Asia Gold signs Maluku copper-gold project JV deal

Vancouver-based miner Asia Gold Corp. announced Thursday the signing of a definitive Joint Venture Agreement (JVA) and Cooperation Agreement (CA) with PT Harita Multi Karya Mineral (HMKM), a member of the Harita Group of Indonesia, to explore and develop the Kaputusan porphyry copper-gold prospect on Bacan Island, Maluku.

The joint venture property comprises two contiguous exploration leases with a total area of 25,771 hectares. Most of the property is within 15 kilometres of the ocean and the Kaputusan prospect is accessible by logging roads.

Under the terms of the JVA and CA, Asia Gold can earn an 85% interest in an Indonesian joint venture company controlling the exploration leases by incurring expenditures of US$300,000 prior to September 7, 2007. Thereafter, the 15% interest held by HMKM in the joint venture company is free carried to commercial mine production.

The Kaputusan copper-gold porphyry prospect was discovered during a joint Indonesian-German (BGR) regional exploration program in the late seventies.

An initial Memorandum of Understanding to explore Kaputusan was signed by Asia Gold and HMKM in January 2006. Since this time Asia Gold has established a 50-man exploration camp at Kaputusan and conducted extensive surface exploration.

Ivanhoe Mines and BHP Billiton own approximately 45% and 10% respectively of the issued and outstanding shares of Asia Gold.(alex)