|Southern Arc has a resource-stage property in Indonesia, is the largest shareholder in Japan Gold which is focused on exploration in Japan, and owns a substantial interest in Osisko Mining, which is advancing a number of gold properties in Canada.||Southern Arc's management and advisory teams have decades of experience exploring gold and copper-gold projects and operating resource companies.||Southern Arc looks to invest or partner in high-quality resource properties in companies that are distressed, or in areas of the world that are prospective but underexplored.|
Southern Arc Minerals is a "resource 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 holds a significant interest in a diverse portfolio of resource projects.
Southern Arc initially focused its exploration efforts on gold and copper-gold mineral properties in southern Indonesia, one of the most prospective mineralized regions in the world. Indonesia's Sunda-Banda magmatic arc includes numerous high-quality gold and copper-gold deposits, including Batu Hijau and Grasberg, two of the world's largest copper-gold mines. Southern Arc was among the first companies to establish a foothold in the region and secured three properties along this prospective formation.
The Company published the first resource estimate for its 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, and by converting the exploration permit into an exploitation permit.
In August 2013 Southern Arc purchased 26% of Eagle Hill Exploration. Working with Dundee Corporation, the Company advanced Eagle Hill's Windfall Lake Gold Project through a number of successful drilling campaigns and completion of a Preliminary Economic Assessment. In August 2015, Eagle Hill was acquired by Oban Mining (re-named Osisko Mining) for a 258% premium over market price, and Southern Arc currently holds a substantial investment in Osisko Mining with both shares and warrants.
Further to its diversification strategy, in 2015 Southern Arc applied for 80 exploration licenses in Northern Japan, an area with a long history of mining but very little exploration. Southern Arc completed preliminary exploration on the properties and in July 2016 agreed to sell its Japanese subsidiary SAMJ - which holds the license applications - to Sky Ridge Resources. In September 2016 Sky Ridge completed its acquisition of SAMJ and concurrently completed a C$7 million financing to fund exploration of the Japanese properties. Southern Arc now holds 42.9% of Japan Gold on an undiluted basis.
Japan Gold has since expanded it's project portfolio to 148 exploration license applications, 9 of which have been converted to 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.