Full-scale exploration activities will resume at Southern Arc Minerals’ flagship West Lombok property on Lombok Island, after the company received a Pinjam Pakai forestry permit.  1

Southern Arc has worked with a consulting company to prepare a detailed drill program for epithermal gold targets within the property’s Pelangan and Mencanggah prospects, and this next phase of exploration will focus on infill drilling across areas where high-grade shoots have been identified.

The company’s chairman John Proust says he is pleased to be in a position to fully re-engage in exploration activities. "This permit enables Southern Arc to conduct both surface and drilling exploration for the standard renewable two-year period. We are committed to advancing this property and will immediately mobilize rigs, staff and resources.”

Southern Arc’s president Mike Andrews says the issuance of permit means the company can now pursue evaluation of the gold potential of this property. “We appreciate the patience of shareholders and are committed to advancing the project to a resource status for the benefit of both Southern Arc shareholders and our community partners. From the commencement of drilling, we anticipate that this program will take approximately five months to complete, allowing us to publish an NI 43-101 compliant resource estimate for the property by mid-2013.”

The company will focus on three targets within the 13km by 7km corridor of mineralization - Bising, Tebu Serai and Raja. Bising is the first priority for drilling with six drill rigs being mobilized to the target and the preparation of access roads and drill pads. Southern Arc plans to drill up to 18 holes at Bising in two phases.

At the Tibu Serai target in the Mencanggah prospect, Southern Arc plans to test down-dip from elevated rock-chip gold geochemistry in multiple veins that exhibit low silver-to-gold ratios. At Raja in the Pelangan prospect, the drill program will test for continuity of high-grade mineralization around the previous drill intersections of 17.4 metres @ 19.4 grams/tonne gold and 28.3 grams/tonne silver and 11.55 metres @ 9.8 grams/tonne gold and 31.1 grams/tonne silver, while examining the potential for extending and upgrading high-grade shoots identified with previous drilling.


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