East Asia Minerals is drilling new geotechnical core samples at the Sangihe Gold-Copper Project in Indonesia as part of required components for the Indonesian Feasibility Study (IFS). This work will enable the company to provide the most up to date and accurate core samples for pit wall design.
Hydro-geological surveying is also under way and is designed to help locate and identify the water table level in the pit design and best water sources needed for upcoming drilling, heap-leaching and ultimately gold production. The company anticipates completion of surveying by the end of October.
Metallurgical surveying has been undertaken to identity the most suitable heap-leaching locations. Drilling of metallurgy holes to provide samples required for all of the metallurgical test work required for the IFS is anticipated to be completed by mid-October.
East Asia's focus is on completing the IFS and AMDAL Environmental reports as once they are submitted and accepted by the Indonesian Mining Department (MEMR), construction of mining facilities and infrastructure can begin. The company anticipates gold processing and production to begin by mid-2018.
The IFS, which is being conducted by Indonesian consulting firm Resindo Resources and Energy, is well under way. The IFS is not a feasibility study as defined by CIM as required by NI 43-101. The company cautions that any production decision it makes will probably not be based on an NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability.
East Asia advises that the entire Sangihe exploration camp and crew quarters have been renovated and are now fully operational. The company has expanded local administration, accounting staff and logistical systems in anticipation of developing the project from feasibility stage into full production.
The company says town hall meetings are being conducted with the environmentalist team and local villagers in conjunction with the AMDAL environmental report. The baseline study is expected to be completed by November and the AMDAL environmental report by December.
Sangihe has an existing NI 43-101 inferred mineral resource of 266,000 ounces of gold. East Asia’s 70% interest in the tenement contract of work is held through PT Tambang Mas Sangihe (PTTMS). The remaining 30% interest in PTTMS is held by three unaffiliated Indonesian corporations.