Arc finds new encouraging gold results at Baku prospect

Arc Exploration Limited said on Thursday has found further progress and new highly encouraging gold results from Baku Hill and the identification of a new gold zone at Baku East in Bima gold project, West Nusa Tenggara province.

Four new trenches at Baku Hill have intersected broad zones of gold mineralisation in quartz stockwork. The best result of 22m at 2.15 g/t Au contains higher grade intervals of 2m at 12.1 g/t Au and 2m at 7.49 g/t Au and is located over 170 metres east of a previously reported continuous channel result of 86m at 2.78g/t Au, the company said.

Managing Director John Carlile commented that: ?These new results are particularly encouraging as they increase the size potential of Baku and support our interpretation that it may host a large near surface bulk-tonnage gold resource. The identification of Baku East indicates that there are more gold zones to be found in the area?.

?We are also excited about what could be beneath these zones of shallow gold mineralisation as our Bima Project sits on a major copper-gold belt that includes the Batu Hijau and Tujuh Bukit deposits. We are targeting both surface gold and deeper porphyry copper-gold systems?.

?Further trenching and a program of geophysics are underway to define the surface extent of the gold zones at Baku and get an idea of what may occur at depth. We are well on track to start scout drilling during the first quarter of 2011.

Initial trenching has also been undertaken on the new gold-soil anomaly at Baku East and has returned 34m at 0.24 g/t Au across another quartz stockwork zone. Baku East is located 300 metres northeast of Baku Hill.

The Bima Exploration tenement covers 250 square kilometres and is prospective for intermediate to high-sulphidation epithermal gold and porphyry copper-gold deposits. The project has excellent infrastructure with a network of sealed to graded roads traversing almost all of the tenement area. (kanti)