Printer Friendly

Asia Gold Confirms High Grade Gold in Trenches at Naran Bulag, Mongolia: New Gold Veins Discovered.

VANCOUVER, British Columbia -- Asia Gold Corp. (TSX VENTURE:ASG) is pleased to announce encouraging results from the initial trenching program at the recently discovered and 100% owned Naran Bulag gold vein prospect. The program consisted of 68 trenches totaling 7,010 metres and was carried out in October and November, 2005 (plan location of veins and trenches available on the company's website). Naran Bulag is in the Gobi region of southern Mongolia, approximately 350 kilometres west of Ivanhoe Mines' giant Oyu Tolgoi porphyry copper-gold deposit and 60 kilometres southwest of Asia Gold's Khongor porphyry copper-gold discovery.

Asia Gold Corp. announced the discovery of 13 veins with visible gold at Naran Bulag in October (see News Release dated October 11, 2005). The highest gold grades were in 7 veins, A through G, that were exposed as low subcropping hills of quartz vein rubble and small outcrops found over a distance of 2.5 kilometres. Trenching was necessary to determine vein true widths and strike continuity beneath the extensive scree and wind blown sand cover (air photo taken prior to trenching is available on the company's website).

Trenching Results

Vein characteristics including minimum, maximum and average gold grades and true widths are summarized in Table 1 attached to this news release. Individual descriptions of Veins A to Q and two new veins found outside Naran Bulag are given below.

Vein A

The results of 49 samples from 30 channels collected in 7 trenches across vein A include:

- 10.8 g/t gold over a true width of 0.32 metres

- 9.6 g/t gold over a true width of 0.30 metres

- 3.6 g/t gold over a true width of 1.0 metre (weighted average of two contiguous samples)

- 2.3 g/t gold over a true width of 1.93 metres (weighted average of two contiguous samples); within 0.89 g/t gold over a true width of 5.4 metres (weighted average of 5 continuous channels)

- 11 of the 30 channels have grades greater than 1.0 g/t gold

Trenching extended the strike length of vein A from 300 to 400 metres. True widths of vein A range from 0.2 to 5.4 metres.

Veins B1 & B2

Trenching exposed two flat lying veins that are separated by about 2 metres and are gently folded into a SE plunging open synform. This structure forms an outcrop pattern that initial prospecting and mapping interpreted to be three veins (B, E & F). The two veins are now named B1 and B2.

The results of 43 channel samples collected from 40 channels in 10 trenches across the B veins include:

- 17.9 g/t gold over a true width of 1.10 metres

- 38.8 g/t gold over a true width of 0.80 metres

- 20.2 g/t gold over a true width of 0.59 metres

- 40.4 g/t gold over a true width of 0.20 metres

- 21 of the 40 channels have grades greater than 2.0 g/t gold

Trenching extended the strike length of the B veins from a 25 metre outcrop exposure to about 150 metres on the southern limb and discontinuously over 400 metres on the northern limb. The true widths of the B veins vary from 0.2 to 1.58 metres.

Vein C

Vein C is parallel to vein A and occurs about 5 m above vein A.

The results of 28 channel samples collected from 23 channels in 6 trenches across vein C include:

- 23.2 g/t over a true width of 0.60 metres

- 1.7 g/t over a true width of 1.60 metres

- 5 of the 23 channels have grades greater than 0.7 g/t gold

Trenching extended the strike length of vein C from 200 to 300 metres. True widths of vein C range from 0.3 to 2.95 metres.

Vein D

The results of 40 channel samples collected from 34 channels in 8 trenches across vein D include:

- 19.0 g/t gold over a true width of 0.90 metres (including 0.5 metres of veined hanging wall rock)

- 10.5 g/t gold over a true width of 1.1 metres

- 6.7 g/t gold over a true width of 1.4 metres

- 7 of the 34 channels have grades greater than 2.5 g/t gold

Vein D has a true width of 0.2 to 1.7 metres, a strike length of at least 300 metres and the vein remains open to the northwest.

Vein G

The results of 15 channel samples collected from 13 channels in 2 trenches across vein G include:

- 2.1 g/t gold over a true width of 0.90 metres (weighted average of 3 continuous channels)

- All other channels have grades less than 0.3 g/t gold

Trenching extended the strike length of vein G from a 25 m outcrop exposure to 100 metres. Vein G may be the northwestern extension of one of the B veins.

