Southern Arc waiting for forestry permit

Having secured the mining business license (IUP) in January 2011 for its West Lombok project, Canadian-based miner Southern Arc Minerals has initiated the forestry permit process to allow for advanced exploration.

Since the property had been clear-cut logged in the 1990s, Southern Arc decided to proceed with exploration activities, with strong local government support and encouragement, while waiting for issuance of its forestry borrow/use permit, known locally as a `Pinjam/Pakai' permit, said a media statement.

Up 1.1% of the West Lombok property has been declared as the designated Protected Forest (no open-pit mining allowed; underground mining allowed with the appropriate forestry permit), 55.1% designated Production Forest (open-pit and underground mining allowed with the appropriate forestry permit) and 43.8% has no forestry designation (no restriction on mining activities).

Southern Arc has relocated two rigs to the Jati and Tanjung targets on the Pelangan prospect, where previous exploration identified a continuous 1.5 km-long mineralized epithermal breccia hosting at least one high-grade lode structure. Previous drilling intersections include 10.05m @ 13.4 g/t gold and 8 g/t silver (TGD-02), 9.2m @ 5.9 g/t gold and 11 g/t silver (JDG-03) and 26.2m @ 4.2 g/t gold (including 3.45m @ 12.3 g/t gold: PLD-027).

"We have a strong relationship with the West Lombok Regency, which holds a 10% stake in the West Lombok project. We are the number one employer in the district, providing significant economic and social benefits to local communities," said John Proust, Chairman & CEO of Southern Arc. "All of our exploration activities have been implemented based on extensive consultation with the local authorities. (romel)