Southern Arc Minerals Inc. Class A · TSXV:SA.H
Southern Arc Minerals Inc. Class A — Investor Presentation (September 2011)
42 slides from Southern Arc Minerals Inc. Class A's investor presentation, September 2011
Slide 1: Bringing Exceptional Management and Exploration Expertise to a Proven Mineral Environment
September 2011 Bringing Exceptional Management and Exploration Expertise to a Proven Mineral Environment SouthernArcMinerals.com TSX-V: SA
Slide 2: Cautionary Note
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 certai
Slide 3: Investment Highlights
Investment Highlights • One of first exploration companies to re-enter Indonesia • Highly mineralized but underexplored region • Aggressive exploration at four gold and copper-gold properties • Excellent drill results showing district-scale potential • Two NI 43-101 resource estimates targeted for f
Slide 4: Share Structure
Share Structure Shares Options Warrants Fully Diluted 106,964,510 7,700,000 1,704,571 116,369,081 • 52-week trading range $0.90 – $2.00 • Management and insiders hold 10% 4
Slide 5: Corporate Strategy
Corporate Strategy • Leverage experience and knowledge to make strategic acquisitions and build in-country relationships • Aggressive, targeted exploration programs through to resource definition • Strategic partnerships with major mining companies to advance properties toward production • Reduce de
Slide 6: Why Indonesia?
Why Indonesia? • Underexplored region with highly prospective geology • Fraser Institute ranked Indonesia among top six countries in the world for geological prospectivity • Numerous high-quality gold and copper-gold deposits and producing mines • Cost-effective environment with good infrastructure,
Slide 7: Indonesia’s Main Deposits & Mines
Indonesia’s Main Deposits & Mines 7
Slide 8: Southern Arc’s Properties
@seuthern Are Southern Arc’s Properties FLORES SEA LOMBOK SUMBAWA SELONG | WEST LOMBOK PROJECT SOUTHERN ARG “ ELANG EAST ELANG PROJECT 25 Moz Au VALE JV) 17.2 M oz Au 16 B lb Cu 14.1 B lb Cu INDIAN OCEAN 3
Slide 9: West Lombok
West Lombok 85% Southern Arc 10% Indonesian Regency Government 5% Indonesian Partner 9
Slide 10: West Lombok Project
West Lombok Project 13km by 7km structural corridor of mineralization • Deforested grassland • Accessible by road • Newmont identified gold epithermal and copper-gold porphyry mineralization West Lombok property 10
Slide 11: West Lombok Mineralization
West Lombok Mineralization 21km Cumulative Strike of Mineralized Structural Breccia (MSB) Further 9.6km of structural breccias identified Pelangan • Epithermal Au-Ag quartz vein MSB mineralization • 5km cumulative strike of MSBs, further 4.6km of structural breccias identified Mencanggah • Epitherma
Slide 12: West Lombok Exploration Program
West Lombok Exploration Program Corridor of Mineralization • 17,859m of Phase 1 drilling completed at Selodong • 29,500m of drilling at Pelangan and Mencanggah commenced Q2-2011 • Surface mapping to determine continuity of mineralized corridor between Pelangan and Mencanggah • Airborne geophysical s
Slide 13: Pelangan Prospect
Pelangan Prospect • 5km cumulative strike length of epithermal Au-bearing mineralization outcropping at surface • 4,130m Phase 1 drilling, including 10m @ 13.4 g/t Au and 17m @ 5.73 g/t Au1 • 7,014m of Phase 2 drilling completed suggests epithermal boiling zones within system, significant-grade inte
Slide 14: West Lombok – Pelangan Prospect Potential
West Lombok – Pelangan Prospect Potential 14
Slide 15: Mencanggah Prospect
Southern Are = Mencanggah Prospect ‘ MENCANGGAH PROSPEC ins a CT 909 15
