Technical Report - Southern Arc Minerals
Transcription
Technical Report - Southern Arc Minerals
Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Report Prepared for Southern Arc Minerals Inc. Report Prepared by SRK Consulting (Canada) Inc. 2CS032.000 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page i Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Southern Arc Minerals Inc. Suite 1680 – 200 Burrard Street Vancouver, B.C., Canada V6C 3L6 e-mail: info@southernarcminerals.com website: www.southernarcminerals.com Tel: +1.604.676.5241 Fax: +1.604.676.5246 SRK Consulting (Canada) Inc. Suite 2200-1066 West Hastings Street Vancouver, B.C., Canada V6E 3X2 e-mail: vancouver@srk.com website: www.srk.com Tel: +1.604.681.4196 Fax: +1.604.687.5532 SRK Project Number 2CS032.000 Effective date: Signature date: July 11, 2013 August 23, 2013 Authored by: Gilles Arseneau, P. Geo. Associate Consultant Peer Reviewed by: Marek Nowak, P. Eng. Principal Geostatistician Cover: View of Montong Botek Hill with Porphyry Mineralisation, West Lombok Project, Indonesia. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page ii Important Notice This report was prepared as a National Instrument 43-101 Technical Report for Southern Arc Minerals Inc. (Southern Arc or the company) by SRK Consulting (Canada) Inc. (SRK). The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in SRK‟s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Southern Arc subject to the terms and conditions of its contract with SRK and relevant securities legislation. The contract permits Southern Arc to file this report as a Technical Report with Canadian securities regulatory authorities pursuant to National Instrument 43-101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party‟s sole risk. The responsibility for this disclosure remains with Southern Arc. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued. Copyright This report is protected by copyright vested in SRK Consulting (Canada) Inc. It may not be reproduced or transmitted in any form or by any means whatsoever to any person without the written permission of the copyright holder, other than in accordance with stock exchange and other regulatory authority requirements. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page iii Executive Summary Introduction SRK Consulting (Canada) Inc. (SRK) has been retained by Southern Arc Minerals Inc. (Southern Arc or the company) to prepare a technical report summarizing the mineral resources for the West Lombok Project. The mineral resource estimate is to form the first time disclosure of mineral resources by Southern Arc for the West Lombok Property. SRK‟s scope of work for the West Lombok Property included the construction of mineral resource models for the Raja, Bising and Tibu Serai epithermal gold mineralisation, and the Selodong porphyry copper gold mineralisation and the preparation of an independent technical report in compliance with National Instrument 43-101 and Form 43-101F1 guidelines. The mineral resource statement reported herein is a collaborative effort between Southern Arc and SRK personnel. The exploration database was compiled and maintained by Southern Arc, and was audited by SRK. The geological model and outlines for the gold mineralisation were constructed by SRK from a two-dimensional geological interpretation provided by Southern Arc. In the opinion of SRK, the geological model is a reasonable representation of the distribution of the targeted mineralisation at the current level of sampling. The mineral resource statement reported herein was presented to Southern Arc in a memorandum report on July 11, 2013. In accordance with National Instrument 43-101 guidelines, Dr. Arseneau visited the West Lombok Property on December 6 through 9, 2011 and on April 23 to 26, 2013 accompanied by Andrew Rowe Executive Vice President and Chief Geologist of Southern Arc. Property Description and Ownership The West Lombok Property hosts an early stage gold and copper exploration project located in Indonesia. It is located on the southwest corner of the Island of Lombok and covers a northwest trending mineralized corridor that extends for approximately 13 by 7 kilometres. Southern Arc Minerals Inc., through Indotan Lombok Pte. Ltd., holds a 90% interest in PT. Indotan Lombok Barat Bangkit (“PT ILBB”), an Indonesian approved foreign investment company (Penanaman Modal Asing or PMA Company that holds a 100% interest in the West Lombok Property. The remaining 10% interest of PT ILBB is held by the West Lombok Regency Government as a free-carry loan arrangement. Geology and Mineralisation The geology of the West Lombok Property is characterized by an island-arc volcano-sedimentary succession of Late-Oligocene to Quaternary age. The southern parts of Lombok Island are overlain by Late Oligocene to Middle Miocene, low potassium calc-alkaline to weakly alkaline andesitic volcanic and interbedded volcaniclastic rocks, associated low potassium intermediate intrusions and shallow marine sedimentary rocks and limestone. The West Lombok Property covers a northwest trending structural corridor of mineralisation and alteration hosting three main prospects: the Pelangan epithermal gold prospect, the Mencanggah epithermal/porphyry district, and the Selodong porphyry intrusive complex. The Raja resource area is situated within the Pelangan Prospect, the Bising and Tibu Serai resource areas are within the GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page iv Mencanggah Prospect and the Selodong porphyry copper-gold deposit is within the Selodong Prospect area. Exploration Status A total of 210 BLEG, 210 stream sediments, 6 rock chips and 14 rock float samples were collected in the Pelangan-Mencanggah area. Geological mapping traverses were conducted using tape and compass surveys over a 35 square kilometre area. Drilling has been carried out on the Mencanggah Prospect area by Southern Arc and on the Selodong and Pelangan Prospect areas by Newmont and Southern Arc. Drilling by Southern Arc was carried out using up to ten drill rigs. A total of 47,750 m have been drilled in 253 holes on the property. SRK is of the opinion that the drilling programs carried out by Southern Arc on the West Lombok property are sufficient and adequately spaced for use in the estimation of mineral resources for the Pelangan, Mencanggah and Selodong prospect areas. Mineral Resource Estimates The mineral resource model prepared by SRK considers 253 of the core boreholes drilled by Southern Arc and previous owners of the property during the period of 2005 to 2013. Of these, 99 drill holes intersected the mineralised zones and are included in the resource estimate: 36 drill holes totalling 5,787 m were included in the Raja resource model, 22 drill holes totalling 3,830 m were included in the Bising model, 10 holes totalling 1,370 m were included in the Tibu Serai model and 31 holes totalling 11,012 m were included in the Selodong model. The resource estimation work was completed by Dr. Gilles Arseneau, P.Geo. (APEGBC #23474) an appropriate “independent qualified person” as this term is defined in National Instrument 43-101. The effective date of the resource statement is June 29, 2013. Mineral resources were estimated for four separate deposits by Ordinary Kriging using Gemcom block modelling software in three separate models. The Raja, Bising and Tibu Serai block model used 10 x 10 x 5 m blocks and the Selodong model used a 10 x 10 x 10 m block. Grade estimates were based on capped, 1 m composited assay data for Raja, 1.5 m composited data for Bising and Tibu Serai and 3 m composites for the Selodong. Gold capping levels were set at 30 g/t for the Raja model, 5 g/t for the Bising and Tibu Serai models and 4 g/t for the Selodong model. All blocks in all models were classified as inferred mineral resources. Mineral resources for Bising and Tibu Serai were estimated in the same block model. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimation are uncertain in nature. There has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource. It is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The mineral resources were estimated using current Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards, definitions and guidelines. SRK considers that major portions of the GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page v mineralisation at the West Lombok Property may be amenable for open pit extraction. In order to determine the quantities of material offering “reasonable prospects for economic extraction” by an open pit, SRK used a pit optimizer and reasonable mining assumptions to evaluate the proportions of the block model that could be “reasonably expected” to be mined from an open pit. The mineral resources for the West Lombok Property are summarised in Table i below: Table i: Mineral Resource Statement*, West Lombok Project, Indonesia, SRK Consulting, July 11, 2013. Deposit Class Tonnage Grade (tonnes) Cap Au (g/t) Contained Metal Au (Oz) Grade Cap Ag (g/t) Contained Metal Ag (Oz) Grade Cu (%) Contained Metal Cu (lbs) Raja Inferred 3,898,000 2.63 329,700 14 1,821,000 ND ND Bising Inferred 6,908,000 0.88 195,550 ND ND ND ND Tibu Serai Inferred 977,000 1.36 42,570 ND ND ND ND Inferred 66,750,000 0.43 922,800 ND ND 0.27 397,324,00 0 Selodong * Reported at a cut-off grade of 0.5 g/t gold equivalent inside a Whittle pit shell for Raja, a 0.5 g/t Au cut-off for Bising and Tibu Serai and a 0.25 copper equivalent for Selodong. Gold equivalent is calculated using US$1500 per ounce of gold and US$25 per ounce of silver and 100% metal recoveries are assumed for both metals. Copper equivalent is calculated using US$1500 per ounce of gold and US$3.56 per pound of copper and 100% metal recoveries are assumed for both metals. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All numbers have been rounded to reflect the relative accuracy of the estimates. Gold was capped at 30 g/t for Raja, 5 g/t for Bising and Tibu Serai and 4 g/t for Selodong. No capping was applied to copper. Conclusion and Recommendations The West Lombok Property hosts at least four separate mineral deposits within a 10 km strike length. Both epithermal gold and porphyry copper-gold deposits have been identified and a large portion of the property still remains to be explored in detail. All deposits identified so far are still open along strike and at depth and additional drilling could discover additional mineralisation, especially at Raja where the possibility of finding mineralisation that could be amenable to underground mining seems very good. The West Lombok Property contains several other mineral occurrences and only a small portion of the favourable ground has been drill tested to date. SRK is of the opinion that the untested mineral occurrences represent a great opportunity to locate additional mineralisation on the West Lombok Property. SRK recommends that Southern Arc continue to explore the West Lombok Property. Specifically, SRK recommends: GA / MN At Raja, further 2,625 m of drilling is required to upgrade the resource status and to extend resources down-plunge of open high-grade shoots; A further 1,385 m of drilling is required on Bising to infill the upper high-grade parts of the structure and test open extensions along strike and down dip; At Tibu Serai, where the current resource zone is only drilled on a 250 m long zone of MSB, further drilling is required to test open extensions down dip and along strike; Metallurgical sampling and testing at Raja and Bising Deposits; Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page vi Scout drilling to test the Lala structure located some 350 m east of, and parallel to the Raja deposit. Here numerous high-grade rock chip samples have been collected along an 800 metre strike zone; Scout drilling is warranted at several other targets with high-grade rock chip sampling at Mencanggah, including the 2-km long Mahoni zone; Selective ground IP geophysics is recommended to focus porphyry drill testing on the higher priority porphyry targets; SRK estimates that the first exploration phase at Raja will cost approximately $766,000.Contingent on positive results from the first phase of drilling, SRK recommends an additional $421,000 in exploration expenditures and an additional $800,000 of scout drilling for a total exploration commitment of approximately $2 million. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page vii Table of Contents Important Notice ................................................................................................................ ii Copyright ........................................................................................................................... ii Executive Summary ......................................................................................................... iii Introduction ...............................................................................................................................iii Property Description and Ownership .........................................................................................iii Geology and Mineralisation .......................................................................................................iii Exploration Status .................................................................................................................... iv Mineral Resource Estimates .................................................................................................... iv Conclusion and Recommendations ........................................................................................... v Table of Contents ............................................................................................................ vii List of Tables ..................................................................................................................... x List of Figures................................................................................................................... xi 1 Introduction and Terms of Reference ...................................................................... 13 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Scope of Work ............................................................................................................... 13 Work Program................................................................................................................ 14 Basis of Technical Report .............................................................................................. 14 Qualifications of SRK and SRK Team ............................................................................ 14 Site Visit......................................................................................................................... 15 Acknowledgement ......................................................................................................... 15 Declaration .................................................................................................................... 15 2 Reliance on Other Experts ........................................................................................ 17 3 Property Description and Location .......................................................................... 18 3.1 3.2 3.3 3.4 3.5 4 Mineral Tenure............................................................................................................... 19 Underlying Agreements ................................................................................................. 20 Permits and Authorization .............................................................................................. 20 Environmental Considerations ....................................................................................... 20 Mining Rights in Indonesia ............................................................................................. 23 Accessibility, Climate, Local Resources, Infrastructure and Physiography ........ 24 4.1 4.2 4.3 4.4 Accessibility ................................................................................................................... 24 Local Resources and Infrastructure ............................................................................... 24 Climate .......................................................................................................................... 24 Physiography ................................................................................................................. 24 5 History ........................................................................................................................ 26 6 Geological Setting and Mineralisation..................................................................... 27 6.1 6.2 6.3 Regional Geology .......................................................................................................... 27 Property Geology ........................................................................................................... 28 Mineralisation ................................................................................................................ 31 6.3.1 6.3.2 6.3.3 7 Pelangan Prospect ............................................................................................................. 31 Mencanggah Prospect ....................................................................................................... 32 Selodong Prospect ............................................................................................................. 34 Deposit Types ............................................................................................................ 35 7.1.1 7.1.2 GA / MN Porphyry style mineralisation ............................................................................................. 35 Epithermal gold mineralisation ........................................................................................... 35 Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 8 Exploration................................................................................................................. 36 8.1 8.2 8.3 9 Page viii Pelangan Prospect ........................................................................................................ 36 Mencanggah Prospect ................................................................................................... 44 Selodong Prospect ........................................................................................................ 48 Drilling ........................................................................................................................ 52 9.1 Pelangan Epithermal Prospect ....................................................................................... 52 9.1.1 9.2 9.2.1 9.3 Mencanggah Drilling Results ............................................................................................. 59 Selodong Prospect ........................................................................................................ 61 9.3.1 9.4 Pelangan Drilling Results ................................................................................................... 53 Mencanggah Prospect ................................................................................................... 58 Selodong Drill Results........................................................................................................ 62 SRK Comments ............................................................................................................. 65 10 Sample Preparation, Analyses, and Security .......................................................... 66 10.1 10.2 10.3 10.4 10.5 Surface Mapping Samples ............................................................................................. 66 Drilling Samples Preparation and Analyses ................................................................... 67 Specific Gravity Data ..................................................................................................... 68 Quality Assurance and Quality Control Programs .......................................................... 69 SRK Comments ............................................................................................................. 70 11 Data Verification ........................................................................................................ 71 11.1 Verifications by Southern Arc ......................................................................................... 71 11.2 Verifications by SRK ...................................................................................................... 71 11.2.1 11.2.2 Site visit .............................................................................................................................. 71 Verifications of analytical quality control data .................................................................... 71 12 Mineral Processing and Metallurgical Testing ........................................................ 73 13 Mineral Resource Estimates ..................................................................................... 74 13.1 13.2 13.3 13.4 Introduction .................................................................................................................... 74 Resource Estimation Procedures ................................................................................... 74 Resource Database ....................................................................................................... 75 Solid Body Modelling ..................................................................................................... 75 13.4.1 13.4.2 13.4.3 Raja Deposit – Pelangan Prospect .................................................................................... 75 Bising and Tibu Serai Deposits – Mencanggah Prospect ................................................. 76 Selodong Deposit – Selodong Prospect ............................................................................ 77 13.5 Compositing ................................................................................................................... 78 13.5.1 13.5.2 13.5.3 Raja Deposit – Pelangan Prospect .................................................................................... 78 Bising and Tibu Serai Deposits – Mencanggah Prospect ................................................. 79 Selodong Deposit – Selodong Prospect ............................................................................ 79 13.6 Evaluation of Outliers ..................................................................................................... 80 13.6.1 13.6.2 13.6.3 Raja Deposit – Pelangan Prospect .................................................................................... 80 Bising and Tibu Serai deposits – Mencanggah Prospect .................................................. 80 Selodong Deposit – Selodong Prospect ............................................................................ 81 13.7 Statistical Analysis and Variography .............................................................................. 81 13.7.1 13.7.2 13.7.3 Raja Deposit – Pelangan Prospect .................................................................................... 81 Bising and Tibu Serai Deposits – Mencanggah Prospect ................................................. 82 Selodong Deposit – Selodong Prospect ............................................................................ 82 13.8 Block Model and Grade Estimation ................................................................................ 84 13.8.1 13.8.2 Grade models .................................................................................................................... 86 Bulk density model ............................................................................................................. 86 13.9 Model Validation and Sensitivity .................................................................................... 87 13.9.1 13.9.2 13.9.3 GA / MN Validation of Raja model .................................................................................................... 87 Validation of Bising – Tibu Serai model ............................................................................. 88 Validation of Selodong Model ............................................................................................ 90 Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page ix 13.10 Mineral Resource Classification ..................................................................................... 94 13.11 Mineral Resource Statement.......................................................................................... 95 13.12 Grade Sensitivity Analysis ............................................................................................. 97 14 Adjacent Properties................................................................................................. 101 15 Other Relevant Data and Information .................................................................... 102 16 Interpretation and Conclusions.............................................................................. 103 17 Recommendations .................................................................................................. 105 17.1 Pelangan ..................................................................................................................... 105 17.2 Mencanggah ................................................................................................................ 