Southern Arc: projects update, JV with Newcrest on Sumbawa
Tuesday, November 1 2011 - 05:54 AM WIB
It said the finalization of the agreement is pending the completion of definitive documents.
Low-key surface exploration activities on Taliwang have been ongoing since Q1-2011. The current exploration program is based on the results of informal discussions between the company and Newcrest.
Apart from Taliwang project, Southern Arc is also working on Sabalong project. It said following modeling of ground geophysical data, a number of potential porphyry intrusive targets have been defined on the Sabalong mining site, which is being advanced under the terms of an option and joint venture agreement between Southern Arc and Vale S.A.
Phase 1 drilling of the Sabalong property commenced on October 21, 2011. Southern Arc is also working with Vale on the East Elang property.
Going forward, the company will focus its exploration efforts on its West Lombok property, which hosts the Pelangan, Mencanggah and Selodong prospects.
The company has identified 21 kilometers cumulative strike length of epithermal gold-bearing mineralized structural breccias (MSB) (steeply dipping silica ledges cut by epithermal quartz veins and breccias) at the Pelangan and Mencanggah prospects, along with indications of near-surface buried porphyries, and 14 porphyry copper-gold drill target areas at Selodong.
Phase 2 drilling of epithermal gold-silver targets at the Pelangan prospect commenced in late March 2011, while Phase 1 drilling at the Mencanggah prospect was initiated in August 2011.
The company plans to complete enough drilling to prepare National Instrument 43-101 (?NI 43-101?) compliant resource estimates for both the Pelangan and Mencanggah prospects in the first half of 2012.
The company is also reviewing the results of a magnetic and radiometric airborne survey that was flown over the West Lombok property to assist in the identification of porphyry drill targets for 2012. (romel)