Slide 16: Mencanggah Prospect
Mencanggah Prospect • 16km cumulative strike length of Au-bearing epithermal breccias with indications of near- surface porphyry Cu-Au Mineralization • Rock channel samples include 7m @ 53.3 g/t Au, 5m @ 12.2 g/t Au and 66m @ 1.1 g/t Au1 • 10,000m of Phase 2 drilling starting September 2011 focused
Slide 17: Selodong Prospect
Southern Are ~~ Selodong Prospect ye ape * Ve. Me gS coy », ipeconon PROSPECT 4 / , Ts a 2 al Be: . a 200 909 nee 17 AS \ + A 1 1 I Ul
Slide 18: Selodong Prospect
Selodong Prospect • 14 porphyry Cu-Au targets defined by geochemistry, geophysics and alteration mapping • Seven targets tested in Phase 1 exploration with significant near surface intersections of Cu-Au porphyry mineralization • 166m @ 0.52% Cu and 0.85 g/t Au1 • 102m @ 0.50% Cu and 1.05 g/t Au1 •
Slide 19: Sumbawa Joint Ventures
Sumbawa Joint Ventures Sabalong – Southern Arc / Vale S.A. East Elang – Southern Arc / Vale S.A. Taliwang – Southern Arc / Newcrest 19
Slide 20: Southern Arc’s Properties
Southern Arc’s Properties 2 0
Slide 21: Sabalong Project
Sabalong Project Southern Arc / Vale S.A. Agreement • 75km NE of Batu Hijau mine, 30km NNE of Elang deposit (25 Moz Au / 16 Blb Cu)1 • Vale must fund through to bankable feasibility study to earn 75% interest2 • Ground geophysical surveys (magnetic and IP) have identified two high-sulphidation epith
Slide 22: Southern Arc’s Properties
Southern Arc’s Properties 2 2
Slide 23: East Elang Project
East Elang Project Southern Arc / Vale S.A. Agreement • Adjacent to Newmont’s Elang deposit (25 Moz Au/16 Blb Cu)1 • Vale must fund through to bankable feasibility study to earn 75% interest2 • Aerial photography and lithographical studies suggest that Elang mineralized trend continues onto Southern
Slide 24: Southern Arc’s Properties
Southern Arc’s Properties 2 4
Slide 25: Taliwang Project
Taliwang Project Southern Arc / Newcrest Mining Agreement • Adjacent to Newmont’s world-class Batu Hijau Cu-Au mine (17.2 Moz Au/14.1 Blb Cu) • Newcrest must fund through to US$50M or bankable feasibility study to earn 63.75% interest1 • 31,200 hectares highly prospective for Au, Ag, Cu with three m
Slide 26: Experienced Team
Experienced Team Cumulative 65 years of Indonesian exploration experience 26
Slide 27: Key Management
Key Management John Proust Hamish Campbell Chairman & Chief Executive Officer Executive Vice President One of the original founders of Southern Geologist with more than 25 years of Arc. Resource sector expert in financing, Indonesian exploration experience, mergers and acquisitions, corporate includ
Slide 28: Directors and Advisors
Directors and Advisors Bob Gallagher Mohammed Al-Shahwani Director Director President & CEO of NewGold with 32 CEO of Qatar Mining Company. Involved years of mining experience, including as in major resource projects Vice President of Newmont’s Asia-Pacific internationally, with extensive corporate
Slide 29: Directors and Advisors
Directors and Advisors Malcolm Baillie Dr. Alwi Shihab Advisor Advisor Metallurgical engineer with 30 years Special Envoy to the President of of experience in the Indonesian mining Indonesia to the Middle East. Previously sector. Leader in government Foreign Minister for Indonesia, involved negotiat
Slide 30: Near-term Value Drivers
Near-term Value Drivers Aggressive exploration program 1. 29,500 metres of Phase 2 drilling by Q2-2012 • Test strike of epithermal gold mineralized structural breccias • Test depth and continuity of high-grade ore shoots • Determine extent of mineralized corridor at West Lombok district scale pote
