EAST ELANG PROJECT
In May 2016 Southern Arc sold its share of the East Elang property to an Indonesian individual for US$20,000 and a 3% NSR on all future sales or other disposition of mineral production from the property.
Southern Arc previously held the East Elang property in a joint venture with Vale International, with the agreement that Vale would pay all expenses through to completion of a bankable feasibility study. Southern Arc and Vale had been unable to advance the property as the result of repeated extensions to an Indonesian forestry moratorium, and in February 2016 Vale elected not to proceed with the joint venture.
Southern Arc has sold the East Elang property to an individual with the intention and capacity to advance the project once the moratorium is lifted. Southern Arc's 3% NSR will allow the Company and its shareholders to benefit should East Elang advance to production.
The East Elang property adjoins immediately to the east of Newmont's Elang copper-gold project. In February 2011 Newmont released a JORC compliant resource estimate for the Elang deposit of 25 million ounces of gold and 16 billion pounds of copper, making it bigger than Newmont's world-class Batu Hijau mine, and announced plans to advance the deposit to production. There is a great deal of activity in the area. The East Elang property (bright purple), directly adjacent to Newmont's Elang deposit (red star) is surrounded by Newmont exporation properties, and a number of other companies are exploring in the area as well.
Elang District exploration properties (click here for larger map)