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. 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. Southern Arc is working in partnership with Dundee Corporation to advance the Windfall Lake property. Eagle Hill completed a 28,000-metre drill program between September-December 2013 and achieved its primary objectives of confirming continuity of mineralization at depth and to the southwest of the Main Zone, and expanding the main gold lenses. In addition, a downhole IP survey showed additional potential at depth.
Eagle Hill released an updated mineral resource statement for the project in March 2014, increasing the indicated resource by 38%. A small drill program in early 2014 confirmed continuity of mineralization in the centre of the Main Zone, and a 2,040-metre program in Summer 2014 identified additional mineralization at depth. Eagle Hill's website includes a complete list of drill results to date.
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.