East Lombok Project

Minerals: Gold, silver, base metals
Location: Southeast Lombok Island, Indonesia
Area: 22,360 ha (55,251 acres)
Status: Exploration drilling
Ownership: 90% interest held by Southern Arc Minerals

Geological mapping and geochemical sampling at East Lombok have confirmed the presence of anomalous gold, silver and base metals from epithermal mineralized systems.  As a result, Southern Arc has focused its exploration on two targets: 1) the Awang epithermal vein system and 2) the Kuta mineralized system (see prospects map).

1. Awang Epithermal Vein System
The extensive Awang epithermal vein system has a strike length of over 2 km. Southern Arc has carried out surface prospecting and sampling system since 2004.  Follow-up work at the Awang prospect has centred on the Sokat area, south of Awang Village. The work involved outcrop channel sampling, orientation soil sampling and mapping of vein extensions to the north and south. Activities on this prospect are currently on hold as resources are focused on other Southern Arc projects, however a scout drilling program is planned to be carried out in the future.  See Awang Prospect activities for more details.

2. Kuta Mineralized System
Initial work on the Kuta mineralized system included detailed mapping, outcrop channel sampling, ridge and spur bedrock sampling and petrological studies. The work was supplemented by costean and ground geophysical surveys a heli-mag geophysical survey. A scout-level diamond drilling program was carried out in 2005 to evaluate the prospect and determine if more detailed exploration activities were warranted. See KMS prospect activities for more details.

Past and Planned Work
Geological and exploration work continued on the property into April 2006. Exploration activities ending in the autumn of 2006 were focused on limited bedrock sampling and completion of a CSAMT survey at Awang. Further work inf the form of scout drilling is due to be carried out in the future after higher priority projects have been sufficiently advanced.

Local Infrastructure
East Lombok covers a considerable part of the central, south-east corner of Lombok Island. The project is an approximately 4.5-hour drive from the provincial capital of Mataram over a paved road. The town of Kuta is located just inside the southwest corner of the property, and a network of logging and local government roads provides good access throughout the property.

Southern Arc's operations on the East Lombok property are anchored around the town of Kuta, on the sea at the western end of the property. Kuta has good infrastructure and provides an ideal base from which to carry out exploration activities.