Southern Arc ganted IUP license for its Sabalong Property

Canadian gold and base metal exploration firm Southern Arc Minerals Inc. announced on Thursday that it has been granted a Mining Business License (IUP) for the Sabalong Property.

Issued by the Regent of Sumbawa in the province of West Nusa Tenggara, this IUP is comprised of two stages, each with potential extensions. Over a period of 6 years, the exploration stage permits the Company to pursue exploration activities through to the conclusion of a feasibility study. Upon the conclusion of the exploration stage, the IUP automatically converts to a second stage, permitting the Company to conduct commercial production on this property for a minimum of 20 years, with the potential for two further 10 year extension periods.

Covering 9,950 hectares, the Sabalong Property bears epithermal gold-silver-bearing quartz veins, with lesser high-level hydrothermal breccias and silica cappings.

Surface geologic mapping has defined an area of 3 x 4 km of structurally-controlled argillic alteration with lesser advanced argillic assemblages, hosting low sulfidation epithermal veins in the east (Toyang Prospect), whilst to the west residual silica and enargite-bearing quartz veins typical of high-sulfidation epithermal systems are encountered (Lito Prospect).Additional ground geophysical surveys (EM/IP-resistivity) and spectral analysis studies are required to further refine drill target areas.

Sabalong is located on Sumbawa Island, approximately 22 km SSE of the administrative city of Sumbawa Besar and 70 km NE of Newmont's world-class Batu Hijau porphyry gold-copper mine.(alex)