This page contains a lengthy, detailed discussion of Southern Arc's exploration activities on the Selodong Intrusive Complex prospect, which some readers might find somewhat overwhelming. For a simpler, quick synopsis of the Selodong Intrusive Complex activities Click Here.

Selodong Intrusive Complex

Updated: 171008

The Selodong Intrusive Complex (SIC), a large, gold-rich copper porphyry prospect covering an area of approximately 7 km by 3 km, is situated in the southern end of a northwest-trending structural corridor of mineralization and alteration in Southern Arc's West Lombok Project (see West Lombok Property Prospect and Anomaly Locations Map on overall West Lombok maps page). The Company identified 15 porphyry Cu-Au drill target areas within the SIC, and extensions of this high-grade phase were targeted in a definition deep-hole drilling program that was completed in early September 2008.

The SIC lies at the southeast end of a 13-km long, northwest trending structural corridor of mineralisation and alteration along within which also lie the Pelangan Gold Prospect (see previous SA News Release 07-05 and Selodong maps) and the Mencanggah Epithermal District, both also within Southern Arc's West Lombok Property. The SIC is a zone of alteration, comprised of andesitic and rhyodacitic volcanic rocks, intruded by gold-copper mineralized porphyry stocks overprinted by hypogene acid-sulfate alteration with associated Cu-Au veining and brecciation.

The hill forming the Montong Botek prospect of the Selodong Intrusive Complex.

Exploration Activities

Having started in early April 2007, Southern Arc completed definition drilling of the Montong Botek, Blongas II and Blongas I porphyry targets as well as drill-testing the other porphyry occurrences that make up the SIC prospect in early September 2008 . The strategic objective of the drilling program was to test both lateral and depth extensions of Cu-Au mineralization at Montong Botek, Blongas II and Blongas I, along with drill testing of some of the other 12 peripheral porphyry targets such as Kedaro and Lapangan Geres.

Definition drilling is a program of drilling aimed at determining the geometry, peripheries or boundaries, and general overall grades of the higher grade mineralization. Although most of the 14 porphyry targets were drill-tested during the first eight months of 2008, actual definition drilling focused on Montong Botek, Blongas II and Blongas I. Subsequently, the purpose of the infill drilling that would follow definition drilling would be to acquire enough data points of the mineralization at a sufficient resolution to develop a fairly accurate integration of ounces of gold and pounds of copper to be able to provide a regulatory-compliant (NI43-101) estimate of mineral resources.

The definition drilling program at Selodong was started with a single drill, with two more drills added in late 2007 and early 2008 to accelerate the program. For a period, the three drilling rigs were concurrently in operation on the SIC. Rig No. 1 and the larger deep drill (Rig No. 3) were focused on definition drilling to test the lateral and depth extensions of Montong Botek, Blongas II and Blongas I to better define the size and shape of the high-grade mineralized zones of these targets, while medium-depth Rig No. 2 was used to drill test the other 11 porphyry Cu-Au targets that comprise the 14 SIC targets.

• Drill Rig No. 1, with a capacity to reach a length of 600 m, focused on testing the lateral extensions of Montong Botek, Blongas II and Blongas I to a medium depth. These three porphyry targets form a N to NW-trending structural corridor hosting porphyry copper-gold mineralization approximately 280  m wide and 1,700 m in length. This area coincides well with mapped surface exposures of porphyry-style stockworking, Cu-Au-Mo soil geochemistry and linear magnetic highs associated with secondary magnetite alteration. The definition drilling program tested the depth extent and grade mineralization along the strike length of this area. This drill was demobilized in the middle of September 2008.
• Drill Rig No. 2, also capable of reaching a length of about 600 m, was used to drill test the remaining 12 SIC Cu-Au porphyry targets. This drill was demobilized at the end of July 2008.
• Drill Rig No. 3, capable of drilling to 1,100 m, was focused on establishing continuity of grade at a greater depth at Montong Botek and Blongas II. This drill was demobilized at the end of July 2008.

Since starting the definition drilling program in April 2007, Southern Arc completed 30 drill holes (SLD001 to SLD030) in the SIC area, totaling 17,859.30 m. At Montong Botek, 8 out of 13 drill holes previously drilled by Newmont were terminated in Cu-Au mineralisation, principally because of drilling limitations. Several of these holes intersected long intervals of significant Cu-Au grades.

See Selodong Drill Hole Statistics for a summary of assayed intercepts and other statistics for the drilling program at the SIC.

Vein stockworks zones were identified by Southern Arc within the central Blongas and Belikat-Mahoni areas. In particular, a 300+ m zone of steeply-dipping, sheeted and cross-cutting vein stockworks were mapped on the north face of the ridge that separates the Blongas I and Blongas II drainages. This zone coincides well with the Au-Mo soil geochemistry and linear magnetic highs associated with secondary magnetite alteration. This, together with results from drillholes SLD004, SLD005, SLD006 and SLD007 and with the historical Newmont data, have confirmed the N to NW trending structural corridor of porphyry Cu-Au mineralization through Blongas I and Blongas II targets. This zone appears to be some 250 m to 300 m wide and approximately 1000 m in length.

Lapangan Geres Prospect

Detailed mapping and channel sampling commenced at the Lapangan Geres target in the far northern area of the SIC in late February 2008 and continued through in June in south Lapangan Geres. The DGPS mapping at Lapangan Geres extended the boundaries of known mineralization within the main diorite body, and it defined new breccia-hosted mineralization to the northeast. Porphyry vein stockwork mineralization was mapped and sampled within a northern trending zone of 600 m length by up to 300 m in width. Breccia-hosted mineralization occurs 600 m to the northeast of the diorite body. Limited DGPS mapping at Lapangan Geres during May concentrated on areas immediately to the south of the main mineralized diorite body (see Lapangan Geres Geology Compilation map). Mapping westward of the main diorite reported occurrences of porphyry stockwork veining hosted by micro-diorites and porphyry feldspar intrusives, while mapping southwards encountered talus and sub-crop mineralized structural breccia rock material. The lack of exposure in the latter is an effect of the peniplain topographic surface. Mapping at the southern periphery delineated the distribution of silicic boulders and subcrop.

In all, mapping within the diorite target defined a 250m by 250m central zone hosting quartz stockwork and sheeted veining, along with two more linear areas immediately along strike to the north.  Veining is characterized by moderate to locally intense quartz stockwork and sheeted veining with limonite after sulfide, along with localized chlorite-magnetite with associated 1% to 3% pyrite±chalcopyrite±covellite±malachite. The mineralized diorite porphyry is bounded on the western margins by a fine-grained chlorite-magnetite altered diorite that hosts low to locally moderate-density sheeted quartz sulfide veins. Late-stage, irregular epithermal quartz was also mapped overprinting porphyry mineralization. In general, distribution is controlled by east-west and northwest structures. Intra-mineral dykes (hornblende diorite) were mapped at the southeast section of the central diorite porphyry.

