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Arc Exploration Identifies Porphyry Gold-Copper Potential At Oberon

Arc Exploration's (ASX:ARX) reconnaissance rock chip sampling at multiple prospects within the Oberon Project in New South Wales has highlighted the potential for porphyry copper-gold resources.

The company holds an option to farm-in to the project from New South Resources.

Samples taken from the Holmwood and Native Dog prospects returned up to 7.2% copper and 4.07% gold, highlighting possible porphyry copper-gold potential.

In addition, a sample from the historic Phoenix mine workings assayed 18.2% zinc, 9.27% lead, 1.56% copper, 1.26 g/t gold and 240 g/t silver, demonstrating gold-silver-rich VMS potential.

Managing Director, Dr Jeffrey Malaihollo, commented:

"Our initial interest at Oberon was on the gold resource defined in previous work at Murphys Prospect. We have obtained these new results from reconnaissance work on other prospects located within the same exploration tenement.

"We are very encouraged by these initial gold and copper results. They not only support the potential for additional gold resources, but also highlight potential porphyry copper targets that we believe have not been recognised by previous explorers.

"The project area contains highly prospective Ordovician and Silurian volcanic rocks of the Bathurst-Orange region, all within the Lachlan Traverse Zone, with potential for VMS-style bulk disseminated gold mineralisation, similar to the nearby 3 Moz McPhillamy's deposit, and for porphyry gold-copper mineralisation, similar to the nearby +50 Moz Cadia Valley deposits.

"We are awaiting results from geological mapping, soil sampling and geophysical modelling in progress at selected prospect areas".

Follow-up geological mapping, orientation soil sampling, petrological studies and geophysical evaluations are planned to further evaluate the porphyry potential of the Native Dog and Holmwood prospects initially.

Reconnaissance Rock Chip Sampling

A total of 31 rock chip samples were collected on six prospect areas identified within the Oberon Project EL 6525.

At Dirty Dog, 11 samples taken from outcrops of partly oxidised, silicified and sulphidic quartz-stockworked basaltic andesite breccias and metasedimentary rocks of the Rockley Volcanics returned gold results ranging from 0.1 to 4.07 g/t while five samples returned 0.1 to 0.23% copper.

Arsenic and antimony are also strongly elevated in the results.

There are no historic mine records from this area but limited previous shallow rotary air blast and reverse circulation drill testing have confirmed the presence of significant gold-multi element anomalies.

The anomalous rock samples are distributed over about 1.5 kilometres strike-length of prospective stratigraphy.

A previous pole-dipole IP survey conducted in the northern part of the prospect area produced large chargeability anomalies that may indicate the presence of sulphide-bearing alteration systems and potential for porphyry copper in the prospect area.

At Holmwood, 6 rock chip grab samples were taken from dumps on two small historic mine workings located on the prospect.

Five of these returned copper results ranging from 1.1 to 7.1%, and gold results of up to 0.94 g/t.

The mine workings are located about 600 metres apart.

Limited previous Reverse Circulation drilling on this prospect tested magnetic anomalies located off the line of workings and intersected low-grade copper mineralisation disseminated through the mafic volcanic rocks.

These early results highlight potential for porphyry copper-gold mineralisation in the prospect area.

Arc also noted potential for gold-silver-rich VMS and bulk disseminated gold-sulphide mineralisation at the Phoenix-Mabel prospect.

One sample taken from dumps on the historic Phoenix base metal mine workings assayed 18.2% zinc, 9.27% lead, 1.56% copper, 1.26 g/t gold and 240 g/t silver.

Meanwhile, three samples at the Mabel Mine returned 0.19 to 1.76 g/t gold and 27 to 93 g/t silver in baryte-rich material containing disseminated base metal sulphide mineralisation.

Oberon Project

The Oberon Project comprises EL 6525 and the smaller adjoining EL 8110 with the total area under option by Arc covering about 265 square kilometres.

The Bathurst region is highly endowed in metallogenic resources and contains a number of major mineral deposit styles including orogenic gold, gold-rich volcanic-hosted massive (& disseminated) sulphide, porphyry copper-gold, and granite-related gold skarn.

The project area is crossed by the west-northwest trending Lachlan Transverse Zone, an inferred arc-normal structural corridor that is interpreted to have influenced the emplacement of mineralising monzonite intrusions and felsic volcanic centres in the Bathurst region.

The same structure may have similarly influenced the distribution of gold-base metal prospects in the project area, including Murphys, which has an inferred resource of about 150,000 ounces gold.

To earn 51% in Oberon, Arc needs to spend $500,000 within 2 years. This can be increased to 80% by spending a further $580,000 within an additional year.

Indonesia

Earlier this month, Arc and joint venture partner Anglo American have delivered some encouraging results from the first two holes of drilling at the Singgahan prospect, on the Trenggalek Project located in East Java, Indonesia.

Exploration activities at Trenggalek are currently managed by Arc but fully funded by Anglo American.

A gold intercept of 17.5 metres at 0.65g/t gold highlighted the potential for shallow replacement-style gold mineralisation.

Anomalous copper-gold-molybdenum intercepts returned in a stockworked diorite intrusion lower down the same hole supported the potential for a significant porphyry system.

Analysis

The gold-copper results from this initial rock chip sampling at Oberon supports the potential for additional gold resources beyond those defined in previous work at the Murphys prospect, which has an Inferred Resource of 150,000 ounces of gold.

In addition, it highlights potential porphyry copper targets that were not recognised by previous explorers.

That the Bathurst region has significant existing infrastructure is another positive.

Further work is now being planned to evaluate this potential.

Arc is capitalised at less than $4 million and also boasts large scale copper gold porphyry projects in Indonesia.

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