Arc reports new gold anomaly at Baku prospect

Australian mining firm Arc Exploration Limited said on Thursday has found further encouraging gold results from soil sampling at the Baku Prospect, on the southern side of the Bima Exploration IUP, West Nusa Tenggara province.

The ridge-and-spur soil results outline a new 150m x 350m gold anomaly underlain by partly exposed, quartz-limonite veined, silica-clay altered volcanic rocks. The anomaly is defined by eleven elevated gold results ranging from 0.042 to 0.217 ppm Au, the company said on Thursday.

The new anomaly is 300m northeast of the gold zone discovered on Baku Hill, where recent trenching returned 86m at 2.78 g/t Au, including a narrow high-grade zone of 4m at 36.3 g/t Au. The new anomaly is comparable to that on Baku Hill, where gold is also associated with elevated arsenic, antimony, molybdenum and bismuth in soil, and may indicate similar gold mineralisation.

John Carlile, Arc?s Managing Director and CEO, commented: ?This result is encouraging because it expands the potential for near-surface gold mineralization and possibly deeper porphyry targets at Baku. It also demonstrates that more targets are being identified as we expand our prospecting activities around Baku. Our exploration team is currently testing the new soil anomaly by trenching and a ground geophysics survey has also commenced. We are on track to generate targets for initial drill testing in early 2011.? (giok)