Southern Arc Minerals Inc. is a Canadian mineral exploration company focused on gold and copper-gold exploration. Southern Arc is a "project generator". Southern Arc's management team identifies undervalued or underexplored assets, acquires large prospective land positions, completes initial exploration to verify prospectivity, and then seeks out funding partners to advance the properties while minimizing Southern Arc's risk.
Southern Arc concentrates on acquiring and exploring areas on which there has been previous exploration activity. Southern Arc also focuses its activities in areas with established infrastructure
Southern Arc holds a significant interest in a diverse portfolio of resource projects.The Company owns an interest in the West Lombok project in Indonesia, a resource-stage property with several gold-rich copper porphyry and epithermal gold vein prospects. Southern Arc also holds an investment in Osisko Mining Corporation, which is advancing several gold projects in Canada, is the largest shareholder in a new exploration company focused on gold exploration in Japan, and holds 29.9% of Tethyan Resources, an AIM quoted junior exploration company with a focus on exploring for copper and gold within the Western Tethyan Belt in the European Balkan Region. Southern Arc is listed on the TSX Venture Exchange under the symbol "SA".
Southern Arc's 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 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.
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.
In 2015 and early 2016 Southern Arc applied for 80 exploration licenses in northern Japan, in an area of known gold occurrences. Japan hosts one of the world’s highest grade gold mines, the Hishikari Mine, which has produced since 1985 with grades averaging 40 g/t gold. Despite a history of significant production, with many million-plus-ounce deposits with good gold and silver grades, the region is regarded as largely underexplored.
Southern Arc was the first foreign exploration company to apply for prospecting licenses in Japan. Based on a desktop review of historical gold production and Japan's extensive geoscientific database, Southern Arc was able to pinpoint areas that are very compelling from a geological perspective and applied for exploration licenses through its wholly-owned subsidiary Southern Arc Minerals Japan KK ("SAMJ”). SAMJ lodged 38 contiguous exploration applications in Northern Hokkaido targeting high-grade epithermal gold deposits (see Southern Arc news release dated May 20, 2015). Subsequently, SAMJ lodged another 42 prospecting rights license applications throughout Hokkaido and northern Honshu targeting three other prospective epithermal gold areas and four areas of gold-bearing advanced argillic alteration, which could indicate the presence of a porphyry mineral environment. The combined area under application by SAMJ currently comprises 27,153 hectares over eight target areas.
In July 2016 Southern Arc signed a letter of intent to sell its Japanese subsidiary - which holds the license applications - to Sky Ridge Resources. Sky Ridge intends to raise $5 million to explore and advance the properties. In exchange for ownership of the subsidiary, Sky Ridge will give Southern Arc 50,000,000 pre-Consolidation shares, making Southern Arc the largest shareholder in a new Japan-focused exploration company with 49% (fully diluted) of Japan Gold Corp.
Japan Gold has since expanded it's project portfolio to 148 exploration license applications over 10 properties and nine applications have been granted to the company as Exploration Licenses. From October to December 2016, six geologists and support teams undertook a nine-week field program, over the majority of the priority Ikutahara Project. The results of the 2016 regional exploration program have been compiled to further define targets for additional detailed prospect mapping and surface geochemical surveys in conjunction with drill testing over priority targets in 2017.
Osisko Mining Investment
In August 2013 Southern Arc acquired a 26% interest in Eagle Hill Exploration, which was advancing the high-grade Windfall Lake gold project in Quebec, Canada. With gold grades averaging 8.42 g/t gold in the indicated category, Windfall Lake is one of Canada's highest-grade resource-stage gold projects, located in one of the world's best mining jurisdictions.
In August 2015 Eagle Hill was purchased by Oban Mining Corp. (re-named Osisko Mining) for a 258% premium over market price as part of a four-way merger with Oban Mining, Eagle Hill, Ryan Gold and Corona Gold. Osisko Mining has made a series of acquisitions and is advancing multiple gold properties in Ontario and Quebec, Canada. Southern Arc still holds a substantial investment in Osisko Mining, with both shares and warrants.
Tethyan Resources Investment
A strategic investment in a junior exploration company exploring for gold and copper within the Tethyan mineral belt in Eastern Europe. During the period ended December 31, 2016, the Company acquired 29.9% of Tethyan’s issued share capital. Tethyan is an AIM quoted junior exploration company with a focus on exploring for copper and gold within the Western Tethyan Orogenic Belt in the European Balkan Region.
Currently, Tethyan holds rights with respect to licenses in Serbia and is looking for other copper and gold projects in Eastern Europe.