Arc to start E. Java drilling campaign early 2010

Australian mineral exploration firm Arc Exploration Limited (ARX) said it has entered into strategic alliance with a drilling contractor in Indonesia to undertake 5,000 meter diamond core drilling at the company?s Trenggalek gold project in East Java.

The agreement is a fixed price contract valued at US$825,000 and will be paid by ARX?s shares.

The company said it would focus on exploring for gold in Indonesia, where the company?s management have proven track of record. ?Initial exploration will be conducted on the Trenggalek project which contains several outcropping gold mineralized veins and locally high-grade vein float. Trenggalek has the potential to become new major district containing multiple deposits. Drilling is expected to commence early 2010,? it said.

ARX has 95% stake at Trenggalek, which covers an area of 30,000 hectares.

The company also announced that it has completed share placement to raise A$404,000 and planned a right issue to raise up to A$3.1 million. (alex)