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Exploration Properties


On December 12, 2017, Southern Arc Minerals Inc. announced the completion of  the sale of the West Lombok Property to PT Ancora Indonesia Resources, Tbk ("PT Ancora”), in consideration for a US$2 million cash payment and the granting of a 3% Net Smelter Return royalty ("NSR”). Under the terms of the agreement, PT Ancora has the right to buy back the NSR from Southern Arc at any time by paying an additional US$2 million.

Southern Arc has used the cash proceeds from the sale to acquire 100 million shares of PT Ancora (5.66% of PT Ancora’s issued and outstanding) from third parties in a private transaction. 

The 5.66% interest in PT Ancora and the 3% NSR allow Southern Arc and its shareholders to maintain their exposure to the Property’s upside potential.

Minerals: Gold, silver, copper
Location: Southwest Lombok Island, Indonesia
Area: 10,088 ha (24,928 acres), with elevations ranging from sea level to 478 m
Status: Funding JV partner completing feasibility study for small-scale production, NI 43-101 resource estimate completed in July 2013
Ownership: JV partner earning 25% interest, following which Southern Arc will hold 65% with 10% held by the West Lombok Regency 
Permitting status: Mining Business License (IUP) granted. Forestry permit granted. JV partner working to convert exploration permit into exploitation permit.

Southern Arc 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. PT GSE recently commissioned a similar mining venture at the Taliwang project, at which Southern Arc holds a 5% NSR

The West Lombok property covers a 13-km long by 7-km wide northwest trending structural corridor of mineralization and alteration hosting three main prospects: the Pelangan epithermal gold prospect, the Mencanggah epithermal/porphyry district, and the Selodong porphyry intrusive complex. Southern Arc has completed more than 40,000 metres of drilling to date on the property.

Between 1985 and 1996, Newmont Mines established the presence of porphyry mineralization to the south of the property, but did not appreciate the full extent of gold mineralization because the property was still covered by primary rainforest. Exploration activities ceased in 1996 because of Newmont's focus on development of the Batu Hijau porphyry Cu-Au deposit. In the late 1990s the property was clear-cut logged by Indonesian forestry companies.

Southern Arc acquired the property in 2005 in an arrangement that left Southern Arc with all of Newmont's drill core and exploration data in exchange for Newmont retaining a 2% net smelter royalty on the property, which Southern Arc can buy back at any time for $1 million.

Southern Arc initiated exploration on the property in 2006. Exploration activity to date includes extensive geological and geochemistry mapping to establish the presence of epithermal mineralization and surface alteration, the collection of more than 4,500 surface channel samples across the propertyand more than 40,000 metres of drilling.

The two main epithermal prospects on the property, Pelangan and Mencanggah, cover broad areas of 4 km by 5 km and 6.5 km by 4.5 km, respectively, that host numerous structurally-controlled silica ledges variably overprinted by high-grade quartz veins and breccias. Individual tabular ledge bodies range in thickness from 2 to 66 metres, with a strike length of up to 1,000 metres and a vertical extent of greater than 300 metres. Southern Arc has completed more than 22,200 m of drilling to date on the epithermal gold targets, confirming high-grade events typical of epithermal boiling zones and identifying several high-grade shoots. In addition, the Company has completed an airborne geophysical survey at 50-metre spacings to define both near-surface and buried copper-gold porphyry targets. Industry experts including Dr. Steve Garwin, Southern Arc's Senior Technical Advisor, modelled and interpreted the results of the survey in conjunction with the Company's geological and geochemistry database, and identified 17 porphyry targets on the property. A number of the targets have already had a limited amount of drill testing that demonstrated host zones of high-grade gold-rich porphyry copper mineralization, supporting the outcome of the prospectivity analysis.


Following issuance of its mining business license (IUP) in January 2011, Southern Arc initiated the forestry permit process to allow for advanced exploration activities on its West Lombok project. Approximately 1.1% of the West Lombok property is designated Protected Forest (no open-pit mining allowed; underground mining allowed with the appropriate forestry permit), 55.1% is designated Production Forest (open-pit and underground mining allowed with the appropriate forestry permit) and 43.8% has no forestry designation (no restriction on mining activities).

During 2012, while awaiting issuance of the Pinjam Pakai permit, Southern Arc drilled targets outside of forestry designation areas to the northwest of the property on the Pelangan prospect and to the southeast of the property on the Selodong prospect. Southern Arc announced receipt of the forestry permit on November 20, and on December 13, 2012 announced that the Company has commenced drilling again in the main parts of the property, with the objective of completing enough infill drilling to complete a National Instrument 43-101 compliant resource estimate for portions of the property.

As part of its commitment to corporate social responsibility and support for the community initiatives, in 2011 Southern Arc relinquished 8,377 ha to be designated as the "People's Mining Area” for exploitation by the local communities through artisan mining activities.

Infrastructure and Facilities

West Lombok is characterized by rolling grassland hills and is easily accessible by paved and tar-sealed roads. It is located approximately 90 minutes' drive from the provincial capital of Mataram and an international airport. A network of logging and local government roads provides good access throughout the region. A base camp for drilling operations has been established near the village of Selodong, complete with core facilities and supporting infrastructure with the capacity to house exploration personnel.


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September 5, 2017
Southern Arc Sells West Lombok Property read more

  • Address
  • Southern Arc Minerals Inc.
    Suite 650
    669 Howe St
    Vancouver, BC   Canada V6C 0B4
    Telephone: +1-778-725-1490
    Fax: +1-604-428-1124
  • Graha Sentana Building, 4th Floor
    Jalan Buncit Raya No. 2
    Jakarta Selatan,12760   Indonesia
    Telephone: +62-21-7918-8612
    Fax: +62-21-7918-8613