New Asia Gold to Focus On Promising Smaller Deposits On Kapur Project
New Asia Gold Corp wishes to announce that data obtained as a result of exploration of the Kapur project through drilling and trenching is complete enough and of excellent quality to show that there are promising smaller deposits on the leases. In the current 43101F independent engineering report, it has been estimated that there are 330,000 proven ounces of gold with a value of $132 million assuming an average value of gold of $600 per ounce, with recovery costs of $200 per ounce. Currently analysts are projecting that gold will reach at least an average of $1000 per ounce over the next 5 years. These reserves are based on the initial drilling program where there was only enough density of data to assign reserves to 3 of 6 zones. In one of the zones that has been assigned probable reserves, there is a drill hole with 37 meters (110 feet) of silicified rocks identical to the main silica cap (180,000 proven ounces of gold) with relatively high grades of gold. Drilling data in the other three zones, while limited, show that there are gold reserves available but could not be considered proven until additional drilling data is obtained. The current exploration program will be used to define these reserves.
While it is not felt that there is one massive multi-million ounce ore body, it is felt that there are multiple smaller ore bodies that will add up to reserves of multi-million ounces of gold. The independent report suggests that there are several million ounces of gold that will be defined with the infill drilling program, increasing the value of the project to as much as $626 million after recovery costs based on an average price per ounce of gold at $850.00
Gold soars most since 1999 as investors seek haven from financial turmoil. John Embry, Chief Investment strategist for Sprott Asset Management forecasts “Four-digit gold prices by January 2009. Juniors present the best opportunity to leverage the coming gold explosion.”
New Asia Gold Corp trades in the United States on the NQB Pink Sheets under the symbol “NWAG”. For further information, please contact Nancy Goldman at (516) 962 4139 or at http://www.newasiagold.com.
