Southern Arch reports further encouraging results from Mencanggah prospect
Friday, May 31 2013 - 02:10 AM WIB
TSX-listed Southern Arc Minerals announced further encouraging drilling results from the Tibu Serai and Bising targets at the Mencanggah prospect on Southern Arc's West Lombok property.
The company said in a statement Thursday it has recently completed 12 diamond drill holes (1,696 meters) on the West Lombok property - three at Bising target and nine at Tibu Serai. The results continue to demonstrate the consistency of the wide mineralized body along the 500-meter strike one of the Bising Hill target, and highlight the potential of higher-grade zones within numerous silica ledge bodies mapped at Tibu Serai and other localities throughout the property.
Southern Arc has now provided SRK Consulting (Canada) Inc. with all drilling and exploration data collected to date from the West Lombok project, with the objective of completing a National Instrument 43-101 compliant resource estimate by mid-2013.
The report is expected to provide an inferred resource estimate for the property incorporating epithermal-gold mineralization from parts of the Raja target (Pelangan prospect), Bising and Tibu Serai targets (Mencanggah prospect), as well as porphyry copper-gold mineralization from the Selodong prospect.
The report will also include SRK's recommendations for additional drilling for both resource upgrade and expansion, which will help to focus next steps for the project.
"We have seen consistently strong drill results at the West Lombok property, and look forward to the results of the SRK report," said John Proust, Chairman and Chief Executive Officer of Southern Arc. "With West Lombok successfully advanced to this stage, Southern Arc may consider bringing a partner to the project to accelerate West Lombok 's advancement while reducing financial exposure and risk to Southern Arc's shareholders.
"Southern Arc's treasury is one of its key assets in what is undeniably a difficult capital market. While our share price has followed the general downward trend of most resource companies, having current working capital of approximately $14 million puts Southern Arc in a unique position among our peers and provides the financial flexibility to consider new opportunities that can bring near-term value to our shareholders. As announced in December, Southern Arc is implementing a diversification strategy and actively pursuing advanced-stage gold projects in new jurisdictions.?
Editing by Reiner Simanjuntak