Historical Newmont drilling results for the prospect were detailed in previous SA news releases no. 06-02 and no. 07-08 dated January 11, 2006 and April 10, 2007, respectively. At Blongas II, six out of the 10 drill holes completed by Newmont ended in mineralisation and two deeper holes recorded long intervals of Cu-Au mineralisation containing high Au intervals.

Although the definition drilling program called for each hole to be drilled to the rated depth capability of each drilling rig, and hence the total planned drilling depth used for generating the budget figure for the program, the program was in fact implemented with the view to maximize the return for the drilling budget for the shareholders' benefit. Thus, drill holes were stopped short or extended beyond the planned maximum to be drilled based on valid geological reasons. See Selodong Drill Hole Statistics.

Due to the strong spatial correlation of elevated Cu-Au grades and secondary magnetite alteration recognized in drill holes, early in the planning stages of the drilling program Southern Arc commissioned geophysical consultants GRS of Brisbane, Australia to undertake modeling of ground magnetic data from the SIC area. Preliminary images from 3D geological/geomagnetic models by GRS confirmed the potential for significant depth and size of the 14 targets.

These 14 distinct porphyry Cu-Au drill targets are located over an areal extent of about 20 square kilometres. They show coincident magnetic highs associated with secondary magnetite alteration, elevated surface Cu-Au-Mo geochemistry and associated intense fracturing and vein stockworks typical of porphyry Cu-Au deposits. Six of these targets were scout drilled by the previous operator Newmont and this drilling confirmed the model. The remaining nine target areas were drill tested by Southern Arc during 2007 and 2008. Based on the early encouraging drilling results and the large number of porphyry Cu-Au drill targets, the Company drill tested each target to better understand the geometry, grade and size potential with the objective of prioritizing the targets for future work leading to a compliant resources estimate.

Mapped porphyry vein stockwork exposures noted in creek, ridge and spur traverses in September 2006 suggested the potential for a further 400 to 500 m extension to the postulated N-NW structural corridor of porphyry copper-gold mineralization which transects Blongas I and Blongas II. DGPS mapping, channel sampling and contour survey, together with interpretation and correlation of field mapping data, were completed by the end of the first week of February 2007 in areas of interest in the northern extensions of Kekalik-Belikat and southern Kedaro.

The examination and modeling of drill hole data (discussed below, porphyry target by target and hole by hole) led to the preliminary conclusion that the high-grade mineralization at Montong Botek, at least, is not situated as a vertical body. The lack of continuity of mineralization at depth in hole SLD 017 has suggested mineralization is plunging in another orientation besides vertical. An inferred northerly plunge of mineralization is supported by Cu-Au intercepts in holes SLD001, SLD002, SLD011, SLD013 and SGD001. This concept was successfully tested by Drill Rig No. 3, with capability of drilling to 1,100 metres, drilled hole SLD023, about 150 metres to the north of SLD017.

Blongas I Prospect

Drill Hole SLD007

Drill hole SLD007, located at the Blongas I Cu-Au porphyry target was completed on October 30, 2007 at a length of 586.60 m. It returned a mineralized intersection of:

245.1 m @ 0.18% Cu and 0.22 g/t Au from 175.5 to 420.6 m

This intersection included the following higher grade intervals:-

(32.9 m @ 0.22% Cu and 0.36 g/t Au from 177.5 to 210.4 m
and 63.05 m @ 0.26% Cu and 0.26 g/t Au from 348.75 to 411.8 m)

SLD007 confirmed the northward extension of Cu-Au mineralization intersected in SLD004, SLD005 and SLD006, approximately 250 metres north of these drill holes. Consequently, the Blongas II and Blongas I targets are regarded to form one continuous mineralized zone.

Drill hole SLD007 was collared to the southeast of mineralization previously tested by Newmont at Blongas I, into a newly defined zone of quartz stockworking. SLD007 was drilled westward at an orientation of 290 degrees and an inclination of -65 degrees to a length of 586.6 meters. SLD007 was collared at an elevation 89 metres above the collar of SLD006.

For the length of drill hole SLD007 several generations of altered diorite intrusives hosting porphyry-style quartz stockwork veining were logged. These are observed to be cut by syn- and post-mineralization dykes of dacitic and dioritic compositions. The mineralized diorite intersected between 175 and 421 metres comprises a central potassic altered zone with phyllic overprinting increasing outwards.

As was noted in previous drilling at Blongas II, the potasically altered higher grade mineralization in SLD007 has been structurally faulted into an overlying phyllic halo, which indicates the potential for preservation of higher grade mineralization at depth and along strike of the areas drilled to date.

This intersection made by drill hole SLD007 defines part of a 2.0+ kilometre long, 250 to 300 m wide, open-ended structurally controlled corridor of porphyry style alteration and mineralization, which to date has been drill-tested along 600 metres of its length.

Drill Hole SLD008

Drill hole SLD008 was collared 324 metres north of SLD007, in order to test one of several northern extensions of the inferred 2.0+ kilometre long, 250 to 300 metres wide, open-ended structurally controlled corridor of porphyry style alteration and mineralization.

Drilled westward at an orientation of 270 degrees and an inclination of -65 degrees and completed to a length of 521.1 metres on December 12, 2007, SLD008 reported insignificant Cu-Au values. Progress on this hole was very slow because of difficult down-hole conditions. The hole intersected strongly faulted and sheared diorite intrusives ± porphyry-style quartz stockwork veining, metavolcanics and metasediments from 0.0 m to 382.8 m. The remainder of the hole encountered fault slivers of potassic altered diorite porphyry and basement metavolcanics. All logged rock lithologies show later intense phyllic/argillic overprinting. Episodic fault movement and later phyllic/argillic overprinting probably remobilized and/or destroyed earlier Cu-Au mineralization in the area. 

Blongas II Prospect

Drill Hole SLD004

Drilled to a depth of 605.00 metres into the Blongas II porphyry target, hole SLD004 provided results similar to those that were encountered at Montong Botek. Two mineralized intercepts were encountered along the hole: an upper intercept of 39.90 m at 0.20% Cu and 0.29 g/t Au from 16.60 to 56.50 m, and a lower, much longer and more mineralized intersection.