107 18 Acronyms and Abbreviations ................................................................................. 109 19 References ............................................................................................................... 110 20 Date and Signature Page ........................................................................................ 111 APPENDIX A .................................................................................................................. 113 GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page x List of Tables Table 13.1: Comparison of sample length and average gold grade for Raja Deposit .................................... 79 Table 13.2: Comparison of sample lengths and average gold grade for the Bising and Tibu Serai Deposits ............................................................................................................................................ 79 Table 13.3: Comparison of sample lengths and average gold grade for the Selodong Deposit ..................... 80 Table 13.4: Capping Level for Raja Deposit .................................................................................................... 80 Table 13.5: Statistics for gold assays and gold composites – Raja Deposit .................................................. 82 Table 13.6: Basic statistics for assays and composited data – Bising and Tibu Serai Deposits .................... 82 Table 13.7: Basic statistics for gold and copper assays and composites – Selodong Deposit ....................... 83 Table 13.8: Au and Cu exponential correlogram parameters by deposit ........................................................ 84 Table 13.9: Block model setup parameters ..................................................................................................... 85 Table 13.10: Search parameters by deposit and metal ................................................................................... 86 Table 13.11: Bulk density used for resource estimation.................................................................................. 87 Table 13.12: Assumptions considered for conceptual open pit optimization .................................................. 95 Table 13.13: Mineral Resource Statement*, Raja Deposit, West Lombok Project, Indonesia, SRK Consulting, July 13, 2013 ................................................................................................................. 96 Table 13.14: Mineral Resource Statement*, Bising Deposit, West Lombok Project, Indonesia, SRK Consulting, July 13, 2013 ................................................................................................................. 96 Table 13.15: Mineral Resource Statement*, Tibu Serai Deposit, West Lombok Project, Indonesia, SRK Consulting, July 13, 2013 ......................................................................................................... 96 Table 13.16: Mineral Resource Statement*, Selodong Deposit, West Lombok Project, Indonesia, SRK Consulting, July 13, 2013. ................................................................................................................ 96 Table 13.17: Global block model quantities and grade estimates*, Raja Deposit, West Lombok Project, at various cut-off grades ...................................................................................................... 97 Table 13.18: Global block model quantities and grade estimates*, Bising Deposit, West Lombok Project, at various cut-off grades ...................................................................................................... 97 Table 13.19: Global block model quantities and grade estimates*, Tibu Serai Deposit, West Lombok Project, at various cut-off grades ...................................................................................................... 97 Table 13.20: Global block model quantities and grade estimates*, Selodong Deposit, West Lombok Project, at various cut-off grades ...................................................................................................... 98 Table 17.1 Proposed drilling for Raja Deposit ............................................................................................... 105 Table 17.2 Proposed Phase 3 drill holes for Bising Deposit ......................................................................... 107 Table 17.3 Estimated cost for the exploration program proposed for the West Lombok Project .................. 107 GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page xi List of Figures Figure 3.1: Property location map ................................................................................................................... 18 Figure 3.2: Property access and claim boundaries ......................................................................................... 19 Figure 3.3: Southern Arc West Lombok mineral tenure map .......................................................................... 22 Figure 4.1: Typical landscape in the project area ............................................................................................ 25 Figure 6.1: Regional geology setting ............................................................................................................... 28 Figure 6.2: Idealized stratigraphic column of Southwest Lombok Island ........................................................ 29 Figure 6.3: Location of mineral prospects ....................................................................................................... 33 Figure 8.1: Results of the CSAMT survey in the Pelangan Prospect .............................................................. 38 Figure 8.2: Results of BLEG sampling program in Pelangan-Mencanggah Prospect areas .......................... 39 Figure 8.3: Surface sampling results for the Raja Deposit, Pelangan Prospect ............................................. 41 Figure 8.4: Surface sampling results for the Jati and Tanjung targets, Pelangan Prospect ........................... 43 Figure 8.5: Surface sampling results for the Kayu Putih target, Pelangan Prospect ...................................... 43 Figure 8.6: Surface sampling results for the Simba target, Pelangan Prospect.............................................. 44 Figure 8.7: Surface rock samples collected from the Mencanggah Prospect ................................................. 45 Figure 8.8: Surface samples from the Bising and Tibu Serai deposits, Mencanggah Prospect ..................... 47 Figure 8.9: Surface sampling for the Waterfall target, Mencanggah Prospect................................................ 48 Figure 8.10: Surface sampling for the Selodong Prospect .............................................................................. 49 Figure 9.1: Significant drill intercepts from the Pelangan Prospect, Raja MSB target .................................... 55 Figure 9.2: Typical cross section of the Kayu Putih target, Pelangan Prospect.............................................. 57 Figure 9.3: Photo of artisanal mining excavation areas on Bising Deposit ..................................................... 58 Figure 9.4: Drill results from the Waterfall area ............................................................................................... 59 Figure 9.5: Longitudinal section of the Bising deposit showing drill hole intersections ................................... 60 Figure 9.6: Drill results from the Tibu Serai Deposit ........................................................................................ 61 Figure 9.7: Drill results for the Selodong Prospect ........................................................................................... 62 Figure 9.8: Drill results for the Lepangan Geres target ................................................................................... 64 Figure 10.1: Statistical data for bulk density measurements ........................................................................... 69 Figure 13.1: Planveiw of Raja wireframes ....................................................................................................... 76 Figure 13.2: Planview of Bising and Tibu Serai wireframes (Note: Grid is 500 by 500 m) ............................. 77 Figure 13.3: Planview of Selodong wireframes (Note: Grid is 500 by 500 m)................................................. 78 Figure 13.4: Capping level for Bising and Tibu Serai Deposits ....................................................................... 81 Figure 13.5: Plan view of the three block model areas on the West Lombok Project (Note: Grid is 2 km x 2 km) .............................................................................................................................................. 85 Figure 13.6: Comparison of block grades and composite grades, block model Level 58 (110 m above sea level) (Note: Grid is 200 x 200 m) .............................................................................................. 87 Figure 13.7: Metal content of Ordinary Kriged and Inverse Distance Squared models at various grade cut-offs .............................................................................................................................................. 88 Figure 13.8: Plan view of Bising Deposit comparing block and composite gold grades, block model Level 25 (345 m above sea level) (Note: Grid is 200 x 200 m) ........................................................ 89 GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page xii Figure 13.9: Comparison of well-informed blocks for Bising (a) and Tibu Serai (b) ........................................ 89 Figure 13.10: Swath plot of composite and block grades for Bising ............................................................... 90 Figure 13.11: Swath plot of composite and block grades for Tibu Serai ......................................................... 90 Figure 13.12: Plan view of Selodong model comparing copper equivalent block grades and corresponding composite grades, block model Level 22 (25 m above sea level)( Note: Grid is 200 x 200 m) ................................................................................................................................. 91 Figure 13.13: Comparison of well-informed blocks with composite gold grades for Selodong model (Note: Refer to Figure 13.3 for Selodong mineralised domain location) .......................................... 92 Figure 13.14: Comparison of well-informed blocks with composite copper grades for Selodong model ........ 92 Figure 13.15: Swath plots for gold grades for Selodong for domain 400 (a) and domain 401 (b) .................. 93 Figure 13.16: Swath plots for copper grades for Selodong for domain 400 (a) and domain 401 (b) .............. 94 Figure 13.17: Grade tonnage curve for the Raja Deposit, West Lombok Project ........................................... 98 Figure 13.18: Grade tonnage curve for the Bising Deposit, West Lombok Project ......................................... 99 Figure 13.19: Grade tonnage curve for the Tibu Serai Deposit, West Lombok Project .................................. 99 Figure 13.20: Grade tonnage curve for the Selodong Deposit, West Lombok Project ................................. 100 Figure 16.1: Classification of mineral resources and mineral reserves ......................................................... 103 Figure 17.1 Planview of proposed Phase 3A and 3B drilling for Raja Deposit ............................................. 106 GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 1 Page 13 Introduction and Terms of Reference The West Lombok Property hosts an early stage gold and copper exploration project located in Indonesia. It is located on the west side of the Island of Lombok and covers a mineralised corridor that extends for approximately 13 kilometres (km) by 7 km. Southern Arc Minerals Inc. (Southern Arc or the Company) through its wholly owned Singapore subsidiary Indotan Lombok Pte. Ltd. holds a 90% interest in PT. Indotan Lombok Barat Bangkit, an Indonesian approved foreign investment company (Penanaman Modal Asing or PMA company) that holds a 100% interest in the West Lombok Property. The remaining 10% interest is held by the West Lombok Regency Government as a free-carry loan arrangement. In November 2011 and in April 2013, Southern Arc commissioned SRK Consulting (Canada) Inc. (SRK) to visit the property and prepare a geological and mineral resource model for the West Lombok Project. The services rendered between April 2013 and June 2013 lead to the preparation of the mineral resource statement reported herein that was disclosed publically by Southern Arc in a news release on July 11, 2013. This technical report documents a mineral resource statement for the West Lombok Project prepared by SRK. It was prepared following the guidelines of the Canadian Securities Administrators‟ National Instrument 43-101 and Form 43-101F1. The mineral resource statement reported herein was prepared in conformity with generally accepted CIM “Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.” This technical report summarises the technical information available on the West Lombok Property and demonstrates that the West Lombok Project clearly merits additional exploration expenditures. An exploration work program is recommended comprising diamond core drilling and geological and mineral resource modelling to better define the identified mineral resource and to upgrade the resource classification. 1.1 Scope of Work The scope of work, as defined in a letter of engagement executed in November 2011 between Southern Arc and SRK, includes the construction of a mineral resource model for the Raja, Bising and Tibu Serai epithermal gold mineralisation and the Selodong porphyry copper gold mineralisation and the preparation of an independent technical report in compliance with National Instrument 43101 and Form 43-101F1 guidelines. This work typically involves the assessment of the following aspects of this project: GA / MN Topography, landscape, access; Regional and local geology; Exploration history; Audit of exploration work carried out on the project; Geological modelling; Mineral resource estimation and validation; Preparation of a mineral resource statement; and Recommendations for additional work. Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 1.2 Page 14 Work Program The mineral resource statement reported herein is a collaborative effort between Southern Arc and SRK personnel. The exploration database was compiled and maintained by Southern Arc, and was audited by SRK. The geological model and outlines for the gold mineralisation were constructed by SRK from a two-dimensional geological interpretation provided by Southern Arc. In the opinion of SRK, the geological model is a reasonable representation of the distribution of the targeted mineralisation at the current level of sampling. The geostatistical analysis, variography and grade models were completed by SRK during the months of April and June, 2013. The mineral resource statement reported herein was presented to Southern Arc in a memorandum report on July 11, 2013 and disclosed publicly in a news release dated July 11, 2013. The mineral resource statement reported herein was prepared in conformity with generally accepted CIM “Exploration Best Practices” and “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines. This technical report was prepared following the guidelines of the Canadian Securities Administrators‟ National Instrument 43-101 and Form 43-101F1. The technical report was assembled in SRK‟s Vancouver office during the months of May and July, 2013. 1.3 Basis of Technical Report This report is based on information collected by SRK during site visits performed between December 6 to 9, 2011 and April 23 to 26, 2013 and on additional information provided by Southern Arc throughout the course of SRK‟s investigations. Other information was obtained from the public domain. SRK has no reason to doubt the reliability of the information provided by Southern Arc. This technical report is based on the following sources of information: 1.4 Discussions with Southern Arc personnel; Inspection of the West Lombok Project area, including outcrop and drill core; Review of exploration data collected by Southern Arc; and Additional information from public domain sources. Qualifications of SRK and SRK Team The SRK Group comprises over 1,650 professionals, offering expertise in a wide range of resource engineering disciplines. The SRK Group‟s independence is ensured by the fact that it holds no equity in any project and that its ownership rests solely with its staff. This fact permits SRK to provide its clients with conflict-free and objective recommendations on crucial judgment issues. SRK has a demonstrated track record in undertaking independent assessments of Mineral Resources and Mineral Reserves, project evaluations and audits, technical reports and independent feasibility evaluations to bankable standards on behalf of exploration and mining companies and financial institutions worldwide. The SRK Group has also worked with a large number of major international mining companies and their projects, providing mining industry consultancy service inputs. The resource evaluation work and the compilation of this technical report were completed by Dr. Gilles Arseneau, P. Geo (APEGBC). By virtue of his education, membership to a recognized GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 15 professional association and relevant work experience, Dr. Arseneau is an independent Qualified Person as this term is defined by National Instrument 43-101. Marek Nowak, P. Eng. (APEGBC), a Principal Geostatistician with SRK, reviewed drafts of this technical report prior to their delivery to Southern Arc as per SRK internal quality management procedures. Mr. Nowak did not visit the project. 1.5 Site Visit In accordance with National Instrument 43-101 guidelines, Dr. Arseneau visited the West Lombok project on December 6 through 9, 2011 and on April 23 to 26, 2013 accompanied by Andrew Rowe, Executive Vice President and Chief Geologist of Southern Arc. The purpose of the site visit was to review the digitalization of the exploration database and validation procedures, review exploration procedures, define geological modelling procedures, examine drill core, interview project personnel, and to collect all relevant information for the preparation of a mineral resource model and the compilation of a technical report. During the visit, particular attention was given to the treatment and validation of drilling data. The site visit was also aimed at investigating the geological and structural controls on the distribution of the gold mineralisation in order to aid the construction of three dimensional gold mineralisation domains. SRK was given full access to relevant data and conducted interviews of Southern Arc personnel to obtain information on the past exploration work, and to understand procedures used to collect, record, store and analyze historical and current exploration data. 1.6 Acknowledgement SRK would like to acknowledge the support and collaboration provided by Southern Arc personnel for this assignment. Their collaboration was greatly appreciated and instrumental to the success of this project. 1.7 Declaration SRK‟s opinion contained herein and effective July 11, 2013, is based on information collected by SRK throughout the course of SRK‟s investigations, which in turn reflect various technical and economic conditions at the time of writing. Given the nature of the mining business, these conditions can change significantly over relatively short periods of time. Consequently, actual results may be significantly more or less favourable. This report may include technical information that requires subsequent calculations to derive subtotals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, SRK does not consider them to be material. SRK is not an insider, associate or an affiliate of Southern Arc, and neither SRK nor any affiliate has acted as advisor to Southern Arc, its subsidiaries or its affiliates in connection with this project. The results of the technical review by SRK are not dependent on any prior agreements concerning the GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 16 conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 2 Page 17 Reliance on Other Experts SRK has not performed an independent verification of land title and tenure information as summarised in Section 3 of this report. SRK did not verify the legality of any underlying agreement(s) that may exist concerning the permits or other agreement(s) between third parties, but has relied on the basis of the „Clear and Clean Certificate’. The Clear and Clean Certificate was signed and issued rd by the Director General of Minerals and Coal on the 23 March 2013 and proves the company and license is in good standing with regards to the following criteria; No overlapping claims Valid IUP, mining / exploration business license An approved exploration program and budget Approval to commence feasibility study Approval of work program by the Regency Government Environmental Agency License payments are in order Royalty structure is approved A copy and translation of the certificate is provided in Appendix A. The reliance applies solely to the legal status of the rights disclosed in Sections 3.1 and 3.2 below SRK was informed by Southern Arc that there are no known litigations potentially affecting the West Lombok Project. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 3 Page 18 Property Description and Location The West Lombok Property covers a northwest trending structural corridor of mineralisation and alteration hosting three main prospects: the Pelangan epithermal gold prospect, the Mencanggah epithermal/porphyry district, and the Selodong porphyry intrusive complex. The Raja resource area is situated within the Pelangan prospect, the Bising and Tibu Serai resource areas are within the Mencanggah prospect and the Selodong porphyry copper-gold deposit is within the Selodong prospect area (Figure 3.1). Exploration of the West Lombok Property is controlled under an Izin Usaha Pertambangan (IUP) Mining Business Licence encompassing 10,088 hectares (ha). The property boundaries were located using a differential global positional system (DGPS) instrument along with locations of all known mineralised outcrops, historical workings such as drill collars, drill pads, trenches and access in order to tie them into the WGS 84 co-ordinate system used by Southern Arc. (Source Southern Arc, 2010) Figure 3.1: Property location map GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 19 The property is centered at 116°00‟04” longitude and -8°48‟25” latitude, approximately 6 km southwest of Sekotong or 30 km southwest (straight map distance) of Mataram City in Lombok, the capital of West Nusa Tengara Province, Indonesia (Figure 3.2). (Source Southern Arc, 2012) Figure 3.2: Property access and claim boundaries 3.1 Mineral Tenure The property was initially explored under a Contract of Work application (CoW) that was granted inprinciple approval on July 21, 1998 by the Central Department of Mines and Energy. In 2011, the CoW was converted to an IUP that encompasses 10,088 ha. The IUP, issued in January 2011, is valid for five years. The IUP permits the company to pursue exploration activities up to the conclusion of a feasibility study. This period may be extended with approval of the Indonesian Government. On approval of a feasibility study, the company can automatically transition the IUP into the exploitation stage, with the right to conduct mining production on this property for 20 years with the potential for two further 10-year extension periods. In addition to the IUP, the Ministry of Forestry Pinjam Pakai permit required for exploration activities within areas designated as production forest was issued in November 2012. On the West Lombok property, 1.1% of the area is designated protected forest (no open-pit mining), 55.1% is designated production forest (open-pit mining allowed) and 43.8% has no forestry designation (no restriction on mining activities). GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 3.2 Page 20 Underlying Agreements Southern Arc acquired its original interest in the West Lombok property in 2005 by paying $57,100 and issuing 8,050,000 common shares to Sunda Mining Corporation (Sunda) and by paying $126,000 and issuing 700,000 common shares to Indotan Inc. (Indotan). The Company also granted two 0.5% net smelting royalties (NSR) to two individuals related to Sunda and a 1% NSR to Indotan Inc. on approximately 8% of the current West Lombok Property, which excludes Block 1 described in Figure 3.3. This area was previously held by PT Newmont Nusa Tenggara (Newmont or PT NNT), a subsidiary of Newmont Mining Corporation. In August 2005, Southern Arc entered into an agreement with Newmont regarding a property (Block 1) that now forms the western portion of the West Lombok Property and is included in the West Lombok IUP (Figure 3.3). The acquisition was completed through a relinquishment by Newmont of the Block 1 area. The terms of the agreement include granting Newmont a 2% NSR on any mineral production from the Block 1 area and a right of first refusal should the company wish to introduce a new partner into any development within the area originally covered by Block 1. The company has the right to repurchase this 2% NSR at any time for US$1 million. Southern Arc has given a free-carry interest for 10% of the West Lombok Project to the local Regency Government as per a cooperation agreement signed in December 2010, ensuring government support for the project and long-term benefits for local communities as the project advances. Southern Arc believes that having the local Regency Government as an equity partner creates a synergistic and mutually beneficial environment for advancement of the project. This relationship ensures it is in the local government‟s interest to support the company‟s activities and that local communities will receive benefits directly from Southern Arc‟s success at the project. The Regency interest is loan-carried through to a production scenario, whereby debt and equity contribution are paid back through dividends or other financial means. 