Newcrest Mining not to proceed with Taliwang property agreement

Vancouver-based mining firm Southern Arc Minerals today announced that Newcrest Mining Limited (?Newcrest?) has notified Southern Arc that it will not be proceeding with the definitive agreement contemplated by the Heads of Agreement signed by the parties on November 19, 2010. Despite best efforts by Southern Arc and Newcrest, certain conditions precedent under the non-binding Heads of Agreement could not be met in the required timeframe, and accordingly the Heads of Agreement lapsed.

The 31,200 hectare Taliwang property is prospective for gold, silver and copper with three main prospects: a 1km x 1.5km gold-silver bearing epithermal vein system confirmed by 56 drill holes; a 5km-long NE trending high-sulphidation alteration zone, paralleling the Batu Hijau mineralized trend; and sedimentary gold-hosted targets.(end of release)