Southern Arc, Vale plan Phase 1 drill program at Sabalong Project
Tuesday, September 13 2011 - 04:13 PM WIB
During 2011 Southern Arc completed a detailed ground magnetic survey covering a 15.5 square km area over the Lito and Toyang prospects to identify potential buried porphyry targets. Magnetic anomalies identified on the western and southern margins of the Litolithocap were recently covered by a deep-penetrating induced polarisation (IP) survey, which covered an 8.2 square km area. Inversion modeling and 3D visualization of the magnetic and IP data has revealed a chargeable zone over a 1.3km by 1.5km area possibly related to buried sulphides.
Southern Arc and Vale plan to drill this target with a series of deep holes to test for the presence of a mineralized porphyry system. Southern Arc's exploration team has issued a drilling tender and begun logistical planning activities at site in anticipation of an early Q4-2011 start date.
Southern Arc and Vale are exploring the Sabalong Project under an option and joint venture agreement whereby Vale can earn a 75% interest (Southern Arc retaining 25%) by funding project expenditures through to completion of a bankable feasibility study. To exercise its option, Vale must fully fund the advancement of either the Sabalong or East Elang projects (adjacent to Newmont's Elang deposit) through to completion of a bankable feasibility study. Should Vale choose not to exercise its option, Southern Arc will retain its 100% ownership of both projects at no cost.
Upon completion of Phase 1 expenditures at Sabalong, Vale may elect to solely fund a Phase 2 Minimum Program, involving at least US$2.0 million in exploration expenditures within two years.
The 9,950 hectare Sabalong Project is located in the Miocene volcanic belt of the Sunda-Banda Arc, 30km north-northeast of Newmont's Elang copper-gold porphyry deposit, a "consolidated 25 Moz gold and 16 Blb copper target" and 75km northeast of Newmont's Batu Hijau copper-gold mine. (alex)