t
gold over 22 metres from East Asia's
Diamond drill hole EMD024.
Based on the Company's work Miwah is resolving into two components; a
large 1,200 metre long, at least 450 metre wide, approximately 200
metre thick tabular zone; and vertical diatreme breccia feeder zones
that are beneath and cut through this. At Miwah Gold Zones, East Asia
has almost 2,500 metres of rock sawn channel samples which average 2.35
g/t gold. Grade expectations in Main Miwah Gold Zone exceed 1.5 g/t
gold. Ongoing sampling verified the Company's confidence that higher
overall gold grades can be achieved due to the presence of multiple
high grade rock sawn channel samples throughout the strike, including
4.11 g/t gold over 200 metres at the eastern part of the Main Miwah
Gold Zone, and 4.35 g/t gold over 27 metres at the western part.
Recent drilling has supported this.
East Asia has drill validated the 1.2 kilometre east-west outcrop width
of the shallow, laterally extensive Miwah Main Zone, and has
encountered gold mineralization in all of its holes. The Miwah Main
Zone remains open in all directions with the Moon River area expanding
the north-south potential to more than 600 metres, whilst remaining
open further to the north towards Sipopok. Drilling has extended the
Miwah Main Zone towards a similar northing as Moon River. Sampling
west of the Miwah Main Zone in the Signal area has potentially expanded
the east-west width another 600 metres and remains open.
In addition to the tabular zone the Company has begun to characterize
some of the diatreme breccia feeder zones, with rock sawn channel
samples including 83.59 g/t gold over 24 metres and 20.14 g/t gold over
12 metres. Recent drilling has supported this. These feeder zones
have great potential to develop into substantial tonnages of higher
grade gold mineralization in an area adjacent to the Main Miwah Gold
Zone.
The Miwah Property is in a very similar volcanic setting to the Martabe
gold-silver deposit, also located in North Sumatra (Purnama and Baskara
resources: 127.8 million tonnes at 1.4 g/t gold (5.5 million ounces
gold) and 15 g/t silver (60 million ounces silver), and the alteration
system is of a comparable size. Miwah also exhibits a likeness to the
size, style and geometry of the alteration system developed at the
Pierina gold deposit in Peru (67.7 Mt grading 2.98 g/t gold and 22 g/t
silver, giving a total 6.49 million ounces gold and 47.9 million ounces
silver).
Lionel Martin, P.Geo., the designated QP within the meaning of NI
43-101, has reviewed and approves the content of this release. East
Asia has not verified the classification of the resource references and
is not treating them as NI 43-101 defined resources verified by a QP.
Although the references of resources are relevant to recognizing the
potential of the Miwah project, they should not be relied upon.
About East Asia Minerals Corporation
East Asia Minerals (EAS-TSXV) is an Asian-based, Canadian mineral
exploration company with gold and gold-copper exploration properties in
Indonesia, and uranium exploration properties in Mongolia. In
Indonesia the Company has a 70 to 85% interest in six advanced gold and
gold-copper properties located in Aceh Province, Sumatra, and Sangihe
Island, North Sulawesi. The Company owns eight uranium properties,
including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium
projects, and two phosphate properties in Mongolia. East Asia
currently has 71,455,372 shares outstanding. Its shares are listed for
trading on the TSX Venture Exchange under the symbol "EAS".
Forward Looking Statements - This News Release contains forward looking
information within the meaning of the British Columbia Securities Act,
the Ontario Securities Act and the Alberta Securities Act, which
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Company, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Forward-looking statements are subject
to a variety of risks and uncertainties which could cause actual events
or results to differ from those reflected in the forward-looking
statements, including, without limitation, risks and uncertainties
relating to the interpretation of drill results and the estimation of
mineral resources and reserves, the geology, grade and continuity of
mineral deposits, the possibility that future exploration, development
or mining results will not be consistent with our expectations, metal
recoveries, accidents, equipment breakdowns, title matters and surface
access, labour disputes or other unanticipated difficulties with or
interruptions in production, the potential for delays in exploration or
development activities or the completion of new or updated feasibility
studies, the inherent uncertainty of production and cost estimates and
the potential for unexpected costs and expenses, commodity price
fluctuations (including uranium, fuel, steel and construction items),
currency fluctuations, failure to obtain adequate financing on a timely
basis and other risks and uncertainties. Should one or more of these
risks and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward-looking statements. Accordingly, readers are
advised not to place undue reliance on forward-looking statements. The
words anticipate, believe, estimate and expect and similar expressions,
as they relate to us or our management, are intended to identify
forward looking statements relating to the business and affairs of the
Company. Except as required under applicable securities legislation, we
undertake no obligation to publicly update or revise forward-looking
statements, whether as a result of new information, future events or
otherwise.
This news release is not for dissemination in the United States or for
release to U.S. newswire services. This news release does not
constitute an offer to sell or a solicitation of an offer to sell any
securities in the United States. The securities have not been and will
not be registered under the United States Securities Act of 1933, as
amended (the U.S. Securities Act) or any state securities laws and may
not be offered or sold within the United States or to U.S. Persons
unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
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.
To receive or stop receiving EAS news via email, please email
Info@EAminerals.com and state your preference in the subject line.
FOR FURTHER INFORMATION, visit the Company's website at
www.EAminerals.com, or contact:
Michael Hawkins, President and CEO Vancouver T: +1-604-684-2183 E:
Hawkins@EAminerals.com
Nick Kohlmann, Corporate Communications Toronto T: +1-416-792-8734
E: Kohlmann@EAminerals.com
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Copyright (c) 2010 EAST ASIA MINERALS CORPORATION (EAM) All rights
reserved. For more information visit our website at
http://www.eaminerals.com/ or send mailto:info@eaminerals.com
Message sent on Wed May 5, 2010 at 11:52:09 AM Pacific Time
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