3.3 Permits and Authorization In order to carry out exploration and reported drilling programs Southern Arc has satisfied all government permitting requirements which include; IUP, (mining and exploration permit) granted for 5 years on the 5 January 2011. Clear and Clean Certificate, indicating no overlapping claims and that all IUP associated permitting and statutory responsibilities are in order. UKL-UPL approval by the regency environmental department of the forward exploration plan. Pinjam-Pakai or borrow / use permit required for work to be carried out in forest designated areas st granted on the 31 October 2012. 3.4 Environmental Considerations Since receiving its West Lombok IUP in January 2011, Southern Arc has proactively engaged with local communities to discuss its exploration and development plans and to address questions and concerns. The company offers employment and training programs and undertakes an extensive CSR program through its fully-funded foundation, with an emphasis on education, community health, GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 21 environmental protection and economic empowerment of local communities. In 2012, Southern Arc granted six micro-credit loans to local village members to support entrepreneurial initiatives. In 2009 Southern Arc requested the University of Mataram in consultation with the biology faculty of the University Gadjah Madah to produce a baseline study of mercury contamination caused by artisanal gold mining and processing within the IUP. The study was completed in 2009 and documented mercury contamination in gold processing areas and background levels in uncontaminated areas. The findings of this report were made public and presented to the Regency government in 2010. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 22 (Source Southern Arc, 2012) Figure 3.3: Southern Arc West Lombok mineral tenure map GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 3.5 Page 23 Mining Rights in Indonesia The following is taken with modifications from Norton Rose Fulbright website: http://www.nortonrosefulbright.com/knowledge/publications/64444/new-indonesian-miningregulations . On 21 February 2012, the Indonesian Government issued Regulation No. 24 of 2012 on Amendment to Government Regulation No. 23 of 2010 on Mineral and Coal Mining Business Activities (Regulation No. 24). Regulation No. 24 increases the divestment requirement to Indonesian interests for Foreign Investment Companies (PMA Companies) holding an IUP, from 20% to 51%. The new divestment requirement commences after five years of commercial production, and is as follows: 20% in the sixth year; 30% in the seventh year; 37% in the eighth year; 44% in the ninth year; and 51% in the 10th year Regulation No.7/2012 issued by the Ministry of Energy and Mineral Resources on 6 February 2012 will prohibit the export of unprocessed raw materials or ore by IUP holders. At this point, there appears to be confusion as to the commencement date of the prohibition, with some government officials saying May 2012, while others have indicated 2014. Mineral raw materials will have to be processed in Indonesia, rather than being exported in a raw state. This regulation is intended to develop the country‟s downstream mining industry, increase domestic revenues, and ensure availability of refined products for domestic use. Sanctions for failure to comply include suspension of activities and/or permit revocation. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 4 Accessibility, Climate, Local Resources, Infrastructure and Physiography 4.1 Accessibility Page 24 The property area can be reached by road, approximately two hours‟ drive by vehicle from the provincial capital Mataram. Domestic airlines provide a daily service to Mataram (1,100 km east of Jakarta) either direct from Jakarta or transiting via Surabaya, or Denpasar. Alternatively, regular daily sea ferries connect Lombok and its island neighbors of Bali and Sumbawa. Within the prospect access is limited to a series of unpaved roads and foot-tracks that network across the area. 4.2 Local Resources and Infrastructure Local infrastructure was sufficient to meet the majority of the company‟s logistical requirements during the duration of the exploration program. Supplies or required services were sourced from the administrative center of Mataram. There seems to be adequate supply of unskilled labour in the immediate area of the property. Skilled labour for mining could be sourced from Indonesia and by training the local population. 4.3 Climate The area has a typical tropical wet climate and is subject to the seasonal influence of the northwest monsoon from November to March, and drier southeast trade winds from June to September. Rainfall in the mountain ranges to the north is between 1725-3500 mm per year and decreases significantly to the coast with values of 1110 to 1850 mm per year being recorded. Daily temperatures range from 26 to 31°C, which reduce to a low of 22 to 24°C overnight. Relative humidity is also uniformly high, ranging from 80 to 100%. 4.4 Physiography The prospect area comprises semi rugged terrain with incised valleys trending predominantly north to northeast and northwest, reflecting the regional structural control. Elevations rarely exceed 350 m reflecting the long period of uplift and erosion of the Miocene aged volcanic sequence (Figure 4.1). As a result of population density and logging in the 1990s, the majority of hill slopes are denuded of forestry and have been planted with cash crops such as rice and maize, along with lesser sweet potato and bean crops. Two Community Forest (HTR) areas of 1,495 ha have been granted by the Regency government within the forestry „pinjam pakai‟ permit area (refer to Figure 3.2). Southern Arc would require permit holder approval prior to any drilling in these areas. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 25 Figure 4.1: Typical landscape in the project area GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 5 Page 26 History PT. Aneka Tambang, in conjunction with CV. Tanone Jaya, evaluated the area in 1978 but only base metal mineralisation of limited economic potential was identified. Following the withdrawal of Aneka Tambang, the area was incorporated by a local village cooperative into three KP (mining license) areas DU.59-61 comprising 6,000 ha. Technical assistance was requested from the Technical Directorate of the central Mines Department. Between 1981 and 1984 the Technical Directorate undertook ground geophysical (magnetics, IP/resistivity), surface geochemical and geological surveys and a limited shallow diamond drilling program in the KP areas. Surface sampling returned assay values including 3.2g/t Au, 430g/t Ag, 2.2% Cu, 15.23% Pb and 30.9% Zn, whilst drilling encountered only narrow sub economic intersections (Rontek, 1985). th The entire SIPP area once formed part of the original 4 generation CoW area held by PT. Newmont Nusa Tenggara‟s (PT NNT). PT NNT carried out an extensive stream sediment sampling program that was followed up with a Bulk Leach Extractable Gold (BLEG) sampling program. The geochemical sampling programs were followed up with ground magnetic and geological mapping surveys which highlighted several porphyry targets in the Selodong area. Drilling by PT NNT commenced in 1996 with 52 drill holes totalling 7,956 m. PT NNT abandoned the property in 1996 to focus its efforts on the Batu Hajau deposit. Southern Arc acquired the property in 2005 and initiated exploration on the property in 2006. Exploration activity to date has included extensive geological and geochemistry mapping to establish the presence of epithermal mineralisation and surface alteration, the collection of more than 4,500 surface channel samples across the property and 47,750 m of drilling at all three prospects. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 6 Page 27 Geological Setting and Mineralisation The island of Lombok is located in the central part of the tectonically active, east-west trending Sunda-Banda magmatic arc that marks the convergence of three major tectonic plates (Hamilton 1979). The geology of the West Lombok Property is characterized by an island-arc volcano-sedimentary succession of Late-Oligocene to Quaternary age. A series of eroded, overlapping predominantly andesitic volcanic centers and intermediate intrusive rocks make up the Tertiary arc. Intrusive rocks include diorite, dacite, diatreme breccia and tonalite, the latter related to porphyry mineralisation at Newmont‟s Batu Hijau mine and Elang deposit on the neighboring island of Sumbawa. 6.1 Regional Geology The island of Lombok is located in the central part of the tectonically active, east-west trending Sunda-Banda magmatic arc that marks the convergence of three major tectonic plates (Hamilton 1979). The southern parts of Lombok Island are overlain by Late Oligocene to Middle Miocene, low potassium calc-alkaline to weakly alkaline andesitic volcanic and interbedded volcaniclastic rocks, associated low potassium intermediate intrusions and shallow marine sedimentary rocks and limestone (Garwin, 2002). Overlying dacitic rocks are locally mapped in the region and mainly occupy higher topography. The youngest rocks in the region are products of Recent and Quaternary volcanism and are generally located in the north of the island, and have not been a focus of exploration because of the limited exposure of the hydrothermal systems by erosion (Figure 6.1). A series of eroded overlapping volcanic centres with associated fringing sediments make up the Tertiary arc, and are represented by a thick pile of andesitic pyroclastics, flows, intermediate intrusives, shallow marine sediments and limestones. The sequence is exposed over the south of Lombok, with elevations up to 500 m. Tertiary rocks are also evident in the north of Lombok where they are thought to form the basement rocks to more recent volcanism. Intrusive rocks are commonly exposed in an east-west belt in southern Lombok. Older intrusives are commonly diorites and microdiorites and occur as dykes and stocks intruding the volcanics and sediments. Later tonalite intrusions are spatially and temporally related to the main porphyry Cu-Au mineralisation, whereas older dioritic intrusions and stocks are related to earlier similar mineralisation types but commonly lower grades (0.2% to 0.4% Cu). Diatreme dome breccia complexes have been mapped peripheral to dacite porphyry intrusives. Dacitic pyroclastic rocks unconformably overly the andesitic sequence. A thick blanket of volcaniclastic rocks (debris flow sequence) are locally preserved in areas of structural complexity. Based on a north-south compressive regime since the Late Miocene, regional structures comprise north-south extensional faults, east-west trending reverse or thrust faults and folds, and a conjugate strike-slip fault set with north-north westerly and north-north easterly trends. This structural regime is thought to have arisen through counter-clockwise rotation of the regional maximum horizontal stress, between the Middle Miocene and Pliocene, resulting in reactivation of a sinistral strike-slip movement along the north-northeast trending structural zones. This regime of sinistral wrenching in turn would have led, in blocks affected by this deformation, to the development of north-northwest GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 28 trending tensional faults/fractures, east-northeast trending reverse or thrust faults and secondary conjugate strike-slip fault systems (Pieters, 2004). (Source Campbell, 2010) Figure 6.1: Regional geology setting 6.2 Property Geology The IUP area covers the majority of prospective Oligo-Miocene andesitic volcano-sedimentary succession and sub-volcanic intrusive rocks located in an east-west belt across the southern part of Lombok. Mapping by Southern Arc has located a series of epithermal and porphyry style targets along this belt. Based on historical and geological mapping by Southern Arc (Campbell, 2010), the stratigraphic units encountered on the property can be described as follows. The Pangulung Formation (Tomp) is the oldest rock unit exposed in the study area. It was previously termed the “Old Andesite Formation” by Van Bemmelen, 1949. The Formation comprises breccia, lava and tuff with limestone lenses which are host to sulphide mineralisation. Inter-fingered with the Formation are alternating quartz sandstone, claystone and breccia lithologies of the Kawangan Formation (Tomk). Previous authors assume that these lithologies were formed on the flanks or proximal to the Oligo-Miocene volcanic arc chain. Mid Miocene intrusions (Tmi), the source of hydrothermal alteration and mineralisation, include porphyritic andesite, hornblende diorite, quartz diorite, feldspar porphyry, tonalite and intrusive diatreme breccia in the appropriate chronological order (Clode and Pratama, 2002). Outliers of late Miocene limestone and arenite (Ekas Formation – Tme) are found as capping topographical highs, or in coastal areas along the western and eastern license boundaries. Plio-Pleistocene alternating calcareous breccia and lava of the Kalipalung Formation (TQp) predominate in the northern margins of the IUP. Holocene sedimentation (Qa) has resulted in the deposition of alluvial, littoral and coral reef deposits on coastal and lowland plains. Fanglomerate outwash plains and GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 29 localised gravity flow deposits are noted along river terraces and coastal areas. Figure 6.2 shows an idealised stratigraphic column of Southwest Lombok Island. (Source Campbell, 2010) Figure 6.2: Idealized stratigraphic column of Southwest Lombok Island GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 30 Andesitic Volcanics (Tomp) These early Oligocene-late Miocene lithologies are encountered over most of South Lombok, and form a thick “basement” pile of ash to lapilli sized pyroclastics, lava flows and debris flows to fluidized breccias of andesitic composition. These lithologies often exhibit weak lower greenschist facies metamorphism, together with intercalated meta-volcanics/sediments, hornfels and garnetmagnetite±biotite skarns. Volcanic Sediments (Tomk) These sediments consist of bedded shallow marine tuffaceous sandstone, siltstone, polymictic lithic breccias and epiclastic tuffs. Minor intercalations of carbonates occur locally. Miocene-aged Foraminifera have been described from the tuffaceous sediments, suggesting a possible Miocene back-arc basin environment. Both volcanic and metavolcanic equivalents often inter-finger with Tomp lithologies. Diorite Porphyry Intrusives (Tmi) These occur as north to north-northwest and east to northeast structurally controlled stocks which intrude the Tertiary basement. The diorites consist of fine to medium grained (up to 3mm) plagioclase and hornblende phenocrysts in a finer grained matrix. This unit is the main host to the main porphyry Cu-Au mineralisation within the Selodong Intrusive Complex. Feldspar Porphyry Intrusives (Tmi) These occur as north to north-northwest and east to northeast structurally controlled stocks and dykes (5-30 m width) which intrude the Tertiary basement. This lithology consists of coarse grained zoned feldspar phenocrysts (up to 7mm) and minor hornblende and quartz phenocrysts in a finer grained groundmass. Plagioclase-Hornblende Andesite Intrusive (Tmi) Mapped as both stock and dyke intrusive bodies that outline N to NNW and ENE structural elements. Phyric textured with plagioclase and hornblende phenocrysts (up to 3mm) in a finer grained groundmass. Quartz Diorite Porphyry Intrusives (Tmi) North to northwest structurally controlled stocks, which cross-cut earlier intrusive phases and Tertiary basement. Intrusives consist of coarse to fine grained (up to 5mm) hornblende, plagioclase and quartz phenocrysts in a finer grained matrix. Magmatic Intrusive Breccia (Tmi) Surrounds remnants of stockwork Cu-Au porphyries at Montong Botek and Lapangan Geres, coinciding with circular features as defined by remote sensing studies. Monomictic to polymictic clast-supported to locally milled and fluidized breccias with clasts (Tomp, Tomk and Tmi) from centimetres to tens of metres in size, in a matrix of crystalline igneous material. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 31 Hornblende Diorite Porphyry Intrusives (Tmi) These occur as dykes and small stocks (1-100 m thickness) within the Oligo-Miocene volcanics and associated sediments. They consist of medium and coarse grained (up to 5mm) hornblende and plagioclase phenocrysts in a finer grained groundmass. Dacite Porphyry Intrusives (Tmi) These occur as dyke, plugs and sill like bodies intruding the Tertiary volcano-sedimentary pile. They consist of medium to coarse grained (up to 5 mm) plagioclase, quartz and mafic phenocrysts in a finer grained groundmass. Dacite Volcanics (Tmv) This sequence consists of ash to lapilli sized pyroclastics and occasional interbedded dacitic/rhyolitic lavas. Exposures are limited to isolated outliers, capping higher topographic relief, where they unconformably overlie andesitic volcanics and dioritic intrusives or limestone. Epiclastic Breccia This sequence of bedded and massive debris flow exhibit inverse graded bases. The dominant clastics are andesitic and basaltic lavas, diorite and rare dacite. This unit primarily occurs as isolated outcrops along the southern coast of Lombok Island. Tertiary Limestone (Tme) This generally massive bedded limestone may contain coralline coral fragments, calcareous volcaniclastic sandstone intercalations and occasional chert and silicified horizons. It generally occurs unconformably on, or as lenses within, the andesitic volcanic rocks. Quaternary Deposits (Qa) This unit consists of unconsolidated gravels, sand, silt, mud, air fall volcanic ash and organic elements. Alluvium includes river sediments, estuarine deposits in the various bays and estuaries with tidal flats, sand beaches and mangrove swamps. 6.3 Mineralisation Mineralisation on the property has been separated into three main prospect areas, from North to South, the Pelangan, the Mencanggah and the Selodong Prospects. Each prospect consists of several mineral targets or deposits, many of which have been the subject of exploration by diamond drilling. 6.3.1 Pelangan Prospect The Pelangan Prospect covers an area approximately 4 x 5 km in the northwest part of the property (Figure 6.3). The prospect comprises four main epithermal gold targets including Tanjung-Jati, Kayu Putih, Raja and Lala. Southern Arc has completed 13,233 m of drilling in 99 holes on the Pelangan Prospect. Phase 1 drilling was completed in 2007, together with semi-detailed geological mapping and outcrop channel sampling of sub-parallel vein structures. Phase 2 drilling began in 2010 and was focused on identifying and defining high-grade shoots within large continuous structures. Drilling GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 32 showed that mineralised breccia bodies ranged in true width between 3 m and 20 m. Phase 2 drilling confirmed high-grade events typical of epithermal boiling zones at both the Central Raja and Tanjung Lode structures and identified three high-grade shoots. 6.3.2 Mencanggah Prospect The Mencanggah Prospect comprises a large cluster of west-northwest to north-trending, goldbearing epithermal mineralised structural breccias concentrated in a 6.5 x 4.5 km area in the centre of the property, with the potential to host copper-gold porphyry mineralisation at depth. Channel sampling indicates that these breccia bodies range in true width between 3 m and 66 m. The Bising, Tibu Serai and Waterfall targets have been drill tested and show encouraging results. Surface channel samples at the Tibu Serai target have returned the highest-grade mineralisation on the property to date. Southern Arc has completed 14,380 m of drilling in 69 holes on the Mencanggah Prospect. Drilling has demonstrated that gold mineralisation is associated with quartz veining associated with wider mineralised structural breccia zones. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 33 (Source Southern Arc, 2012) Figure 6.3: Location of mineral prospects GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 34 6.3.3 Selodong Prospect The Selodong Prospect is situated in the southern part of the West Lombok Property. Drilling in the Selodong porphyry copper-gold target was first carried out by Newmont in 2005 when they drilled a total of 52 holes targeting porphyry copper mineralisation. Southern Arc added an additional 33 holes in the Selodong area between September of 2008 and October 2012 for 20,046 m. These holes tested seven of the 14 porphyry copper-gold targets, with the majority intersecting broad zones (126.45 m to 855.11 m) of significant copper-gold mineralisation. Drilling identified copper gold porphyry style mineralisation associated with altered diorite intrusions. Typical porphyry alteration assemblages are generally zoned outward from higher grade mineralised cores, though these assemblages are often obscured by variations of incipient-weak through to intense postmineralisation overprinting and post-mineral brecciation. Secondary biotite was identified in core logging and has been confirmed by petrological studies along with the presence of K feldspar. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 7 Page 35 Deposit Types There are at least two different deposit types present on the West Lombok Property; porphyry copper-gold and epithermal gold mineralisation have been identified thus far. 7.1.1 Porphyry style mineralisation Porphyry mineralisation was discovered at Selodong in 1992 by PT NNT. Surface mapping and sampling defined several areas of anomalous Cu-Au mineralisation. Copper-gold mineralisation is associated with late Miocene diorite intrusive rocks emplaced into Late Oligocene to Middle Miocene low-K calc-alkaline to alkaline andesitic volcanic and subvolcanic intermediate intrusive rocks. The two main types of mineralisation found in the property include diorite hosted porphyry Cu-Au and related high to intermediate-sulphidation epithermal Au-Ag mineralisation hosted in mineralised structural breccias. Mineralisation is almost exclusively associated with quartz-sulphide stockwork veining and adjacent sulphide disseminations in the potassic altered diorite. Two phases of diorite have been identified hosting stockwork mineralisation with an earlier, more intensely altered, mineralised and veined quartz diorite. Hypogene minerals include pyrite, magnetite and chalcopyrite along with minor bornite, chalcocite, and sphalerite. Secondary minerals include malachite, azurite and chrysocolla, limonite, hematite, and jarosite. Chalcopyrite is the dominant copper sulphide species, with bornite occurrences generally more localised with notable zones of higher concentrations. No significant increases in concentrations of bornite were noted with depth or along strike based on the current density of drilling. Pyrite and magnetite are the most common minerals, with pyrite becoming more common outwards from higher grade mineralisation. Magnetite is abundant throughout the mineralised system and is associated with the potassic assemblage and porphyry mineralisation. 7.1.2 Epithermal gold mineralisation The term “mineralised structural breccia” (“MSB”) has been applied by Southern Arc to describe steeply-dipping, tabular silica-rich bodies that are associated with advanced-argillic alteration of the adjacent host-rocks at the Pelangan and Mencanggah prospects (Figure 6.3). The silica bodies range in thickness from a few meters up to 30 m and extend more than 1000 m along strike at Pelangan and are up to 100 m wide and form zones more than 1000 m long at Mencanggah. The down-dip extent of the bodies exceeds 300 m, as indicated by the surface trace of the bodies and drill results at Pelangan. The silica bodies contain variable amounts of fine-grained massive quartz, dickite, alunite, diaspore, pyrophyllite and pyrite/marcasite (converted to goethite and hematite near-surface) and display breccia textures locally. Minor amounts of enargite and covellite also occur in the silica-pyrite matrix (Allen, 1990). Gangue minerals include quartz chalcedony and clay minerals. Drill results show that these quartz veins form zones that are typically 5 - 20 m wide and contain significant Au and Ag and anomalous As, Bi, Cu, Pb, Sb and Te; particularly where the quartz veins are associated with fine-grained sulphide bands. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 8 Page 36 Exploration Following the incorporation of the ex-Newmont Block I in December 2005, Southern Arc received a substantial geological database (including half drill core) generated from exploration activities conducted in the Pelangan-Mencanggah-Selodong area during 1987-96. 