Bringing Exceptional Management and Exploration Expertise to a Proven Mineral Environment

Transcription

1 March 2013 Bringing Exceptional Management and Exploration Expertise to a Proven Mineral Environment SouthernArcMinerals.com TSX-V: SA OTCQX: SOACF

2 Cautionary Note Some of the statements contained in this presentation are forward-looking statements, such as estimates and statements that describe future plans, objectives or goals, including words to the effect that Southern Arc Minerals Inc. implies a stated condition or that it forecasts certain results could occur. Because forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, reserves, resources, results of exploration, reclamation and other post-closure costs, capital costs and mine production costs could differ materially from those currently forecast in such statements by reason of factors such as changes in general economic conditions and conditions in the financial markets, changes in demand and prices for the minerals, litigation, legislative, environmental and other judicial, regulatory, technological and operational difficulties encountered in connection with mining activities, labour relations matters, costs and changing foreign exchange rates. This list is not exhaustive of the factors that may affect any of forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Southern Arc Minerals Inc. statements. Drilling information in this presentation has been compiled under the supervision of Southern Arc s Executive Vice President, 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. The technical information in this document has also been reviewed by Southern Arc s President & Chief Operating Officer, Dr. Mike Andrews, PhD, FAusIMM, who has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined by National Instrument All assaying of samples was undertaken by the ITS laboratory in Jakarta. ITS is one of the world s largest product and commodity testing, inspection and certification organizations. The Jakarta laboratory is ISO accredited and employs a Laboratory Information Management System (LIMS) for sample tracking, quality control and reporting. 2

3 Investment Highlights Properties Exploring one of the most prospective regions in the world Flagship property shows district-scale potential for gold, potential porphyries No-cost JV on strategic area play property Actively looking for new gold-focused opportunities People Management, directors and advisors with the experience and connections to successfully advance properties Partnerships Strategic shareholders, partnership with Vale Capital Financial flexibility with ~$16 M in working capital and no debt (Feb 2013) Catalysts News flow from exploration activity West Lombok NI compliant resource estimate targeted for mid

4 Share Structure Shares Options Warrants Fully Diluted 109,214,510 9,240, ,454,510 Directors, management and insiders control ~20% 52-week trading range $0.20 $0.73 Average trading volume (3 months): ~60,000 shares/day 4

5 Indonesia s Main Deposits & Mines 5

6 Southern Arc s Properties 6

7 West Lombok 90% Southern Arc 10% Indonesian Regency Government 7

8 West Lombok Project 13km by 7km structural corridor of mineralization Deforested grassland, accessible by road Previously explored by Newmont Prospective for both epithermal gold and coppergold porphyry mineralization West Lombok property 8

9 Exploration Activity in 2012 Advanced understanding of porphyry Cu-Au mineralization Airborne magnetic and radiometric survey at 50-metre spacings Porphyry prospectivity study identified 17 new porphyry exploration targets Drilled a number of porphyry targets in SE and NE sections of property Detailed surface mapping and channel sampling identified new areas with surface porphyry mineralization 9

10 Exploration Activity in 2012 Continued to extend and explore gold epithermal mineralization Exploration drilling on Pelangan mineralized structural breccia (MSB) structures in NW corner of property Detailed mapping and channel sampling identified new MSB outcrops adjacent to Mencanggah and Pelangan Confirmed relationship of MSB epithermal systems as surface manifestation of underlying porphyry systems Coordinated with SRK on drill hole planning, drill logging, data handling and modelling methods 10

11 2013 Drill Program Underway Mencanggah Prospect 19km cumulative strike length of Aubearing epithermal breccias with indications of near-surface porphyry Cu-Au mineralization Rock channel samples include 53.3 g/t Au, 12.2 g/t Au, 9.8 g/t Au, and 1.1 g/t Au 1 Phase 1 drilling completed 8,920m in 35 holes, Phase 2 drilling underway Significant-grade intersections include 4.27 g/t Au (including 71 g/t Au and 9.44 g/t Au), 15.6 g/t Au (including 36.1 g/t Au and 11.0 g/t Au), and 1.8 g/t Au (including 89.0 g/t Au) 1 1. See Significant Drill Results and Cautionary Note. 11

