Arc Exploration (ASX: ARX) had recommenced on its highly prospective West Papua project held under a strategic alliance with global mining player Anglo American. The project lies on the same belt as Grasberg, Indonesia's largest copper-gold mine. Gold and copper-gold mineralisation has already been confirmed within the alliance project area.

Arc Exploration said "Confidence in the West Papua project is very strong with Anglo American responsible for managing and fully funding the project up to the decision to mine point under the strategic alliance agreement."

According to the company's managing director John Carlile, "The agreement with Anglo American holds strong significance and value for Arc Exploration. Not only due to the confidence that Anglo American places in Arc's ability but also the opportunity that the strategic alliance provides us.

"The funding agreement in the strategic alliance gives Arc Exploration a huge exploration upside without diverting our funding and management focus away from our other projects in Indonesia."

This announcement builds on the recent positive news flow from the company from its other projects in Indonesia.

In the East Sumbawa region, Arc Exploration's Bima project sits on a major copper-gold belt with three promising prospects yielding very solid results, the company said.

Broad zones of gold mineralisation have been identified indicating the potential for a large near surface bulk-tonnage gold resource. Arc Exploration has also located a new gold zone in the region with strong indications for the potential of more gold zones. The Bima project lies on the same segment of the Sunda-Bunda magmatic arc as Newmont's giant copper-gold mining operations.

At Trenggalek, Arc Exploration's project in East Java, scout drilling has confirmed the potential for high-grade gold mineralisation with detailed surface work currently underway to identify further drilling targets.

"These significant developments for the company from their Indonesian projects combined with a comprehensive drilling program planned for early 2011 point towards a very exciting period for Arc Exploration," the company said.