8.1 Pelangan Prospect A preliminary reconnaissance exploration program in the area was undertaken by Southern Arc in November-December 2003. Field activities focused mainly on channel and rock chip sampling of potentially mineralised outcrop exposures, but where outcrops were not exposed, samples of talus scree were collected. A number of rock chip (RC) and rock float/talus scree (RF) samples were collected along the eastern margin of the Pelangan epithermal system. Evidence of both low and high sulphidation epithermal mineralisation was defined, with vein measurements analogous to the Pelangan north-northwest trends. Low to moderate geochemistry was reported with values including RC: 0.10-0.45 g/t Au, 1-17 Ag, and 0.06-0.28% As, while RF equivalents reported values of 0.031.10 g/t Au, 1-65 g/t Ag, 3-160 g/t Sb and 6-227 g/t Mo, respectively. A total of 210 BLEG, 210 stream sediments, 6 rock chips and 14 rock float samples (including duplicates and check samples) were collected in the Pelangan-Mencanggah area and submitted for analysis. Ground traverses were conducted using tape and compass surveys tied into previously established base lines along major ridge lines, along with global positional system (GPS) units for ground control. Later detailed surface evaluation programs involved the usage of DGPS for mapping and infill sampling along the MSBs. Mapping of lithologies and alteration facies follow the common conventions of hydrothermal system definitions and nomenclature adopted by most workers worldwide, and was further supplemented by the collection of petrological samples dispatched to SKM - New Zealand. Rock chip and channel samples were collected on a routine basis during preliminary stream and ridge traverses. A large variety of host rocks were also assayed in order to determine the possibility of any bulk-tonnage potential, as well as to gain a geochemical signature of the prospect as a whole. Where previous Newmont rock channel cuts were identified, duplicate sections were collected. Results from this duplication work provided good correlation with that of previous Newmont sampling and thus both data sets were subsequently combined. In all, a total of 4,101 channel (CH) and chipchannel samples (RC), together with 147 float samples (RF) collected from mineralised and altered rock exposures/talus throughout the property (including duplicates and check samples) were submitted for analysis. In order to define the linear signature as well as establish some depth potential of resistive (silica tabular bodies) zones, the company conducted a ground controlled Source Audio frequency Magnetotelluric (CSAMT) survey over parts of the Kayu Putih, Tanjung and Raja targets in 2006. Three survey grids at 50 m line spacings were established at differing orientations (090°, 315° and 335°) over the Kayu Putih, Tanjung, Raja-Ratu and Lala target areas. Survey recording stations were established at 18 m horizontal intervals. The CSAMT survey was undertaken by geophysical contractor PT. Elliot Geophysics and commenced mid-August 2006. Electrical and mechanical GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 37 problems combined with heavy seasonal thunderstorms plagued the survey, which was abandoned in the third week of December with 40 lines totaling 24.3 km completed. In general, near surface resistors correlate reasonably well with mapped MSB bodies; however, with depth resistors tend to migrate northwards and westward and are most likely associated with andesite and diorite intrusions (Figure 8.1). The more northerly northwest trending MSB are indicated as resistors on the shallower plan sections, although they seem to die out to the east. Aeromagnetic data confirms a northwest to southeast direction, but very likely responses are due to andesite intrusions. The more southerly east-west striking MSB zone has good correlation in the upper elevations; whilst further to the southwest strong resistors are noted, although no MSBs have previously been mapped. Results from BLEG geochemistry (Figure 8.2) confirmed the presence of elevated Au-Ag anomalies throughout the Pelangan-Mencanggah Prospect areas. Priority 1 targets (>15ppb Au ± >75ppb Ag) were identified from known MSB bodies Kayu Putih, Ratu, Raja, Lala, Simba, Gawah Bongor, Tibu Serai & Waterfall/Mahoni. Priority 2 targets (3-15ppb Au ± 40-75ppb Ag) were attributed to mineralised subsidiary structures as is the case at Mendorot (Lala East and recently defined porphyry mineralisation), Simba West (Batu Putih porphyry trend), whilst others in the eastern parts of the prospect area are along strike of the Blongas-Lapangan Geres porphyry corridor, reflecting the combination of porphyry Cu-Au and later overprinting MSB styles of mineralisation. Low level BLEG copper values (15-34 ppm) highlight porphyry mineralisation from the Blongas-Lapangan Geres porphyry corridor and possibly the Mendorot-Gawah Bongor area. Stream sediment gold geochemistry, in general, mimicked that of corresponding BLEG anomalies. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 38 (Source Campbell, 2010) Figure 8.1: Results of the CSAMT survey in the Pelangan Prospect GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 39 (Source Campbell, 2010) Figure 8.2: Results of BLEG sampling program in Pelangan-Mencanggah Prospect areas GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 40 2 Geological mapping and sampling at Pelangan and Mencanggah has covered an area of 35 km . Detailed mapping using tape and compass (Pelangan) and DGPS (Mencanggah) was carried out along creeks, ridgelines, and foot trails throughout the prospects, with the DGPS simultaneously recording elevation for contour maps. Factual and interpretative geology, sample location and assay maps were produced at 1:50,000, 1:10,000 and 1:5000 scales. The company‟s work identified extensions to the known MSB targets and defined new targets including Lala, Tibu Serai, Telekur, Talat Talat, and the Gunayang-Mahoni trend. Due to thick secondary re-growth after logging, all drainages were systematically opened and outcrops cleaned to gain better exposure of alteration, lithology, structure and any stockwork densities. Surface mapping and later shallow scout drilling at Pelangan have defined extensive, structurally controlled, epithermal gold-bearing breccia zones, occurring over an area of 3 x 2 km. Five major zones (Raja, Kayu Putih, Tanjung-Jati, Lala and Ratu) comprising an aggregate strike length of approximately 4.6 km have been defined. Channel sampling in conjunction with continuous rock chip sampling (1-5 m widths) was used extensively to complement geologic mapping to establish priority drill-test targets. The amount of costeaning was limited due to time constraints and negative environmental impact on local cash cropping areas. Raja: The Raja MSB comprises a 1.7 km long north-northwest trending mineralised, linear breccia zone which has been subdivided into north, central and southern zones (Figure 8.3). The northnorthwest trend of Raja is a secondary structure related to the dominant 320° orientation which hosts numerous mineralised breccias and porphyry occurrences within the property. At surface the Raja MSB exhibits a „pinch and swell‟ character with zones up to 20 m wide. North Raja: Outcrop samples (n=13) averaged 1.31 g/t Au and 22.7 g/t Ag, with maximums of 6.02 g/t Au and 98.0 g/t Ag. Limited trenching returned significant intercepts of 4.0 m @ 2.34 g/t Au and 14.3 g/t Au (including 1.0 m @ 5.60 g/t Au and 29 g/t Ag) and 5.0 m @ 1.99 Au and 12.5 g/t Ag. Central Raja: Systematic outcrop sampling (n=125) of prominent bluffs on the north side of the main river averaged 2.17 g/t Au and 16.4 g/t Ag, with values ranging from <0.005 to 23.77 g/t Au and 1170 g/t Ag. In higher elevated areas to the south (South Raja) gold and silver values (n=38) declined to an average of 0.84 g/t Au and 11.9 g/t Ag, with values to a peak of 6.17 g/t Au and 79 g/t Ag. Ratu: Encouraging results were received from sub-outcrop samples (n=70, ranging from <0.005 to 34.1 g/t Au and <1 to 16.4 g/t Ag). Narrow mineralised drill intercepts suggest that Au-Ag mineralisation is related to “horse-tail” splay structures developed between the Raja and Tanjung MSBs. Lala: First-pass mapping has been completed over the Lala MSB which parallels the Raja MSB 350 m to the east. Mapping has defined a series of mineralised structures oriented between northnorthwest and east-west over a 1.6 km strike length. Mineralised exposures comprise outcrops up to 15 m in width in the southern zone but generally are limited to discontinuous sub-crops to the central and northern zones. Assay results from 314 rock-chip samples collected show consistently elevated grades along the length of the structure, with an average grade of 1.29 g/t Au, 16 g/t Ag and 34 g/t Mo. Variation in assay values range from 0.01-55.0 g/t Au, 1-178 g/t Ag and 4-365 g/t Mo. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 41 (Source Campbell, 2010) Figure 8.3: Surface sampling results for the Raja Deposit, Pelangan Prospect GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 42 The Lala structure intersects a large diorite intrusive at the southern end where corresponding Mo + Cu values are elevated (Batu Seni). This is of significance to exploration as potasically altered diorite has been cored at South Raja and intense CSAMT anomalies occur between the southern parts of the Lala and Raja MSBs. Tanjung-Jati: The Tanjung-Jati MSB comprises a 1.5 km long northwest trending structure divided by a central split/jog to form Jati to the west and Tanjung to the east. The northwest trend of TanjungJati parallels the dominant regional 320° orientation (Figure 8.4). Individual breccia zones exhibit a „pinch and swell‟ character with zones up to 20 m wide. Outcrop sampling was somewhat intermittent, due to discontinuous rock exposures and subdued topography in places. The 71 samples collected ranged from 0.01-31.1 g/t Au and 1-184 g/t Ag, averaging 1.93 g/t Au and 8.3 g/t Ag. Kayu Putih: The Kayu Putih MSB comprises two intersecting mineralised structures with east-west and northwest trends, over an area of 800 by 400 m (Figure 8.5). The east-west oriented structure is inferred to be hosted within „en-echelon ramp-structures‟, which can be associated with high-grade mineralisation. Results of outcrop sampling (n=188) highlight the higher grade potential of the eastern half of the east-west MSB structure and the southeast end of the 320° trending structure. Average grades within these areas (n=122) are 10.36 g/t Au and 10.5 g/t Ag, with values ranging from 0.03-303 g/t Au and 1-98 g/t Ag. Channel samples collected in the vicinity of visible gold identified in outcrop exposures returned intercepts of 6.8 m @ 22.43 g/t Au, 0.9 m @ 34.6 g/t Au and 2.7 m @ 7.1 g/t Au and 21 g/t Ag. Higher grade zones coincide with cross-cutting gold-silver telluride bearing quartz veins with localised hydrothermal brecciation that overprint earlier structurallycontrolled “silica ledges”. Outside of the higher grade zones, veining is sporadic and thus assay values (n=66) decline to an average of 0.62 g/t Au and 10.3 g/t Ag. Simba: The Simba vein system is traceable along strike for 1.6 km striking between north and northwest and dipping between 60° to 75° southwest. Vein outcrops are typically “pinch and swell” and vary between 1 and 30 m wide with individual lenses between 30 to 150 m long. Vein swells appear to be associated with north-south structural intersections and vein junctions. Vein zones are characterized by irregular breccias with locally developed banding of fine to medium-grained saccharoidal quartz, drusy cavities, and localised vuggy textures. Strong silicification is developed peripheral to veins for up to several meters within the host rock. Thirty one continuous rock chip samples were collected along outcrops and residual PT NNT trenches, but results from these largely failed to replicate grades seen in PT NNT trench samples (Figure 8.6). GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 43 (Source Campbell, 2010) Figure 8.4: Surface sampling results for the Jati and Tanjung targets, Pelangan Prospect (Source Campbell, 2010) Figure 8.5: Surface sampling results for the Kayu Putih target, Pelangan Prospect GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 44 (Source Campbell, 2010) Figure 8.6: Surface sampling results for the Simba target, Pelangan Prospect 8.2 Mencanggah Prospect Channel sampling was used extensively at Mencanggah to complement geologic mapping and establish prioritized MSB targets. A total of 1,191 rock chips and channel samples were collected during mapping. Sample assay results are outlined in Figure 8.7. Channel samples were collected using a combination of hammer and chisel and portable rock saw. Channel sampling intervals along strike of the MSBs range from 25 to 100 m. Channel sample widths generally range from 1 to 5 m depending on exposure and down to a minimum of 10 cm for individual vein character samples. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 45 (Source Rowe, 2008) Figure 8.7: Surface rock samples collected from the Mencanggah Prospect GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 46 The Bising target forms a prominent hill in the western part of the prospect comprising a westnorthwest trending MSB body approximately 700 m long by up to 100 m at the widest point (Figure 8.8). Historical sampling by PT NNT indicated the significance of the structure with results including 228.0 g/t Au from a 2.0 m channel sample. Southern Arc sampling along the Bising structure confirmed the localised high-grades at surface with results including: 2.0 m @ 38.96 g/t Au 2.0 m @ 17.45 g/t Au 66.0 m @ 1.09 g/t Au (incl. 3.0 m @ 8.6 g/t Au) 5.0 m @ 5.52 g/t Au The 365 channel samples collected at Bising returned an average grade of 1.17 g/t Au with a peak result from a 1.0 m channel of 71 g/t Au. Silver values are generally subdued with an average result of 1.55 g/t Ag and peak of 22.0 g/t Ag. The Tibu Serai target occurring in the northern section of the prospect covers a broad 1,300 by 600 m area comprising more than 12 individual MSBs, (TS1 to TS12) (Figure 8.9). Individual MSBs strike northwest to north-northwest with maximum length of 1,000 m and width up to 20 m. Southern Arc surface sampling confirmed localised zones of high-grade mineralisation at Tibu Serai including the following highlights: TS3: 2.5 m @ 6.12 g/t Au TS3: 7.1 m @ 53.53 g/t Au TS6: 3.0 m @ 2.52 g/t Au TS9: 2.0 m @ 3.59 g/t Au TS9: 1.1 m @ 12.0 g/t Au From the 417 channel samples collected at Tibu Serai the average gold grade is 1.79 g/t Au with a peak value of 116.0 g/t Au. Silver is again subdued with an average grade of 1.3 g/t Ag with a peak value of 21.0 g/t Ag. The Waterfall target occurs in the southwest of the prospect area forming a 750 m long northwest trending sigmoidal-loop structure, in places up to 40 m wide (Figure 8.9). Though relatively lower gold grades have been encountered at this target, quartz vein textures and the inferred presence of adularia are indicative of high levels of exposure. The potential therefore exists for an epithermal system with potentially un-exposed higher grade zones in close proximity. SA sampling has confirmed consistent lower grade anomalism along the structure with results including: 8.0 m @1.42 g/t Au 2.0 m @ 1.41 g/t Au One hundred and eighty seven channel samples collected at Waterfall returned an average grade of 0.35 g/t Au with a peak assay of 2.89 g/t Au. Silver grades are low with an average result of 4 g/t Ag and a peak value of 42.0 g/t Ag. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 47 Character sampling at Mencanggah suggested at least two mineralizing events that contributed metal deposition in the prospect areas. Gold assay values from silica pyrite advanced-argillic altered volcanic ranges from 0.05 g/t Au to 0.50 g/t Au, whereas later banded quartz veining and hydrothermal breccias formed by what appears to be the same generation of quartz range from 0.1 g/t Au to 250.0 g/t Au. (Source Rowe, 2008) Figure 8.8: Surface samples from the Bising and Tibu Serai deposits, Mencanggah Prospect GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 48 (Source Rowe, 2008) Figure 8.9: Surface sampling for the Waterfall target, Mencanggah Prospect 8.3 Selodong Prospect Evaluation of the PT NNT database along with the available drill core resulted in the definition of fifteen priority targets which included the previously drill tested targets of Montong Botek, Blongas I and II, Belikat and Kekalik (Figure 8.10). The other ten targets were ranked based on follow up detailed DGPS mapping and sampling. The Kedaro and Lepangan Geres targets were subsequently drill tested. Along with surface mapping and sampling to enhance and verify the existing data set, Southern Arc undertook 3D modelling of the Newmont ground magnetic data by GRS - Australia and selected petrographic analysis of drill core from Montong Botek and Blongas II by SKM - New Zealand. Previous PT NNT data were verified in the field where possible through duplication of geochemical samples, ground truthing of geological traverses and drill collars. All PT NNT drill collars were relocated and DGPS surveyed to UTM-WGS84 as the earlier PT NNT work programs were based on a local grid. Based on this rectification, all PT NNT data sets were converted to UTM. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 49 (Source Rowe, 2008) Figure 8.10: Surface sampling for the Selodong Prospect GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 50 Ground traverses were conducted between June 2007 and May 2008 within the 7 x 3 km area of the Selodong Prospect area. Detailed mapping using DGPS carried out along creeks, ridgelines, and foot trails throughout the Selodong Intrusive Complex (SIC) simultaneously recorded elevation to produce digital elevation and geological maps at 1:5000 scale. The distribution of lithological units and alteration facies generally agreed with Newmont‟s original mapping. Apart from the well-exposed mineralised quartz diorite outcrops at Montong Botek and along one of the creeks at Blongas II, porphyry mineralisation in general is very poorly exposed at Selodong due to weathering characteristics and the labile nature of highly altered porphyry mineralisation. Due to thick secondary re-growth after logging, all drainages were systematically opened and outcrops cleaned to gain better exposure of alteration, lithology, structure and any stockwork / fracture densities. Mapping identified mineralisation and alteration types, defined the approximate limits of post-mineral brecciation around Montong Botek and Kekalik and the dimensions of post-mineral hornblend diorite dikes and elucidated some of the major structure controls on mineral and post-mineral events. Southern Arc ground traverses further developed the significance of the Kedaro target to drilling. Deposits of porphyry mineralisation were extended a further 7 km northwards, along the Montong Botek porphyry trend, to Lepangan Geres and Gawa Bongor; another new porphyry style mineralised area located a further 7.6 km to the north. Detailed mapping has identified the main controls of porphyry mineralisation at Selodong and shown key porphyry hosting structures extending outside of Selodong the north and northwest. Porphyry mineralisation is generally not well exposed due to the labile nature of alteration mineral assemblages and therefore anomalous samples give a positive sign of mineralisation rather than an indicative grade. It should also be considered that Lepangan Geres has proportionately more sampling as this was a new discovery and had not been sampled by the previous operator. Targets such as Blongas II and Montong Botek have not been as heavily sampled because of previous surface work and drilling by PT NNT. A total of 1,082 surface outcrop rock chip and channel samples were collected and analysed for gold, copper and molybdenum. Normal tropical weathering conditions have resulted in oxidation of copper sulphides to shallow levels (generally 5 to 20 m below surface), resulting in subdued surface copper-geochemistry. Gold is intimately associated with copper mineralisation and, being relatively less mobile at surface, is a better indicator of mineralisation in this instance. At concentrations > 0.15 g/t Au and in the presence of quartz-stockwork and well developed fracturing, gold was considered a good indicator at Selodong for porphyry mineralisation. Accordingly, a 0.1 g/t Au cut-off has been applied for the following summary of rock-channel statistics. Montong Botek: Mineralised stockwork is discontinuously exposed along a 350 x 250 m north-south elongate zone with the main high grade pod of mineralisation located at the southern end. Forty five out of 68 5 m channel samples gave an average result of 0.2 g/t Au and 232 ppm Cu with maximum values of 0.69 g/t Au and 753 ppm Cu. Blongas I and II: Covers a north-south elongate zone of 940 x 240 m. A total of 104 1 - 3 m wide channel samples were collected from generally sparse outcrops. Fifty two out of 104 channel samples returned an average of 0.1 g/t Au and 232 ppm Cu with maximum values of 0.33 g/t and 834 ppm, respectively. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 51 Kekalik: Alteration and anomalous geochemistry covers a broad area of approximately 700 x 600 m. From 154 samples, 117 gave average values of 0.1 g/t Au and 228 ppm Cu with maximum values of 0.85 g/t and 2910 ppm, respectively. Belikat: covering an area of approximately 740 x 640 m, reported average results from 65 out of 195 samples of 0.2 g/t Au and 873 ppm Cu with maximum values of 2.21 g/t and 14100 ppm, respectively. Kedaro: 66 out of 153 samples collected averaged 0.2 g/t Au and 303 ppm Cu with maximum results of 2.21 g/t and 1350 ppm, respectively. Lepangan Geres: a total of 407 rock samples have been collected within an approximate 600 x 300 m altered area. 231 returned an average grade of 0.2 g/t Au and 303 ppm Cu with maximum values of 1.3 g/t and 3760 ppm, respectively. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 9 Page 52 Drilling Drilling has been carried out on the Pelangan and Mencanggah Prospect areas by Southern Arc and on the Selodong Prospect by Newmont and Southern Arc. Drilling by Southern Arc was carried out using up to seven drill rigs. The rigs are man portable, and have the capacity to drill PQ size (85 mm), HQ size (63.5 mm) and NQ size (47.6 mm). Two of them can drill PQ to 130 m, HQ core to 350 m, and NQ to 650 m; the larger one can drill PQ to 200 m, HQ core to 550 m, and NQ to 1000 m. Triple tube drilling is used to maximize core recovery. Southern Arc indicates that the larger core is drilled as much as possible. The diamond drilling programmes were carried out by Indonesian drilling contractors PT Antero Indodrill (2006 To 2008) and PT Promincon (2010 to 2013) under contracts to Southern Arc. Each drill rig was operated by two direct employees of the drilling contractors, up to six local laborers, and a field assistant employed by Southern Arc. The field assistant supervised the drilling, with additional oversight from time to time during the day from site geologists. Down hole surveys of magnetic azimuth and drill hole dip are made every 50 m using an Eastman single shot camera. Obvious incorrect readings (affected by magnetic rocks or poor operator implementation) were discarded. Collar locations are picked up by a contract surveyor using a differential GPS unit with a claimed accuracy of ±1 cm. The DGPS base station is located at the West Lombok camp. The core was transported daily from the rig site to the West Lombok exploration camp. A core logging shed has been established under a thatched roof cover and partly in the open air. The core area was reasonably orderly at the time of the site visit; a whiteboard is used to keep track of the core trays on the racks and the current drilling. On arrival at the camp, the core is washed and photographed. Two high resolution digital photographs are taken of each core tray. The core photography setup is sufficient for the purpose of routine recording of the core and the collection of geotechnical data. Clear core tray labeling is used in the core photography and photos are reviewed by the site geologist to assure good photo quality. Core logging was based on a Core Logging Manual prepared by Southern Arc. The manual is very comprehensive and is based on the recording of all geological and geotechnical characteristics of the drill hole sample using a coded input. The manual provides very detailed instructions on the data that needs to be recorded as well as some training on the method of acquiring the data. Core logging is carried out by local Indonesia geologists with oversight provided by Southern Arc senior geological staff. 