East Elang Project

Minerals: Copper, gold
Location: Southwest Sumbawa Island, Indonesia
Area: 9,670 ha (23,894 acres)
Status: Surface prospecting and detailed geological mapping
Ownership: 100% by Southern Arc, IUP granted

Newmont's Adjoining Elang Project
Southern Arc's East Elang project adjoins immediately to the east of Newmont's Elang copper-gold project (see map). Remote sensing (Landsat imagery and aerial photography) and lithographical studies suggest the controlling NNE-trending mineralized structural corridor at Elang (the Elang discovery) extends onto Southern Arc's East Elang property.

Newmont completed an internal scoping study on their Elang project in June 2006. Should the outcome of the study prove positive, Newmont would commence a full project feasibility study. Sumitomo Corporation, a 35% partner in Elang, stated publicly that it had allocated funds up to US$2.5 billion for project development (Minergy News, February 2006)

Southern Arc Activities
Southern Arc began evaluation of East Elang in 2006, including a lithostructural interpretation and extensive review of all data acquired through previous exploration. An aeromagnetic survey of the property is planned in the near future. Another socialization plan was completed and a base camp was established, after which a full exploration team was fielded in early May 2008. The East Elang project activities page provides a more detailed discussion of the company's current exploration activities on the East Elang property. The regent of Sumbawa awarded an IUP to Southern Arc for the East Elang property on December 16, 2009.

Newmont's History at East Elang
Newmont acquired East Elang in 1986, explored it up to 1993, and then relinquished it back to the government in 1999 under the requirements of its license. It was only during the 2000 to 2001 exploration period, subsequent to the relinquishment, that Newmont discovered the large extent of the gold-copper porphyry deposit in its East Elang-Dodo area.

The Elang deposit area was first identified as being mineralized by historical regional BLEG gold anomalies, rock chip and channel sampling. This was followed by more detailed exploration activity to better evaluate the project with geologic mapping and sampling, gridded soil auger sampling, ground magnetics and IP surveys and hand trenching. This comprehensive geological campaign returned encouraging results that resulted in an extensive drilling program from 2004 to 2005.

Southern Arc acquired East Elang by way of an exploration license or KP granted to the company by the Sumbawa Regency in the middle of March 2006. The license was subsequently transitioned into an IUP on December 16, 2009.

Access
East Elang is a two-hour drive on a paved road from Sumbawa Besar to the village of Lawin, located in the northeast corner of the concession. Further to the south access is possible by way of old logging tracks. Within the property, access currently is limited generally to either helicopter support or a network of footpaths.