Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce the satisfactory completion of its phase two drilling program, with a total of 5,655.50 metres drilled in 40 diamond core holes, at the Lemonga Prospect located on Sumbawa Island, Indonesia. The final holes LDG-45 to LDG-56 were drilled mainly to test lateral extensions of high-grade gold-silver shoots intersected in previous drill holes of both this and an earlier scout drilling program. Final assay results for ten drill holes, LDG-45 to LDG-54, have been received.

News releases 06-04 (January 31, 2006), 06-05 (February 21, 2006), 06-08 (April 4, 2006), 06-11 (April 20, 2006), 06-12 (May 9, 2006), and 06-13 (May 24, 2006) reported on the first twenty-eight drill holes (LDG-17 to LDG-44) of the phase two drill program.

A variety of targets were tested in these final holes. Drill hole LDG-45 targeted a relatively shallow CSAMT anomaly adjacent to silicified hydrothermal breccia sub-crop north of the Amy Vein, while drill holes LDG-46 and LDG-47 continued testing the northerly extensions of the Betty and Cici sheeted vein complex, recognized in previous drill holes. Extensions of both the Dessy and Evi Veins were explored in drill holes LDG-48, LDG-49, LDG-51, LDG-52, and LDG-54, while drill holes LDG-50 and LDG-53 targeted depth extensions of the south and central Amy Vein segments, respectively.

All holes were drilled at right angles to the strike of the veins at -45º and -60º inclinations and, except for LDG-48, intersected significant widths and grades of gold-silver bearing quartz vein zones.

Highlights of drill hole intercepts (Figure 1) returned:


Drill hole LDG-45 0.90 m @ 0.61 g/t Au & 234 g/t Ag from 78.10 m
Drill hole LDG-46 12.35 m @ 1.58 g/t Au & 40 g/t Ag from 1.60 m
(including 2.35 m @ 4.98 g/t Au & 121 g/t Ag from 11.60 m)
2.15 m @ 1.78 g/t Au & 166 g/t Ag from 20.80 m
(including 1.00 m @ 2.72 g/t Au & 292 g/t Ag from 20.80 m)
2.00 m @ 24.70 g/t Au & 6 g/t Ag from 52.70 m
Drill hole LDG-47 6.20 m @ 1.93 g/t Au & 119 g/t Ag from 68.05 m
(including 1.75 m @ 2.08 g/t Au & 240 g/t Ag from 68.05 m
1.35 m @ 5.22 g/t Au & 45 g/t Ag from 72.90 m)
0.60 m @ 1.04 g/t Au & 65 g/t Ag from 100.00 m
0.55 m @ 1.10 g/t Au & 61 g/t Ag from 109.60 m
2.60 m @ 2.24 g/t Au & 39 g/t Ag from 127.25 m
Drill hole LDG-49 0.65 m @ 1.52 g/t Au & 114 g/t Ag from 88.20 m
1.80 m @ 5.32 g/t Au & 25 g/t Ag from 132.80 m
Drill hole LDG-50 0.90 m @ 1.38 g/t Au & 53 g/t Ag from 18.20 m
1.65 m @ 28.90 g/t Au & 124 g/t Ag from 58.75 m
1.35 m @ 1.78 g/t Au & 19 g/t Ag from 97.45 m
Drill hole LDG-51 0.65 m @ 1.70 g/t Au & 123 g/t Ag from 10.85 m
2.40 m @ 2.88 g/t Au & 5 g/t Ag from 16.60 m
(including 0.40 m @ 13.20 g/t Au & 10 g/t Ag from 16.60 m)
2.00 m @ 0.77 g/t Au & 114 g/t Ag from 23.00 m
4.55 m @ 4.22 g/t Au & 16 g/t Ag from 94.90 m
(including 0.80 m @ 17.20 g/t Au & 34 g/t Ag from 96.70 m)
Drill hole LDG-52 3.05 m @ 6.41 g/t Au & 24 g/t Ag from 76.70 m
(including 0.50 m @ 37.50 g/t Au & 17 g/t Ag from 76.70 m)
2.90 m @ 3.81 g/t Au & 35 g/t Ag from 92.20 m
(including 2.00 m @ 4.66 g/t Au & 22 g/t Ag from 92.20 m)
0.90 m @ 2.78 g/t Au & 8 g/t Ag from 107.35 m
Drill hole LDG-53 0.55 m @ 2.34 g/t Au & 65 g/t Ag from 94.80 m
1.75 m @ 1.99 g/t Au & 4 g/t Ag from 181.30 m
(including 0.40 m @ 7.37 g/t Au & 7 g/t Ag from 181.30 m)
Drill hole LDG-54 2.40 m @ 5.09 g/t Au & 19 g/t Ag from 29.30 m
(including 0.90 m @ 9.61 g/t Au & 11 g/t Ag from 29.80 m)
0.55 m @ 3.78 g/t Au & 15 g/t Ag from 57.80 m