Veins H, I, J, K, L, & M

Although visible gold was previously identified in these 6 veins only veins J and L returned encouraging channel results:

- 13.1 g/t gold over a true width of 0.60 metres (J)

- 11.7 g/t gold over a true width of 1.00 metres (J)

- 9.6 g/t gold over a true width of 1.00 metres (J)

- 1.7 g/t gold over a true width of 1.05 metres (L)

Vein K, a low priority vein owing to narrow widths, was not trenched. Assays of 14 grab samples range from 0.04 to 117 g/t gold.

New Veins: N, O, P, & Q

Four new gold veins were found during trenching. The known strike length of these veins varies from 5 to 180 metres and they remain open in either one or two directions. Results include:

- 3.7 g/t gold over a true width of 0.42 metres (N)

- 1.25 g/t gold over a true width of 0.80 metres (O)

- 1.1 g/t gold over a true width of 0.50 metres (P)

- 2.8 g/t gold over a true width of 1.45 metres (Q)

New Veins: White Hill & South Veins

Two new gold veins were found near Naran Bulag but have yet to be trenched. Visible gold was identified at the White Hill vein located about 2 kilometres west-northwest and along strike of Naran Bulag. The White Hill vein has a true width ranging from 0.5 to 1.5 meters. Two one meter rock chip samples have 6.9 and 5.2 g/t gold while 20 of the remaining 21 channel samples grade less than 1 g/t gold. The vein is exposed on a low hill over a distance of 70 metres and is open in both directions.

The South Vein is located about 500 metres south of Naran Bulag. Three areas of quartz vein rubble were found over a distance of 50 m. Three representative 3 kilogram grab samples of the quartz rubble assay 1.2, 6.5 and 20.0 g/t gold.

Geology

The vein system comprises a series of shallow dipping mesothermal quartz veins and associated vein zones. The veins can be followed in outcrop and in trenches for over 2.5 kilometres in a northwest - southeast direction. Dips are shallow, generally 15 to 35 degrees, to the southwest in the north half of the area and to the south and southeast in the southern half. The system is open to the northwest, southeast and down dip.

The vein system is hosted by deformed and altered schists and gneisses of Ordovician age and may be controlled by a regional, gently-folded, shear zone. The altered and deformed host appears to be a gneissic to schistose intermediate to felsic intrusive but some deformed meta-volcanics are also present. The altered shear zone is characteristically bleached (sericite-quartz) and ferruginous and is easily mapped both in the trenches and regionally.

Individual master veins (veins A, C & D) appear to have an en-echelon stacked arrangement within the broad zone of deformed, altered and ferruginous schists with an outcrop width of up to 200-300 metres. The master veins vary considerably in true thickness in quite short distances in both along-strike and down-dip directions. Such vein thickness variation and en-echelon stacking is typical of shear-hosted vein systems. Understanding the shear zone kinematics will be critical in resolving vein geometries and plunges within the shear zone.

Two petrographic studies indicate the gold is coarse grained and primary in nature. Secondary enrichment of the gold is not thought to be important but additional petrographic work will be carried out. Preliminary analysis of assays of duplicate channel samples and multiple channel samples of specific veins within individual trenches suggest that the nugget effect of the coarse gold will be a significant issue in resource estimation.

Future Exploration

Exploration at Naran Bulag will be resumed in the early spring when conditions permit efficient surface exploration. Asia Gold is planning a large diameter RC drilling program on a close-spaced grid down dip of the highest grades. Due to the shallow dips the veins can be drilled quickly with short vertical holes.

Sampling and Analytical Procedures

Trenches were dug using a Caterpillar 320 excavator. Channel samples were collected by chisel and hammer as well as rock saw along channels that are generally 5 cm in width and 3-4 cm in depth. Individual samples usually weighed 4-6 kilograms.

All samples were prepared and analyzed by SGS Mongolia LLC of Ulaan Baatar, Mongolia. Samples were crushed and totally pulverized to 90% passing 75 microns and all preparation equipment was flushed by barren material after each sample was processed. Gold was determined by AAS following assay of a 30 gram charge. Samples that reported over 13,300 ppb gold were re-assayed by the same method but using different calibration ranges.

Asia Gold conducts a QA-QC program that is independent from the analytical laboratory by inserting blind standards, blanks and duplicate samples into all batched of samples for analysis. SGS Mongolia operates an ISO accredited laboratory and is an international subsidiary of SGS SA.

David C. Owens, President, and Richard Gosse, Vice President Exploration, both qualified persons as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.

Ivanhoe Mines and BHP Billiton own approximately 47% and 7% respectively of the issued and outstanding shares of Asia Gold.

