Citing broadening investor demand, a weak U.S. dollar, record oil prices and ongoing geopolitical tension, Merrill Lynch substantially raised their 2008-2012 gold forecasts, while also predicting increased silver prices. Research analysts Michael Jalonen and Jeffrey Schok said they expect gold to average $925/oz this year and $1,000/oz in 2009 (up from $750/oz and $800/oz respectively). They raised the long-term gold price forecast from $600/oz to $650/oz, beginning in 2013. "Due to higher forecasts for the 2008-2012 period, our 10-year average gold price has jumped from $655 to $800/oz," they said (Source: Mineweb). Based on gold prices between $850 and $950 per ounce, the reserves in New Asia Gold’s East Kalimantan Project are projected to be worth between $625 and $700 Million, and possibly as much as $2.1 Billion.

New Asia Gold Corporation (OTC: NWAG) is an emerging gold exploration and mining company currently developing a portfolio of gold properties in Indonesia. Through its subsidiary, New Asia Gold controls gold properties owned through a subsidiary with gold tenements/leases in Indonesia. Development of the properties takes place through the employment and direction of contracted companies, and at present, New Asia Gold is actively engaged in the process of defining and producing gold reserves on its properties. The company works with contractors to extract the gold and sell it on the commodities markets, and gold prices have risen substantially in recent years while many analysts are predicting further increases. Many other gold companies have found significant success in the current market, and New Asia Gold is confident that the Company can duplicate or even exceed that success.

New Asia Gold’s East Kalimantan Gold Project (EKGP) is located close to the east coast of the Province of East Kalimantan, Republic of Indonesia. At present, two gold resource calculations for the project show an inferred resource of between 226,000 to 330,000 ounces of gold. In both cases, due to the nature of the calculations and interpretations, there remains significant potential to substantially increase these resources through shallow infill drilling. It is considered that 500,000 ounces of gold could be delineated in the Main prospect area and potentially further resources could be added adjacent to the main deposit area where previous drilling has intersected mineralisation but no follow up has been completed. Conceptual targets associated with a large diatreme breccia pipe, associated with a number of multi-million ounce gold resources around the world, include marginal stock work and disseminated gold and, potentially, porphyry copper-gold deposits marginal to the main deposit described. This upside is considered exciting as the geological environment is favorable for a host of significant mineral deposits, particularly gold and copper.

Even considering the strong performance of gold prices in recent years, there is additional room for growth in the price of gold. According to the German Bank Commerzbank, the 1980 record gold price of $871 adjusted for inflation would equate to $2,384 an ounce in 2008 dollars (Source: Spiegal Online/International). Even with gold currently fetching nearly $900 per ounce, there is clearly room for further price appreciation, particularly with growing concerns over recession. James Turk, founder of GoldMoney, is even more bullish, and he claims that the U.S. government has altered the way that it calculates the Consumer Price Index in such a way that it under-represents the effects of inflation. According to Turk, the record gold price in 1980 above $850/ounce would be closer to $6200 in 2008 dollars (Source: goldprice.org).