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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/28/13 -- Southern Arc Minerals (TSX VENTURE: SA)(OTCQX: SOACF) ("Southern Arc" or "the Company") today announced the results of its second quarter ended December 31, 2012, along with an update on its portfolio of projects. Details of the Company's financial results are described in the unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis ("MD&A"), which will be available on the Company's website at www.southernarcminerals.com and on SEDAR at www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.
FINANCIAL SNAPSHOT
---------------------------------------------------------------------------- December 31, 2012 June 30, 2012 -------------------------------------------Total assets $ 54,333,738 $ 60,884,512Exploration properties 35,612,324 37,430,624Working capital 17,208,413 21,035,112Comprehensive loss (5,929,570) (4,312,411)Basic and diluted loss per share (0.05) (0.04)----------------------------------------------------------------------------
EXPLORATION UPDATE AND OUTLOOK
At the end of 2012 Southern Arc's Board of Directors conducted a strategic review of the Company's projects and exploration strategy. The Board ranked the Company's projects and considered the best strategy to protect and promote shareholder value. On December 13, 2012, Southern Arc announced the Board's decision to: proceed with drilling at the West Lombok project; retain the Company's no-cost joint venture interest in the East Elang project; sell the Taliwang project, subject to certain conditions; relinquish the Sabalong project; and remain open to considering new gold-focused opportunities within Indonesia and advanced-stage projects in other countries. This narrowed focus enables Southern Arc to dedicate resources in the near-term to advancement of the West Lombok project while retaining the financial flexibility to consider new opportunities.
West Lombok Property (Lombok Island)
The West Lombok project covers a 13-km long by 7-km wide structural corridor of mineralization and alteration hosting porphyry copper-gold and epithermal gold deposits. The two main epithermal prospects on the property, Pelangan and Mencanggah, cover broad areas of 4 km by 5 km and 6.5 km by 4.5 km, respectively, that host numerous structurally-controlled silica ledges variably overprinted by high-grade quartz veins and breccias. Individual tabular ledge bodies range in thickness from 2 to 66 metres, with a strike length of up to 1,000 metres and a vertical extent of greater than 300 metres. Southern Arc has completed 24,743.1 metres of drilling to date on epithermal gold mineralization, confirming high-grade events typical of epithermal boiling zones and identifying several high-grade shoots. Southern Arc has completed more than 17,800 metres of drilling to date at the Selodong porphyry copper-gold intrusive complex in the southeastern end of the property, with the majority of drill holes intersecting broad zones of significant copper-gold mineralization. In 2011, the Company completed an airborne geophysical survey of the West Lombok project at 50-metre spacings to define both near-surface and buried copper-gold porphyry targets. Industry experts including Dr. Steve Garwin, Southern Arc's Senior Technical Advisor, modelled and interpreted the results of the survey in conjunction with the Company's geological and geochemistry database, and identified 17 porphyry targets on the property. A number of these targets have already had a limited amount of drill testing and demonstrated zones hosting high-grade gold-rich porphyry copper mineralization, supporting the outcome of the prospectivity analysis.