12 Mencanggah Prospect Bising Surface channel sampling has returned high-grade intervals and very wide intervals of low-grade mineralization Drilled eight holes in 2011 to test main epithermal structural body, its extensions, and intersections with crossing structures identified 500-metre long zone of mineralization Phase A drill program Objective: infill and expand zone of mineralization adjacent to MCG g/t Au), MCG g/t Au), MCG g/t Au) 1 Drilled 11 holes (1,375.6 metres): results continue to demonstrate consistency and width of mineralization at Bising, with wide intervals averaging >1 g/t in most holes Highlights: MCG g/t Au), MCG g/t Au), MCG g/t Au), MCG g/t Au) 1 Phase B exploration underway: additional infill drilling 1. See Significant Drill Results and Cautionary Note. 12

13 Mencanggah Prospect Bising Infill and expand mineralized zones 13

14 Mencanggah Prospect Tibu Serai Test down-dip from surface samples Phase A drill program Objective: Test down-dip from highgrade surface channel samples Drilled 7 holes (1,124.2 metres): results confirmed that mineralization continues below surface, identified high-grade intercept associated with major structural break that may be influencing higher gold grades Highlights: MCG g/t Au), MCG g/t Au), MCG g/t Au), MCG g/t Au) 1 Phase B exploration underway: test extensions of high-grade intercept 14

15 Mencanggah Prospect Tibu Serai Down-dip mineralization confirmed 15

16 Pelangan Prospect 5km cumulative strike length of Aubearing mineralization outcropping at surface 4,130m Phase 1 drilling included 13.4 g/t Au and 5.73 g/t Au 1 11,867m of Phase 2 drilling completed, significant-grade intersections including 19.4 g/t Au 1 Drilling in 2012 tested strike length and depth of Au-Ag mineralization, highgrade shoots Will consider next exploration focus once Phase B at Bising and Tibu Serai is complete 1. See Significant Drill Results and Cautionary Note. 16

17 Pelangan Prospect Raja Three high-grade shoots 17

18 Selodong Prospect Multiple Cu-Au targets defined by geochemistry, geophysics and alteration mapping Seven targets tested in Phase 1 exploration (17,859m) with significant near-surface Cu-Au porphyry mineralization 0.52% Cu and 0.85 g/t Au % Cu and 1.05 g/t Au 1 Indications of porphyry Cu-Au district-scale mineralization Next phase of drilling will focus on new targets identified by porphyry prospectivity study 1. See Significant Drill Results and Cautionary Note. 18

19 Sumbawa Island Taliwang Sale Pending East Elang Southern Arc / Vale S.A. 19

20 Taliwang Project Southern Arc 90% / Regency Government 10% Accepted offer to sell property to Coke Resources US$500, million shares in Coke Resources (~8%) Sale contingent on Coke Resources completing IPO on Australian Stock Exchange Adjacent to Newmont s world-class Batu Hijau Cu-Au mine (17.2 M oz Au/14.1 B lb Cu) 1 31,200 hectares highly prospective for Au, Ag, Cu with three main prospects: 1km x 1.5km Au-Ag bearing epithermal vein system confirmed by 56 drill holes 5km-long NE trending high-sulphidation alteration zone, paralleling the Batu Hijau mineralized trend Sedimentary Au-hosted targets 1. Newmont press release February 24, 2011 references independent JORC estimate for Batu Hijau deposit. Proximity to the Batu Hijau mine does not guarantee that Southern Arc will have similar mineralization on its properties. 20

21 East Elang Project Southern Arc / Vale Joint Venture Agreement Adjacent to Newmont s Elang deposit (25 M oz Au/16 B lb Cu) 1 Vale must fund through to bankable feasibility study to earn 75% interest 2 Structure and alteration suggest that Elang mineralized trend may continue onto Southern Arc s East Elang property Awaiting receipt of forestry permit before commencing regional exploration to identify targets for detailed prospect follow up Applied to have IUP back dated to allow for adequate exploration time 1. Newmont press release February 24, 2011 references independent JORC estimate from June 2010 for Elang deposit. Proximity to the Batu Hijau mine and Elang deposit does not guarantee that Southern Arc will have similar mineralization on its properties. 2. See Vale Joint Venture Agreement. 21

22 Exploration Activity in East Elang District 22

23 Experienced Team Cumulative 65 years of Indonesian exploration experience 23

24 Executives and Directors John Proust Chairman & Chief Executive Officer One of the original founders of Southern Arc. Certified Director. Resource sector expert in financing, mergers and acquisitions, corporate restructuring and corporate governance. Dr. Mike Andrews President & Chief Operating Officer Geologist with more than 30 years of research and exploration experience in Indonesia and Australasia. Principal in the discovery, exploration and development of the Way Linggo gold-silver mine in Indonesia. Andrew Rowe Executive Vice President Geologist with more than 20 years of exploration and project management experience, including senior positions with Phelps Dodge, Ivanhoe Mines, Aurora Gold and Pan Australian Mining. 24