Slide 31: Appendix
Southern Arc MINERALS INC
Slide 32: Exploration Budget
Exploration Budget West Lombok • $16.4 million for exploration to end of 2012 Sumbawa • Taliwang committed budget of $4.0M1 over the next 24 months (Newcrest) • East Elang committed budget of $1.2M1 for first 12 months (Vale) • Sabalong committed budget of $1.0M1,2 for next 12 months (Vale) Total Mi
Slide 33: Pelangan Prospect, Raja Target, Long-section Projection of Drill Hole Mineralized Intervals
Pelangan Prospect, Raja Target, Long-section Projection of Drill Hole Mineralized Intervals 33
Slide 34: Significant Drill Results
Significant Drill Results Selodong Phase 1 0 576.95 576.95 576.95m @ 0.12/0.25 HOLE ID PROSPECT From To (m) Interval Intersection(Cu % / Au g/t) 21.5 135.4 113.9 incl. 113.9m @ 0.06/0.34 SLD013 M BOTEK 33.8 476 442.2 442.2m @ 0.28/0.42 262.75 369.35 106.6 incl. 106.6m @ 0.18/0.30 SLD001 MONTONG BOTE
Slide 35: Pelangan Phase 1
Pelangan Phase 1 10.00 32.95 22.95 22.95 m @ 4.1 / 17 HOLE ID Target From (m) To (m) Interval (m) Intersection ( Au / Ag g/t ) RDG05 Raja 2.25 20.70 22.95 incl. 2.25 m @ 14.6 / 10 16.80 23.80 7.00 7 m @ 4.4 1.00 27.20 28.20 and 1 m @ 21.4 / 23 KDG02 Kayu Putih 19.80 20.80 1.00 incl. 1 m @ 9.92 & 9.9
Slide 36: Pelangan Phase 2
Pelangan Phase 2 74.6 111.8 37.2 37.2 m @ 2.5 / 14.2 PLD014 Raja HOLE ID Target From (m) To (m) Interval (m) Intersection (Au/Ag g/t) 90.7 99.9 9.2 incl. 9.2 m @ 4.1 / 24.0 56.55 61.4 4.85 4.85 m @ 7.11/18.5 PLD001 Raja 132.4 138.4 6 6.0 m @ 2.2/13.1 56.55 57.9 1.35 incl. 1.35 m @ 16.7/17.0 PLD017 R
Slide 37: West Lombok Permitting Status
West Lombok Permitting Status Forest Types • 1.1% Protected Forest • 55.1% Production Forest • 43.8% No Forest Designation Requirements • MOF permit required for exploration activities within protected and production designated areas Status • IUP license issued • Acquiring the relevant MOF permit 37
Slide 38: Sabalong Permitting Status
Sabalong Permitting Status IUP License • IUP license issued by the Sumbawa Regent on December 17, 2009 for a period of seven years Forest Types • 36.3% Protected Forest • 13.7% Production Forest • 50.0% No Forest Designation Status • Area of focus is outside of designated forest classification 38
Slide 39: East Elang Permitting Status
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 • 34.2% Limited Production Forest • 5.5% No Forest Designation Requirements • MOF permit required for exploration activities with
Slide 40: Taliwang Permitting Status
Taliwang Permitting Status IUP License • IUP license issued by the West Sumbawa Regent on July 9, 2010 for a period of six years Forest Types • 3.7% Conservation Forest • 10.9% Protected Forest • 29.7% Production Forest • 55.7% No Forest Designation Requirements • MOF permit required for exploration
Slide 41: Joint Venture Agreements
Joint Venture Agreements Vale International S.A. Option & Joint Venture Agreement Southern Arc and Vale are exploring the Sabalong and East Elang Projects under an option and joint venture agreement whereby Vale can earn a 75% interest (Southern Arc retaining 25%) by funding project expenditures thr
Slide 42: Contact Us
Contact Us Canadian Office Rhylin Bailie Vice President Communications & Investor Relations 604-676-5241 info@southernarcminerals.com Indonesian Office Mike Andrews President & Chief Operating Officer Hamish Campbell Executive Vice President 62-21-7988-8612 SouthernArcMinerals.com TSX-V: SA 42
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