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Gold/Mining/Energy : AMP.C Asia Minerals - About to take off: -- Ignore unavailable to you. Want to Upgrade?

To: Pete Mimmack who wrote (106)	7/15/1998 1:13:00 PM
From: Pete Mimmack	Respond to of 135

New Horizons: VANCOUVER, July 7 /CNW/ - Asia Minerals Corp. Trading Symbol: ASE - AMP Asia Minerals Corp. is pleased to announce that on 6 July 1998, the company signed a Letter of Intent with Royal Oak Mines Inc. to enter into a joint venture agreement to acquire up to an 80% interest in the Copperstone gold mine located in La Paz County, Arizona, USA. Copperstone was operated by Cyprus Amax as a 2,500 ton/day open-pit mine between 1987 and 1992. The mine produced 500,000 ounces of gold from 6,000,000 tons of ore grading 0.1 oz/ton. Mine infrastructure remains operational, including the power, water and communication systems. Royal Oak Mines optioned the property in 1995 in order to explore the down dip extension of the ore body and drilled 28,000 feet in 34 holes between 1995 and 1997. This drilling outlined an underground geological resource of 2.62 million tons at a grade of 0.23 oz/ton containing 606,000 ounces of gold. The geological resource includes a new high grade zone on the northwest margin of the deposit which is open along strike and at depth. This high grade zone contains a diluted resource of 455,000 tons at 0.48 oz/ton gold (10% dilution at 0.0 oz/ton). Pursuant to the Letter of Intent signed on 6 July 1998, Asia Minerals and Royal Oak Mines will enter into a joint venture agreement to explore and develop the Copperstone property based on the following principles: - Asia Minerals to purchase a 25% interest in Copperstone for US$500,000 on signing of the definitive Joint Venture Agreement - Asia Minerals to be granted a three year option to acquire an additional 55% interest in Copperstone. The option can be exercised after Asia Minerals has spent US$3,000,000 on the property and made a US$ 1,000,000 option payment to Royal Oak Mines. - Asia Minerals will be the joint venture operator. - Asia Minerals to have a 1st Right of Refusal to purchase the balance of the property interest held by Royal Oak Mines. - Royal Oak Mines to have a 1st Right of Refusal to 100% project financing. Asia Minerals plans to conduct a US$500,000 exploration program at Copperstone in 1998. This program will include about 10,000 feet of surface diamond drilling to further define and extend the high grade gold mineralization on the northwest margin of the deposit. Three holes drilled by Royal Oak Mines in this zone each intersected 25 ft of mineralization grading over 1 oz/ton gold. The Copperstone agreement provides Asia Minerals with the ability to acquire up to an 80% interest in an advanced, strategically well located, high grade gold project. The project adds a vital new asset to the company and provides Asia Minerals with significant near term growth potential. The joint venture agreement, expected to be completed within one month, will be subject to the approval of the Board of Directors of Asia Minerals and Royal Oak Mines, the Patch Living Trust and the Alberta Stock Exchange. Royal Oak Mines currently owns 44% of the outstanding common shares of Asia Minerals. Dated at Vancouver, British Columbia the 7th day of July 1998. ON BEHALF OF THE BOARD OF DIRECTORS OF ASIA MINERALS CORP. ______________ David C. Owens President