Southern Arc secures IUP Licenses for C. Java properties

Vancouver-based gold and metal explorer Southern Arc Minerals Inc. announced on Thursday that it has been granted Mining Business Licenses (IUPs) for its Wonogiri properties, Karang Tengah and Tirtomoyo, both located within the Province of Central Java.

Issued by the Regent of Wonogiri, these IUPs are each comprised of two stages, 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 IUPs automatically convert to a second stage, permitting the company to conduct commercial production on these properties for a minimum of 20 years, with the potential for two further 10 year extension periods.

Covering 2,399 Ha (Karang Tengah) and 4,896 Ha (Tirtomoyo), both properties have been targeted for epithermal Au-Ag and porphyry Cu-Au mineralization. Historical Dutch references provide evidence of exploitation by the Japanese during WWII of base metal skarn mineralization in the district. Potential for porphyry Cu-Au mineralization was confirmed by Au-Cu-Mo-Zn stream sediment geochemistry from a joint Japanese-Indonesian government geochemical mapping program in the early 1990s. Indonesian government agency surveys in 2002 and 2005 reported the presence of artisanal miners exploiting quartz-base metal veins and stockworks.

Initial Southern Arc prospecting and regional geochemical surveys have confirmed the presence of epithermal gold-silver-bearing quartz veins overprinting a previous porphyry Cu-Au event, somewhat analogous to the Company's Selodong Prospect on west Lombok Island. The area forms part of the Old Andesite Formation, which is host to a number of porphyry Cu-Au occurrences along the southern coast of Java, including Bukit Tujuh (Banyuwangi), Ciemas (Jampang), and Bayah.

Continuing exploration programs will comprise surface prospecting, spectral analysis studies, ground geophysical surveys and, where warranted, scout diamond drilling.(alex)