Southern Arc Increases Ownership Interest in Lombok and Taliwang Properties and Enters Into Cooperation Agreement With West S...
17 May 2012 - 9:30PM
Marketwired Canada
Southern Arc Minerals (TSX VENTURE:SA)(OTCQX:SOACF) ("Southern Arc" or "the
Company") is pleased to announce that the Company has acquired an additional 5%
interest in both its West Lombok and West Sumbawa (Taliwang) projects in
Indonesia, increasing its ownership in both projects to 90% with the remainder
held by the local Regency Governments. In addition, Southern Arc has concluded
negotiations with the Regency of West Sumbawa and has entered into a Cooperation
Agreement that has been signed by the West Sumbawa Regent on behalf of that
local government.
"Recognizing the geological potential of the West Lombok and Taliwang projects,
Southern Arc has increased its interest to 90% and secured the support of the
local government at both projects as a 10% equity partner," said Dr. Mike
Andrews, President of Southern Arc. "This emphasizes our vision of the great
potential for both epithermal gold and copper-gold porphyry mineralization at
both projects."
Southern Arc has simplified the ownership structure and increased its equity
interest in the projects through the acquisition of additional shares in PT
Indotan Lombok Barat Bangkit (West Lombok project) and PT Indotan Sumbawa Barat
(Taliwang project) from its Indonesian partner, PT Permata Puri Mega ("PT PPM").
In consideration for transferring its 5% interest in both projects to Southern
Arc, PT PPM will receive US$1,500,000 and 2,250,000 Southern Arc shares, subject
to TSX Venture Exchange acceptance.
West Lombok Property
Southern Arc now holds 90% of PT Indotan Lombok Barat Bangkit, the Indonesian
subsidiary that holds a mining business license ("IUP") to explore the West
Lombok property. The remaining 10% is held by the local West Lombok Regency
Government under a Cooperation Agreement forged in December 2010. Having the
local regency as an equity partner creates a synergistic and mutually beneficial
relationship, ensuring government support for the project and long-term benefits
for local communities as the project advances.
The West Lombok project covers a 13km by 7km structural corridor of
mineralization and alteration hosting porphyry copper-gold, high sulphidation
gold-copper and epithermal gold deposits. Two of the prospects on the property
host a combined proven strike length of more than 21 kilometres of mineralized
epithermal breccias, with individual bodies ranging in thickness from 2 to 66
metres, with a strike length of up to 1,000 metres and a vertical extent of
greater than 300 metres. Southern Arc has completed more than 22,000 metres of
drilling to date focused on the epithermal gold mineralization, confirming
high-grade events typical of epithermal boiling zones and identifying several
high-grade shoots. In addition, the Company has completed an airborne
geophysical survey of the West Lombok project at 50-metre line spacings to
define both near-surface and buried copper-gold porphyry targets, identifying 17
porphyry targets on the property. A number of the targets have already had a
limited amount of drill testing that demonstrated host zones of high-grade
gold-rich porphyry copper mineralization, supporting the outcome of the
prospectivity analysis.
Exploration on the property is currently focused on areas with epithermal gold
mineralization in the northwest section of the property and areas with
copper-gold porphyry mineralization in the southeast of the property, outside of
the area designed as "production forest," while Southern Arc awaits issuance of
its Pinjam/Pakai (borrow to use) forestry permit. Permitting is progressing as
expected, and Southern Arc will continue to update the market of any material
events at the property.
Taliwang Property
Southern Arc also increased its holding to 90% in PT Indotan Sumbawa Barat, the
Indonesian subsidiary holding the Taliwang IUP. As a result of the recently
completed Cooperation Agreement, the West Sumbawa Regency Government holds the
remaining 10% in the property, ensuring collaboration and support as the project
advances.
Located adjacent to Newmont's world-class Batu Hijau copper-gold mine, the
Taliwang property covers 31,200 hectares prospective for gold, silver and copper
mineralization. Exploration to date at Taliwang has identified a gold-silver
bearing epithermal vein system in which 56 drill holes have confirmed both
lateral and vertical persistence of the mineralized structures, near-surface
copper-gold porphyry targets with associated surface high-sulphidation
epithermal signatures, and sedimentary gold-hosted targets.
On behalf of the Board of Southern Arc Minerals Inc.
John Proust, Chairman & Chief Executive Officer
About Southern Arc
Southern Arc Minerals Inc. is a Canadian mineral exploration company with an
aggressive exploration, acquisition and growth strategy. The Company's portfolio
includes four exploration projects with epithermal gold and copper-gold porphyry
prospects on the Lombok and Sumbawa islands in Indonesia, two of which are being
advanced in partnership with Vale S.A. The Company's key exploration property is
its West Lombok project, with several gold-rich copper porphyry and epithermal
gold vein prospects. Southern Arc is listed on the TSX Venture Exchange under
the symbol SA and on the OTCQX International under the symbol SOACF. More
information is available at www.southernarcminerals.com or by emailing
info@southernarcminerals.com.
Forward-looking Statements
This news release contains forward-looking statements relating to expected or
anticipated future events and operations, timing of projects and anticipated
results that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market and business
conditions, the regulatory process and actions, technical issues, new
legislation, competitive and general economic factors and conditions, the
uncertainties resulting from potential delays or changes in plans, the
occurrence of unexpected events, and the company's capability to execute and
implement future plans. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors. There is no representation by the company that
actual results achieved during the forecast period will be the same in whole or
in part as that forecast.
Qualified Person
The technical information in this document has been reviewed by Southern Arc's
Chief Geologist, Andrew Rowe, B. App. Sc. Geology, MAusIMM. Mr. Rowe has over 18
years of international mineral exploration experience throughout Southeast and
Central Asia and Australia. During this time he has held such positions as
Principal Geologist - Feasibility Studies, Senior Geologist and Consulting
Geologist. The technical information in this document has also been reviewed by
Southern Arc's President & Chief Operating Officer, Dr. Mike Andrews, PhD,
FAusIMM, who has sufficient experience relevant to the style of mineralization
under consideration and qualifies as a Qualified Person as defined by National
Instrument 43-101.
The drill program and sampling protocols have been managed by Southern Arc under
the supervision of Andrew Rowe. Diamond drill holes are drilled at PQ, HQ and NQ
sizes depending on hole depth. Half core is cut by rock saw and is generally
sampled according to geological contacts ranging between 0.2 to 2.5 metres in
length. Three to four quality control samples (blank and standard reference
materials) are inserted into each batch of 40 samples. The half core samples are
securely transported from the project site to the Intertek Testing Services
("ITS") sample preparation laboratory in Sumbawa Besar via private truck hired
by Southern Arc. Sample pulps are then sent to the ITS Jakarta laboratory by
ITS. Gold is analyzed by fire assay with AAS finish and a four-acid digestion
and an ICP-MS finish is used to analyze a full suite of elements including
silver and base metals. Prior to 2008 the above method was used for gold and a
four-acid digestion with AAS finish was used to analyze a full suite of elements
including silver and base metals. ITS is one of the world's largest product and
commodity testing, inspection and certification organizations. The Jakarta
laboratory is ISO 17025 accredited and employs a Laboratory Information
Management System for sample tracking, quality control and reporting.
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