25 Directors and Advisors Bob Gallagher Director President & CEO of NewGold with 32 years of mining experience, including as Vice President of Newmont s Asia-Pacific operations, including development of the Batu Hijau mine. Dr. David Stone Director Doctorate in Civil Engineering with 25 years of mining experience and broad expertise in mining technology and advanced project development. Mohammed Al-Shahwani Director CEO of Qatar Mining Company. Involved in major resource projects internationally, with extensive corporate development experience. Dr. Steve Garwin Senior Technical Advisor Leading authority on Cu-Au mineralization in Southeast Asia, doctorate based on Batu Hijau deposit. More than 22 years of exploration experience, including as Newmont s Chief Geologist. 25

26 Directors and Advisors Malcolm Baillie Commissioner Metallurgical engineer with 30 years of experience in the Indonesian mining sector. Leader in government negotiations, including as Director of Indonesian Mining Association. Robert Parsons Advisor Chartered Accountant, former partner of PricewaterhouseCoopers. Serves on Advisory Board of Indonesian Mining Association and International Affairs Committee of PDAC. Dr. Alwi Shihab Commissioner Involved with many public companies operating in Indonesia. Currently Vice Chairman, Presidential Task Force for Labour Management. Previously Foreign Minister for Indonesia and Special Envoy to Indonesian President for Middle East investments. Bryan Disher Security Advisor Indonesia security and government relations expert since 1996, with extensive network of connections with Indonesian officials. 26

27 Why Invest in Southern Arc? Properties Exploring one of the most prospective regions in the world Flagship property shows district-scale potential for gold, potential porphyries No-cost JV on strategic area play property Actively looking for new gold-focused opportunities People Management, directors and advisors with the experience and connections to successfully advance properties Partnerships Strategic shareholders, partnership with Vale Capital Financial flexibility with ~$16 M in working capital and no debt (Feb 2013) Catalysts News flow from exploration activity West Lombok NI compliant resource estimate targeted for mid

28 Appendix 28

29 West Lombok Permitting Status Forest Types 1.1% Protected Forest % Production Forest % No Forest Designation 3 Permitting Status IUP license issued MOF permit issued 1. No open-pit mining allowed. Underground mining allowed with appropriate forestry permit. 2. Open-pit and underground mining allowed with appropriate forestry permit. 3. No restriction on mining activities. 29

30 East Elang Permitting Status IUP License IUP license issued by the Sumbawa Regent on December 17, 2010 for a period of seven years Forest Types 60.3% Protected Forest % Limited Production Forest 2 5.5% No Forest Designation 3 Requirements MOF permit required for exploration activities within both Protected and Production designated areas Status MOF permit issuance in process Requesting that IUP be back-dated to allow for adequate exploration time once MOF permit is received 1. No open-pit mining allowed. Underground mining allowed with appropriate forestry permit. 2. Open-pit and underground mining allowed with appropriate forestry permit. 3. No restriction on mining activities. 30

31 Mencanggah Prospect, Waterfall Target 31

32 Pelangan Prospect, Raja Target, Long-section Projection of Drill Hole Mineralized Intervals 32

33 Pelangan Prospect, Raja Target 33

34 Significant Drill Results Mencanggah Phase 2 Mencanggah Phase 2 HOLE ID Target From (m) To (m) Interval (m) Intersection (Au/Ag g/t) MCG038 Bising / /0.6 MCG039 Bising /1.4 MCG040 Bising / Incl /1.8 MCG041 Bising / Incl / /1.4 MCG042 Bising Incl / And /61.3 MCG043 Bising / Incl / MCG044 Bising Incl And MCG045 Bising MCG046 Bising /2.1 MCG047 Bising MCG048 Bising HOLE ID Target From (m) To (m) Interval (m) Intersection (Au/Ag g/t) /1.2 MCG049 Tibu Serai Incl / / /4.0 MCG050 Tibu Serai Incl / Incl / /0.71 MCG051 Tibu Serai Incl / /0.4 MCG052 Tibu Serai /0.3 MCG053 Tibu Serai /0.3 MCG054 Tibu Serai / Incl / /0.6 MCG055 Tibu Serai Incl / And / Incl. 71.0/6.8 Silver assays pending for MCG044, MCG045, MCG047 and MCG

