Southern Arc Gets Licence for Indonesian Project

12 January 2011 (Last Updated January 12th, 2011 18:30)

Southern Arc Minerals' Indonesian subsidiary, PT Indotan Lombok Barat Bangkit (PT ILBB), has been granted a mining business licence (IUP) for its West Lombok property, located on Lombok Island, West Nusa Tenggara province, Indonesia. The exploration stage of the IUP is initially valid fo

Southern Arc Minerals' Indonesian subsidiary, PT Indotan Lombok Barat Bangkit (PT ILBB), has been granted a mining business licence (IUP) for its West Lombok property, located on Lombok Island, West Nusa Tenggara province, Indonesia.

The exploration stage of the IUP is initially valid for five years and permits the company to pursue exploration activities up to the conclusion of a feasibility study.

On approval of a feasibility study, the IUP will automatically transition to the exploitation stage, with the right to conduct mining production on the property for 20 years, with the potential for two further ten-year extension periods.

The project covers an area over 100 million square meters and contains Pelangan Epithermal Gold, Mencanggah Epithermal/Porphyry and Selodong Porphyry prospects.

Southern Arc holds an 85% interest in PT ILBB, with 10% being held by the local government (the West Lombok Regency), and the remaining 5% held by the company’s original Indonesian partner, PT Puri Permata Mega.