9.1 Pelangan Epithermal Prospect Southern Arc‟s first phase of diamond drilling employed a small man-portable drill rig capable of drilling to depths of 60 m HQ and 110 m NQ, designed, built, and supplied by PT. Antero Indodrill, a Bogor-based drilling company. A network of tracks was constructed linking the drill pads, whilst core logging/sampling/storage facilities were established in the northern part of the prospect area. The program began with the collaring of the first hole, designated KDG-01, on June 28, 2006 and was completed at the termination of RDG-14 on February 10, 2007. A total of 51 diamond drill holes were completed for 3,762.05 m at an average recovery rate of 95.6% along the Kayu Putih, Raja-Ratu and Tanjung-Jati MSBs as part of the first phase of drilling. All holes were drilled perpendicular to the GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 53 main MSB structures at inclinations of -55° to -60°. Drilling has tested an aggregate strike of approximately 3.5 km at intervals between 50 and 150 m. A second phase of drilling was carried out on the Pelangan area between 2008 and 2012 focusing on higher grade shoot defined from the first drilling campaign. Southern Arc completed an additional 9561 metres of drilling in 48 holes at the Pelangan Prospect.. The majority of holes were drilled well past the MSB targets to explore for any parallel mineralisation in the immediate footwall rock zone. Initially the entire half-core of each hole, regardless of alteration/mineralisation, was sampled. This practice was subsequently changed to sampling only zones of moderate to intense quartz veining, intense silicic altered zones, and the immediate peripheries of those zones. A total of 5,703 half drill core samples were taken and dispatched to ITS laboratory for analysis of Au, Ag, Cu, Pb, Zn, Mo, Sb, Se, Te and Bi. 9.1.1 Pelangan Drilling Results In general, targeted down-dip extensions of surface mineralisation were intersected with, aside from southern Kayu Putih, comparable gold-silver values. In the case of southern Kayu Putih, drill intercept grades (KDG-01 to KDG-05) are often a magnitude lower than surface outcrops, suggestive of surface supergene effects. The main silica bodies/quartz veins were interpreted to be largely vertical to sub-vertical, with a steep west-southwest dip; the most commonly recorded attitude. A moderate to intense intermediate argillic (illite-smectite, kaolinite and dickite) altered selvedge of varying widths (metres to 10s of metres) is a common feature on both the hanging wall and footwall edges of the silica bodies/veins. This is often accompanied by strong differential shearing resulting in strongly broken core (and slightly lower recoveries at the vein edges), both leading to some uncertainty in determining vein attitudes. The following are general observations of drilling results. Raja MSB Shallow drilling along the central and southern zones of the Raja MSB has confirmed continuity of gold mineralisation within a 600 m strike length between drill holes QDG06 and RDG07. In this zone, aggregated drill intersections of 128.4 m reported an average grade of 3.42 g/t Au and 19 g/t Ag, over a vertical extent of 159.6 m (Figure 9.1). Higher grade zones are characterized by: Quartz veins with fine-grained sulphide and telluride-mineral bands, swirls and clots located in general along silica body/vein margins. Low Au/Ag ratio of generally less than 5, elevated Te, Bi and Se values. Au and Te levels appear to decline significantly at elevations higher than 275 m above sea level. Au/Ag ratios < 5 are typically ascribed in epithermal models and are inferred to lie near up-flow fluid zones; hence prime targets for drill targeting. Structural intersection of cross-cutting east to northeast and northwest traverse/tensional fracture/fault zones with the main silica bodies / quartz vein systems. All drill holes were cored at angles between 55° to 60° and spaced at intervals between 50 to 150 m along strike, confirming a vertical to sub-vertical dip on the structure. Most of the mineralisation was intercepted below the base of surface oxidation. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 54 Drill sections suggest that orientations of quartz vein systems consistently dip 70°-90° to the southwest; however, at Raja North (RDG013, RDG014 & QD006) a possible sub-vertical northeast dip is inferred. Deflections in strike and dip of silica bodies/quartz veining are attributed to reactivation of pre-existing east-northeast trending, transverse fault / fracture zones. In a number of sections, vein systems are interpreted to bifurcate and coalesce at depth; however, peripheral veining is also another option. The program has confirmed the presence of extensive, near surface gold mineralisation within the central and southern parts of the Raja MSB. Drilling intercepts are of a comparable magnitude to earlier surface outcrop sampling. Rock lithologies logged throughout the 14 drill holes show a consistent volcaniclastic sequence of polymictic volcanic lithic breccia with local intercalations of volcanic sandstone and well-bedded siltstone, later intruded by diorite, andesite and feldspar porphyry stocks and dykes (5 - 30 m wide). Differences between individual holes are ascribed to lateral facies differences in volcaniclastics, along with effects of post-mineralisation faulting. As noted from petrology studies of drill core (RDG09 and 11), the occurrence of K-silicate and hightemperature propylitic alteration assemblages, together with the presence of hydrothermal magnetite in diorite and volcanic lithic breccia, evidences any early hot phase (>260°C) with clear magmatic affinities. This early hot phase was later followed by cooler (190-240°C) acid to intermediate fluids, evidenced by illite-smectite, kaolinite and dickite alteration (White, 1998). GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 55 (Source Southern Arc, 2012) Figure 9.1: Significant drill intercepts from the Pelangan Prospect, Raja MSB target GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 56 Ratu MSB The five drill holes (QDG01-05) completed in this area targeted extensions below high-grade surface rock-float/subcrop, but failed to intersect any major mineralised structures. The large volume of locally high-grade material is now believed to be derived from the Tanjung MSB. Narrow mineralised drill intercepts (QDG04: 1.4 m @ 4.9 g/t Au and 4.25 m @ 2.10 g/t Au/10.4 g/t Ag) are interpreted as “horse-tail” splay structures developed between the Raja and Tanjung MSBs. Tanjung-Jati MSB Zones of potentially significant gold mineralisation have been intersected in 8 of 13 drill holes along the 1.5 km strike length of the Tanjung-Jati MSB. Shallow drilling has confirmed continuity of mineralisation to depths of around 50 m with locally high-grade intercepts. Like Raja, higher grade zones are associated with quartz veins with fine-grained sulphide and telluride-mineral bands along silica bodies and vein margins. All drill holes to date have been cored at angles between 55° to 60°, and spaced at intervals between 50 to 230 m along strike, confirming a vertical to sub-vertical dip of the structural breccias. A change in dip direction between drill holes TDG07 and JDG01 most likely marks the effects of movement of precursor east-northeasterly trending, transverse fault and fracture zones. In a number of sections, vein systems are interpreted to bifurcate and coalesce at depth; however, peripheral veining is also another option. Most of the mineralisation has been intercepted below the base of surface oxidation and is generally comparable in magnitude to previous outcrop sampling. Kayu Putih MSB Encouraging gold-silver intersections were reported in 9 of the 17 holes drilled within the Kayu Putih MSB area. Holes were drilled on a north-south grid orientation at intervals of 50-100 m, with inclinations of -55° to -60°. The deepest mineralised intercept occurs at 59 m vertically below surface, whilst the majority of intersections occur below the base of complete oxidation. Dips of the intersected silica bodies / quartz vein structures vary between 60° to 90° northwards and are inferred to bifurcate in a number of interpreted cross sections (Figure 9.2). Drill results confirm the presence of near surface high-grade zones within the southeastern portion of the mineralised structure. A 450 m long strike zone between drill holes KDG02 and KDG12 shows the best potential for continuous high grade mineralisation. Within this zone, density of sulphide and telluride bearing quartz veins is directly proportional to gold ± silver grades. Such vein types are found predominantly along the margins of the silica body/ quartz vein system. Resistivity mapping confirms the north-northwest migration of the structure with depth. Scissor holes (KD06 & 07) confirm the northerly dip of the mineralised structure, effectively drilling down-dip in the intermediate argillic alteration envelope. Outside of the higher grade zone drill intersections reflect the predominance of silica ledges derived from the early advanced argillic / potassic alteration event. Typically, drill intercepts are less than 0.2 g/t Au, but where sporadic quartz veins and breccias are encountered, values up to 3.52 g/t Au and 41 g/t Ag (KDG09 and KDG14) are reported. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 57 (Source Campbell, 2010) Figure 9.2: Typical cross section of the Kayu Putih target, Pelangan Prospect GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 9.2 Page 58 Mencanggah Prospect Phase 1 exploration at the Mencanggah Prospect was carried out in 2011. Initial drilling activities focused on the Waterfall target, where Southern Arc completed 27 holes for a total of 6,634 m of drilling, with 17 of the 27 holes encountering gold mineralisation. Southern Arc then concentrated its efforts on the Bising target. A total of 8 holes were drilled during the first phase of drilling and 16 holes during the second phase of drilling. Drilling on the Bising target led to the identification of a continuous mineralised lens that is the focus of extensive mining activity by artisanal miners (Figure 9.3). (photo by SRK) Figure 9.3: Photo of artisanal mining excavation areas on Bising Deposit The extensive width, up to 60 m width in surface outcrop of the main Bising epithermal body is inferred to result from the intersection of geological structures: a major west-northwest trending fault intersected by several north-northwest trending faults, the latter of which form the dominant gold mineralised trend in the West Lombok district. Additional drilling was carried out on the Mencanggah Prospect at Tibu Serai, an area located approximately 1 km north of Bising. Southern Arc drilled 16 holes totalling 2,397 m on the Tibu Serai Deposit. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 59 9.2.1 Mencanggah Drilling Results Waterfall Drilling at Waterfall below outcrops of banded and brecciated quartz veins intersected multiple mineralised veins, some with encouraging gold mineralisation. Drilling tested a 2 km strike length of the breccia zone and, of the 17 holes that encountered gold mineralisation, the best intersections were found in holes MCG001 and MCG016. Drill hole MCG001 intersected 2.3 m grading 4 g/t gold and hole MCG016 intersected 4.75 m grading 15.6 g/t gold 375 m north west of hole MCG001. Follow-up drilling on the Waterfall returned mixed results with several holes returning only minor mineralisation. Figure 9.4 summarises the drill results for the Waterfall area. Figure 9.4: Drill results from the Waterfall area Bising Drilling at Bising focused on defining the vertical extent of the wide epithermal breccia body identified in surface outcrops. The drilling demonstrated the consistency and width of mineralisation in the area for over a 500 m strike length, with a large proportion of the drill holes intersecting wide intervals averaging greater than 1 g/t gold mineralisation. Some of the more significant results include 53 m grading 0.68 g/t gold in hole MCC057, 51 m grading 1.5 g/t gold in hole MCC028 and 26 m grading 1.22 g/t gold in hole MCC061. Figure 9.5 summarises the drill intersections for the Bising deposit. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 60 (source Southern Arc New release, 2013) Figure 9.5: Longitudinal section of the Bising deposit showing drill hole intersections Tibu Serai Eight of the initial nine holes drilled at Tibu Serai intersected gold mineralisation within a 220 m strike length centred on MCG055 (Figure 9.6). Two holes drilled 40 m northwest and southeast of MCG055 confirmed continuity of high gold grades along an 80 m strike length at similar elevations. MCG058, located 40 m northwest, intersected 6.90 m @ 5.65 g/t gold, while MCG060, located 40 m southeast of MCG055, intersected 5.10 m @ 5.29 g/t gold. MCG061 intersected mineralisation 60 m vertically below MCG055 (26.30 m @ 1.22 g/t gold including 8.00 m @ 3.21 g/t gold), indicating continuity of mineralisation at depth. MCG067, located approximately 120 southeast of MCG055, intersected high-grade mineralisation (4.50 m @ 7.79 g/t gold) within a second shoot zone that remains open to the southeast. Drilling has also intersected a parallel vein zone exposed 200 m to the southeast of MCG067 (Figure 9.4). A narrow high-grade intersection in MCG058 (0.70 m @ 13.50 g/t gold and 2.3 g/t silver) well above the targeted mineralisation is interpreted to represent the strike extension of this parallel vein zone. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 61 (Source Southern Arc, 2013) Figure 9.6: Drill results from the Tibu Serai Deposit 9.3 Selodong Prospect Historical Newmont drilling on the porphyry targets comprised 52 drill holes for a total of 7,956.5 m. Forty eight shallow (150 m maximum) drill holes were completed with a man-portable Jakro Rig, and four deeper holes (600 m) were drilled by a helicopter assisted Longyear 44 drill rig. Core drilling was conducted using wire line recovery methods with PQ, HQ and NQ triple tube equipment. Core recoveries were calculated for all core intervals; in general between 1.0 and 3.0 m, with bulk samples up to a maximum of 27.7 m. Sampling comprised of splitting half the core with a diamond saw, whilst half was retained. No detailed information is available on procedures followed. Between April 2007 and September 2008, Southern Arc completed 30 drill holes for a total of 17,859.3 m of drilling and 8,576 half core geochemical samples. The drilling program was designed on evaluation of the extensive PT NNT geological database. A five drill hole program was designed initially to validate and extend the mineralisation previously drilled by PT NNT at Montong Botek and Blongas II. Positive results were received from SLD001 to SLD005. Based on these results, indications of other porphyry deposits from Newmont data and detailed mapping by the company within the Selodong area, an additional seven targets were tested. Sampling intervals were predominantly based on 2 m intervals and varied between 1-3 m based on geological contacts. A total of 8,576 half core samples were collected including 279 standards and 135 blanks. Standards were inserted randomly within the sample stream and blanks were placed GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 62 within or immediately below highly mineralised zones to check for contamination during lab-assay procedures. Samples were dispatched to ITS laboratory for analysis of Au, Cu, Zn, Ag, and Mo. 9.3.1 Selodong Drill Results Drilling at Selodong focused on six discreet porphyry targets, Montong Botek, Blongass II, Kekalik, Belikat, Kedaro and Lepangan Geres. At Montong Botek, Southern Arc has partially defined an open-ended north-south elongate Cu-Au mineralised zone of 450 m long by up to 200 m wide. This north-south trending mineralised zone lies within an area defined by SA drill holes SLD011, SLD013, and SLD023 in the north and shallow Newmont drill holes PSG012 to PSG014 and PSG017 to the south. SLD029 effectively closed off vertical extensions below high grade mineralisation in SLD001003 by post mineral brecciation. Some of the more significant drill intersections at Montong Botek include 168 m grading 0.51% copper and 0.84 g/t gold in hole SLD001 and 855 m grading 0.10% copper and 0.22 g/t gold in hole SLD023. Figure 9.7 summarises the significant drill intersections for the Selodong Prospect including the drilling for the Montong Botek area. (Source Southern Arc, 2013) Figure 9.7: Drill results for the Selodong Prospect GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 63 At Blongas II, Southern Arc drilled a total of eight holes that defined a north trending mineralised dyke over a 900 m strike length but of relatively narrow width (50 to 200 m). Best results for Blongas II include 407 m grading 0.25% copper and 0.45 g/t gold in hole SLD 004 and 406 m grading 0.23% copper and 0.29 g/t gold in hole SLD005. Results for the other Blongas II drilling are summarised in Figure 9.7. Drill holes SLD009 and SLD010 were collared in the Kekalik target area to test below outcrops of diorite intrusive with variable porphyry-style quartz stockwork veining. Hole SLD010 was collared 196 m west of SLD009 to test western portions of the same general target. Both drill holes encountered porphyry Cu-Au style mineralisation and associated hydrothermal alteration, but Cu-Au grades were relatively lower because of late-stage phyllic overprinting. Hole SLD009 reported only a low grade gold intercept of 70.80 m at 0.18 g/t gold and holes SLD010 returned 32 m grading 0.16 g/t gold. Two holes were targeted at Kedaro: SLD019 and SLD 027. Hole SLD 019 intersected 126 m grading 0.16% copper and 0.23 g/t gold. SLD027 was drilled 115 m south of SLD019; the previous drill hole at Kedaro. The drill hole was positioned to test for potentially higher-grade mineralised extensions of SLD019 and to see if significant mineralisation was associated with the large irregular 400 x 200 m magnetic anomaly located immediately west of the drill collar. SLD027 was drilled westward of SLD019 and encountered variably altered and weakly to nonmineralised quartz micro-diorite. The Kedaro target remains interesting as mineralisation remains largely unexposed at surface and localised zones of elevated surface geochemistry with supporting magnetic anomaly occur along an 800 m plus along a northwest trend. Three holes were targeted at the Lepangan Geres target (Figure 9.8). SLD021 was drilled near the center of the main diorite porphyry body and intersected 142 m grading 0.07% copper and 0.14 g/t gold. SLD025 was located 160 m north of SLD021 and drilled westward at an inclination of -70 degrees to a depth of 550.1 m. From surface to a depth of 196 m, variably phyllic over-printed and weakly mineralised micro-diorite was encountered. This zone returned the only significant mineralisation within the hole (Figure 9.8). Hole SLD028 did not encounter any significant mineralisation. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 64 (Source Southern Arc, 2013) Figure 9.8: Drill results for the Lepangan Geres target GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia 9.4 Page 65 SRK Comments SRK is of the opinion that the drilling programs carried out by Southern Arc on the West Lombok property are sufficient and adequately spaced for use in the estimation of mineral resources for the Pelangan, Mencanggah and Selodong prospect areas. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 66 10 Sample Preparation, Analyses, and Security 10.1 Surface Mapping Samples For flocculated BLEG samples, moss aggregates, over-bank deposits and boulder cavities are sampled vertically and the resulting material is wet-sieved through a minus 30 mesh sieve into a 10 litre plastic container. No water is allowed to escape from the plastic container and once a substantial amount of sediment has been collected, an amount of flocculant (Magnofloc E30) is mixed with the watery sediment until suspended clay material binds and aggregates together, leaving clear water above the sedimentary mass. Water is decanted off and the sediment is placed into a large calico bag, bound and squeezed to remove excess water. The sample is then doublebagged using a large plastic bag. Samples are dried in the sun for a period of 5 to 7 days and then shipped to the ITS prep laboratory. Average sample weight was 4 to 5 kg of dry weight. For every 25 sample sites there was a random duplicate sample collected at one site. An average sample density of one BLEG site per 1.4 km² was achieved during the sampling program. Because of the large sample size in BLEG sampling and the involvement and consistency of four experienced survey crews, it is considered that results reported have a high degree of accuracy, quality and reliability. Supporting this opinion is that the highest reported BLEG assay values emanate from known mineralised prospect areas. Minus 80# stream sediment samples were split off from the BLEG sample during sample prep at the ITS laboratory. For rock samples from potentially mineralised outcrop exposures, along with float from hill talus and streams, standard sampling procedures involved first removal of any obvious surface crustiform weathering and/or organic matter, followed by the collection of a representative sample of the inferred mineralised rock material. For continuous 1 to 3 m outcrop samples, samples were oriented perpendicular to any obvious mineralised structure. Any obvious surface crustiform weathering and/or organic matter was first removed, followed by a continuous channel of HQ/NQ core proportions using either a rock chisel and hammer, or Stihl TS50 rock saw. Emphasis was placed on collecting a uniform representative sample over the channel width to avoid sample bias. Where vein samples were sampled these were either: a. sampled as a single continuous channel sample from one vein margin to the other, or b. sampled as a chip sample because of vein width less than 15 to 20 cm, or c. sampled as a continuous chip sample of 3 to 5 m to ascertain potential grades in preliminary ground traverses. Samples were described, numbered with relevant rock code (CH=channel, RC=rock chip or RF=rock float), bagged with relevant sample tickets and temporarily stored at the company base camp. Hand specimens of all samples were retained for future reference. Separate check samples from Gannet and Windrift Australia along with blanks were submitted in a random fashion to approximate one check sample per 25 rock samples collected. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 67 10.2 Drilling Samples Preparation and Analyses The core sample intervals are marked directly on the core with a fibre-tip marker, and the sample numbers assigned by the geologist are marked on red core blocks. The core is then cut in half with a diamond core saw. The orientation of the cut of each piece is chosen as the most convenient by the operator and a random half added to the sample and the saw is cleaned with water between samples to minimize contamination. Both halves of the sawed core are replaced in the core box and the sample is collected for bagging at a sample station controlled by the geologist. The core halves for the sample are placed in a numbered calico bag, and pre-printed waterproof sample tags are inserted. The sample details are filled out into the sample book and these are crosschecked by the geologist against the sample logging sheet. Standards are inserted at a rate of one in twenty prior to bagging and blank material is inserted after mineralised samples (at a rate of about 1 in 40). The dispatch of samples is tracked on a whiteboard at the core shed. Samples are packed into polyweave bags and sealed with numbered security tags before dispatch from the exploration camp. The samples are driven by company employees to Southern Arc‟s Mataram logistics base for shipping to the PT Intertek Utama Services (Intertek) laboratory in Sumbawa Besar for assay. A report on sample condition, along with a note of any inconsistencies, is emailed by Intertek to the company upon arrival of the sample at the laboratory. Core trays from the entire exploration program are stored in a locked rattan, timber and thatch shed at the exploration base. The shed is well organized and tidy, and the core trays are clearly marked and stored in a logical order. Excess sample pulp from the sample preparation (approximately 10 kg for each sample) is stored in plastic bags at the Intertek sample preparation facility at Sumbawa Besar. Excess pulp from the packet submitted to the Jakarta laboratory is stored onsite in a dedicated warehouse. This contains material from all of Intertek‟s clients, and the materials are stored in an orderly fashion. The core is marked for sampling by the logging geologist; the visual assessment of the grade zone is used to break sample intervals. The samples are prepared at the Intertek laboratory in the city of Sumbawa Besar, on the island of Sumbawa, with assaying done at the Jakarta laboratory. The Jakarta laboratory is ISO 17025 accredited and employs a Laboratory Information Management System (LIMS) for sample tracking, quality control and reporting. Upon arriving at Intertek the samples are treated as follows: 1. The samples are received; 2. The sample numbers are checked against accompanying paperwork; any discrepancies are communicated to client before any processing begins; 3. The sample delivery form is completed; 4. The samples are weighed on a balance with a maximum capacity of 20 kg ±0.01 kg; 5. The sample weight form is completed; 6. The standards inserted by the client are identified and weighed separately on a small digital balance to 0.1 g; GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 68 7. The samples are loaded on a trolley with blanks (crushed volcanic rock) and dried in an electric fan forced oven for twelve hours at 105°C; the oven has an electronic temperature control; 8. The samples are crushed in a jaw crusher to ~2mm; the blank material is run through a crusher after each sample and a compressed air hose is also used to clean the equipment. Each Southern Arc sample typically takes 10 minutes to crush; 9. The sample tag is retrieved from the calico bag and placed in a numbered Kraft packet; 10. The crushed sample is placed in a numbered clear plastic bag; 11. The entire sample is pulverized in ~2kg batches in LM2 mills; typically each 2kg charge is milled for 6 minutes. The target P95 is 75μm; 12. A blank wash is milled after each sample; 13. 