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Monday, 26 November 2012
Southern Arc Minerals to conduct strategic review of Indonesian properties
Southern Arc Minerals (CVE:SA) (OTCQX:SOACF) says that its board has decided to conduct a strategic review of the company's properties in Indonesia, despite earlier this month securing the forestry permit necessary to resume full-scale exploration at its West Lombok property.
The company's shares were halted Friday afternoon pending the news today. Shares resumed trading shortly after the announcement this morning. They closed Friday at 35 cents on the TSX Venture Exchange.
The mineral explorer said Monday it has delayed the drilling program it announced last week on the West Lombok property, pending completion of the strategic review. It anticipates providing an update to shareholders by December 14.
Southern Arc held its annual general meeting on Friday, with shareholders approving all matters at hand. The company said that Hamnish Campbell did not stand for election to its board of directors.
Last week, Southern Arc shares advanced more than 10 per cent after it received the long-awaited Pinjam Pakai forestry permit for its West Lombok property in Indonesia, allowing the company to resume full-scale exploration activities on the asset.
In late 2011, the company made the decision to focus its near-term drilling activities on targets within areas without forestry designation, until the Pinjam Pakai, or borrow to use, permit was issued.
The key West Lombok project hosts porphyry copper-gold, high-sulfidation gold-copper and epithermal gold deposits.
During the waiting period for the permit, the company continued to work closely with SRK Consulting to prepare a detailed drilling program for epithermal gold targets within the Pelangan and Mencanggah prospects.
The next phase of exploration was supposed to focus on infill drilling in areas where the company found high grade shoots and wide mineralized intercepts.
The company has a portfolio of projects in Indonesia aside from West Lombok, including the East Elang project, in which Vale(NYSE:VALE) remains a partner, and the Taliwang property next to Newmont's (NYSE:NEM) Batu Hijau copper-gold mine.