Drill holes LDG-46 and LDG-47 both confirm the northern strike extension and depth continuity of grade of the Betty/Cici sheeted vein complex. Whilst only a nominal five drill holes have been completed in the area to date, a possible low-grade bulk tonnage scenario exists based on vein zones intersected of 45m to 110m width and along strike (northwards of LDG-46 and southwards to LDG-15) and down-dip continuation of mineralization.

Drill hole LDG-48 appears to close off the Dessy Vein to the north, although further trenching is warranted to confirm this. Drill holes LDG-49 and LDG-54 effectively double the known strike length of this vein, which still remains open to the south and at depth. Similarly drill holes LDG-51 and LDG-52 into the Evi Vein confirm the lateral extent of previous gold-silver intercepts from drill hole LDG-34 (9.95m @ 3.82 g/t Au & 29 g/t Ag). This vein also remains open at depth and long strike, with further trenching required north of drill hole LDG-12.

Drill hole LDG-50 was drilled beneath the previous wide quartz vein intercept in hole LDG-16, but proved inconclusive in extending the vein to depth. However, a significant width of gold-silver mineralization (1.65 m @ 28.90 g/t Au & 124 g/t Ag) hosted in coarsely crystalline massive sulfides was intersected in the upper portions of the hole, indicating the structural and mineralogical complexity of the Amy/Betty Vein convergence area. Although drill hole LDG-53 intersected an 8.3m wide zone of quartz and peripheral stockworks at the projected target depth, gold and silver grades fell below those expected. Similar to the previous drill hole LDG-02, immediately up dip, the vein zone is partly oxidized and extremely broken, with strong artesian water flows encountered, implying a major structural feature, with possible flushing of gold and silver particles from the zone.

All data is currently being finalized into a format whereby the resource potential may be indicated.

The Lemonga Prospect is a low-sulfidation epithermal quartz vein system over which surface mapping by Southern Arc has confirmed argillic alteration dominant within an hydrothermal upflow area approximately 1 km East-West by 1.5 km North-South. Five auriferous quartz vein targets, named Amy, Betty, Cici, Dessy and Evi, have been identified within the alteration zone. The best exposed vein, the Amy Vein, has a mapped strike extent of at least 950 meters.

Indonesian Mineral Property Agreement
Further to the Southern Arc news release dated September 7, 2005, the Company has terminated a letter agreement regarding the acquisition of an Indonesian mineral property.

Qualified Person and Quality Control and Assurance
The information in this release has been compiled under the supervision of Southern Arc's Vice President of Exploration Hamish Campbell B.Sc.Geology, MAusIMM. Mr. Campbell has over 21 years of international mineral exploration experience including 19 years in Indonesia, during which he has held such positions as Exploration Manager, Senior Geologist and Consulting Geologist. Mr. Campbell has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined in terms of NI 43-101.

All assaying of samples was undertaken by the ITS laboratory in Jakarta. ITS is one of the world's largest product and commodity testing, inspection and certification organizations. The Jakarta laboratory is ISO 17025 accredited and employs a Laboratory Information Management System (LIMS) for sample tracking, quality control and reporting.

On behalf of the Board of
Southern Arc Minerals Inc.
"John Proust"
President and CEO
Southern Arc Minerals Inc.

"The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release"

news jul182006 map

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