SYDNEY (Yosefardi) – Arc Exploration Limited (ARX) has spent $49 million capitalised exploration expenditure relating to the Trenggalek project as of 31 December 2013.
Arc’s assets at Indonesia exploration was $4.96 million. It controls PT Indonusa Mining Services.
Arc operates a joint venture with its local Indonesian parter, PT Sumber Mineral Nusantara, who holds the Trenggalek Exploration IUP tenement, located in Southern Mountains of East Java.
The Trenggalek Project is currently a single Exploration IUP tenement that is valid until November 2016.
The tenement area covers about 300 km2. It was slightly reduced in size during the year, from 30,044 ha to 29,969 ha, to resolve an overlap with some small local dimension stone and clay mining tenements. The removal of these areas has no impact on the Group’s exploration activities.
An extension to the Pinjam-Pakai (borrow use) Forestry Permit for the Trenggalek IUP was granted during the year by the Indonesian Ministry of Forestry. This allows the Group to conduct on work on several targets in production forestry areas with the tenement.
Likely developments in the operations of the group include ongoing exploration at Trenggalek in Indonesia in joint venture with Anglo American Group.
The joint venture will be initially wholly owned by Arc until Anglo American Group earns an initial 53.68% equity interest when Anglo American Group’s sole funds US$10m exploration expenditure on the Trenggalek project by 1 Ocotber 2016. At 31 December 2013, Anglo American Group has spent US$1.76m.
The drilling has recommenced on the Trenggalek project, fully funded by Anglo American Group.