Overall, the lower and much longer mineralized intercept of hole SLD004 returned 407.25 m @ 0.25% Cu and 0.45 g/t Au from 160.25 to 567.50 m. Included in this lower 407.25 m intersection, the following two significant intercepts were returned:

192.25 m at 0.36% Cu and 0.74 g/t Au from 160.25 to 352.50 m
(including 102.25 m at 0.50% Cu and 1.05 g/t Au from 176.55 to 278.80 m)
and 121.95 m at 0.21% Cu and 0.30 g/t Au from 399.55 to 521.50 m.

Drill hole SLD004 (see Diamond Drilling Compilation map on Selodong maps page) was drilled on a southwest azimuth at an inclination of -65 degrees targeting extensions of Cu-Au mineralization previously intersected in drill holes SGD002 and SGD003 completed by Newmont. These returned:

SGD002: 192.2 m at 0.25% Cu and 0.54 g/t Au from 153.3 to 345.5 m
(including 61.1 m at 0.38% Cu and 0.93 g/t Au from 202.6 m to 263.7 m)

SGD003: 285.0 m at 0.19% Cu and 0.38 g/t Au from 154.8 to 439.8 m
(including 67.1 m at 0.29% Cu and 0.71 g/t Au from 267.4 to 334.5 m)

The upper 85 m of drill hole SLD004 intersected sheared, phyllic altered dioritic intrusives, with localized stockwork veining and rare secondary copper minerals. From 85 to 160 m a post-mineralization hornblende diorite dyke was intersected. Variable secondary magnetite alteration, with associated porphyry-style stockwork and disseminated copper sulfide minerals were observed within diorite intrusives between 160 to 523 m.

Post-mineralization diorite dykes cross-cutting the intrusives from 352.50 to 399.55 m (47.05 m) comprise predominantly non-mineralized dykes, or rock material introduced after the mineralization event(s). Grades for this interval are only 0.037% Cu and 0.03 g/t Au. That is, this is waste rock.

The interval 521.50 to 567.50 m (46.00 m) also has uneconomic grades of 0.11% Cu and 0.06 g/t Au. Strong potassic-altered feldspar intrusives were logged in the remainder of the hole to the bottom.

Southern Arc completed three drill holes at Montong Botek, with the first two holes (SLD001 and SLD002) completed as of late May 2007 and the third hole (SLD003) completed on June 13.

Drill Hole SLD005

Drill hole SLD005, Southern Arc's second drillhole into the Blongas II porphyry Cu-Au target, also returned very encouraging Cu-Au mineralization.

The drilling resulted in a mineralized intersection of:

486.15 m at 0.22% Cu and 0.26 g/t Au from 2.00 to 488.15 m

Which included the following higher grade intersections:

72.10 m at 0.38% Cu and 0.30 g/t Au from 97.70 to 169.80 m
42.50 m at 0.39% Cu and 0.57 g/t Au from 200.40 to 242.90 m
80.00 m at 0.19% Cu and 0.42 g/t Au from 334.60 to 414.60 m

Drill hole SLD005 was drilled eastward at an inclination of -65 degrees to a length of 565.6 metres. SLD005 proved lateral and depth extensions of Cu-Au mineralization previously intersected in Newmont's drillholes SGD002, PSG002 and PSG002A.

The upper 241 m of SLD005 intersected a series of altered diorite intrusives hosting porphyry-style quartz stockwork veining and secondary magnetite. From 172 to 200 m a post-mineralization hornblende diorite dyke was intersected. A fault-sliver of volcanic country rock, with metasediment equivalents, was logged from 241 to 252 m. Intrusive rocks logged between 252 and 540 m show variable secondary magnetite alteration and porphyry stockworking, overprinted by phyllic alteration. Intense phyllic alteration of intrusive units is prevalent for the remainder of the hole. Shear/fault zones often tens of metres wide were intersected throughout the majority of the hole, confirming the dominant regional N to NW trending structural regime.

Drill Hole SLD006

Drillhole SLD006, Southern Arc's third drillhole into the Blongas I - Blongas II porphyry Cu-Au targets, continued to return very encouraging Cu-Au mineralization. Located approximately midway between the Blongas II and Blongas I porphyry Cu-Au targets, this drill hole returned a long mineralized intersection of:

500.20 m @ 0.17% Cu and 0.30 g/t Au from 49.80 to 550.00 m

This interval included the following higher grade intersections:

174.70 m @ 0.22% Cu and 0.45 g/t Au from 200.20 to 374.90 m
(including 58.60 m @ 0.32% Cu and 0.74 g/t Au from 200.20 to 258.80 m
and 39.10 m @ 0.30% Cu and 0.53 g/t Au from 335.80 to 374.90 m)

Lower grade mineralization continued to the end of the hole (38.05 m @ 0.10% Cu and 0.10 g/t Au from 568.95 to 607.00 m, at which length the hole was terminated).

Drill hole SLD006 was collared to the north of the outcrop of the Blongas II intrusive and drilled westward at an inclination of -65 degrees to a depth of 607.0 meters in an area previously untested by deep drilling. In addition to returning no less than half a kilometre of high grade gold-copper porphyry mineralization, more significantly, SLD006 confirmed the northward extension of Cu-Au mineralization intersected in SLD004 and SLD005 approximately 250 metres further to the north of these two drill holes. It has also confirmed that the higher gold grade phases extend into this area.

For the length of drill hole SLD006 a number of generations of altered diorite intrusives hosting porphyry-style quartz stockwork veining were logged. These are observed to be cut by syn- and post-mineralization dykes of dacitic and dioritic compositions. The mineralized intrusives generally exhibit zones of potassic alteration with secondary magnetite, hosting higher copper-gold grades, and zones showing variable overprinting by phyllic alteration. Phyllic alteration marginal to higher-grade potassic mineralization is a zonation typical of many porphyry Cu-Au deposits.

It was observed in SLD006 that the higher grade 'potassic zones' have been structurally faulted into an overlying phyllic halo, hence there is excellent potential for preservation of significant higher-grade 'potassic-zone' mineralization at depth and along strike of the area drilled.

Hole SLD022 was drilled 150 m south of SLD005 to test for potential southwest extensions of high-grade mineralization previously intersected in SLD004 (see Montong Botek - Blongas II - Kekalik Diamond Drilling Compilation map). The drill hole rationale was based on elevated Cu-Au soil geochemistry at this locality. However, no significant mineralization was intersected in the drill hole.

