With new high grade gold hits including; 12 metres at 24.8 grams per tonne (g/t) gold, including 3 metres at 64 g/t gold from trenching results, Arc Exploration (ASX: ARX) is building on previous encouraging results at the Bima Project in East Sumbawa.
This latest discovery extends a previous high grade trench result of; 4 metres at 34.3 g/t gold.
These latest high grade results by Arc confirm the presence of 3 to 4 metre wide gold bearing veins within an extensive gold bearing quartz stockwork zone.
With the occurrence of these high grade veins within more extensive lower grade stockwork, this greatly improves the likelihood of bulk tonnage gold potential in the area.
The mineralised stockwork has also been extended by around 50 metres, with the zone over 300 metres long and open to the east.
Arc will continue to expand its trenching programs, along with magnetic and IP geophysical surveys in preparation for scout drilling.
Trenching has already started at other prospects within the project.
In Papua New Guinea, Arc has an alliance with Anglo American alliance (20% interest) where Anglo funds all exploration until a decision to mine.
Given the large copper and gold deposits discovered in the "rim of fire", this provides an exciting leg to Arc's exploration in 2011.
Managing director of Arc, John Carlile knows a thing or two about exploration in Indonesia and Papua New Guinea, holding senior exploration positions in the Asian region including BHP and Newcrest. With a track record of gold discovery in Indonesia.
The company remains well funded, and in November 2010 had around A$4.5 million in cash, with a $350,000 monthly cash burn including field work, but excluding drilling.
The Arc major shareholders are Southo Investments with 54 million shares (or 8.7%), ANZ Bank 48 million (8.1%), with strong support from directors and management holding 35 million (5.8%).