Arc places Cibaliung gold project under care and maintenance

Australian mining firm Arc Exploration Limited announced on Friday that activities at the Company?s Cibaliung Gold Project site in Banten provinces have been reduced to provide for care and maintenance only.

This action has been taken to preserve cash pending resolution of project funding, the company said.

?In order to preserve cash the company has commenced the process of terminating the employment of staff and contractors on site. A limited number of personnel will be engaged to provide site security and to carry out underground and surface maintenance work,? it said

?The ANZ Bank, the project lender, has supported this course of action and provided certain undertakings to the company to allow it to continue to pursue a funding solution for the Cibaliung Project. The company is in ongoing discussions with a number of parties in this regard.?

Arc?s Cibaliung project had been hit by several technical failures which drove up the investment needed to develop the project.

The company also retains a 95% interest in the Ciba/jung Gold Project, which is is expected to produce at an overall annual rate of 70,000 oz (gold equivalent).(denny)