Southern Arc Minerals Inc.

TSX VENTURE : SA


Southern Arc Minerals Inc.

December 17, 2009 08:30 ET

Southern Arc Granted IUP License for Its Sabalong Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2009) - Southern Arc Minerals Inc. ("Southern Arc" or the "Company") (TSX VENTURE:SA) is pleased to announce that it has been granted a Mining Business License ("IUP") for the Sabalong Property.

Issued by the Regent of Sumbawa in the Indonesian province of West Nusa Tenggara, this IUP is comprised of two stages, each with potential extensions. Over a period of 6 years, the exploration stage permits the Company to pursue exploration activities through to the conclusion of a feasibility study. Upon the conclusion of the exploration stage, the IUP automatically converts to a second stage, permitting the Company to conduct commercial production on this property for a minimum of 20 years, with the potential for two further 10 year extension periods.

Covering 9,950 hectares, the Sabalong Property bears epithermal gold-silver-bearing quartz veins, with lesser high-level hydrothermal breccias and silica cappings, with the latter genetically associated with an early high temperature potassic event, in the form of structurally-controlled "silica ledges", or lithocaps located upper or distal to a porphyry system (Davies, 2008).

Surface geologic mapping has defined an area of 3 x 4 km of structurally-controlled argillic alteration with lesser advanced argillic assemblages, hosting low sulfidation epithermal veins in the east (Toyang Prospect), whilst to the west residual silica and enargite-bearing quartz veins typical of high-sulfidation epithermal systems are encountered (Lito Prospect). Low sulfidation veining comprises veins and vein breccias of up to 50 centimeters wide and form sporadic zones ranging from 1 to 20 meters wide, containing Au and Ag and anomalous As, Sb, and Mo. There is a direct relationship between gold tenor, concentrations of quartz veins/breccias and illite crystallinity, as evidenced by higher surface intersections including 4.0 m @ 7.23 g/t Au, 4.0 m @ 6.79 g/t Au and 10.0 m @ 5.91 g/t Au.

Residual vuggy silica occurrences are localized by a broader overprint of silica ± alunite, within ubiquitously argillic to advanced argillic altered rhyo-dacitic pyroclastics. Multi-phase hydrothermal brecciation events, where associated with increased amounts of sulfide and cross-cutting banded quartz veining are the loci for higher gold ± silver grades.

Additional ground geophysical surveys (EM/IP-resistivity) and spectral analysis studies are required to further refine drill target areas.

Sabalong is located on Sumbawa Island, approximately 22 km SSE of the administrative city of Sumbawa Besar and 70 km NE of Newmont's world-class Batu Hijau porphyry gold-copper mine.

For more information about the Sabalong property, please refer to the page on the Company website at: http://www.southernarcminerals.com/projects/sumbawa/sabalong/ 

On behalf of the Board of Southern Arc Minerals Inc.

John Proust, President and CEO

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release. 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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