The hole was drilled westward at an inclination of -65 degrees to a length of 567.7 m. Intensely phyllic altered diorite was intersected from surface to a depth of 49.0 m. From 46.0 to 413.0 m phyllic altered brecciated-diorite was logged with narrow diorite dykes intersected at 334.0 and 411.0 m. From 413.0 m alterated volcanic and volcanic-derived sediments were intersected to the end of the hole.

Drill Hole SLD026

Drill hole SLD026, located at Blongas II mid-way between SGD002 and SLD005, intersected mineralization analogous to that seen in hole SLD004. SLD026 intersected mineralization from the surface comprising:

334.35 m @ 0.17 % Cu and 0.31 g/t Au from 0.00 to 334.35 m
(including 104.0 m @ 0.23 % Cu and 0.50 g/t Au from 222.35 to 326.35 m
and 34.00 m @ 0.29 % Cu and 0.86 g/t Au from 278.35 to 312.35 m)

SLD026 confirmed continuity of Cu-Au mineralization previously intercepted in SLD004 (407.25 m @ 0.25 % Cu and 0.45 g/t Au, including 192.25 m @ 0.36 % Cu and 0.74 g/t Au) on the eastern side of a N-S trending post-mineral diorite dyke. Mineralization on the western side of the dyke was not tested as bad ground conditions necessitated abandoning the hole at 756.0 m, short of the 1000.0 m planned target depth.

SLD026 was drilled westward at an inclination of -72 degrees to a depth of 756.0 m. From surface to a depth of 415.0 m variably phyllic overprinted and mineralized quartz diorite was cored, with a fault‑bounded wedge of post-mineral diorite dyke and meta-sediment intersected between 155.7 m and 222.35 m. From 415.0 m to the end of the hole, a number of post-mineral diorite dykes with locally developed sheared fault-zones increasing to the bottom of the hole were intersected.

Drill Hole SLD030

Drill hole SLD030, located midway along the 200 m interval between SLD004 and SLD006, was designed to test continuity of moderate to high grade Cu-Au mineralization between previous holes SLD004 and SLD006, together with a coincident 3D magnetic anomaly modeled at moderate depths. Drilling returned a mineralized intercept of:

        472.6 m @ 0.16% Cu / 0.28 g/t Au from 98.2 to 570.8 m

which includes higher grade intervals of: 

        284.95 m @ 0.20% Cu / 0.35 g/t Au from 172.20 to 457.15 m 
        and 101.00 m @ 0.28% Cu / 0.56 g/t Au from 276.70 to 377.70 m 
        and 47.00 m @ 0.34% Cu / 0.74 g/t Au from 276.70 to 323.70 m.

SLD030 was drilled west at an inclination of -65 degrees to a depth of 585.3 m. From the surface to the end of the hole, several phases of variably mineralized intermediate argillic to potassic altered diorites were intersected. A structural zone within the mineralized diorites between 234.7 and 278.6 m comprises localized shear zones with overprinting lower temperature assemblages, along with two narrow wedges of meta-volcanic rock (234.7 to 237.3 m and 258.5 to 278.6 m). From 570.9 m to the end of the hole a weakly altered hornblende-diorite dyke was intersected.

The results from SLD030 substantiate the continuity of moderate to high grade mineralization between SLD004 and SLD006, and supports geological and mineralization modeling.

Montong Botek Prospect

Drill Hole SLD001

Drill hole SLD001 was Southern Arc's first diamond drill hole bored into the SIC, located within the northern part of the Montong Botek Porphyry Stock (MBPS). It was drilled northeast at an inclination of -65 degrees, with the aim of extending mineralization previously intersected by Newmont drilling, along with testing the limits of mineralization in the northeast quadrant of the MBPS (see Diamond Drilling Compilation on Maps page).

SLD001 was terminated in a polymict breccia that included some intrusive material and which forms an apron around the Montong Botek porphyry stock. It was terminated at 476m because visually the rock material looked non-mineralized for the last 50 to 60m. Subsequent assaying returned uneconomic Au-Cu grades for this zone, thus justifying the early termination. It should be noted that the polymict breccia is mineralized, this based on the quantity of mineralized Cu-Au clasts from the Montong Botek porphyry stock in the breccia.

The first 33.8 m of hole SLD001 intersected a non-mineralized late-stage dike. Continuous mineralization was logged to the bottom of the hole from 33.8 m, resulting in an overall intersection averaging 0.28 per cent Cu and 0.42 g/t Au for 442.9 metres (33.8 to 476.0 m). The hole included the intersection of a high-grade sulfide zone from 33.8 to 200.0 metres averaging 0.52 percent copper and 0.85 gram per tonne gold over 166.2 metres, which included 0.60% Cu and 1.04 g/t Au over 105.0 metres (33.80 to 138.80 m).

The high-grade Cu-Au mineralization in SLD001 intersected between 33.8 and 138.8 m (refer to values above) is hosted within an early phase of mineralized quartz-diorite. This high-grade intrusive phase is inferred to have been intersected in several of the previous shallow Newmont drill holes including: PSG004, PSG015B, and PSG032 (refer to the Selodong Prospect Geochemical Compilation plans on the maps page).

Drill Hole SLD002

Subsequently, drill hole SLD002 was completed in the middle of May 2007 to a total depth of 518.0 m. Following the first 18.1 m, which was not mineralized, drilling intersected:

384.65 m at 0.30% Cu and 0.40 g/t Au from 18.1 to 402.75 m
(including 117.2 m at 0.56% Cu and 0.80 g/t Au from 118.7 to 235.90m)

This intersection is interpreted as being an extension of the same high-grade porphyry Cu-Au mineralized zone that was intersected in drill hole SLD001.

Drill hole SLD002 was drilled at an inclination of -60 degrees parallel to and in the opposite direction of drill hole SLD001 to determine the south-western extent of the mineralization (see Diamond Drilling Compilation on Maps page).

The first 335.0 m of drill hole SLD002 intersected moderate to strong stockwork porphyry veining hosted by a number of quartz diorite intrusive phases and associated brecciation zones. Around 335 m the diorites appear faulted against a chaotic, polymictic diatreme breccia, which continues to a depth of 478 m. This breccia exhibited a variety of hydrothermal textures and structures.

Basement rock comprising recrystallized limestone with lesser tuffaceous horizons prograding into marbles and later garnet-epidote skarns was logged from 478 m to the end of the hole (40m). With this a definite geological boundary of alteration and mineralization on the SW corner was identified.

Drill hole SLD002 further highlighted the potential for extensive porphyry Cu-Au mineralization within whole of the Selodong Intrusive Complex.

