Taliwang
November 24, 2010
Southern Arc and Newcrest Sign a Heads of Agreement
June 7, 2010
In my view, Taliwang, with particular reference to the Lemonga prospect, is a bit of a sleeper for Southern Arc. Lemonga strikes me as a lower grade but much larger analogy to Kingsrose Mining’s Way Linggo project (led by SA Director Mike Andrews), located on south Sumatra in Indonesia. Physically a very small deposit, Way Linggo is now going into production. It underscores the potential for small deposits with low capital expense to become profit centres. See the link to my recent Way Linggo article below.
- Type of deposit: Gold, silver, base metals.
- Size: Property is 77,073 acres.
- Valuation potential scenarios: Too soon to say.
- Comparison properties: For Lemonga, Way Linggo (see the article here).
- Disposition options: JV or sell off parts, develop others, such as Lemonga (?).
- Current status/activities/obstacles: IUP issued, announced July 12, 2010. Equity position for local government is precedent setting in Indonesia... and brilliant, in my view. (updated July 12, 2010)
- Maps:
From the first map, below, Taliwang is immediately north of Newmont’s Batu Hijau property.
From the second map, below, the key areas of interest are Lemonga, where the Company has completed 56 holes in Phase 1 and 2 drilling (see Phase 2 drill hole results here), and the Semoan, Ramit, Raboya trio, a textbook presentation of porphyry formation with epithermal shoulders on either side.