1 in 20 samples is tested for grind size. 50 g is weighed out and sieved, with the oversize weighed; 14. The milled sample is rolled 20 times on a mixing bench; 15. The sample is returned to the plastic bag; 16. The sample is split through a 24 slot riffle splitter; a sample split of 200g-250g is required, and this usually takes about a sixfold splitting; 17. The sample splits are put into numbered Kraft packets and the previously identified standards are replaced into the sample sequence. These are identified as standards on the packet; 18. The sample splits are packed into cardboard boxes and sent to the Jakarta assay laboratory; and 19. The remaining pulverized samples are stored at the laboratory. Gold is analysed by standard fire assay technique. Copper and silver were analysed by Intertek‟s GAO2 method which consists of digestion of the sample in hydrochloric/perchloric solution (HCl/HClO4) followed by an atomic absorption spectroscopy (ASS) analysis. 10.3 Specific Gravity Data Specific gravity data were routinely collected by Southern Arc. All measurements were taken on core samples using the simple water immersion technique. While this technique is adequate, it is less than ideal for porous material. SRK recommends that Southern Arc should seal their core samples with wax prior to carrying out the density measurements to assure that any rock porosity is properly accounted for. There are 1,408 bulk density measurements in the assay database provided by Southern Arc; 404 samples were collected from the Mencanggah Prospect, 141 from Pelangan and 863 from the Selodong area. Of the data provided, only one sample was deemed invalid and removed from the database prior to resource estimation. Figure 10.1 summarises the basic statistical data of the bulk density collected. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 69 Figure 10.1: Statistical data for bulk density measurements 10.4 Quality Assurance and Quality Control Programs Intertek quality control includes repeat assaying, use of blanks and a series of 23 different standard reference materials (SRMs) for individual elements. Standards are commercially prepared and purchased from Gannet Holdings Pty Ltd, Geostats and Canmet in Australia. Blanks and samples are inserted randomly into batches of 50, comprising 45 samples, 1 blank, 2 duplicate pulp samples and 2 standards. Duplicate samples are selected randomly from the samples submitted and assayed at the end of the batch, numbered with the same number as that of the original sample. A dedicated Laboratory Quality Manager analyzes the QA/QC performance of the laboratory, with results reported to clients on an as-requested basis. Final results are reviewed by expatriate management who certify that all relevant QA/QC procedures have been followed. Intertek participates in both an internal and external inter-laboratory round robin assaying exercises. The company employs a QA/QC program through the systematic use of standards and blanks and the normal chain of custody measures during sample transport. The company has used up to 29 different commercial standards produced by Geostats Pty Ltd and Gannet Holdings Pty Ltd, purchased through Intertek Perth. Recommended assay values ± confidence intervals are provided on standards received. A total of 499 gold standards, 105 copper standards and 381 blanks have been used in drilling programs. On average, 1 standard has been inserted into the sample stream every 31 samples and 1 blank inserted on average every 63 samples. Standards are placed randomly within the sample stream, whilst blanks are inserted non-randomly either within or GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 70 immediately below visually-inferred mineralised zones. “Blank” material comprises fresh basalticandesite lava collected from tertiary lava flows at the foot of Mt. Rinjani, with the highest Au result recorded from this material being 0.04 ppm Au within equipment reading detection error. 10.5 SRK Comments SRK reviewed the QA/QC data and noticed that few samples fell outside of the acceptable failure limits. Of the 499 gold standards submitted, SRK noted three standards outside of the acceptable limits, and at least two of these appear to be mislabeled standards. Three of the 105 copper standards fell outside of the acceptable limits and should be investigated. SRK is of the opinion that the sample handling and shipping is in keeping with best industry practices and adequate for this type of deposit and mineralisation. A review of the blank samples submitted did not reveal any serious contamination issues with sample preparation. In the opinion of SRK, the sampling preparation, security and analytical procedures used by Southern Arc are consistent with generally accepted industry best practices and are therefore adequate. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 71 11 Data Verification 11.1 Verifications by Southern Arc Because exploration is still at an early stage, only limited independent verification of analytical results has been undertaken to date. A total of 195 Selodong drill core pulps previous assayed by ITS Intertek were submitted to SGS / Indoassay (Balikpapan) for re-assay, by the same methods as the Intertek assay (fire assay for Au and acid digest/ASS for Cu). Indoassay Balikpapan is part of the SGS Group which, like ITS Intertek, provides inspection, testing, certification and verification services worldwide. Similarly, they are ISO accredited and employ relevant LIMS for sample tracking, quality control and reporting. Comparison of assay results shows very similar means and medians for the two laboratories for both elements, although the maxima for Au are very different and the Indoassay Au assays are somewhat less variable. SRK considers that the results of re-assays are reasonably similar, although some large differences were noted and those should be addressed by repeating the re-assay program with additional pulps. A total of 140 Pelangan drill core pulps previously assayed by ITS Intertek were submitted to Kalassay Laboratory (KAL) domiciled at 10 Elmsfield Road, Perth, WA 6056, Australia. Kalassay is part of the Inspectorate Group which, like ITS Intertek, provides inspection, testing, certification and verification services worldwide. Similarly, they are ISO accredited and employ relevant LIMS for sample tracking, quality control and reporting. Comparison of assay results show ITS gold and silver assays are less than corresponding KAL values by an average of 9% and 19%, respectively. The latter is attributed to differing finishing methodology for silver analysis (AAS versus ICP-MS methodology), while the former is within accepted industry tolerances. 11.2 Verifications by SRK 11.2.1 Site visit SRK carried out two site visits: the first visit was from December 6 to 9, 2011, with the follow up visit from April 23 to 26, 2013. During the site visit, SRK examined the drill sites and logging and sampling procedures, examined the geology in the field, and re-logged several drill holes from each of the prospect areas. Mineralisation and alteration were noted in drill core and SRK observed several artisanal miners operating in the Bising and Tibu Serai areas during both site visits. 11.2.2 Verifications of analytical quality control data SRK reviewed the sample database and noted that a wide range of sample lengths exists in the database from 0.15 m to 3.8 m with the bulk of the samples (68%) being between 0.5 m and 1.5 m in lengths. SRK recognizes that shorter sample lengths are often necessary in early stage exploration for epithermal deposits but recommends that Southern Arc try to standardize sample lengths as much as possible and avoid taking samples longer than 2 m whenever possible. SRK validated the digital database by checking for inconsistencies in naming conventions, analytical units, duplicate entries, length, distance values, or sample intervals less than or equal to zero, blank or zero-value assays, out-of-sequence intervals, intervals or distances greater than the reported drill GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 72 hole length, inappropriate collar locations, and missing interval and coordinate fields. A few minor inconsistencies were noted and corrected by SRK. No other significant validation errors were noted in the supplied database. SRK compared the digital assay database provided by Southern Arc against original assay certificates provided by Intertek and found no significant data entry errors. In all, SRK validated 85% of the assay database and found no significant errors. SRK reviewed the QA/QC data and sampling program and found the data and programs to be acceptable for the purpose of resource estimation. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 73 12 Mineral Processing and Metallurgical Testing There have been no metallurgical samples collected for testing from the West Lombok Property so far. SRK recommends that samples be collected for basic metallurgical testing during the next phase of drilling on the property. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 74 13 Mineral Resource Estimates 13.1 Introduction The Mineral Resource Statement presented herein represents the first mineral resource evaluation prepared for the West Lombok Project in accordance with the Canadian Securities Administrators‟ National Instrument 43-101. The mineral resource model prepared by SRK considers 253 core boreholes drilled by Southern Arc and Newmont during the period of 2007 to 2013. The drilling covers three discreet prospect areas: 85 drill holes cover the Selodong porphyry copper-gold Prospect, 89 holes cover the Pelangan epithermal gold Prospect and 67 holes cover the Mencanggah epithermal gold Prospect. Of these, 99 drill holes intersected the mineralised zones considered for resource estimation; 36 drill holes totalling 5,787 m were included in the Raja resource model, 22 drill holes totalling 3,830 m were included in the Bising model, 10 holes totalling 1,370 m were included in the Tibu Serai model and 31 holes totalling 11,012 m were included in the Selodong model. The resource estimation work was completed by Dr. Gilles Arseneau, P.Geo (APEGBC) an appropriate “independent qualified person” as this term is defined in National Instrument 43-101. The effective date of the resource statement is July 13, 2013. This section describes the resource estimation methodology and summarises the key assumptions considered by SRK. In the opinion of SRK, the resource evaluation reported herein is a reasonable representation of the global copper and gold mineral resources found in the West Lombok Project at the current level of sampling. The mineral resources have been estimated in conformity with generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with the Canadian Securities Administrators‟ National Instrument 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserve. The database used to estimate the West Lombok Project mineral resources was audited by SRK. SRK is of the opinion that the current drilling information is sufficiently reliable to interpret with confidence the boundaries for epithermal gold and porphyry copper mineralisation and that the assay data are sufficiently reliable to support mineral resource estimation. TM Gemcom GEMS Version 6.5 was used to construct the geological solids, prepare assay data for geostatistical analysis, construct the block model, estimate metal grades and tabulate mineral TM resources. The Geostatistical Software SAGE2001 was used for geostatistical analysis and variography. 13.2 Resource Estimation Procedures The resource evaluation methodology involved the following procedures: GA / MN Database compilation and verification; Construction of wireframe models for the boundaries of the vein-hosted gold and porphyry copper mineralisation; Definition of resource domains; Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 75 Data conditioning (compositing and capping) for geostatistical analysis and variography; Block modelling and grade interpolation; Resource classification and validation; Assessment of “reasonable prospects for economic extraction” and selection of appropriate cutoff grades; and Preparation of the Mineral Resource Statement. 13.3 Resource Database The drill hole database used to estimate the mineral resources presented in this report contains 241 drill holes including 53,252 m of core. The drill hole database contains descriptive information and assay grades from exploration drilling carried out by Southern Arc and Newmont. The database was provided to SRK as an ACCESS database that includes the following tables: Drill hole collar information such as location and length; Down hole survey information such as direction and dip; Lithology information including rock group codes and interpreted geology; Mineralisation information including mineral types; Geotechnical data, RQD and recovery data; Vein counts and types of veins; Alteration information including alteration type; Down hole magnetic susceptibility data; Down hole specific gravity measurements; and Chemical analytical (assay) records. TM The supplied mineral resource database was imported into Gemcom‟s GEMS 6.5 software and validated by checking for inconsistencies in naming conventions, analytical units, duplicate entries, length, distance values, sample intervals less than or equal to zero, blank or zero-value assays, outof-sequence intervals, intervals or distances greater than the reported drill hole length, inappropriate collar locations, and missing interval and coordinate fields. A few minor inconsistencies were noted and corrected by SRK. No other significant validation errors were noted in the supplied database. 13.4 Solid Body Modelling Solid models were created to provide spatial limits for each of the mineralisation domains within the West Lombok deposits. Separate geological models were generated for each of the prospect areas estimated. Domains were created by interpretation of the drill hole lithology and assay data from the drill holes. 13.4.1 Raja Deposit – Pelangan Prospect The gold mineralisation at the Raja Deposit is generally associated with quartz veins within wider quartz breccia zones. The gold is associated with a high sulphidation epithermal quartz vein system. Two parallel vertical veins have been identified within the Raja Deposit area. The veins have been explored by drilling over a strike length of 1,000 m and to a vertical depth of 250 m (Figure 13.1). GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 76 Wireframes were constructed on 20 m spaced sections using a 1.5 m minimum horizontal thickness and a 0.15 g/t nominal cut off. A digital model of the topography was also generated and the vein wireframes were clipped against the digital surface topographic model. No surface was generated for overburden, but little or no overburden occurs over the vein areas. Note: Grid is 200 by 200 m Figure 13.1: Planveiw of Raja wireframes 13.4.2 Bising and Tibu Serai Deposits – Mencanggah Prospect The gold mineralisation at Bising and Tibu Serai is generally associated with quartz breccia zones. The gold is associated with a high sulphidation epithermal quartz vein system. Two parallel vertical veins have been identified within the Bising Deposit area and a single high grade vein has been identified at Tibu Serai so far. The veins have been explored by drilling over a strike length of 700 m at Bising and 200 m at Tibu Serai (Figure 13.2). TM Geological modelling was completed by SRK using Gemcom GEMS version 6.5. Wireframes were constructed on 20 m spaced sections using a 1.5 m minimum horizontal thickness and a 0.15 g/t nominal cut off. A wireframe of the topography was also generated and the vein wireframes were GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 77 clipped against surface topography. No surface was generated for overburden, but little or no overburden occurs over the vein area. Figure 13.2: Planview of Bising and Tibu Serai wireframes (Note: Grid is 500 by 500 m) 13.4.3 Selodong Deposit – Selodong Prospect The copper-gold gold mineralisation at Selodong is associated with structural zones within altered diorite. Two main porphyry zones have been identified by drilling and extend for about 1,500 m in a north-south direction (Figure 13.3). TM Geological modelling was completed by SRK using Gemcom GEMS version 6.5. Wireframes were constructed on 50 m spaced sections using a 0.2 g/t copper equivalent. A wireframe of the topography was also generated and the vein wireframes were clipped against surface topography. No surface was generated for overburden, but little or no overburden occurs over the vein area. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 78 Figure 13.3: Planview of Selodong wireframes (Note: Grid is 500 by 500 m) 13.5 Compositing All assay data were composited to a fixed length prior to estimation. SRK evaluated the assay lengths for each of the resource areas and selected the most appropriate composite length for each area. 13.5.1 Raja Deposit – Pelangan Prospect An evaluation of sample lengths indicated that 92% of assay lengths within the mineralised zones were 1 m or less (Table 13.1). For this reason, SRK decided to composite the assay data to a fixed 1 m length within the wireframes starting from the drill hole collars. Any composites that were less than 0.5 m in length after the compositing routine were added to the previous interval to assure that no composites were less than 0.5 m or greater than 1.5 m. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 79 Table 13.1: Comparison of sample length and average gold grade for Raja Deposit Sample Count Average Au Grade (g/t) Cumulative % 44 3.38 4.72 0.25-0.50 324 5.06 39.44 0.50-0.75 281 3.18 69.56 0.75-1.00 213 2.34 92.39 1.00-1.50 62 1.24 99.04 1.50-2.00 9 1.96 100.00 Assay Length (m) <=0.25 Grand Total 933 13.5.2 Bising and Tibu Serai Deposits – Mencanggah Prospect An evaluation of sample lengths indicated that 92% of assay lengths within the mineralised zones were 1.5 m or less (Table 13.2). For this reason, SRK decided to composite the assay data to a fixed 1.5 m length within the wireframes starting from the drill hole collars. Any composites that were less than 0.75 m in length after the compositing routine were added to the previous interval to assure that no composites were less than 0.75 m or greater than 2.25 m. Table 13.2: Comparison of sample lengths and average gold grade for the Bising and Tibu Serai Deposits Sample Count Average Au Grade (g/t) Cumulative % 23 1.69 2.4 365 1.37 41.4 0.50-0.75 85 1.15 50.5 0.75-1.00 292 0.69 81.6 1.00-1.50 96 0.47 91.89 1.50-2.00 76 0.42 100 Assay Length (m) <=0.25 0.25-0.50 Grand Total 937 13.5.3 Selodong Deposit – Selodong Prospect An evaluation of sample lengths indicated that 91% of assay lengths within the mineralised zones were 3 m or less (Table 13.3). For this reason, SRK decided to composite the assay data to a fixed 3 m length within the wireframes starting from the drill hole collars. Any composites that were less than 1.5 m in length after the compositing routine were added to the previous interval to assure that no composites were less than 2.25 m or greater than 4.5 m. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 80 Table 13.3: Comparison of sample lengths and average gold grade for the Selodong Deposit Sample Count Average Au Grade (g/t) Average Cu Grade (%) Cumulative % 54 0.5 0.28 2.1 1.5-2.0 1439 0.38 0.23 59.2 2.0-2.5 224 0.38 0.25 68.1 2.5-3.0 582 0.39 0.26 91.2 3.0-3.5 127 0.33 0.23 96.2 3.5-4.0 47 0.26 0.16 98.0 4.0-4.5 15 0.35 0.23 98.6 4.5-5.0 33 0.26 0.17 100 Assay Length (m) <=1.5 Grand Total 2521 13.6 Evaluation of Outliers Grade capping analysis was conducted on the domain-coded sample assay data in order to limit the influence of extreme assay values during estimation. Block grade estimates may be unduly affected by high grade outliers. Therefore, assay data were evaluated for high grade outliers and capping was determined from decile and probability plot analyses. 13.6.1 Raja Deposit – Pelangan Prospect Because of the high variation in raw assay lengths from 0.2 m to 1.5 m, SRK evaluated the assay average grades of different sample lengths to determine if shorter sample lengths were associated with high grade sections of the deposits and to evaluate if compositing prior to capping was appropriate. Some correlation between sample lengths and assay values was apparent, with shorter sample lengths having higher average grades than longer sample lengths. Based on the analysis, SRK decided to carry out the capping on 1 m composites, not the assay data. Table 13.4 summarises the capping data for the Raja Deposit. Table 13.4: Capping Level for Raja Deposit Zone Raja Mean Au (g/t) Maximum Value (g/t) Cap Value (g/t) Average Average Capped 92 30 2.99 2.67 Number Capped Lost Metal* (%) 8 12 *Lost metal is (Average - Averaged Capped)/Average*100 where Average is the average grade of the assays before capping and Average Capped is the average grade of the assays after capping. 13.6.2 Bising and Tibu Serai deposits – Mencanggah Prospect SRK evaluated the assay data for the Bising and Tibu Serai Deposits to determine if capping was required. Capping analysis was carried out on 1.5 m composites and the capping level was set at 5 g/t gold based on the change of slope on a cumulative probability plot (Figure 13.4). GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 81 13.6.3 Selodong Deposit – Selodong Prospect SRK evaluated the gold assay data for the Selodong Deposit to determine if capping was required. Because of the longer composite length of 3 m used for Selodong and because of the lack of apparent higher average grade associated with shorter composites (Table 13.3), SRK decided to cap the gold assay data prior to compositing to 3 m lengths. Capping levels were set to 4 g/t. SRK decided that copper did not require capping as no significant grade outliers seemed to exist for copper. Figure 13.4: Capping level for Bising and Tibu Serai Deposits 13.7 Statistical Analysis and Variography 13.7.1 Raja Deposit – Pelangan Prospect A basic statistical analysis was carried out on assay and composited data. A summary of the samples located within the mineralised envelope is presented in Table 13.5. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 82 Table 13.5: Statistics for gold assays and gold composites – Raja Deposit Assay Data 1 m Composite Uncap 1 m Composite Cap Number of Data 933 614 614 Mean 2.89 2.99 2.67 Minimum 0 0 0 Maximum 130 92 30 Upper Quartile 2.89 2.79 2.79 Median 1.23 1.28 1.28 Lower Quartile 0.55 0.64 0.64 Variance 100 50.85 19.87 10.01 7.31 4.46 2.85 2.38 1.67 Standard Deviation CV Because of the narrow nature of the mineralised domain at Raja, experimental correlograms and models could not be generated from the existing data set. A simple omni directional exponential TM variogram was designed from the grade times thickness (GT) data using Sage2001 software. 13.7.2 Bising and Tibu Serai Deposits – Mencanggah Prospect A basic statistical analysis was carried out on assay and composited data. A summary of the samples located within the mineralised envelope is presented in Table 13.6. Table 13.6: Basic statistics for assays and composited data – Bising and Tibu Serai Deposits Assay Data 1.5 m Composite Uncap 1.5 m Composite Cap Au (g/t) Au (g/t) Au (g/t) Number of Data 1140 680 680 Mean 1.19 0.89 0.68 Minimum 0 0 0 Maximum 89.0 42.8 5 Upper Quartile 0.72 0.27 0.27 Median 0.39 0.42 0.42 Lower Quartile 0.24 0.67 0.67 Variance 25.1 6.9 0.77 5.0 2.64 0.88 4.19 2.96 1.28 Standard Deviation CV 13.7.3 Selodong Deposit – Selodong Prospect A basic statistical analysis was carried out on assay and composited data. A summary of the samples located within the mineralised envelops is presented in Table 13.7. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 83 Table 13.7: Basic statistics for gold and copper assays and composites – Selodong Deposit Assay Data 3 m Composite Cap Assay Data 3 m Composite Au (g/t) Au (g/t) Cu (%) Cu (%) Number of data 2544 2073 2544 2073 Mean 0.376 0.37 0.23 0.23 Minimum 0 0 0 0 Maximum 8.6 3 1.62 1.59 Upper Quartile 0.45 0.45 0.30 0.30 Median 0.27 0.27 0.19 0.19 Lower Quartile 0.45 0.17 0.11 0.11 Variance Standard Deviation 0.17 0.11 0.03 0.03 0.41 0.33 0.17 0.17 1.1 0.31 0.76 0.13 CV Spatial continuity of gold and copper was evaluated with correlograms developed using SAGE TM 2001 version 1.08. The correlogram measures the correlation between data values as functions of their separation distance and direction. The distance at which the correlogram is close to zero is called the “range of correlation” or simply the range. The range of the correlogram corresponds roughly to the more qualitative notion of the “range of influence” of a sample or composite. Variographic analysis was completed for gold for the Raja, Bising, Tibu Serai and Selodong Deposits and for copper for the Selodong Deposit. Directional correlograms were generated for composited data at 30 degree increments along horizontal azimuths. For each azimuth, correlograms were calculated at dips of 0, 30 and 60 degrees. A vertical correlogram was also calculated. Using information from these 37 correlograms, Sage determines the best fit model using least square fit method. The correlogram model is described by the nugget (Co), two nested structure variance contributions (C1, C2), ranges of the variance contributions and the model type (spherical or exponential). After fitting the variance parameters, the algorithm then fits an ellipsoid to the 37 ranges from the directional models for each structure. The final models of anisotropy are given by the lengths and orientations of the axes of the ellipsoids. Correlograms were developed on composited assay data except for the Raja Deposit where correlograms were developed on grade times thickness (GT) because of the narrow nature of the mineralisation at Raja. Table 13.8 summarises the correlogram parameters used for each of the deposit areas estimated. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 84 Table 13.8: Au and Cu exponential correlogram parameters by deposit Deposit Raja Bising Tibu Serai Selodong Selodong Metal Au Au Au Cu Nugget C0 0.1 0.27 0.16 0.1 Sill C1, C2 Gemcom Rotations (RRR rule) around Z around Y Ranges a1, a2 around Z X-Rot Y-Rot Z-Rot 0.9 0 0 0 40 40 40 N/A N/A N/A N/A N/A N/A N/A 0.507 79 60 -118 20 65 15 0.223 79 60 -118 150 100 20 0.83 12 37 20 177 135 51 N/A N/A N/A N/A N/A N/A N/A 0.81 12 37 16 117 67 43 N/A N/A N/A N/A N/A N/A N/A 13.8 Block Model and Grade Estimation Mineral resources for the West Lombok Project were estimated in three separate block models; one representing each of the main prospect areas (Figure 13.5). TM Block modelling was carried out in Gemcom GEMS Consultant with SRK. 6.5 software by Dr. Gilles Arseneau, Associate Block estimates were carried out in 10 x 10 x 5 m blocks for the Raja, Bising and Tibu Serai Deposits and a 10 x 10 x 10 m for the Selodong Deposit. A percent model was used to weight partial blocks situated at zone boundaries. Block model parameters are defined in Table 13.9. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 85 Figure 13.5: Plan view of the three block model areas on the West Lombok Project (Note: Grid is 2 km x 2 km) Table 13.9: Block model setup parameters Model Easting Raja Northing Elevation Easting Bising – Tibu Serai Northing Elevation Easting Selodong Northing Elevation Model Origin (WGS 84) Block Size (m) No of Blocks 384,200 10 120 9,027,800 10 140 400 5 125 387,900 10 110 9,023,530 10 170 510 5 88 390,600 10 100 9,020,800 10 200 240 10 75 The Gemcom block model origin is defined at minimum X and Y and maximum Z value. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 86 13.8.1 Grade models Grades were estimated by Ordinary Kriging with a minimum of two samples for Raja, four samples for Selodong and five samples for Bising –Tibu Serai deposits. To estimate block grades a maximum of twelve composites were used in the Raja and Bising –Tibu Serai deposits and a maximum of nin to twelve composites were used in the Selodong Deposit. Grade interpolations were carried out in three passes, with each successive pass using a larger search radius than the preceding pass and only estimating the blocks that had not been interpolated by the previous pass. Table 13.10 summarises the search parameters for each interpolation pass. Table 13.10: Search parameters by deposit and metal Metal Deposit Rotation Pass Max. Samples per DDH Number of Composites Search Ellipse Size Z Y Z X (m) Y (m) Z (m) Min. Max. Au Raja 1 15 20 0 20 60 50 2 12 1 Au Raja 2 15 20 0 20 75 75 1 12 1 Au Raja 3 15 20 0 10 20 20 1 12 12 Au Bising 1 60 60 -49 75 50 14 5 12 4 Au Bising 2 60 60 -49 150 100 14 3 12 2 Au Bising 3 60 60 -49 20 20 14 2 12 12 Au Tibu Serai 1 50 60 -49 75 50 14 5 12 4 Au Tibu Serai 2 50 60 -49 200 100 14 3 12 2 Au Tibu Serai 3 50 60 -49 20 20 14 2 12 12 Au Selodong 1 12 37 20 50 50 20 4 9 2 Au Selodong 2 12 37 20 100 100 40 4 12 3 Au Selodong 3 12 37 20 177 135 50 4 12 3 Au Selodong 4 12 37 20 25 25 10 3 12 12 Cu Selodong 1 12 37 20 50 50 20 4 12 2 Cu Selodong 2 12 37 20 100 100 40 4 12 2 Cu Selodong 3 12 37 20 177 135 50 4 12 2 Cu Selodong 4 12 37 20 25 25 10 3 12 12 13.8.2 Bulk density model There are 1,408 bulk density measurements in the West Lombok database with an average of 2.58. SRK is of the opinion that while these are sufficient to estimate a mineral resource, the amount of bulk density data is too limited for estimation by kriging. For this reason, SRK used a simple average to estimate the model block densities. Bulk density data used for the resource estimate is summarised in Table 13.11. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 87 Table 13.11: Bulk density used for resource estimation Deposit Average SG Count Raja 2.51 141 Bising 2.55 277 Tibu Serai 2.48 127 Selodong 2.56 863 Default waste rock 2.60 NA 13.9 Model Validation and Sensitivity 13.9.1 Validation of Raja model The Raja block model was validated by comparing the interpolated block grades against the composited cap grades on section and plan views (Figure 13.6). Overall, the comparison showed that the estimated blocks agreed reasonably well with the composite grades from which they were derived. Figure 13.6: Comparison of block grades and composite grades, block model Level 58 (110 m above sea level) (Note: Grid is 200 x 200 m) GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 88 Additional validation of the Raja model was provided by re-estimating the mineral resources using 2 2 inverse distance squared (ID ) estimation. The ID estimation was carried out using the same search criteria as for the Ordinary Kriging run, but 1 m composited gold assays were used directly to estimate gold grades instead of using grade times thickness. The two estimation procedures returned very similar results. The Ordinary Kriging model returned slightly more tonnes at a lower 2 grade than the ID model, but the two models contained similar metal content (Figure 13.7). 400000 350000 OK oz Contained ounces 300000 ID2 Oz 250000 200000 150000 100000 50000 0 0 1 2 3 4 5 6 Cut-off Au (g/t) Figure 13.7: Metal content of Ordinary Kriged and Inverse Distance Squared models at various grade cut-offs 13.9.2 Validation of Bising – Tibu Serai model The Bising and Tibu Serai block model was validated by comparing the interpolated block grades against the composited cap grades on section and plan views (Figure 13.8). Overall, the comparison showed that the estimated blocks agreed reasonably well with the composite grades from which they were derived. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 89 Figure 13.8: Plan view of Bising Deposit comparing block and composite gold grades, block model Level 25 (345 m above sea level) (Note: Grid is 200 x 200 m) Additional validation of the Bising and Tibu Serai model was carried out by comparing well informed blocks with composites contained within those blocks, and comparison of average assay grades with average block estimates along different directions – swath plots. Figure 13.9(a) shows a comparison of estimated gold block grades, with borehole composite assay data contained within those blocks, within the mineralised domains for the Bising deposit. Figure 13.9(b) shows the same for the Tibu Serai deposit. On average, the estimated blocks are similar to the composite data, although there is a large scatter of points around the x = y line. This scatter is typical of smoothed block estimates compared to the more variable assay data used to estimate those blocks. The thick white line that runs through the middle of the cloud is the result of a piece-wise linear regression smoother. Comparison for Tibu Serai is very limited because of the small size of the deposit and available data. Domain 201 Domain 301 Nb. of data 203 X Var: mean 0.692 std. dev. 0.734 minimum 0.001 maximum 5.000 Y Var: mean 0.673 std. dev. 0.464 minimum 0.181 maximum 2.937 correlation 0.659 rank corr. 0.596 Reg: smoothed Y 1. .1 10. Estimates Estimates 10. Nb. of data 40 X Var: mean 0.975 std. dev. 1.046 minimum 0.001 maximum 5.000 Y Var: mean 0.989 std. dev. 0.810 minimum 0.055 maximum 2.854 correlation 0.746 rank corr. 0.853 Reg: smoothed Y 1. .1 .1 1. 10. .1 Composites 1. 10. Composites Figure 13.9: Comparison of well-informed blocks for Bising (a) and Tibu Serai (b) GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 90 As a final check, average composite grades and average block estimates were compared along different directions. This involved calculating de-clustered average composite grades and comparison with average block estimates along east-west, north-south, and horizontal swaths. Figure 13.10 shows the swath plots in the mineralised zone at Bising and Figure 13.11 shows the swatch plot for the mineralised zone at Tibu Serai. The average composite grades and the average estimated block grades are quite similar in all directions. The composite data display slightly more variability than the block grades as a result of the smoothing effect due to the Ordinary Kriging estimation. Overall, the validation shows that the current resource estimate is a good reflection of drill hole composited data. Comparison of the Tibu Serai data is of limited use because of the small data set used to prepare the block model. Figure 13.10: Swath plot of composite and block grades for Bising Figure 13.11: Swath plot of composite and block grades for Tibu Serai 13.9.3 Validation of Selodong Model The Selodong block model was validated by comparing the interpolated block grades against the composited cap grades on section and plan views (Figure 13.12). Overall, the comparison showed that the estimated blocks agreed reasonably well with the composite grades from which they were derived. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 91 Figure 13.12: Plan view of Selodong model comparing copper equivalent block grades and corresponding composite grades, block model Level 22 (25 m above sea level)( Note: Grid is 200 x 200 m) Additional validation of the Selodong model was carried out by comparing well informed blocks with composites contained within those blocks, and comparison of average assay grades with average block estimates along different directions – swath plots. Figure 13.13 shows a comparison of estimated gold block grades with borehole composite assay data contained within those blocks in all mineralised domains of the Selodong deposit. Figure 13.14 shows the same for copper. On average, the estimated blocks are similar to the composite data, although there is a large scatter of points around the x = y line. This scatter is typical of smoothed block estimates compared to the more variable assay data used to estimate those blocks. The thick white line that runs through the middle of the cloud is the result of a piece-wise linear regression smoother. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Domain 400 Domain 401 Nb. of data 437 X Var: mean 0.309 std. dev. 0.242 minimum 0.005 maximum 1.390 Y Var: mean 0.314 std. dev. 0.214 minimum 0.008 maximum 1.326 correlation 0.940 rank corr. 0.911 Reg: smoothed Y 10. 1. .1 100. Nb. of data 341 X Var: mean 0.432 std. dev. 0.355 minimum 0.010 maximum 1.813 Y Var: mean 0.444 std. dev. 0.324 minimum 0.019 maximum 1.762 correlation 0.887 rank corr. 0.861 Reg: smoothed Y 10. Estimates 100. Estimates Page 92 .01 1. .1 .01 .001 .001 .001 .01 .1 1. 10. 100. .001 .01 Composites .1 1. 10. 100. Composites Figure 13.13: Comparison of well-informed blocks with composite gold grades for Selodong model (Note: Refer to Figure 13.3 for Selodong mineralised domain location) Domain 400 Nb. of data 437 X Var: mean 0.197 std. dev. 0.123 minimum 0.002 maximum 0.655 Y Var: mean 0.198 std. dev. 0.109 minimum 0.004 maximum 0.576 correlation 0.927 rank corr. 0.918 Reg: smoothed Y Estimates 10. 1. .1 .01 100. Domain 401 Nb. of data 341 X Var: mean 0.283 std. dev. 0.207 minimum 0.003 maximum 1.365 Y Var: mean 0.283 std. dev. 0.188 minimum 0.011 maximum 1.240 correlation 0.939 rank corr. 0.909 Reg: smoothed Y 10. Estimates 100. 1. .1 .01 .001 .001 .001 .01 .1 1. 10. 100. .001 Composites .01 .1 1. 10. 100. Composites Figure 13.14: Comparison of well-informed blocks with composite copper grades for Selodong model As a final check, average composite grades and average block estimates were compared along different directions. This involved calculating de-clustered average composite grades and comparison with average block estimates along east-west, north-south, and horizontal swaths. Figure 13.15 shows the gold swath plots in the mineralised zones at Selodong and Figure 13.16 shows the copper swath plots. The average composite grades and the average estimated block grades are quite similar in all directions. The composite data display slightly more variability than the block grades as a result of the smoothing effect due to the Ordinary Kriging estimation. Overall, the validation shows that current resource estimate is a good reflection of drill hole composited data. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 93 (a) (b) Figure 13.15: Swath plots for gold grades for Selodong for domain 400 (a) and domain 401 (b) GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 94 (a) (b) Figure 13.16: Swath plots for copper grades for Selodong for domain 400 (a) and domain 401 (b) 13.10 Mineral Resource Classification Block model quantities and grade estimates for the West Lombok Project were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005) by Dr. Gilles Arseneau, P.Geo. (APEGBC); an appropriate independent qualified person for the purposes of National Instrument 43-101. Mineral resource classification is typically a subjective concept. Industry best practices suggest that resource classification should consider both the confidence in the geological continuity of the mineralised structures, the quality and quantity of exploration data supporting the estimates, and the geostatistical confidence in the tonnage and grade estimates. Appropriate classification criteria should aim at integrating both concepts to delineate regular areas at similar resource classification. SRK is satisfied that the geological modelling honours the current geological information and knowledge. The location of the samples and the assay data are sufficiently reliable to support resource evaluation. The sampling information was acquired primarily by core drilling on sections spaced between 25 and 50 metres depending on the deposit modelled. Generally, for mineralisation exhibiting good geological continuity, and investigated at adequate drill hole spacing with reliable assay data, SRK considers that blocks estimated during the first estimation run can be classified in the Indicated category within the meaning of the CIM Definition Standards for Mineral Resources and Mineral Reserves. However, SRK is of the opinion that the mineralisation at GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 95 the West Lombok Project is best classified as Inferred Mineral Resource because of the widely spaced drilling and relatively poor grade continuity at the current drill spacing. SRK is of the opinion that the confidence in the estimate is insufficient to allow for the meaningful application of technical and economic parameters or to enable an evaluation of economic viability. 13.11 Mineral Resource Statement CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005) defines a mineral resource as: “(A) concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge”. The “reasonable prospects for economic extraction” requirement generally implies that the quantity and grade estimates meet certain economic thresholds and that the mineral resources are reported at an appropriate cut-off grade, taking into account extraction scenarios and processing recoveries. In order to meet this requirement, SRK considers that major portions of the deposits on the West Lombok Project may be amenable for open pit extraction. In order to determine the quantities of material offering “reasonable prospects for economic extraction” by an open pit, SRK used a pit optimizer and reasonable mining assumptions to evaluate the proportions of the block model (Inferred blocks) that could be “reasonably expected” to be mined from an open pit. Open pit parameters were selected based on experience and benchmarking against similar projects (Table 13.12). The reader is cautioned that the results from the pit optimization are used solely for the purpose of testing the “reasonable prospects for economic extraction” by an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the West Lombok Project. The results are used as a guide to assist in the preparation of a mineral resource statement and to select an appropriate resource reporting cut-off grade. Table 13.12: Assumptions considered for conceptual open pit optimization Parameter Value Unit Gold Price 1,500 US$ per ounce 3.56 US$ per pound 25 US$ per ounce Copper Price Silver Price Exchange Rate 1:1 $US/$CDN Mining Cost 1.50 US$ per tonne mined Processing 5.00 US$ per tonne of feed General and Administrative 1.00 US$ per tonne of feed Overall Pit Slope 50 Degrees Gold Process Recovery 76 Percent Copper Recovery 86 Percent 0 Percent Silver Recovery GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 96 SRK considers that the blocks located within the conceptual pit envelope satisfy the “reasonable prospects for economic extraction” and can be reported as a mineral resource. Tables 13.13 to Table 13.16 summarise the mineral resources for the West Lombok Project. Table 13.13: Mineral Resource Statement*, Raja Deposit, West Lombok Project, Indonesia, SRK Consulting, July 13, 2013 Classification Inferred Tonnage Grade Grade (tonnes) Cap Au (g/t) Ag (g/t) 3,898,000 2.63 14 Contained Metal Gold Ounces 329,700 Contained Metal Silver Ounces 1,821,000 * Reported at a cut-off grade of 0.5 g/t gold equivalent inside a Whittle pit shell. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All numbers have been rounded to reflect the relative accuracy of the estimates. Gold equivalent is calculated using US$1500 per ounce of gold and US$25 per ounce of silver and 100% metal recoveries for both metals Gold was capped at 30 g/t. Silver grades were not capped. Table 13.14: Mineral Resource Statement*, Bising Deposit, West Lombok Project, Indonesia, SRK Consulting, July 13, 2013 Classification Inferred Tonnage Grade Contained Metal (tonnes) Cap Au (g/t) Gold Ounces 6,908,000 0.88 195,550 * Reported at a cut-off grade of 0.5 g/t gold inside a Whittle pit shell. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All numbers have been rounded to reflect the relative accuracy of the estimates. Gold was capped at 5 g/t. Table 13.15: Mineral Resource Statement*, Tibu Serai Deposit, West Lombok Project, Indonesia, SRK Consulting, July 13, 2013 Classification Inferred Tonnage Grade Contained Metal (tonnes) Cap Au (g/t) Gold Ounces 977,000 1.36 42,570 * Reported at a cut-off grade of 0.5 g/t gold inside a Whittle pit shell. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All numbers have been rounded to reflect the relative accuracy of the estimates. Gold was capped at 5 g/t. Table 13.16: Mineral Resource Statement*, Selodong Deposit, West Lombok Project, Indonesia, SRK Consulting, July 13, 2013. Classification Inferred Tonnage Grade Grade (tonnes) Cap Au (g/t) Cu (%) 66,750,000 0.43 0.27 Contained Metal Gold Ounces 922,800 Contained Metal Copper Pounds 397,324,000 * Reported at a cut-off grade of 0.25% copper equivalent inside a Whittle pit shell. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All numbers have been rounded to reflect the relative accuracy of the estimates. Gold was capped at 4 g/t. Copper equivalent is calculated using US$1500 per ounce of gold and US$3.56 per pound of copper and 100% metal recoveries for both metals. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 97 13.12 Grade Sensitivity Analysis The mineral resources of the West Lombok Project are very sensitive to the selection of the reporting cut-off grade. This is especially true in the Bising deposit. To illustrate this sensitivity, the global model quantities and grade estimates are presented in Tables 13.18 to Table 13.21 at different cutoff grades. The reader is cautioned that the figures presented in this table should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade. Figures 13.17 to Figure 13.20 present this sensitivity as grade tonnage curves. The steep decline in tonnage with increasing cut-off grade is indicative of the high susceptibility of the deposit to cut-off selection. Table 13.17: Global block model quantities and grade estimates*, Raja Deposit, West Lombok Project, at various cut-off grades Cut-off Grade Quantity Grade Metal Content Gold (g/t) (tonnes) Gold (g/t) Gold (ounces) 5.0 415,650 5.89 78,700 4.0 527,000 5.57 94,400 3.0 1,192,500 4.39 168,200 2.0 2,605,000 3.30 276,300 1.5 3,182,000 3.02 308,700 1.0 3,674,600 2.79 329,000 0.5 4,028,400 2.61 338,000 *The reader is cautioned that the figures in this table should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade. Table 13.18: Global block model quantities and grade estimates*, Bising Deposit, West Lombok Project, at various cut-off grades Cut-off Grade Gold (g/t) 2.0 1.5 1.0 0.5 Quantity Grade Metal Content (tonnes) Gold (g/t) Gold (ounces) 101,600 2.26 7,370 534,000 1.78 30,600 1,947,000 1.37 86,000 6,908,000 0.88 195,550 *The reader is cautioned that the figures in this table should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade. Table 13.19: Global block model quantities and grade estimates*, Tibu Serai Deposit, West Lombok Project, at various cut-off grades Cut-off Grade Quantity Grade Metal Content Gold (g/t) (tonnes) Gold (g/t) Gold (ounces) 2.0 183,200 2.28 13,400 1.5 407,000 1.99 26,000 1.0 614,000 1.74 34,400 0.5 977,000 1.36 42,570 *The reader is cautioned that the figures in this table should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 98 Table 13.20: Global block model quantities and grade estimates*, Selodong Deposit, West Lombok Project, at various cut-off grades Cut-off Grade Quantity Copper Eq (%) (tonnes) Grade Metal Grade Metal Gold (ounces) Copper (%) Copper (pounds) 133,000 0.58 51,851,000 1.0 4,055,000 Gold (g/t) 1.02 0.50 27,530,000 0.63 557,600 0.37 224,565,000 0.40 40,856,000 0.54 709,300 0.33 297,238,000 0.30 58,508,000 0.46 865,300 0.28 361,166,000 0.25 66,750,000 0.43 922,800 0.27 397,328,000 0.20 73,960,000 0.40 951,200 0.25 407,635,000 0.10 81,855,000 0.38 1,000,000 0.24 433,102,000 *The reader is cautioned that the figures in this table should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade. 4,500 7 4,000 Tonnes Gold (g/t) 6 3,500 Tonnes (000) 2,500 4 2,000 3 1,500 Average Grade Au (g/t) 5 3,000 2 1,000 1 500 0 0 0 1 2 3 4 5 6 Cut-off grade Au (g/t) Figure 13.17: Grade tonnage curve for the Raja Deposit, West Lombok Project GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 99 8,000 2.5 7,000 Tonnes 2 6,000 Tonnes (000) 5,000 1.5 4,000 1 3,000 Average grade Au (g/t) Gold (g/t) 2,000 0.5 1,000 0 0 0 0.5 1 1.5 Cut-off grade Au (g/t) 2 2.5 Figure 13.18: Grade tonnage curve for the Bising Deposit, West Lombok Project 1,200 2.5 1,000 2 Tonnes (000) Gold (g/t) 1.5 600 1 Average grae Au (g/t) Tonnes 800 400 0.5 200 0 0 0 0.5 1 1.5 2 2.5 Cut-off grade Au (g/t) Figure 13.19: Grade tonnage curve for the Tibu Serai Deposit, West Lombok Project GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 100 90,000 1.2 80,000 Tonnes 1 Gold (g/t) 70,000 Tonnes (000) 0.8 50,000 0.6 40,000 30,000 0.4 Average grade Au (g/t) Cu (%) Copper (%) 60,000 20,000 0.2 10,000 0 0 0 0.2 0.4 0.6 Cut-off grade Cu Eq (%) 0.8 1 1.2 Figure 13.20: Grade tonnage curve for the Selodong Deposit, West Lombok Project GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 101 14 Adjacent Properties This section is taken from Campbell, 2010. The author of the report has been unable to verify the information contained in this section and the information presented in this section of the report is not necessarily indicative of the mineralisation on the West Lombok Project that is the subject of this technical report. Adjoining the western property boundary is a 5,000 hectare concession held by PT. Bintang Sumberdaya under a IUP exploration license. Field inspections in this locality reported intense porphyry style alteration over a width of 50+ m, with at least 850 m of strike length. Secondary copper oxides (malachite, azurite and lesser chrysocolla) are prolific in the western part of the area and are currently being mined by local artesian miners. Host rocks comprise magnetite-epidotesilicic altered diorite porphyry intrusives, with some later phyllic overprinting. Strong northwest structural control of mineralisation is evidenced by intense fracturing, fault slickensides and sharp contact boundaries on porphyry stockwork veining. Overlying and peripheral to the stockwork zone are intermixed argillic and advanced argillic assemblages, hosting limited or no stockworking. A single grab sample of porphyry veining material being mined by local artesian miners assayed 0.62 g/t Au and 0.36% Cu. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 102 15 Other Relevant Data and Information There is no other relevant data available about the West Lombok Project. