Asia Minerals Corp
A Significant High Grade Gold Discovery in Arizona
Asia Minerals Corp AMP
Shares issued 27,815,129 Sep 25 close $0.10
Fri 25 Sept 98
ASIA MINERALS CORP.
Trading Symbol: ASE - AMP
Shares issued: 27,815,129
Sep 24 close: $0.10
High Grade Gold Mineralization In Exploration Drill Holes:
Exploration drilling on the Copperstone property in Arizona has discovered
a high grade zone of gold mineralization below the old Copperstone open-pit
gold mine. Five holes in this zone have intersected gold mineralization
grading between 1.5 oz/ton (50 g/t) and 21.5 oz/ton (738 g/t) over 10 to 25
feet intervals. Asia Minerals is currently drilling in-fill and step-out
holes to further define and expand the mineralization.
The Gold Deposit:
Estimated resources in the high grade zone currently total 900,000 tons at
a cut grade of 0.5 oz/ton (16 g/t). The zone is open at depth and has the
potential to contain over 1 million oz of gold. The Copperstone open-pit
mine yielded 500,000 oz of gold between 1987 and 1992. Mining
infrastructure remains on site.
Development Plans:
Asia Minerals is aggressively exploring the Copperstone discovery. A
pre-feasibility study of an underground mine will be completed this year
and it is planned to begin a full mine feasibility study in 1999. Asia
Minerals currently owns a 25% interest in Copperstone and has an option to
earn an 80% interest in the 5,680 acre property. Excellent targets for
additional zones of high grade gold mineralization will be drill tested in
1999.
A Growth Opportunity:
Copperstone is an advanced exploration project strategically located in
Arizona. The gold mineralization is high grade, the metallurgy is simple
and the mining infrastructure is built. Exploration and development of the
Copperstone gold deposit provides Asia Minerals with an excellent growth
opportunity and the ability to add significant shareholder value to the
Company.
Further Information:
A copy of the Company's latest News Release on Copperstone is attached. A
visit to our website at asia-minerals.com will provide detailed
information of the Copperstone project and the Company. For further
information please contact the Company by telephone at 604 669 5728 or
e-mail: mailto:info@asia-minerals.com.
COPPERSTONE
NORTHWEST HIGH GRADE ZONE DRILLING PROGRAM
Asia Minerals Corp. is pleased to announce that a surface drilling program
has started on the Copperstone gold property in La Paz County, Arizona. The
objective of this drilling is to expand and further define the indicated
and inferred resources in the Northwest High Grade Zone. These resources
currently total 890,000 tons at a cut grade of 0.53 oz/ton gold and contain
474,000 ounces of gold. The first phase of drilling comprises about 10,000
feet in 12 vertical holes and is expected to be completed in November.
A scoping study by Asia Minerals of mining the existing resource in the
Northwest High Grade Zone indicates positive and robust economics for a 500
tons/day underground mine. The projected cash flow over a 5 year mine life
is US$53,000,000 and the NPV at a 5% discount is US$25,000,000. This model
has a 46% Internal Rate of Return and a 1.8 year capital payback. Operating
and capital costs are estimated to be US$75/ton of ore and US$20,000,000,
respectively. A US$350/oz gold price is assumed for the life of the mine. A
500 tons/day mine would produce 70,000 oz of gold a year at a cash cost of
US$187/oz.
Asia Minerals also reports that it has awarded a contract to MRDI Canada -
a division of H.A. Simons Ltd., for a pre-feasibility study of an
underground mine to develop the Northwest High Grade Zone. This study will
also include a review of the sampling and assay procedures used in the
current drilling program, plus a review of the methodology, calculation and
classification of Asia Minerals' resource estimate. The pre-feasibility
study will be conducted concurrently with the drilling program.
Dated at Vancouver, British Columbia the 22nd day of September 1998.
ON BEHALF OF THE BOARD OF DIRECTORS OF ASIA MINERALS CORP.
David C. Owens
President
For Further Information Contact:
Lucy Liu or visit Asia Minerals at
asia-minerals.com
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
Certain statements in this News Release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation's
Reform Act of 1995. Such forward-looking statements involve risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from
any future results, performance of achievements expressed or implied by
such forward-looking statements.
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