Drill Hole SLD003

Hole SLD003 was started on May 19 and was terminated on June 13, 2008 at a depth of about 643 m after deteriorating hole conditions were encountered that the on-site drill supervisor considered was a high risk for the recovery of down-hole drill pipe and casing. The drilling rationale for this hole was to target potential east to southward extensions of known Au-Cu mineralization intersected in SLD001 and SLD002 as well as in earlier Newmont holes at Montong Botek.

Drill hole SLD003 continued to intersect further encouraging copper-gold mineralization. Completed at a depth of 643.5 metres, the first 33.3 metres were not mineralized, however drilling intersected:

363.50 m at 0.30% Cu and 0.51 g/t Au from 33.30 to 396.80 m
(including 250.10 m at 0.35% Cu and 0.64 g/t Au from 33.30 to 283.40m
and 57.15 m at 0.39% Cu and 1.00 g/t Au from 33.30 to 90.45 m)

Drill hole SLD003 was drilled eastward at an inclination of -60 degrees targeting the eastern and southern extensions of Cu-Au mineralization intersected in SLD001 and SLD002.

The upper half of SLD003 to a depth of 288.4m intersected chalcopyrite and locally bornite-mineralized porphyry stockworks hosted in a series of quartz diorite intrusives, which were later cut by hornblende diorite dykes. From 288.4 to 497.2m a polymictic diatreme breccia that was intersected in both SLD001 and SLD002 was logged. The breccia contains variable amounts of mineralized diorite clasts, which have been stoped out of the enclosed porphyry stock and contribute to elevated Cu-Au grades. A slice of basement metasediments and associated garnet-epidote skarns was logged from 497.2 to 526.4 m, whilst feldspar to diorite porphyry intrusives often displaying high temperature alteration assemblages was encountered for remainder of the hole.

Drill Hole SLD011

Drill hole SLD011 was collared 245 metres north of SLD001, testing potential northern extensions of high-grade quartz diorite hosted Cu-Au mineralization (QD1 phase) intersected in drill holes SLD001, SLD002 and SGD001. Porphyry-style quartz stockwork veining similar to that logged in these holes had been mapped in headwater tributaries in the vicinity of the SLD011 collar.  

SLD011 returned erratic lower grade Cu-Au intersections including:

89.9 m at 0.16% Cu and 0.22 g/t Au from 91.1 m to 181.0 m

       (including 24.8 m at 0.24% Cu and 0.34 g/t Au from 111.3 m to 136.1 m)

                        26.0 m at 0.13% Cu and 0.11 g/t Au from 251.0 m to 277.0 m
                        22.7 m at 0.14% Cu and 0.09 g/t Au from 377.0 m to 399.7 m
                        12.0 m at 0.16% Cu and 0.23 g/t Au from 491.6 m to 503.6 m

SLD011 was drilled eastward at an orientation of 095 degrees and an inclination of -60 degrees to a depth of 600.1 metres.

From surface to 163.5 m a number of altered diorite porphyry intrusives hosting weak to moderate amounts of diorite hosted quartz-sulfide stockworking (QD2 phase) were logged. For the remainder of the hole (163.5 to 600.1 m) polymictic breccia (a possible diatreme) with minor clast components of QD1 and QD2 phase mineralized intrusive were intersected. These showed variable propylitic alteration overprinting and associated anhydrite veining.

Results confirmed both the extensive and complicated geometry of both the Montong Botek porphyry stock and interpreted subsequent diatreme breccia, which stoped out northern portions of the mineralized intrusive body.

Drill Hole SLD013

Drill hole SLD013 was collared 150 metres northwest of the historic Newmont drill hole SGD001 to test potential northwestern extensions of high-grade Cu-Au mineralization (QD1) intersected in drill holes SLD001, SLD002, SLD003 and SGD001. Given the drilling work in this area has been to test extensions of the known high-grade mineralization at Montong Botek and Blongas II, the results from SLD013 are very encouraging and further extended and added to the known Cu-Au mineralization to the northwest extremity of the target.

SLD013 intersected a broad mineralized interval along nearly the complete length of the hole of:

576.95 m at 0.12% Cu and 0.25 g/t Au from 00.0 m to 576.95 m

        (including 113.9 m at 0.06% Cu and 0.34 g/t Au from 21.5 m to 135.4 m

                 and 106.6 m at 0.18% Cu and 0.34 g/t Au from 262.75 m to 369.35 m
                 and 52.0 m at 0.15% Cu and 0.45 g/t Au from 441.35 m to 493.35 m)

SLD013 was drilled north-northeast at an inclination of -65 degrees to a length of 600.0 m. Dacite and quartz diorite intrusives were logged from the surface to 28.0 m. From 28.0 m to the end of the hole polymictic breccia, with variable quantities of mineralized quartz diorite (QD1) clasts, was intersected. Similar QD1-style stockwork veining was mapped elsewhere in the vicinity of the SDL013 collar. Abundant altered and mineralized diorite clasts within polymictic breccias are very encouraging and could indicate the potential of proximal QD1-hosted mineralization east and north of SLD013 as well as at depth.

Drill Hole SLD015

Drill hole SLD015 was collared 160 metres west of drill hole SLD0013 to further test inferred northwestern extensions of Montong Botek Cu-Au mineralization. Detailed geologic mapping had shown continuity of anomalous quartz stockwork outcrops into this area. Two zones of lower-grade Cu and Au mineralization were intersected including:

53.0 m at 0.07% Cu and 0.23 g/t Au from 260.0 m to 313.0 m

                 and 232.0 m at 0.05% Cu and 0.17 g/t Au from 361.0 m to 593.0 m

SLD015 was drilled at the same orientation and inclination as that of SLD013 to a depth of 600.4 m. Late stage post-mineralization diorite was drilled from the surface to 129.0 m. From 129.0 m to the end of the hole mineralization is associated with variably phyllic altered QD1 clasts hosted in polymictic breccia.

Drill Hole SLD017

Drill hole SLD017 was the first of two deep holes drilled at Montong Botek using Drill Rig No. 3, capable of drilling to 1,100m, planned for Montong Botek to test the conventional vertical “beer bottle shape” concept, which is typically characterized by an increase in diameter and grade of porphyry Cu-Au mineralization with depth. Analytical results of SLD017 reported a shallow intersection of:

208.10 m at 0.12% Cu and 0.22 g/t Au from 0.00 m to 208.10 m
(including: 13.00 m at 0.38% Cu and 0.54 g/t Au from 8.50 m to 21.50 m)

This lack of continuity of mineralization at depth suggests mineralization is plunging in an orientation other than vertical. An inferred northerly plunge of mineralization is supported by Cu-Au intercepts in holes SLD001, SLD002, SLD011, SLD013 and Newmont's SGD001. This concept was as Drill Rig No. 3 drilled hole SLD023, about 150 m to the north of SLD017.

