West Papuan tenements to be relinquished

By Romel S. Gurky

ASX-listed gold explorer Arc Exploration Limited (Arc) said on Friday it has received formal notification from Anglo American that it would not be proceeding with exploration of the three tenements located in the Province of West Papua.

?Taking into account the forestry conservation classification affecting much of the area which restricts access to the tenements and the costs associated with maintaining these tenements, Arc has resolved not to exercise its right to maintain these tenements and has notified Anglo American accordingly,? the firm said in a statement.

The two companies formed an alliance five years ago with a focus to explore for large copper-gold porphyry deposits in the provinces of Papua and West Papua. In July 2010, the agreement was extended to 2014.

The two companies have obtained three exploration titles around the Aisasjur project area in West Papua, in which Arc has a 20 percent interest.

Arc also said it will continue with exploration in its own right at the Trenggalek copper project in East Java, which is 95 percent owned by the firm.

Editing by Johannes Simbolon