Arc signs formal agreement with Danusa on Trenggalek gold, copper project

By Romel S. Gurky

ASX-listed Arc Exploration Limited said Wednesday that it has signed formal documentation with PT Danusa Tambang Nusantara to explore the Trenggalek gold and copper project in East Java. Danusa is a subsidiary of one of the largest contract miners in Indonesia.

Arc said in a statement that Danusa may fund expenditure of up to US$1.5 million over the next 10 months for the first stage of exploration and has the option to continue on to the second and third Stages of exploration within a total timeframe of 30 months.

Jeff Malaihollo, Managing Director of Arch commented: ?Danusa is part of the largest contract miner in Indonesia. We are pleased to be able to attract such a reputable Indonesian group, with an extensive mining experience and financial capability to take the Trenggalek project forward.?

?Trenggalek has the prospect of hosting major gold and copper resources and we are excited that Danusa shares that view,? he added.

Arc said Danusa will concentrate its efforts on the epithermal gold veins, and it wishes to move the project quickly into production if a potentially viable gold resource can be demonstrated on any of the multiple gold prospects identified within the license area.

The group has a proven capacity to quickly put mines into production in Indonesia, it added.

Arc said Danusa has already commenced planning a drilling campaign at Trenggalek which is expected to commence early in 2016.

Editing by Reiner Simanjuntak