35 Pelangan Phase 2 HOLE ID Target From (m) To (m) Interval (m) Intersection (Au/Ag g/t) PLD001 Raja / incl /17.0 PLD002 Raja / incl / /3.7 PLD003 Raja incl / incl /8.0 PLD006 Raja / incl / /15.7 PLD007 Raja incl / incl / / /31.1 PLD008 Raja incl / / incl /22.6 PLD009 Raja / incl / / 2.8 PLD010 Raja incl / incl / 2.3 PLD011 Raja / incl / 41.9 PLD014 PLD017 PLD019 PLD022 Raja Raja Raja Raja / incl / / incl / / incl / and / / incl / and 4.7/ / incl. 7.0/ incl. 18.2/10.9 PLD024 Raja PLD027 Tanjung incl incl PLD028 Raja /6.2 PLD031 Raja incl PLD032 Raja incl

36 Pelangan Phase 1 HOLE ID Target From (m) To (m) Interval (m) Intersection ( Au / Ag g/t ) KDG02 Kayu Putih incl & KDG03 Kayu Putih incl / 47 KDG04 Kayu Putih incl / 217 RDG05 RDG06 RDG07 Raja Raja Raja / incl / and / / incl / / incl / and / 22 KDG12 KDG013 Kayu Putih Kayu Putih incl / / incl / / incl / / incl / 21 TDG01 TDG02 Tanjung Tanjung and / / incl / and / / incl / 24 QDG06 Ratu / and / 2 RDG01 RDG03 RDG04 Raja Raja Raja / incl / / incl / / incl / / incl / / incl / 61 TDG03 TDG06 JDG03 KDG16 Tanjung Tanjung Jati Kayu Putih / / / incl. 5.5 / / incl / incl /

37 Mencanggah Phase /1.4 HOLE ID Target From (m) To (m) Interval (m) Intersection (Au/Ag g/t) / incl / incl / incl /1.1 MCG028 Bising incl / incl incl incl incl / incl /0.9 MCG029 Bising incl / incl / incl / / incl /1.0 MCG030 Bising incl / incl / incl / incl /5.0 MCG031 Bising Incl incl /2.2 MCG032 MCG033 MCG034 MCG035 Bising Bising Bising Bising incl / incl / incl / / / / incl / / incl / / incl / m 0.5/ incl / / / / / / / / incl / / / / incl / incl / /

38 Significant Drill Results Selodong Phase 1 HOLE ID PROSPECT From To (m) Interval Intersection(Cu % / Au g/t) /0.42 SLD001 MONTONG BOTEK incl. 0.52/ incl. 0.60/1.04 SLD002 MONTONG BOTEK / incl. 0.56/ /0.51 SLD003 MONTONG BOTEK incl. 0.35/ incl. 0.39/ /0.3 SLD004 BLONGAS II / incl. 0.36/ incl. 0.5/ /0.26 SLD005 BLONGAS II incl. 0.38/ incl. 0.39/ incl. 0.19/ /0.30 SLD006 BLONGAS II incl. 0.22/ incl. 0.32/ incl. 0.30/ /0.22 SLD007 BLONGAS I incl. 0.22/ incl. 0.26/0.26 SLD011 NORTH M BOTEK / incl. 0.24/ /0.25 SLD013 M BOTEK incl. 0.06/ incl. 0.18/ incl. 0.15/0.45 SLD014 BELIKAT / /0.22 SLD017 MONTONG BOTEK incl. 0.38/ / /0.13 SLD019 KEDARO / incl. 0.22/ /0.22 SLD023 MONTONG BOTEK incl. 0.18/ / /0.31 SLD026 BLONGAS II incl. 0.23/ incl. 0.29/0.29 SLD027 KEDARO / incl. 0.18/ /0.16 SLD029 MONTONG BOTEK incl. 0.14/ incl. 0.16/ /0.28 SLD030 BLONGAS II incl. 0.20/ incl. 0.28/ incl. 0.34/

39 Vale Joint Venture Agreement Vale International S.A. Option & Joint Venture Agreement Southern Arc and Vale are exploring the East Elang project (adjacent to Newmont s Elang deposit) 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 advancement of the East Elang project through to completion of a bankable feasibility study. Should Vale choose not to exercise its option, Southern Arc will retain its 100% ownership of the project at no cost. 39

40 Contact Us Canadian Office Rhylin Bailie Vice President Communications & Investor Relations NA Toll-free: Tel: Indonesian Office Mike Andrews President & Chief Operating Officer Andrew Rowe Executive Vice President SouthernArcMinerals.com TSX-V: SA, OTCQX: SOACF 40