Southern Arc intersects high gold grade at W. Lombok prospect

Friday, May 13 2011 - 03:54 AM WIB

Vancouver-based firm Southern Arc Minerals Inc. announced Thursday the results of the first five diamond drill holes of its 2011 program at Pelangan prospect, West Lombok.

The results confirmed that high-grade epithermal gold mineralisation remains open beyond 250 metres depth below surface. All phase 2 drill holes to date have intersected Mineralised Structural Breccia (MSB) epithermal mineralization, the company said.

All intervals are reported as downhole lengths. Drillhole PLD003 returned: PLD003 16.5 5 m @ 5.5 g/t Au & 3.7 g/t Ag from 232.95 m (including7.70 m @10.9 g/t Au & 6.1 g/t Ag from 237.5 m)
(including 4.50 m @ 17.6 g/t Au & 8.0 g/t Ag from 240.7 m)

PLD003 intersected high-grade mineralisation over 250 m vertically below surface and 100 m below the high-grade intersection of PLD002 thus confirming the depth potential at Pelangan. The mineralisation in this area is exposed at the surface and remains open at depths exceeding 250 m.

PLD003 was drilled in the same cross-section as previously reported drill holes RGD01 (10.70 m @ 2.93 g/t Au & 20 g/t Ag, including 4.7 m @ 5.8 g/t Au & 27 g/t Ag), PLD001 (4.85 m @ 7.11 g/t Au & 18.5 g/t Ag) and PLD002 (17.25 m @ 5.73 g/t Au & 11.7 g/t Ag).

Drillhole PLD008 intersected MSB mineralisation 50 m southeast of drill holes PLD001, PLD002 and PLD003, approximately 90 m below surface and returned two broad mineralised intervals: PLD008 11.55 m @9.80 g/t Au & 31.1 g/t Ag from 70.35 m
(including 3.50 m @ 26.1 g/t Au & 96.5 g/t Ag)

and 11.80 m @ 1.40 g/t Au & 9.2 g/t Ag from 93.7 m
(including 2.00 m @ 3.70 g/t Au & 22.6 g/t Ag)

Drillholes PLD004 and PLD006 have been completed on a section 150 m southeast of PLD003 down dip from the Phase 1 drill hole RDG04 (9.5 m @ 6.2 g/t Au & 41 g/t Ag). These holes intersected MSB's at 75 m and 115 m below surface respectively and returned mineralised intervals grading: PLD004 10.95 m @ 2.0 g/t Au & 34.0 g/t Ag from 79.25 m
(including 1.50 m @ 5.6 g/t Au & 166 g/t Ag)

PLD006 16.15 m @ 1.4 g/t Au & 12.0 g/t Ag from 110.05 m
(including 2.45 m @ 4.7 g/t Au & 34.0 g/t Ag)

Drillhole PLD005 intersected two narrow zones of mineralisation approximately 200 m northwest of PLD003 these have returned: PLD005 1.75 m @ 1.15 g/t Au &4.9 g/t Ag from 72.20 m
and 1.95 m @ 1.16 g/t Au & 13.7 g/t Ag from 92.90 m

President and COO Mike Andrews, "It goes without saying that we are very excited with these results. These first few holes have already demonstrated down dip continuity of both grade and width. It's important to remember that this Central Raja zone represents less than 10% of strike length established to date for Pelangan alone. Drilling will continue to step out on 50 m spaced sections at Raja to identify further high-grade shoots for aggressive infill drilling. Drilling at the 600 metre long South Raja Zone will commence shortly."

The Pelangan Prospect is located at the northwest end of the West Lombok Mineralised Structural Corridor, a 13 km long by 7 km wide northwest trending mineral belt containing both epithermal gold and porphyry Cu/Au mineralisation within Southern Arc's Mining Business Licence (IUP).

Surface mapping and Phase 1 shallow drilling has indicated more than 5 km aggregate strike length of outcropping MSB-type gold mineralisation. The 2011 program targeting the gold mineralisation has commenced with three drill rigs testing the deeper portions of the 400 m long Central-Lode portion of the Raja MSB Target. (romel)

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