Canadian company Southern Arc Minerals has increased its share in two Indonesian projects to 90%. The company acquired an extra 5% interest in both the West Lombok and West Sumbawa (Taliwang) projects and has also entered into a cooperation agreement with the Regency of West Sumbawa.
Southern Arc will pay its Indonesian partner PT Permata Puri Mega US$1.5million and 2.25 million shares for the additional interest.
Southern Arc’s president Dr Mike Andrews says, “Recognizing the geological potential of the West Lombok and Taliwang projects, we have increased our interest to 90% and secured the support of the local government at both projects as a 10% equity partner. This emphasizes our vision of the great potential for both epithermal gold and copper-gold porphyry mineralization at both projects.”
The West Lombok project covers a 21sqkm structural corridor of mineralization and alteration hosting porphyry copper-gold, high sulphidation gold-copper and epithermal gold deposits. Two of the prospects on the property host a combined proven strike length of more than 21km of mineralized epithermal breccias.
Southern Arc has completed more than 22,000 metres of drilling to date focused on the epithermal gold mineralization, confirming high-grade events and identifying several high-grade shoots. The company has also completed an airborne geophysical survey at 50-metre line spacings to define both near-surface and buried copper-gold porphyry targets, identifying 17 porphyry targets on the property.
The Taliwang property is adjacent to Newmont’s world-class Batu Hijau copper-gold mine, and takes in 31,200 hectares prospective for gold, silver and copper mineralization. Exploration to date at Taliwang has identified a gold-silver bearing epithermal vein system in which 56 drill holes have confirmed both lateral and vertical persistence of the mineralized structures, near-surface copper-gold porphyry targets with associated surface high-sulphidation epithermal signatures, and sedimentary gold-hosted targets.