SLD017 was drilled eastward at an inclination of -73 degrees to a depth of 953.8 m. From surface to 247 m, breccia comprising variably mineralized (QD1) and altered clasts of diorite were logged. From 247 metres to the end of the hole a sequence of altered volcanic and volcanic-derived sediments were encountered, which were cross-cut by post-mineralization diorite dykes at 625.0 and 663.0 m.

Drill Hole SLD018

Hole SLD018 was drilled to define the southern shallow periphery of the Montong Botek porphyry.  Drill Rig No. 1 drilled the hole to a length of 567.2 m (approximately 450 m vertical depth) and targeted shallow to medium extensions of anomalous Cu-Au intersections identified in previous Newmont and subsequent SA drill holes.  No significant intersections were reported from the hole. The hole SLD018 was drilled westward at an inclination of -65 degrees. Phyllic and propylitic altered diorite and porphyry equivalents, along with polymictic breccias and volcanics was intersected in the drill hole.

Drill Hole SLD020

Hole SLD020 was drilled to define the northern shallow periphery of the Montong Botek porphyry.  Drill Rig No. 1 drilled the hole to a length of 600.5 m (approximately 450 m vertical depth) and targeted shallow to medium extensions of anomalous Cu-Au intersections identified in previous Newmont and subsequent SA drill holes.  No significant intersections were reported from the hole. The hole was drilled westward at an inclination of -65 degrees. Phyllic and propylitic altered diorite and porphyry equivalents, along with polymictic breccias and volcanics was intersected in the drill hole.

Drill Hole SLD023

Drill hole SLD023 was the second deep hole drilled at Montong Botek, and returned the longest intercept at the SIC with:

        855.10 m at 0.10% Cu and 0.22 g/t Au from 0.00 m to 855.10 m
        (including: 242.00 m at 0.18% Cu and 0.41 g/t Au from 210.00 m to 452.00 m
        and: 100.00 m at 0.26% Cu and 0.70 g/t Au from 278.00 m to 378.00 m)

The SLD023 broad intercept confirmed continuity of Cu-Au grades at depth and indicates the mineralized strike potential further north.  This hole was located at the previous SLD013 drill pad to test an inferred northerly plunge of Cu-Au mineralization, as suggested from the previous drill intercepts in holes SLD001, SLD002, SLD011, SLD013 and SGD001 (see Montong Botek - Blongas II - Kekalik Diamond Drilling Compilation map).

SLD023 was drilled eastward at an inclination of -70 degrees to a length of 871.0 m. From surface to a depth of 592.0 polumictic breccia comprising mineralizaed quartz-diorite (QD1) and altered diorite clasts were logged. Narrow diorite dykes intrude the breccia between 364.0 to 366.0 m and 529.0 to 561.0 m. From 529.0 m to the end of the hole altered volcanic and volcanic-derived sediments were encountered.

Drill Hole SLD024

Drill hole SLD024 was targeted to test for a potential NW extension linking Montong Botek to the Kekalik target, 600 m to the NW. The target area of SLD024 was supported by locally outcropping quartz‑stockworks and a broad zone of elevated Cu+Au soil geochemistry.

SLD024 was drilled NE at an azimuth of 045 degrees, at an inclination of -65 degrees to a depth of 414.5 m. Polymictic breccia was cored from surface to the end of the hole, with narrow late diorite dykes cross-cutting the breccia at 1.0 m and 180.0 m. The breccia comprises predominantly non‑mineralized clasts of volcanic, meta-sediment and increasingly more propylitically altered diorite to the bottom of the hole. Only a narrow zone of low-grade gold mineralization, 20.00 m @ 0.24 g/t Au from 290.65 m was intersected within a zone of mineralized breccia clasts. The elevated Cu+Au soil geochemistry at the target is attributable to concentrations of mineralized clasts within the polymictic breccia.

Drill Hole SLD029

Drill hole SLD029 was designed to test possible southward extensions and limits of higher grade Cu Au mineralization defined in previous holes drilled into the target. Drilling returned a mineralized intercept of:

        504.65 m at 0.13% Cu and 0.16 g/t Au from 0.00 to 504.65 m

        including: 127.95 m at 0.14% Cu and 0.26 g/t Au from 156.70 to 284.65 m 
        and: 100.00 m at 0.16 % Cu and 0.20 g/t Au from 404.65 to 504.65 m

Results from SLD029 extend a halo of breccia hosted lower-grade mineralization surrounding high grade mineralization previously intersected by holes SLD001 to SLD003 and SGD001. The generation of geological and mineralization wire-frame models for the Montong Botek-Blongas II porphyry couple is currently in progress.

Drill hole SLD029, located 220 m south-southeast of SLD003, was drilled northward at an inclination of -65 degrees to a depth of 595.20 m, passing approximately 150 m vertically below previous high-grade intercepts in SLD003 and SGD001. From surface to a depth of 528.00 m coring intercepted polymictic breccia hosting variable amounts of mineralized diorite clasts (QD1). Narrow late-stage diorite dikes cut the breccia at depths of 14.70 m, 89.60 m, and 159.20 m, respectively. Altered volcanics and volcaniclastics were intersected from 528.00 m to the end of the hole.

Kedaro Prospect

Drill Hole SLD019

SLD019 was drilled in the centre of the Kedaro porphyry target.  This first hole into the Kedaro target successfully intersected Cu and Au mineralized QD1, the diorite phase analogous to high-grade Cu-Au mineralization already drilled at the Montong Botek and Blongas II targets, 1.5 km to the southeast. More detailed surface mapping will be undertaken to establish potentially larger and better mineralized QD1 extensions at Kedaro.

SLD019 was drilled based upon coincident magnetic anomalism associated with secondary magnetite alteration, elevated surface Cu-Au-Mo geochemistry and associated intense fracturing and porphyry vein stockworks. Analytical results reported a moderate intersection of:

SLD019 was drilled westward at an inclination of -65 degrees to a length of 600.0 m. Several phases of variably altered and locally mineralized diorite were logged from surface to a depth of 578 m. The mineralized interval from 193.6 to 320.1 m corresponds with variable density quartz-stockwork ± chalcopyrite hosted within intrusive quartz diorite (QD1).  Phyllic altered volcanics were logged from 578 m to the end of the hole.

