Southern Arc kicks off CoW negotiation

Vancouver-based mineral explorer Southern Arc Minerals Inc. announced Tuesday that Contract of Work (CoW) negotiations on its Taliwang, West Sumbawa, property had commenced on April 28, 2008.

The first formal meeting between the joint government team and the Company took place in the administrative city of Taliwang, West Sumbawa, the company said. The joint government negotiating team comprises representatives from the central, provincial and regency levels of government. A draft CoW document was submitted previously by the Company to both the central and local regulating authorities.

Under the Indonesian Mining Law, the conduct of foreign companies involved in mineral exploration, development and production in Indonesia is regulated by the Contract of Work (CoW), which is a comprehensive contract between the Government of Indonesia and an Indonesian-foreign mining company.

The Taliwang Property is a 31,204-hectare mineral concession granted to the Company under a Contract of Work application. It is located on west Sumbawa Island, immediately north of the CoW that hosts Newmont's Batu Hijau porphyry copper-gold mine. The Taliwang property holds a number of prospects, including the Lemonga epithermal vein complex on which a two-phase, 56-hole diamond drilling program has been completed by the company. (alex)