Arc Exploration Limited expects to resume drilling this month at the Trenggalek Gold Project in East Java, Indonesia. Drilling was stopped in early June at the commencement of the Islamic fasting month.

During this period results received to date from the diamond drilling program of 2745 metres in 20 holes were evaluated. Two man-portable rigs are being used in the ongoing program.

The program to date has tested for mineralised extensions within the large Sentul and Buluroto epithermal gold veins, which were previously tested with scout diamond drilling by Arc in 2010/11.

The most significant results from the latest batch of assays received by Arc are: 1.80 metres from 38.2 metres @ 3.8 grams/tonne (g/t) on the Sentul East vein; 5.15 metres from 50.55 metres @ 6.89 g/t on Sentul East vein; and 1.75 metres from 104 metres @ 1.6 g/t on Sentul West vein.

The two intersections returned on the Sentul East vein were obtained between previous lines of drilling completed by Arc in 2010. These holes confirm the presence of shallow gold mineralisation within a segment of the East Sentul vein, having about 150 metres strike-length and at less than 50 metres below surface. The gold mineralisation is believed to be open at depth.

The Trenggalek exploration IUP tenement covers about 300sqkm and is in the same arc segment that hosts the giant Tumpangpitu porphyry gold-copper deposit in the Southern Mountains of East Java. The tenement has potential for similar porphyry gold-copper deposits and epithermal gold veins.

In November 2015, Arc announced that PT Danusa Tambang Nusantara signed formal documentation to explore the Trenggalek Project. Danusa will fund first stage of exploration for a total of US$1.5 million over the next 10 months and has the option to continue on to the second and third stages of exploration within a total framework of 30 months.

www.arcexploration.com.au

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