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the planned exploration of the company's Naran Bulag Project, are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available.
Table 1.0

---------------------------------------------------------
 Min. Max. Average Known
 No. of Approx. True True True Strike
 Trenches Dip Width Width Width Length
Vein on vein (degrees) (m) (m) (m) (m)
---------------------------------------------------------
A 7 30-55 0.20 5.44 1.03 greater
 than 400
---------------------------------------------------------
B1 & B2 10 0-20 0.20 1.58 0.53 greater
 than 300
---------------------------------------------------------
C 6 10-50 0.30 2.95 1.15 greater
 than 300
---------------------------------------------------------
D 8 15-45 0.20 1.70 0.86 greater
 than 300
---------------------------------------------------------
G 2 0-15 0.30 2.81 0.65 greater
 than 100
---------------------------------------------------------
H 4 20-25 0.10 1.90 0.98 greater
 than 100
---------------------------------------------------------
I 5 20-10 0.10 1.14 0.53 greater
 than 120
---------------------------------------------------------
J 8 15-20 0.10 1.91 0.73 greater
 than 180
---------------------------------------------------------
K 0 ? 35 ? 0.10 ? 0.25 ? 0.15 ?
---------------------------------------------------------
L 1 20-35 1.02 1.05 1.03 greater
 than 5
---------------------------------------------------------
M 10 30-70 0.20 1.00 0.40 greater
 than 600
---------------------------------------------------------
N 3 35-45 0.35 1.40 1.01 greater
 than 170
---------------------------------------------------------
O 5 35-55 0.26 3.46 1.01 greater
 than 150
---------------------------------------------------------
P 4 35 0.37 3.46 1.16 greater
 than 180
---------------------------------------------------------
Q 1 10-05 1.26 1.50 1.39 greater
 than 5
---------------------------------------------------------
White Hill 0 15-45 0.50 1.50 1.0 greater
 than 70
---------------------------------------------------------
South 0 ? ? ? ? ?
---------------------------------------------------------


------------------------------------------------
 Minimum Maximum Average
 Gold Gold Gold No. of
Vein (g/t) (g/t) (g/t) Channels
------------------------------------------------
A 0.020 10.8 1.8 30
------------------------------------------------
B1 & B2 0.001 40.4 5.4 40
------------------------------------------------
C 0.009 23.2 1.4 23
------------------------------------------------
D 0.011 19.0 1.8 34
------------------------------------------------
G 0.027 2.1 0.3 13
------------------------------------------------
H 0.001 0.04 0.02 7
------------------------------------------------
I 0.001 1.2 0.1 14
------------------------------------------------
J 0.012 13.1 2.5 22
------------------------------------------------
K 0.039 117.0 19.8 14 grab
------------------------------------------------
L 0.759 1.70 1.2 2
------------------------------------------------
M 0.003 0.67 0.1 17
------------------------------------------------
N 0.001 3.7 0.6 19
------------------------------------------------
O 0.001 1.25 0.1 45
------------------------------------------------
P 0.001 1.25 0.2 25
------------------------------------------------
Q 0.222 2.78 1.1 3
------------------------------------------------
White Hill 0.001 6.9 0.8 23(i)
------------------------------------------------
South 1.23 20.9 9.2 3 grab
------------------------------------------------

(i) White Hill samples include 21 channel samples
 and two 1 metre rock chip samples.



The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy or this release.

Asia Gold Corp. (TSX VENTURE:ASG)
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Jan 23, 2006
Words:2239
Previous Article:First Charter Reports Record Quarterly Net Interest Income; Benefits From Loan and Deposit Growth and Previously Reported Balance Sheet Repositioning.
Next Article:Nistevo Announces 2005 Results; Leading On-Demand Provider's Revenue Grows By 37+%, EBITDA grows 30+%.


Related Articles
MONGOLIA GOLD RESOURCES - DIAMOND DRILL PROGRAM CONTINUES ON MONGOLIAN PROJECT.
Goldcorp, MetalCORP ink partnership.
Entree Gold's Zone III Epithermal Gold System Extended for an Additional 600 Meters Along Strike.
Asia Gold Corp.: Rock Sampling and Trenching Identifies Strong Epithermal-Style Gold Mineralization at Dune in the Gobi Region, South Mongolia.
Meridian Gold and Radius Gold Sign an Agreement on the El Pavon Property.
Hilton Resources Ltd. Announces Exploration Update.
Asia Gold Discovers High-Grade Gold Veins at Naran Bulag in the Gobi Region, Mongolia.
Asia Gold Acquires Four Gold Exploration Projects in Bulgaria from Ivanhoe Mines.
Asia Gold to Drill Test High-Grade Gold Veins at Naran Bulag, Mongolia.
Asia Gold Reports the Start of a Falcon'TM' Airborne Geophysical Survey in Southern Mongolia.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters