Southern Arc Minerals Inc.
TSX VENTURE : SA

Southern Arc Minerals Inc.

August 02, 2011 08:30 ET

Southern Arc Announces Latest Drilling Results From the Pelangan Prospect, West Lombok, Indonesia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 2, 2011) - Southern Arc Minerals (TSX VENTURE:SA)("Southern Arc") is pleased to announce the latest drilling results from its Pelangan Prospect, located on its West Lombok Property, Indonesia.

Assay results have been received for drill holes PLD015 to PLD023. Figure 1 shows the location of drill holes completed to date, Drillhole locations, azimuths, dips and depths are summarised in Table 1 and a long-section projection of drill hole mineralised intervals is presented in Figure 2. All intersections are reported as down hole lengths.

PLD022 the most southerly phase 2 hole drilled to date at the South Raja lode intersected mineralisation 80 m below phase 1 drill hole RDG12 (22.0 m @ 1.0 g/t Au & 9.0 g/t Ag) returning a wide mineralised interval of:

PLD022 15.8 m @ 3.6 g/t Au from 101.8m
(inc. 5.6 m @ 7.0 g/t Au from 111.4 m)
(inc. 1.4 m @ 18.2 g/t Au from 115.6 m)

This interval shows a significant increase in grade with depth below the RDG12 supporting the concept of deeper drilling and the potential for shoot development at South Raja. The mineralisation remains open along strike and at depth.

PLD019 stepped along strike 70 m to the southeast of PLD014 and intersected two mineralised zones approximately 107 m below the phase 1 drill hole RDG06, (16.1m @ 2.7 g/t Au & 23.0 g/t Ag) returning the following mineralised intervals:

PLD019 5.2 m @ 4.1 g/t Au from 147.1 m
(inc. 0.75 m @ 14.0 g/t Au from 147.7 m)
(and 0.55 m @ 14.5 g/t Au from 151.75 m)
And
PLD019 13.95 m @ 2.7g/t Au from 160.8 m
(inc. 2.4 m @ 7.1 g/t Au from 160.8 m)
(and 1.0 m @ 4.7 g/t Au from 173.75 m)

These two intervals again show an increase in grade with depth at South Raja at initial widely spaced intervals on the 600 m long South Raja Lode which also remains open to the south.

Dr. Mike Andrews, President and Chief Operating Officer of Southern Arc commented "Particularly encouraging is significant increase in grade below phase 1 drilling at South Raja lode where the 600 m long lode remains open to the south and at depth, drilling will continue to test this area in the weeks ahead. Drilling will also continue to target mineralisation at broad intervals along strike at Tanjung-Jati and North Raja lodes".

PLD016 intersected the Raja Central lode 45 m to the southeast of PLD007 and 65 m northwest of PLD002 on the Central Raja lode. This hole returned:

PLD016 11.0 m @ 2.17 g/t Au and 8.6 g/t Ag from 91.9m
(inc. 2.30 m @ 4.00 g/t Au and 14.4 g/t Ag from 93.5 m)
(and 0.7 m @ 4.50 g/t Au and 4.0 g/t Ag from 98.5 m)

PLD016 indicates good lateral continuity of the MSB host structure between PLD007 and PLD002 with this intersection.

PLD017 drilled from the same pad as PLD014 to test the gap between PLD014 and PLD006 and returned:

PLD017 6.0 m @ 2.2 g/t Au and 13.1 g/t Ag from 132.4 m
(inc. 1.30 m @ 4.9 g/t Au & 11.0 g/t Ag from 132.4 m)

This drill hole indicates an area of lower tenor between the Raja Central and South lodes which is also confirmed by PLD021 which intersected the southern part of the Central lode 50 m below PLD006 returning no significant mineralised interval.

PLD015 intersected the Central Raja lode 83m below drill hole PLD013 (24.5m @ 1.3g/t Au & 5.9g/t Ag; including 8.95m @ 2.3g/t Au & 11.8g/t Ag) but failed to return any significant gold grades.

PLD018 targeted the northern part of the North Raja MSB lode 300 m to the northwest of the high-grade intersection in drill hole PLD007. This hole returned a narrow intercept of 0.70 m @ 2.4 g/t Au.

PLD020 and PLD023 on the Tanjung Target were located to test potential plunging extensions of the high-grade intercept in TDG02 (10.05m @ 13.4g/t Au & 8.0g/t Ag). PLD020 targeted the Tanjung MSB lode midway between TDG01 (18.45m @ 1.1g/t Au & 4g/t Ag) and TDG02. Three narrow mineralised zones were intersected including:

PLD020 1.05 m @ 1.3 g/t Au & 1.5 g/t Ag from 66.95 m
And 1.7 m @ 2.5 g/t Au & 0.8 g/t Ag from 78.65 m
And 0.95 m @ 1.4 g/t Au & 3.3 g/t Ag from 110.05 m

PLD023 targeted the Tanjung MSB between the previous phase 1 drill holes TDG02 and TDG03 (8.6m @ 2.7g/t Au & 4g/t Ag). PLD023 intersected the MSB from 125m down hole but returned no significant mineralised interval. Mineralisation is still open below TDG02 and this potential vertical high grade extension will be drill tested as a priority.

On behalf of the Board of Southern Arc Minerals Inc.

"John Proust", Chairman and CEO

About Southern Arc

Southern Arc Minerals Inc. is an Indonesia-based Canadian mineral exploration company with an aggressive exploration, acquisition and growth strategy. The Company's portfolio includes four active exploration projects with epithermal gold and gold-copper porphyry prospects on the Lombok and Sumbawa islands in Indonesia, three of which are being advanced in partnership with major mining companies. The Company's key exploration property is its West Lombok project, with several gold-rich copper porphyry and epithermal gold vein prospects. Southern Arc is listed on the TSX Venture Exchange under the symbol SA. More information is available at www.southernarcminerals.com or by emailing info@southernarcminerals.com.

Qualified Person and Quality Control and Assurance

The information in this release has been compiled under the supervision of Southern Arc's Chief Geologist, Andrew Rowe B. App. Sc. Geology, MAusIMM. Mr. Rowe has over 18 years of international mineral exploration experience throughout SE and Central Asia and Australia. During this time he has held such positions as Chief Geologist – Feasibility Studies, Senior Geologist and Consulting Geologist. Mr. Rowe has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined by National Instrument 43-101.

The drill program and sampling protocol is managed by Southern Arc under the supervision of Andrew Rowe. The diamond drill holes are drilled at PQ, HQ and NQ sizes depending on hole depth and core recovery to date has averaged 98.6%. Half core is cut by rock saw and is sampled generally using nominal 1 metre intervals, however sample intervals are varied according to geological contacts and have ranged between 0.2 to 2.5 metre in length. Two quality control samples (one blank and one standard) are inserted into each batch of 20 samples. The half core samples are securely transported from the project site to the Intertek Testing Services ("ITS") sample preparation laboratory in Sumbawa Besar via private truck hired by Southern Arc Minerals. Sample pulps are then sent to the ITS Jakarta laboratory by ITS. Gold is analysed by fire assay with AAS finish and a four acid digestion with ICP-MS finish is used to analyse a full suite of elements including silver and base metals. ITS is one of the world's largest product and commodity testing, inspection and certification organizations. The Jakarta laboratory is ISO 17025 accredited and employs a Laboratory Information Management System for sample tracking, quality control and reporting.

Forward-looking Statements

This news release contains forward-looking statements relating to expected or anticipated future events and operations, timing of projects and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the company's capability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. There is no representation by the company that actual results achieved during the forecast period will be the same in whole or in part as that forecast.

Table 1. Pelangan Phase 2 Exploration Drilling, West Lombok
Drill Hole Number Easting Northing RL Azimuth Dip Drilling Production
Collared
(start drilling)
Completed Depth
(m)
PLD003 384530.86 9028672.13 120.39 65 -65 27-Mar-
2011
11-Apr-
2011
300.30
PLD004 384656.23 9028587.23 186.80 70 -50 27-Mar-
2011
1-Apr-
2011
150.00
PLD005 384463.82 9028885.90 71.64 100 -50 29-Mar-
2011
8-Apr-
2011
149.20
PLD006 384656.23 9028587.23 186.80 70 -68 1-Apr-
2011
9-Apr-
2011
149.00
PLD007 384489.97 9028777.55 77.61 62 -45 11-Apr-
2011
27-Apr-
2011
158.75
PLD008 384615.30 9028682.71 161.19 75 -45 15-Apr-
2011
24-Apr-
2011
156.00
PLD009 384530.86 9028672.13 120.39 32 -60 13-Apr-
2011
26-Apr-
2011
295.00
PLD010 384615.30 9028682.71 161.19 72 -70 24-Apr-
2011
4-May-
2011
195.00
PLD011 384529.00 9028670.00 117.00 65 -60 28-Apr-
2011
10-May-
2011
282.35
PLD012 384489.97 9028777.55 77.61 55 -70 1-May-
2011
14-May-
2011
310.10
PLD013 384631.42 9028649.51 184.27 82 -65 7-May-
2011
15-May-
2011
201.00
PLD014 384711.11 9028441.13 191.68 50 -65 31-May-
2011
8-Jun-
2011
159.00
PLD015 384591.48 9028646.26 168.05 84.6 -70 2-Jun-
2011
22-Jun-
2011
341.50
PLD016 384566.94 9028767.87 106.63 63 -70 6-Jun-
2011
13-Jun-
2011
157.90
PLD017 384709.14 9028440.01 191.65 15 -65 9-Jun-
2011
18-Jun-
2011
195.35
PLD018 384388.50 9029050.00 69.87 65 -47 21-Jun-
2011
8-Jul-
2011
162.90
PLD019 384663.28 9028360.50 221.58 70 -46 22-Jun-
2011
6-Jul-
2011
228.10
PLD020 384309.84 9028698.14 183.91 215 -50 17-Jun-
2011
28-Jun-
2011
187.00
PLD021 384640.19 9028566.17 171.05 65 -70 25-Jun-
2011
9-Jul-
2011
296.70
PLD022 384783.86 9028192.99 269.86 80 -55 28-Jun-
2011
8-Jul-
2011
182.20
PLD023 384245.73 9028742.74 183.07 210 -50 2-Jul-
2011
8-Jul-
2011
164.25

Figure 1. Raja-Tanjung MSB Targets Phase 2 Drilling Results Plan is available at the following address: http://media3.marketwire.com/docs/Raja-Tanjung%20MSB%20Targets.pdf

Figure 2. Raja MSB Target Longitudinal Section with Vein Pierce Points is available at the following address: http://media3.marketwire.com/docs/Raja%20MSB.pdf

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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