Southern Arc Minerals Inc. is a Canadian mineral exploration company focused on gold and copper-gold exploration. Southern Arc is advancing two projects in Indonesia, holds a 26% interest and is joint operator of a high-grade gold project in Quebec, and is actively looking for new projects to broaden its portfolio. Southern Arc is listed on the TSX Venture Exchange under the symbol "SA".
Southern Arc's key exploration property is its West Lombok project, with several gold-rich copper porphyry and epithermal gold vein prospects. In December 2014 Southern Arc entered into a joint venture to advance the West Lombok project to small-scale production. PT Genesis Sumber Energi can earn a 25% interest in the project by completing an environmental impact study and a feasibility study for small-scale underground gold mines and processing plants. PT GSE must also convert the exploration permit into an exploitation permit, thereby securing tenure on the property for a further 20 years. PT GSE recently commissioned a similar mining venture at the Taliwang project, at which Southern Arc holds a 5% NSR.
The West Lombok property comprises a 13km long by 7km wide structural corridor of hydrothermal mineralization and alteration on Indonesia's Lombok Island. Previous exploration by Newmont Mining established the presence of epithermal and porphyry mineralization on a district scale with three large prospects: the Pelangan epithermal gold prospect, the Mencanggah epithermal/porphyry copper-gold district, and the Selodong intrusive copper-gold complex. Southern Arc has completed more than 40,000 metres of drilling to date on the property and published the first resource estimate for the West Lombok property in July 2013, with an inferred resource totaling 1.49 million ounces of gold, 1.82 million ounces of silver and 397.3 million pounds of copper from three open-pittable epithermal gold deposits and one porphyry copper deposit. Further details are available in the press release and technical report.
Southern Arc and Vale International S.A. are advancing the East Elang Project under an option and joint venture agreement whereby Vale can earn a 75% interest (Southern Arc retaining 25%) by funding all project expenditures through to completion of a bankable feasibility study. The East Elang property is located immediately adjacent to Newmont's Elang copper-gold deposit (25 Moz gold, 16 Blb copper). Airborne geophysics and lithographical studies suggest that structures controlling the Elang porphyry trend may extend onto Southern Arcís East Elang property. While the project is certainly prospective based on its location, Southern Arc will not begin to explore at East Elang until the appropriate permits have been issued.
Eagle Hill Investment
In August 2013 Southern Arc acquired a 26% interest in Eagle Hill Exploration, which owns the high-grade Windfall Lake gold project in Quebec, Canada. With gold grades averaging 9.75 g/t gold in the indicated category, Windfall Lake is in the top 10% worldwide of resource-stage gold projects, and is located in one of the world's best mining jurisdictions. A Preliminary Economic Assessment study is underway for the project, with completion targeted for Q1-2015. Completing the environmental, engineering and economic studies associated with a Preliminary Economic Assessment will provide further clarity on the potential of advancing this promising, high-grade deposit to production.
Southern Arc is working in partnership with Dundee Corporation to advance the Windfall Lake property. Eagle Hill has completed more than 33,000 metres of drilling since September 2013, confirming the extension of mineralization along strike to the southwest, and identifying additional mineralization and expansion potential at depth below the main deposit. Eagle Hill released an updated mineral resource statement for the project in March 2014, increasing the indicated resource by 38%. The 2015 drill program will likely focus on infill drilling to upgrade inferred resources to the indicated category, and potentially underground drilling and a bulk sample. Eagle Hill's website includes a complete list of drill results to date.