Drill Hole SLD027

SLD027 successfully intersected a southerly extension of mineralization returning an intercept of:

174.90 m @ 0.12 % Cu and 0.25 g/t Au from 15.50 to 190.40 m
(including 54.00 m @ 0.18 % Cu and 0.37 g/t Au from 87.05 to 141.05 m)

SLD027 was drilled 115 m south of the previous drill hole at Kedaro, SLD019, which intersected 126.45 m @ 0.16 % Cu and 0.23 g/t Au, including 44.0 m @ 0.22 % Cu and 0.34 g/t Au. The drill hole was positioned to test for potentially higher-grade mineralized extensions of SLD019 and to see if significant mineralization was associated with the large irregular 400 m by 200 m magnetic anomaly located immediately west of the drill collar.

SLD027 was drilled westward at an inclination of -65 degrees to a depth of 523.6 m. Variably altered and mineralized quartz micro-diorite was cored from surface to a depth of 190.4 m, with narrow post‑mineral dykes at 35.4 m and 70.0 m. From 190.4 m to the end of the hole, logged core was predominantly non-mineralized medium-grained diorite, with locally abundant primary magnetite. Fault‑bounded meta-sediment wedges were noted between 301.35 m to 373.10 m. The local abundance of primary disseminated magnetite in the non-mineralized diorite causes the magnetic anomaly at least in this part of the Kedaro anomaly.

The Kedaro target remains compelling as mineralization remains largely unexposed at surface and localized zones of elevated surface geochemistry with supporting magnetic anomalism occur along an 800 m plus NW trend. The Kedaro area may therefore be analogous to the structure-controlled Blongas I – Blongas II trend and remains only partially drill tested.

Belikat Prospect

Drill Hole SLD012 and Drill Hole SLD014

SLD0012 and SLD014 located at the Belikat porphyry prospect targeted extensions of anomalous Cu-Au intersections from previous shallow Newmont drill holes. These holes targeted anomalous geophysical and geochemical signatures coincident with extensive zones of outcropping quartz stockworks. Phyllic and propylitic altered diorites and minor breccias were intersected in both drill holes hosting zones of quartz stockwork and low-grade Cu-Au mineralization (see Table 1 in News Release 08-06).

These results indicate the presence of an extensive area of porphyry-style alteration and mineralization, which remains largely untested at Belikat. Hole SLD012 intersected a number of low-grade zones of Cu-Au mineralization. Hole SLD014 returned 77.45 m grading 0.13% Cu and 0.22 g/t Au.

SLD012 was drilled west at an inclination of -65 degrees to a length of 600.0 m, whilst SLD014, located 330.0 m southwest, was drilled south-southwest at an inclincation of -65 degrees to a length of 600.0 m. Further work at Belikat will be considered while drilling on other SIC targets continues.

Kekalik Prospect

Drill Hole SLD009

Drill hole SLD009 was collared in the Kekalik target area (Drill Hole & Geology Compilation Map) to test coincident outcropping diorite intrusive with variable porphyry-style quartz stockwork veining, Au±Cu±Mo soil anomalism and strong magnetic signatures.

Drill hole SLD009, completed on December 6, 2007, reported only a low grade gold intercept of 70.80 m at 0.18 g/t Au from 95.7 to 166.5 m. SLD009 was drilled southward at an orientation of 195 degrees and an inclination of -65 degrees to a length of 600.0 metres. Whilst variably stockworked diorite was encountered between 0.0 to 78.7 m, the majority of the hole (78.7 to 441.0 m) intersected phyllic altered polymict breccia (diatreme?) cross-cut by zones of anhydrite-pyrite stockwork with trace amounts of chalcopyrite and molybdenite. From 441.0 to 600.0 m fault slivers of diorite porphyry with phyllic overprinting, skarn and metavolcanics were logged.

Drill Hole SLD010

SLD010 was also collared in the Kekalik target area to test coincident outcropping diorite intrusive with variable porphyry-style quartz stockwork veining, Au±Cu±Mo soil anomalism and strong magnetic signatures. SLD010 was collared 196 metres west of SLD009 to test western portions of the same general target. Both these holes encountered porphyry Cu-Au style mineralization and associated hydrothermal alteration, but Cu-Au grades were severely downgraded because of late-stage phyllic overprinting and/or dilution relating to mineralized components being part of an extensive diatreme breccia unit.

SLD010 intersected intercepts of 32.0 m at 0.16 g/t Au from 63.8 to 95.8 m and 22.0 m at 0.20 g/t Au from 160.5 to 182.5 m. SLD010 drilled northeastward at an orientation of 040 degrees and an inclination of -65 degrees to a length of 600.5 metres. For the entire length of the hole intense phyllic to argillic altered polymict breccia (diatreme?) with stockwork anhydrite-carbonate-pyrite veining was encountered. Diorite intrusive with variable porphyry-style quartz stockwork veining and later intense phyllic overprinting were logged as a component of breccia clasts. Targeted stockwork vein zones mapped in stream tributaries are most likely large rafted blocks (up to 180 m length by 50 m wide) that were stoped out of pre-existing mineralized intrusive body through diatreme brecciation events.

Drill Hole SLD016

SLD016 was collared 120 m northwest of the historic Newmont drill hole PSG037 (North Kekalik target) to test moderate density porphyry quartz stockwork hosted in magnetite+chlorite±tourmaline altered diorite intrusives, coincident with a 200 by 350 m ovoid magnetic high. Aside from narrow gold intercepts (maximum 4.0 metres at 0.45 g/t Au from 42.85 to 46.85 metres) relating to narrow quartz-sulfide veins, no other significant intersections were reported.

Based on interpretation of the geology and alteration mineralogies, the Montong Botek and Blongas II porphyries would appear to have suffered little erosion, hence there is good potential for preservation of the full mineralised system at depth. Three other areas hosting porphyry style mineralisation (Blongas I, Kekalik, and Belikat) were also identified. Extensions of the high-grade phase were targeted during the definition drilling program by Southern Arc.

As detailed DGPS mapping was carried out throughout the SIC area, geological observations such as lithology, alteration assemblages, stockwork and fracture densities were recorded at each survey point and subsequently uploaded into the Micromine database with corresponding northings, eastings and elevations. Previous Newmont drill hole collars were also located again using DGPS. Excavations in the Blongas II North area exposed porphyry stockworks in hematite-altered diorite centred on the Blongas II magnetic anomaly. These exposures helped to confirm targeting of the third hole at Blongas II (SLD006) and indicated potential northward and eastward continuity of mineralization. The resulting database was used in the planning and design of future exploration activities and diamond drilling. (see Selodong Prospect Geochemical Compilation Plan on Selodong maps page).

