Thursday 29th September 2016

Resource Clips



Southern Arc VP Rhylin Bailie on Indonesia gold assays of 4.2 g/t over 26.2m

Resource Clips - essential news on junior gold mining and junior silver miningSouthern Arc Minerals TSXV:SA announced results from the Pelangan Prospect of its West Lombok Project in Indonesia. Assays include 4.2 g/t gold over 26.2 metres (including 30.1 g/t over 1.3 metres), 1 g/t over 15.2 metres, 1 g/t over 15 metres, 1.1 g/t over 10.1 metres and 4.1 g/t over 1.3 metres.

VP Communications Rhylin Bailie tells ResourceClips.com, “We have four projects in Indonesia. Three of them are joint ventured with major mining companies Newcrest and Vale. West Lombok is our primary project and that’s where we’re focussing our exploration efforts this year. We own 85% of it—the rest is in partnership with Indonesian parties. We’ve got a 30,000-metre drill campaign, focussed on West Lombok. Previously it had been explored by Newmont, and they had delineated some gold and porphyry gold over a district-scale potential. So what we’re hoping to prove out is the strike length.

“We’re getting very good drill results, so we know we’ve got some good grades there. We just need to know how big it is—what’s the strike and what’s the depth. The whole property carries on for 13 kilometres, and it’s seven kilometres wide. So we’re doing a lot of drilling this year. We’ve been doing most of the drilling so far on the Pelangan property—where the results were from today—then we’re going to start up in September focussing on the Mencangahh property. Then we’re also doing a lot of mapping and other studies to see if those two deposits may actually converge.

“We’ve had some exceptionally high-grade hits, and we’ve had some good-grade hits,” Bailie continues. “This is widely-spaced drilling, so the near-term goal is to get a resource estimate completed next year. It’s probably going to be an inferred and perhaps an indicated estimate because of the spacing of the drilling.

We’ve had some exceptionally high-grade hits, and we’ve had some good-grade hits. This is widely-spaced drilling, so the near-term goal is to get a resource estimate completed next year—Rhylin Bailie

“We’re hoping to complete an NI 43-101 compliant resource estimate for both Pelangan and Mencangahh in the first half of next year. That’s our target, and that’s why we’re doing so much drilling this year.

“Production is certainly our long-term plan. But that’s a long way away at this point. Probably in a partnership, but right now we’re happy being the owner and operator of this property.

“Indonesia’s been an interesting place to work. There’s huge opportunity there; the geological potential is incredible. There are just so many deposits there—it’s home to Grasberg, which is the world’s largest open pit mine—and there are mineral deposits everywhere you go.

“We were one of the first companies to re-enter Indonesia after the issues it had historically. I think the key thing for us is that we’ve put together a team of people that have lived and worked in Indonesia for pretty much their entire careers. Mike Andrews, our President and COO, has spent his entire career focused in the Indonesia-Asian Pacific region. Hamish Campbell, our Executive VP, and who is in charge of all the exploration programs down there, has actually lived in Indonesia for about 23 years. These are guys that speak the language; they’re comfortable with the system; they have the connections and the experience and the insight into the intricacies of working there that will make this project successful.

“We didn’t just take a North American team and parachute them in,” Bailie concludes. “You’d have difficulties doing that. We have an on-the-ground team and a management team that have an incredible amount of experience. And we’ve also put together advisory boards that have decades of experience in Indonesia. I think that’s the key difference between Southern Arc and some of the other companies working down there.”

View Company Profile

Contact:
Rhylin Bailie
VP of Communications/Investor Relations
604.676.5241

by Greg Klein and Ted Niles

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