Arc may farm out E. Java gold prospect

ASX-listed exploration firm Arc Exploration Limited said it would farm-out its Trenggalek gold project in East Java if it failed to secure funding to carry out exploration program this year.

The company said rock chip sampling was undertaken in 2008 with encouraging and indicate potential for the discovery of a new gold district in the Southern Mountains of East Java. All permitting necessary to allow drilling to proceed is in place, it said.

It did not disclose the fund required to carry out exploration program. The company has 95 percent stake in Trenggalek prospect.

Meanwhile, the company also reported that it would likely relinquish its Pekalongan gold prospect in Central Java after the regency government cut the size of exploration area from original 5,600 hectares to 2,450 hectares and excluding the main gold prospect, Kuning.

?The company?s appeal on this decision was unsuccessful, and it is now likely to allow the license (KP) for the reduced area to be relinquished in 2009,? it said. (denny)