TRANSCRIPTION OF FINANCE NEWS NETWORK INTERVIEW WITH ARC EXPLORATION (ASX:ARX)
MANAGING DIRECTOR, JOHN CARLILEJoining me today from Arc Exploration is Managing Director, John Carlile. John welcome to FNN, could you start by introducing ARC Exploration?
John Carlile: Certainly, Arc is a junior exploration company listed on the Australian Stock Exchange. There are three key points to our strategy. The first is Indonesia, the second is gold and the third is exploration.Now as you said you focus on Indonesia, why focus on that country?
John Carlile: Indonesia is a vast country, it has vast potential for mineral resources and the third aspect is, it is rather under explored due to the difficult nature of its terrain.Okay and where’s your share price at now?
John Carlile: At the moment our share price is in the order of 4 to 5 cents. For most of last year it traded around 2 cents and towards the end of the year, once we started to get encouraging results, the price has been moving upwards towards the 5 cent mark.Now I understand you have three major projects, could you tell us a little bit about each starting with the Trenggalek Project in East Java?
John Carlile: Certainly can. Trenggalek is located in East Java about 250 kilometres to the west of Intrepid’s Project which is in the news a lot nowadays. Our area covers 300 square kilometres which is a substantial area; we own 95% of the Project so we’re well and truly in the driving seat. The area is particularly prospective for high grade epithermal gold veins and last year we drilled 5000 metres of scout drilling into that area and have confirmed that potential.Right and the Bima Project on the Island of Sumbawa, could you tell us a little more about that one?
John Carlile: Certainly, Bima is also a large area it covers 250 square kilometres - the target types there are completely different. Whereas in Trenggalek we’re looking for high grade gold deposits, in Bima we’re looking for large bulk minable gold and gold copper deposits. As with Trenggalek we own 95% of the Project and manage it, so again we are well and truly in the driving seat. That is the area that at the moment is getting a fair amount of attention; we’re making some very good progress there and have been able to announce some very positive results recently.And finally could you tell us about your prospect in West Papua?
John Carlile: The West Papuan Project is a project in alliance with Anglo American, so it’s slightly different from our other projects. We own 20% of the project; Anglo American owns the remaining 80%. They manage the project but importantly, very importantly for us as a junior, Anglo is responsible for funding 100% of the project through until the point when they make a decision to mine. If a company the size of Anglo makes a decision to mine, presumably they found something very large and at that point, we as ARC will own 20% of the project.Okay John and what’s your funding position?
John Carlile: Currently we have in the order of $4 million in the bank and as we speak our option period is coming to a close. We have 200 million listed options on issue at an exercise price of 3.6 cents. Hopefully with our current share price at 5 cents, the bulk of those options will be exercised. If they are, that will bring in around $5 to $7 million which added to our current cash of $4 million will give us sufficient funding to take forward an aggressive exploration programme and many thousand metres of drilling over the next 12 to 18 months.Last question John, where do you see Arc Exploration 12 months from now?
John Carlile: Well during the next 12 months, we’re going to be doing a lot and a lot of drilling at all of our projects. We will be drilling in Sumbawa at the Bima Project, we will be drilling in Trenggalek and I’m hopeful, I’m hopeful that Anglo will be drilling in Papua. So where will that bring us to in 12 months? If we are able to complete our planned programmes in Bima, we would hopefully be moving towards the point of drilling out a resource or confirming a resource at Bima. Hopefully also the same in Trenggalek and at that point we will have locked in, I believe, some real value for Arc Exploration.John Carlile thanks for introducing us to Arc Exploration.
John Carlile: Thank you.ENDS