ns not significant
1. Resources for the Raja epithermal deposit are reported at a 0.5 g/t gold equivalent cut-off using the long-term consensus price forecasts for gold and silver of US$1500 and US$25 per ounce, respectively, and assumed 100% metal recoveries for both metals. Bising and Tibu Serai epithermal deposits are reported at a cut-off grade of 0.5 g/t gold. All resources were constrained inside a Whittle open pit shell. Gold grades were capped at 30 g/t for Raja, 5 g/t for Bising and 5 g/t for Tibu Serai.2. The resource for the Selodong porphyry copper-gold deposit is reported for a 0.25% copper equivalent cut-off grade inside a Whittle open pit shell. Copper equivalent is calculated using the long-term consensus metal forecast prices for gold and copper of US$1500 per ounce and US$3.56 per pound, respectively, and assumed 100% metal recoveries for both metals. Gold was capped at 4 g/t for Selodong. No capping was applied to copper.3. All numbers have been rounded to reflect the relative accuracy of the estimates.4. The mineral resources have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
"This maiden resource estimate for West Lombok confirms Southern Arc's model for a multi-pit project on a number of epithermal gold deposits on the property and enhances the area's potential for bulk tonnage porphyry copper-gold mineralization," said Dr. Mike Andrews, Southern Arc's President and Chief Operating Officer. "The mineral estimate reported here is based on drilling at only four locations in the 13 km by 7 km mineralized belt. Both Southern Arc and SRK feel the resource estimate could be expanded and upgraded with additional exploration."
Beginning in 1996, Southern Arc and the previous operator, Newmont, have completed a total of 55,706 metres of diamond core drilling (291 drill holes) on the three main prospects within the West Lombok property: Pelangan, Mencanggah and Selodong. Ninety-nine drill holes were included in the current resource estimation, while the remaining holes were either first phase exploratory holes or focused on different targets across the property. The reported resources cover three discreet epithermal gold targets: the Raja target in the Pelangan prospect (36 resource definition drill holes, for 5,787 m) and the Bising and Tibu Serai targets in the Mencanggah prospect (32 resource definition drill holes, for 5,200 m), as well as the two near-contiguous Montong Botek and Blongas porphyry targets within the Selodong copper-gold prospect (31 resource definition drill holes, for 11,012 m).
The resource estimation was completed by Dr. Gilles Arseneau, P.Geo. (APEGBC) of SRK, an "independent qualified person" as defined in NI 43-101. Gemcom GEMs software was used to construct geological solids, verify the database, prepare assay data for geostatistical analysis, construct 3D block models, estimate metal grades and tabulate mineral resources. Geostatistical Software SAGE2001 was used for geostatistical analysis and variography.
Geological modelling was completed by SRK for Raja, Bising and Tibu Serai with wireframes constructed on 20-m spaced sections using a 1.5-m minimum horizontal thickness and a 0.15 g/t gold nominal cut off, whereas at Selodong wireframes were constructed on 50-m spaced sections using a 0.2% copper equivalent cut off. Block model estimates were calculated using 10m by 10m by 5m blocks for Raja, Bising and Tibu Serai, and 10m by 10m by 10m blocks for Selodong. Block grades for gold, and where appropriate silver or copper, were estimated using Ordinary Kriging methodology. The resources reported were constrained by Whittle optimized open pit shells.