Lapangan Geres Prospect

Drill Hole SLD021

SLD021 was the first hole drilled at Lapangan Geres, the most northerly porphyry target within the SIC, approximately 7.5 km along strike of the same N-NW structure that hosts the Montong Botek and Blongas I-Blongas II porphyry targets (see Lapangan Geres Compilation map). It comprises a north-trending, open-ended 600+ m long by up to 300 m wide zone of discontinuously exposed porphyry stockwork and sheeted vein zones hosted within altered diorite porphyry intrusives and altered volcanics. The area is on the edge of a large circular magnetic "high" and at the intersection of regional N-S and E-W fault structures. Surface sampling has returned intersections including 80 m @ 0.22 g/t Au (including 20 m @ 0.11% Cu/0.30 g/t Au), 55 m @ 0.31 g/t Au and 20 m @ 0.33 g/t Au.

SLD021 returned a low tenor Cu-Au intersection of:

142.55 m at 0.07% Cu and 0.14 g/t Au from 0.00 to 142.55m

SLD021 was sited in the centre of the main diorite porphyry body to test shallow to moderate depth extensions of surface porphyry Cu-Au mineralization within the inferred north-south structural corridor.

SLD021 was drilled eastward at an inclination of -70 degrees to a length of 521.00 m. From surface to 198.0 m intensely sheared, phyllic altered diorite pophyry intrusive hosting weak to moderate quantities of quartz-sulphide stockworking (QD2 phase) were logged. For the remainder of the hole (198.0 to 521.0 m) sheared volcanics and volcanic sediments were intersected. A late-stage diorite porphyry dyke was noted in the core from 466.5 to 478.2 m. Overall, the drill core was highly sheared and fractured, typical of drilling across the structural grain of a major fault or fracture zone.

Drill Hole SLD025

SLD025, located 160 m north of SLD021, was drilled westward at an inclination of -70 degrees to a depth of 550.1 m. Surface sampling of quartz stockworks in the target area had previously reported significantly anomalous results, including 35.0 m @ 0.12 g/t Au. From surface to a depth of 196.1 m variably phyllic over-printed and weakly mineralized micro-diorite was cored. This zone returned the only significant mineralization within the hole with a low-grade Cu-Au intercept of:

132.60 m @ 0.08 % Cu and 0.14 g/t Au from 0.0 to 132.6 m
(including 80.60 m @ 0.10 % Cu and 0.16 g/t Au from 10.00 to 90.60 m)

From 196.1 m to the bottom of the hole, non-mineralized and intensely phyllic over-printed micro‑diorite with low density quartz-stockwork is cross-cut by a series of later diorite intrusives and localized monomictic breccia.

Drill Hole SLD028

SLD028 was located a further 200 m north of SLD025 to test the northern extension of the target area. Surface sampling at this locality indicated significant anomalism along a north trending zone of quartz stockworks which returned 55.0 m @ 0.31 g/t Au.

SLD028 was drilled westward at an inclination of -65 degrees to a depth of 429.6 m. From surface to a depth of 214.0 m micro-diorite with localized zones of moderately developed quartz stockwork were intersected. Stockworking within the micro-diorite showed little indication of copper mineralization, probably due to later destructive phyllic overprinting. From 214.0 m to the end of the hole altered volcanics are variably intruded by younger diorite dykes. No significant results were reported.

Extensive zones of quartz-stockwork with corresponding strong gold anomalism from surface sampling indicated the potential presence of a significant porphyry system at Lepangan Geres. Drilling has confirmed the presence of a structurally-controlled porphyry alteration system, but Cu-Au grades are of low tenor, most likely attributable to later phyllic overprinting.

Review of Newmont Data

Southern Arc initiated preparatory activities for the deep diamond drilling program on the Selodong gold-copper porphyry system in late 2006. All drill core from historical Newmont drill campaigns (7,956.5 m in total) was received by Southern Arc in mid-January 2007, and was sorted and reviewed together with all the data from Newmont's previous drilling programs on their former Block 1 property. The review by Southern Arc's geologists revealed sufficient significant gold-copper porphyry mineralization to warrant the deep diamond definition drilling program.

Unloading historic Newmont core for examination and storage at Southern Arc's core facility.

Early in its exploration program in the latter part of 2006 at Selodong, Southern Arc obtained both the previously carried out airborne geophysical data (magnetics & radiometrics) for the Block I area and the ground geophysical data (magnetics & IP/resistivity) for the Selodong prospect area. This was sent to consultant Nigel Hungerford for evaluation.

Subsequently, further outstanding Block I data were received late in October. Southern Arc continues to compile data into a Micromine format. After several attempts, a workable data set was received of the previous (1990 to 1992) airborne geophysical data. This was modeled once the geological database was completed. The majority of the ex-Newmont data was compiled into the Micromine format, and the subsequent definition drilling hole program was designed from the resulting model.

Field logistical preparations for the deep diamond drilling program were initiated in December 2006. A 35-man semi-permanent camp, drill pads (both at new and historical locations) and access roads were completed. Initially, thirteen holes totaling 8,200 m had been planned to test gold-copper grades at depth in the historical Montong Botek, Blongas, Kekalik and Belikat prospect areas. The majority of the holes were planned to be drilled to a target depth of 600 m.

Selodong field operations camp.

Historical Results

Previous geological mapping and geochemical results within the West Lombok property confirmed the presence of anomalous gold, silver and base metals from low sulfidation epithermal and high sulfidation epithermal mineralized systems.

Exploration by Newmont in the late 1980s and early 1990s within the West Lombok area noted that alteration lithocaps are commonly above mineralized intrusions or above known or untested porphyry gold-copper systems. Newmont exploration activities in the Selodong area during the 1990s resulted in the completion of 7,956 m of diamond drilling within a 2 km by 2.5 km area (see Selodong Prospect Geochemical Compilation Plan on Selodong maps page). Thirty-five of 52 drill holes intersected intervals of Cu-Au mineralised diorite-porphyry and volcanics. SA obtained the drill core and digital database from Newmont and SA, geologists have fully utilised these in their drill planning.

The presence of both high sulfidation and low sulfidation vein outcrop and hill talus in the vicinity, along with good prospectivity in the Pelanggan prospect, suggests that the West Lombok property has significant potential for hybrid high-low sulfidation systems or structurally controlled, high sulfidation gold-copper systems.

Historical Selodong drilling intersections and assay results can be obtained from the Selodong Prospect Geochemical Compilation Plan on the Selodong Maps page.