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 103 16 Interpretation and Conclusions The West Lombok Property hosts an early stage copper gold project situated on the west side of Lombok Island in Indonesia and covering a northwest trending 13 km by 7 km wide mineralised structural corridor. Mineralisation on the property has been separated into three main prospect areas: from north to south, the Pelangan, the Mencanggah and the Selodong Prospects. Each prospect consists of several mineral targets or showings; many of which have been the subject of exploration by diamond drilling that host both porphyry copper-gold and epithermal gold mineralisation. Work carried out by Southern Arc has included geophysical and geochemical surveys as well as geological mapping and diamond drilling. In total, Southern Arc has drilled 201 holes totalling 47,750 m. The drilling programs resulted in the identification of inferred mineral resources for the Raja, Bising, Tibu Serai and Selodong Deposits as presented in Section 13 of this report. The mineral resources at West Lombok have been classified as Inferred Mineral Resources by SRK. An Inferred Mineral Resource has the lowest level of confidence as defined by CIM (Figure 16.1). For this reason, a certain risk is associated with the tonnage and grade estimates presented in this report. Additional drilling is required to upgrade the mineral resource class from Inferred to Indicated or Measured. Readers are cautioned that there are no guarantees that additional drilling will result in additional mineralisation being defined or that the classification will improve if the drilling is not successful in better defining the geological knowledge of the deposits. Furthermore, additional drilling may change the geological interpretation of the deposit which could result in a reduction or increase in the deposit size. SRK is not aware of any other significant risks and uncertainties that could be expected to affect the reliability or confidence in the early stage exploration information discussed herein. Figure 16.1: Classification of mineral resources and mineral reserves GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 104 All deposits identified so far are still open at depth and along strike and further drilling could discover additional mineralisation, especially at Raja where the possibility of finding mineralisation that could be amenable to underground mining seems very good. The West Lombok Property contains several other mineral occurrences and only a small portion of the favourable ground has been drill tested to date. SRK is of the opinion that the untested mineral occurrences represent a significant opportunity to locate additional mineralisation. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 105 17 Recommendations SRK recommends that Southern Arc continue to explore the West Lombok Property. SRK recommends a two phase exploration program (Phase 3A and Phase 3B) including 4,010 m of drilling at Raja and Bising. Phase 3B is contingent on receiving positive results from phase 3A of exploration. 17.1 Pelangan SRK recommends that Southern Arc drills an additional eight holes for 1,420 m in the Raja Deposit as part of the next exploration phase (Phase 3A) (Table 17.1). The drilling is targeted to infill around previously identified higher grade mineralised shoots and to test the down dip extension of the mineralised zone and, if results are positive, upgrade the mineral resources from inferred to indicated (Figure 17.1). If the results of the first drilling phase are encouraging, SRK recommends an additional five drill holes (Phase 3B) for the Raja Deposit to evaluate the down dip potential of the mineralisation. Table 17.1 Proposed drilling for Raja Deposit PDH No Section Line Proposed Depth Phase PDH01-A SE200 165 PDH02-A SE355 115 3A 3A PDH03-A SE290 320 3A PDH04-A SE158 135 3A PDH05-A SE320 150 3A PDH06-A SE595 100 3A PDH07-A SE680 260 3A PDH08-A SE890 175 3A 1,420 3A Total A = GA / MN PDH01-B SE225 165 PDH02-B SE284 165 3B 3B PDH03-B SE290 350 3B PDH04-B SE705 325 3B PDH05-B SE890 200 3B Total B = 1,205 3B Total A+B = 2,625 3A + 3B Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 106 (Source Southern Arc, 2013) Figure 17.1 Planview of proposed Phase 3A and 3B drilling for Raja Deposit GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 107 17.2 Mencanggah SRK recommends an additional eight drill holes for the Bising deposit (Phase 3A) to help upgrade the resource classification from inferred to Indicated. The drill holes are mainly designed to infill between existing drill holes to help confirm the continuity of grades between drill holes within the mineralised unit (Table 17.2). Table 17.2 Proposed Phase 3 drill holes for Bising Deposit PDH NO SECTION LINE Proposed Depth (m) Phase PDH01-A ESE-652 170 3 PDH02-A ESE-565 170 3 PDH03-A ESE-904 165 3 PDH04-A ESE-852 145 3 PDH05-A ESE-800 180 3 PDH06-A ESE-747 145 3 PDH07-A ESE-695 225 3 PDH08-A ESE-422 185 3 1,385 3 Total Phase 1 = No additional drilling is recommended at this stage for the Selodong Deposit. SRK recommends that Southern Arc continues geological mapping in the Tibu Serai and Selodong areas and that drill core samples be taken from the Raja and Bising deposits for preliminary metallurgical testing and characterization. Approximately 4,000 m of exploration drilling is recommended to test other undrilled targets at Mencanggah including Tibu Serai, Mahoni and several other localities with highly anomalous surface geochemistry. Drill testing is also recommended for the Lala structure on the Palagan Prospect area where highly anomalous surface values are located 350 m east of Raja along an 800 m parallel trend. Table 17.3 summarises the costs of the recommended exploration program. Table 17.3 Estimated cost for the exploration program proposed for the West Lombok Project Description Units Total Costs (CDN$) 2,805 m $561,000 Phase 3A Program Diamond drilling (all inclusive) Geological mapping Metallurgical program 30 days $15,000 4 samples $120,000 Sub-total Phase 3A $696,000 10% contingency $69,600 Total Phase 3A Program $765,600 Phase 3B Program Diamond drilling (all inclusive) 1,205 m $241,000 Exploration Drilling 4,000 m $800,000 Preliminary Economic Assessment GA / MN $180,000 Sub Total Phase 3B $1,221,000 Total Phase 3A & 3B $1,986,600 Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 108 SRK is unaware of any significant factors and risks that may affect access, title, or the right or ability to perform the exploration work recommended for the West Lombok Project. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 109 18 Acronyms and Abbreviations Distance Other µm mm cm m km ” in ‟ ft Area micron (micrometre) millimetre centimetre metre kilometre inch inch foot foot m2 km2 ac ha Volume square metre square km acre hectare l m3 ft3 usg lcm bcm Mbcm Mass litre cubic metre cubic foot US gallon loose cubic metre bank cubic metre million bcm kg g t Kt lb Mt MPa Pressure kilogram gram metric tonne kilotonne pound megatonne megapascal psi pounds per square inch Pa pascal kPa kilopascal mPa megapascal Elements and Compounds Au gold Ag silver Cu copper Fe iron S sulphur CN cyanide NaCN sodium cyanide Conversion Factors 1 tonne 1 oz GA / MN o C F Btu cfm elev masl hp hr kW kWh M mph ppb ppm s s.g. usgpm V W Ω A tph tpd mtpa Ø Acronyms o BLEG CH CIM CoW CSAMT DGPS GPS IP IUP MSB NI 43-101 NSR SRK RC RF SIC XRD degree Celsius degree Fahrenheit British Thermal Unit cubic feet per minute elevation above sea level m above sea level horsepower hour kilowatt kilowatt hour Million miles per hour parts per billion parts per million second specific gravity US gallon per minute volt watt ohm ampere tonnes per hour tonnes per day million tonnes per annum diam rock channel sample Canadian Institute of Mining Contract of Work Digital Global Positioning System Global Positioning System induced polarization Indonesian mining business license mineralised structural breccia National Instrument 43-101 net smelter return SRK Consulting (Canada) Inc. rock chip sample rock float sample Selodong Intrusive Complex 1 tonne 1 oz Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 110 19 References Allen, J.M., 1990. Petrology of Quartz Vein Samples from the Pelangan Prospect, South Lombok, Indonesia: A Polymetallic Au-Ag-Cu-Te-Se-As-Sb-Pb-Bi Deposit. CMS Petrology Report No. 353. Campbell, H.J., 2010. Technical report on Exploration activities (2005-2010) at the West Lombok Project of southern Arc Minerals Inc., Lombok Island, West Nusa Tenggara Province, Indonesia, 110p. Clode, C.H. and Pratama, B., 2002. Application of PIMA Technology in Defining Gold and Copper Exploration Targets in Island Arc Settings: A Case Study from Sumbawa and Lombok, Indonesia. Proceedings of the 31st Annual Convention of Indonesian Association of Geologists, Vol. 1, pp. 954967. Garwin, S., 2002. The Geologic Setting of Intrusion – Related Hydrothermal Systems near the Batu Hijau Porphyry Copper-Gold Deposit, Sumbawa, Indonesia, Society of Economic Geologist – Special Publication 9, Chapter 15, p333-366. Hamilton, W.B., 1979. Tectonics of the Indonesian region. US Geological Survey Professional Paper, 1078, 345pp. Norton Rose Fulbright, 2012. New Indonesian mining regulations. Web Site Publication: http://www.nortonrosefulbright.com/knowledge/publications/64444/new-indonesian-miningregulations, March 2012. Pieters, P.J., 2004. Remote Image Study of the Indotan Inc SIPP area, South Lombok, Nusa Tenggara. Peter Pieters Consulting. Rontek, R.B., 1985 Pemboran Inti Endapan Bijih Timah Hitam P. Lombok Pada K.P Eksplorasi DU 59/NUSBAR. Pusat Pengembangan Teknologi Mineral, Direktorat Jenderal Pertambangan Umum. Rowe, A.J., 2008. Surface Evaluation and First Phase Drilling at the Selodong Prospect, December 2008. Rowe, A.J., 2008. Surface Evaluation of the Mencanggah Prospect, December 2008. Van Bemmelen, R.W., 1949. The Geology of Indonesia. Vol. 1A. General Geology. Government Printing Office, Martinus Nijhoff, The Hague, Netherlands. White, P.J., 1998. Petrology of 40 samples from Pelangan Prospect, Lombok for PT. Jasa Prima Raya. Sinclair Knight Merz Petrology Report No. M1180 GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 2CS032.000 – Southern Arc Minerals Inc. Independent Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia Page 111 20 Date and Signature Page This technical report was written by the following “Qualified Persons” and contributing authors. The effective date of this technical report is July 11, 2013 Qualified Person Dr. Gilles Arseneau, P. Geo. Signature Date “original signed” August 23, 2013 Reviewed by Original signed Marek Nowak, P.Eng. Project Reviewer All data used as source material plus the text, tables, figures, and attachments of this document have been reviewed and prepared in accordance with generally accepted professional engineering and environmental practices. GA / MN Lombok_2CS032.000_NI 43-101_GA_MN_20130822 August 23, 2013 SRK Consulting (Canada) Inc. Suite 2200 - 1066 West Hastings Street Vancouver, BC V6E 3X2 T: +1.604.681.4196 F: +1.604.687.5532 vancouver@srk.com www.srk.com CERTIFICATE OF QUALIFIED PERSON To accompany the report entitled: Technical Report for the West Lombok Gold and Copper Project, Lombok, Indonesia, August 23, 2013. I, Dr. Gilles Arseneau, residing in North Vancouver do hereby certify that: 1) I am an Associate Consultant with the firm of SRK Consulting (Canada) Inc. (“SRK”) with an office at Suite 2200, 1066 West Hastings Street, Vancouver, British Columbia, Canada; 2) I graduated with B.Sc. in Geology from the University of New Brunswick, 1979; a M.Sc. in Geology from the University of Western Ontario, 1984 and a Ph.D. in Geology from the Colorado School of Mines, 1995. I have been involved in mining since 1979 and have practised my profession continuously since 1995. I have been involved with exploration projects and consulting covering a wide range of mineral commodities in Africa, South America North America and Asia including deposits similar to West Lombok Project in North and south America. I have over ten years of experience in resource estimation using Gemcom software; 3) I am a Professional Geoscientist registered with the Association of Professional Engineers and Geoscientists of British Columbia; 4) I have personally inspected the subject project Lombok on December 6 through 9, 2011 and on April 23 to 26, 2013; 5) I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that by virtue of my education, affiliation to a professional association and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of National Instrument 43-101 and this technical report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1; 6) I, as a qualified person, I am independent of the issuer as defined in Section 1.5 of National Instrument 43-101; 7) I am the author of this report and responsible for all sections of the report and accept professional responsibility for all sections of this technical report; 8) I have had no prior involvement with the subject property; 9) I have read National Instrument 43-101 and confirm that this technical report has been prepared in compliance therewith; 10) SRK Consulting (Canada) Inc. was retained by Southern Arc Minerals Inc. to prepare a technical report and mineral resource estimate for the West Lombok project. The preceding report is based on a site visit, a review of project files and discussions with Southern Arc Minerals Inc. personnel; 11) I have not received, nor do I expect to receive, any interest, directly or indirectly, in the West Lombok Property or securities of Southern Arc Minerals Inc.; and 12) That, as of the date of this certificate, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. Vancouver, B.C. August 23, 2013 [“signed and sealed”] Dr. Gilles Arseneau, P. Geo. Associate Consultant, SRK Canada APPENDIX A Mineral Tenure Information PENGUMUMAN KE‐DUA REKONSILIASI IUP NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 1 ANEKA TAMBANG TBK, PT TAPANULI UTARA 214/21/KPPT/TAHUN 2010 12.580,00 EKSPLORASI EMAS 25/Feb/10 2 ANEKA TAMBANG TBK, PT TAPANULI UTARA 215/21/KPPT/Tahun 2010 20.680,00 EKSPLORASI EMAS DMP 25/Feb/10 3 ANEKA TAMBANG TBK, PT TAPANULI UTARA 216/21/KPPT/ Tahun 2010 6.492,00 EKSPLORASI EMAS 17/Jun/09 4 ANEKA TAMBANG , PT 540/335/Tamben/2009 8.176,00 EKSPLORASI LOGAM DASAR 30/Dec/09 5 X DAREH, CV DHARMASRAYA 189.1/134/KPTS‐BUP/2009 198,00 EKSPLORASI BATUBARA 3/Jul/2009 6 BARA MITRA SEJAHTERA, PT INDRAGIRI HULU 13/IUP/545‐02/V2010 4.327,00 EKSPLORASI BATUBARA 28/Apr/2010 7 SELUMA PRIMA COAL, PT SAROLANGUN 37 Tahun 2009 2.000,00 OPERASI PRODUKSI BATUBARA 8/Jun/2009 8 BANGUN WAHANA LINGKUNGAN LESTARI, PT BATANG HARI 503/59/IUPEksplorasi/BPTSP/2010 1.945,00 EKSPLORASI BATUBARA 2/Jul/2010 9 BANGUN WAHANA LINGKUNGAN LESTARI, PT BATANG HARI 503/58/IUPEksplorasi/BPTSP/2010 1.945,00 EKSPLORASI BATUBARA 2/Jul/2010 10 BANGUN WAHANA LINGKUNGAN LESTARI, PT BATANG HARI 503/60/IUPEKSPLORASI/BPTSP/2010 1.945,00 EKSPLORASI BATUBARA 2/Jul/2010 11 BANGUN WAHANA LINGKUNGAN LESTARI, PT BATANG HARI 503/53/IUPEksplorasi/BPTSP/2010 1.625,00 EKSPLORASI BATUBARA 2/Jul/2010 12 BANGUN WAHANA LINGKUNGAN LESTARI, PT BATANG HARI 503/54/IUPksplorasi/BPTSP/2010 1.625,00 EKSPLORASI BATUBARA 2/Jul/2010 13 BUMI BARA MAKMUR MANDIRI, PT BATANG HARI 503/56/IUPEksplorasi/BPTSP/2010 1.945,00 EKSPLORASI BATUBARA 2/Jul/2010 14 BUMI BARA MAKMUR MANDIRI, PT BATANG HARI 503/55/IUPEksplorasi/BPTSP/2010 2.000,00 EKSPLORASI BATUBARA 2/Jul/2010 15 BUMI BARA MAKMUR MANDIRI, PT BATANG HARI 503/57/IUPEksplorasi/BPTSP/2010 1.945,00 EKSPLORASI BATUBARA 2/Jul/2010 16 BUMI MAKMUR SEJATI, PT BATANG HARI 503/93/IUPEksplorasi/BPTSP/2010 1.880,00 EKSPLORASI BATUBARA 10/Nov/2010 17 BUMI MAKMUR SEJATI, PT BATANG HARI 503/64/IUPEksplorasi/BPTSP/2010 1.800,00 EKSPLORASI BATUBARA 28/Sep/2010 18 EKSANUSA, PT BATANG HARI 503/66/IUPEksplorasi/BPTSP/2010 2.000,00 EKSPLORASI BATUBARA 14/Oct/2010 19 GLOBALINDO ALAM LESTARI, PT BATANG HARI 503/100/IUPEksplorasi/BPTSP/2010 580,00 EKSPLORASI BATUBARA 13/Dec/2010 20 KASONGAN MINING MILLS, PT BATANG HARI 503/98/IUPEksplorasi/BPTSP/2010 2.000,00 EKSPLORASI BATUBARA 22/Nov/2010 21 KURNIA ALAM INVESTAMA, PT BATANG HARI 503/61/IUPEksplorasi/BPTSP/2010 1.945,00 EKSPLORASI BATUBARA 2/Jul/2010 KARO NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 22 KURNIA ALAM INVESTAMA, PT BATANG HARI 503/62/IUPEksplorasi/BPTSP/2010 2.000,00 EKSPLORASI BATUBARA 2/Jul/2010 23 MUARO AIR MAS, PT BATANG HARI 503/63/IUPEksplorasi/BPTSP/2010 1.800,00 EKSPLORASI BATUBARA 28/Sep/2010 24 NAN RIANG, PT BATANG HARI 503/94/IUPEksplorasi/BPTSP/2010 2.000,00 EKSPLORASI BATUBARA 10/Nov/2010 25 ARGO MAKMUR PT MUARO JAMBI 71 TAHUN 2010 954,00 OPERASI PRODUKSI BATUBARA 6/Apr/2010 26 BUMI BORNEO INTI, PT MUARO JAMBI 94 TAHUN 2010 1.000,00 OPERASI PRODUKSI BATUBARA 20/Apr/2010 27 GEA LESTARI, PT MUARO JAMBI 08 TAHUN 2010 1.000,00 OPERASI PRODUKSI BATUBARA 11/Jan/2010 28 GLOBALINDO ALAM LESTARI, PT MUARO JAMBI 14 TAHUN 2010 1.800,00 OPERASI PRODUKSI BATUBARA 9/Feb/2010 29 ITIKURIH HASTARI, PT MUARO JAMBI 102 TAHUN 2010 1.000,00 EKSPLORASI BATUBARA 20/Apr/2010 30 ITIKURIH HASTARI, PT MUARO JAMBI 103 TAHUN 2010 1.800,00 EKSPLORASI BATUBARA 20/Apr/2010 31 SINAR MEGA SELARAS, PT MUARO JAMBI 08 A TAHUN 2010 6.258,00 EKSPLORASI BATUBARA 11/Jan/2010 32 SUMBER LAUT PERKASA, CV MUARO JAMBI 91 TAHUN 2010 1.500,00 EKSPLORASI BATUBARA 20/Apr/2010 33 SUMBER LAUT PERKASA, CV MUARO JAMBI 92 TAHUN 2010 2.000,00 EKSPLORASI BATUBARA 20/Apr/2010 34 TIRAMANA, PT MUARO JAMBI 97 TAHUN 2010 2.527,00 EKSPLORASI BATUBARA 20/Apr/2010 35 TIRAMANA, PT MUARO JAMBI 98 TAHUN 2010 2.000,00 EKSPLORASI BATUBARA 20/Apr/2010 36 TIRAMANA, PT MUARO JAMBI 99 TAHUN 2010 2.600,00 EKSPLORASI BATUBARA 20/Apr/2010 37 TRIADAT QUANTUM, PT MUARO JAMBI 93 TAHUN 2010 1.000,00 OPERASI PRODUKSI BATUBARA 20/Apr/2010 38 UTOMO KOSTRINDO, PT MUARO JAMBI 07 A TAHUN 2010 6.278,00 EKSPLORASI BATUBARA 11/Jan/2010 39 BARA HARMONIS BATANG ASAM, PT BUNGO 247/DESDM TAHUN 2010 172,00 OPERASI PRODUKSI BATUBARA 23/Apr/2010 40 BUNGO BARA UTAMA, PT BUNGO 341/DESDM TAHUN 2009 1.301,00 OPERASI PRODUKSI BATUBARA 9/Jul/2009 41 BUNGO BARA UTAMA, PT BUNGO 250/DESDM TAHUN 2010 199,00 OPERASI PRODUKSI BATUBARA 23/Apr/2010 42 KARYA CEMERLANG PERSADA, PT BUNGO 350/DESDM TAHUN 2009 143,00 OPERASI PRODUKSI BATUBARA 22/Jul/2009 43 KUANSING INTI MAKMUR 2, PT BUNGO 252/DESDM TAHUN 2010 199,00 OPERASI PRODUKSI BATUBARA 23/Apr/2010 NO NAMA PERUSAHAAN KABUPATEN / KOTA BUNGO NO DAN TAHUN SK 44 TANJUNGBELIT BARA UTAMA, PT 45 ANEKA TAMBANG, TBK, PT TEBO 138/ESDM/2010 46 ANUGERAH ALAM ANDALAS, PT TEBO 47 GLOBALINDO ALAM LESTARI, PT 48 TAHAPAN KEGIATAN TANGGAL SK 23/Apr/2010 EKSPLORASI BATUBARA 10/Mar/2010 196/ESDM/2010 199,00 OPERASI PRODUKSI BATUBARA 12/Apr/2010 TEBO 162/ESDM/2010 970,00 OPERASI PRODUKSI BATUBARA 11/Mar/2010 HASWI KENCANA INDAH, PT TEBO 26/ESDM/2010 199,60 OPERASI PRODUKSI BATUBARA 8/Feb/2010 49 HASWI KENCANA INDAH, PT TEBO 225.B/ESDM/2011 EKSPLORASI BATUBARA 31/May/2011 50 BATUBARA BUKIT KENDI. PT PROV. SUMATERA SELATAN 305/KPTS/DISTAMBEN/2010 881,70 OPERASI PRODUKSI BATUBARA 30/Apr/2010 51 BUKIT ASAM(PERSERO) TBK. PT PROV. SUMATERA SELATAN 304/KPTS/DISTAMBEN/2010 3.300,00 OPERASI PRODUKSI BATUBARA 30/Apr/2010 52 BUANA MINERA HARVEST, PT 04/K/IUP‐I/XXVII/2009 9.579,00 EKSPLORASI BATUBARA 27/Sep/2009 53 TAMBANG SEJAHTERA BERSAMA, PT 12/KPTS/DISTAMBEN/2009 5.000,00 EKSPLORASI BATUBARA 15/Aug/2009 54 ADI COAL RESOURCES, PT MUSI BANYUASIN 1106 Tahun 2009 5.000,00 EKSPLORASI BATUBARA 11/Aug/2009 55 ANUGERAH BARA MUSTIKA, PT MUSI BANYUASIN 1280 Tahun 2009 2.994,00 EKSPLORASI BATUBARA 11/Sep/2009 56 ARTHA INDO ENERGI, PT MUSI BANYUASIN 1265 Tahun 2009 1.602,00 EKSPLORASI BATUBARA 11/Sep/2009 57 BUANA BARA EKAPRATAMA, PT MUSI BANYUASIN 1104 Tahun 2009 4.686,00 OPERASI PRODUKSI BATUBARA 9/Jul/2009 58 BUANA INTI CITRAPRIMA, PT MUSI BANYUASIN 1103 Tahun 2009 4.999,00 OPERASI PRODUKSI BATUBARA 11/Aug/2009 59 BUMI ANDALAS PERKASA, PT MUSI BANYUASIN 1108 Tahun 2009 3.493,00 EKSPLORASI BATUBARA 11/Aug/2009 60 CITRA ALAM CAHAYA, PT MUSI BANYUASIN 1248 Tahun 2009 1.073,00 EKSPLORASI BATUBARA 11/Sep/2009 61 CITRA ALAM CAHAYA, PT MUSI BANYUASIN 1249 Tahun 2009 5.541,00 EKSPLORASI BATUBARA 11/Sep/2009 62 DIKA KARYA LINTAS NUSA, PT MUSI BANYUASIN 1089 Tahun 2009 5.422,00 EKSPLORASI BATUBARA 11/Aug/2009 63 KARYA PERINTIS SEJATI, PT MUSI BANYUASIN 1276 Tahun 2009 5.531,00 EKSPLORASI BATUBARA 11/Sep/2009 64 MAKARYA EKAGUNA, PT MUSI BANYUASIN 1257 Tahun 2009 4.972,00 OPERASI PRODUKSI BATUBARA 11/Sep/2009 65 MANOLO, PT MUSI BANYUASIN 1113 Tahun 2009 BATUBARA 11/Aug/2009 MUSI RAWAS 198,00 OPERASI PRODUKSI KOMODITAS BATUBARA OGAN KOMERING ULU 249/DESDM TAHUN 2010 LUAS WILAYAH (HA) 4.959,00 1.289,00 398,50 EKSPLORASI NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 66 MASINDO ARTHA RESOURCES, PT MUSI BANYUASIN 1267 TAHUN 2009 4.400,00 EKSPLORASI BATUBARA 11/Sep/2009 67 MASINDO ARTHA RESOURCES, PT MUSI BANYUASIN 1268 TAHUN 2009 5.475,00 EKSPLORASI BATUBARA 11/Sep/2009 68 NUSA INDAH PERMAI, PT MUSI BANYUASIN 1255 Tahun 2009 4.500,00 OPERASI PRODUKSI BATUBARA 11/Sep/2009 69 PASIFIC GLOBAL RESOURCES, PT MUSI BANYUASIN 1260 Tahun 2009 3.360,00 EKSPLORASI BATUBARA 11/Sep/2009 70 PERSADA MAKMUR JAYA, PT MUSI BANYUASIN 1099 Tahun 2009 2.500,00 EKSPLORASI BATUBARA 11/Aug/2009 71 RACHMAT KELANTAN SAKTI, PT MUSI BANYUASIN 1388 Tahun 2009 2.000,00 EKSPLORASI BATUBARA 15/Oct/2009 72 RIMBA SUBUR LESTARI, PT MUSI BANYUASIN 1253 Tahun 2009 4.902,00 OPERASI PRODUKSI BATUBARA 11/Sep/2009 73 SAKTI GLOBAL PERSADA, PT MUSI BANYUASIN 1261 Tahun 2009 4.940,00 EKSPLORASI BATUBARA 11/Sep/2009 74 SUAR HARAPAN BANGSA, PT MUSI BANYUASIN 1277 Tahun 2009 4.978,00 EKSPLORASI BATUBARA 11/Sep/2009 75 SWADAYA HUTANI ALAM, PT MUSI BANYUASIN 1254 Tahun 2009 4.000,00 OPERASI PRODUKSI BATUBARA 11/Sep/2009 76 TALANG UBI COAL, PT MUSI BANYUASIN 1271 Tahun 2009 7.936,00 EKSPLORASI BATUBARA 11/Sep/2009 77 MBH MINING RESOURCES,PT BANYUASIN 598.a Tahun 2009 11.380,00 EKSPLORASI BATUBARA 12/Aug/2009 78 MITRA BISNIS HARVEST, PT BANYUASIN 515 Tahun 2009 18.000,00 EKSPLORASI BATUBARA 14/Jul/2009 79 INDOMAS MINERAL UTAMA, PT OGAN KOMERING ULU SELATAN 20/KPTS/Tamben/2009 7.533,00 EKSPLORASI BIJIH BESI DMP 10/Dec/2009 80 INDOMAS MINERAL UTAMA, PT OGAN KOMERING ULU SELATAN 002/KPTS/TAMBEN/2011 5.706,00 EKSPLORASI BIJIH BESI DMP 12/May/2011 81 SEMEN BATURAJA, PT OGAN KOMERING ULU SELATAN 205/KPTS/TAMBEN/2010 1.577,00 EKSPLORASI BATU KAPUR 19/Jul/2010 82 LAHAT PULAU PINANG BARA JAYA, PT 540/75/KEP/TAMBEN/2010 2.029,00 EKSPLORASI BATUBARA 11/Mar/2010 83 ANEKA TAMBANG, PT BENGKULU UTARA 224 TAHUN 2011 4.738,00 EKSPLORASI EMAS DMP 30/Apr/2011 84 ANEKA TAMBANG, PT BENGKULU UTARA 226 TAHUN 2011 3.945,00 EKSPLORASI EMAS DMP 30/Apr/2011 85 TIUH MAS, PT LAMPUNG TENGAH 540/008/IUP/D.17/II/2010 1.028,00 EKSPLORASI EMAS DMP 8/Jul/2010 86 TIMAH (PERSERO) TBK, PT BANGKA 188.45/420/Tamben/2011; 10 Mei 2011 1.294,00 OPERASI PRODUKSI TIMAH 10/May/2011 87 TIMAH (PERSERO) TBK, PT BANGKA 188.45/461/Tamben/2010; 27 April 2010 322,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 EMPAT LAWANG NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 88 TIMAH (PERSERO) TBK, PT BANGKA 188.45/466/Tamben/2010; 27 April 2010 713,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 89 TIMAH (PERSERO) TBK, PT BANGKA 188.45/467/Tamben/2010; 27 April 2010 738,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 90 TIMAH (PERSERO) TBK, PT BANGKA 188.45/464/Tamben/2010; 27 April 2010 1.839,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 91 TIMAH (PERSERO) TBK, PT BANGKA 188.45/462/Tamben/2010; 27 April 2010 9.919,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 92 TIMAH (PERSERO) TBK, PT BANGKA 188.45/465/Tamben/2010; 27 April 2010 466,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 93 TIMAH (PERSERO) TBK, PT BANGKA 188.45/463/Tamben/2010; 27 April 2010 6.839,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 94 TIMAH (PERSERO) TBK, PT BANGKA 188.45/460/Tamben/2010; 27 April 2010 558,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 95 TIMAH (PERSERO) TBK, PT BANGKA 188.45/452/Tamben/2010; 27 April 2010 407,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 96 TIMAH (PERSERO) TBK, PT BANGKA 188.45/451/Tamben/2010; 27 April 2010 3.862,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 97 TIMAH (PERSERO) TBK, PT BANGKA 188.45/449/Tamben/2010; 27 April 2010 853,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 98 TIMAH (PERSERO) TBK, PT BANGKA 188.45/453/Tamben/2010; 27 April 2010 531,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 99 TIMAH (PERSERO) TBK, PT BANGKA 188.45/450/Tamben/2010; 27 April 2010 8.790,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 100 TIMAH (PERSERO) TBK, PT BANGKA 188.45/457/Tamben/2010; 27 April 2010 207,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 101 TIMAH (PERSERO) TBK, PT BANGKA 188.45/454/Tamben/2010; 27 April 2010 15.147,00 OPERASI PRODUKSI TIMAH 27/Apr/2010 102 PAMIN KANAAN, PT BELITUNG 017/IUP‐OP/DPE/2010 199,99 OPERASI PRODUKSI BAUKSIT 17/Mar/2010 103 TIMAH.PT(PERSERO) TBK BELITUNG 106/IUP‐OP/DPE/2010 815,70 OPERASI PRODUKSI TIMAH PUTIH 21/Jul/2010 104 TIMAH.PT(PERSERO) TBK BELITUNG 109/iup‐op/dpe/2010 3.612,00 OPERASI PRODUKSI TIMAH PUTIH 10/Mar/2003 105 TIMAH.PT(PERSERO) TBK BELITUNG 110/IUP‐OP/DPE/2010 2.606,00 OPERASI PRODUKSI TIMAH PUTIH 10/Mar/2003 106 ALAM DAMAI MAKMUR, PT BANGKA SELATAN 188.45/95.A/DPE/2010 1.019,00 EKSPLORASI BIJIH TIMAH 25/Feb/2010 107 ARTHA PRIMA NUSA JAYA, PT BANGKA SELATAN 188.45/49.B/DPE/2010 1.135,00 EKSPLORASI BIJIH TIMAH 10/Feb/2010 108 ARTHA PRIMA NUSA JAYA, PT BANGKA SELATAN 188.45/228.A/DPE/2010 3.097,00 EKSPLORASI BIJIH TIMAH 30/Apr/2010 109 BANGKA PRIMA TIN, PT BANGKA SELATAN 188.45/57/DPE/2010 498,60 EKSPLORASI BIJIH TIMAH 15/Feb/2010 NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 110 BANGKA PRIMA TIN, PT BANGKA SELATAN 188.45/56/DPE/2010 11,79 EKSPLORASI BIJIH TIMAH 15/Feb/2010 111 BANGKA PRIMA TIN, PT BANGKA SELATAN 188.45/54/DPE/2010 58,00 EKSPLORASI BIJIH TIMAH 15/Feb/2010 112 BANGKA PRIMA TIN, PT BANGKA SELATAN 188.45/53/DPE/2010 102,00 EKSPLORASI BIJIH TIMAH 15/Feb/2010 113 BANGKA PRIMA TIN, PT BANGKA SELATAN 188.45/52/DPE/2010 29,00 EKSPLORASI BIJIH TIMAH 15/Feb/2010 114 BANGKA PRIMA TIN, PT BANGKA SELATAN 188.45/51/DPE/2010 23,56 EKSPLORASI BIJIH TIMAH 15/Feb/2010 115 BANGKA SERUMPUN, PT BANGKA SELATAN 188.45/312/DPE/2009 4.838,00 EKSPLORASI BIJIH TIMAH 31/Dec/2009 116 BARANUSA PRATAMA, PT BANGKA SELATAN 188.45/248/DPE/2009 1.181,00 EKSPLORASI BIJIH TIMAH 31/Dec/2009 117 BARANUSA PRATAMA, PT BANGKA SELATAN 188.45/247/DPE/2009 988,00 EKSPLORASI BIJIH TIMAH 31/Dec/2009 118 BOSTIN INDONESIA, PT BANGKA SELATAN 188.45/219/DPE/2009 2.401,00 EKSPLORASI BIJIH TIMAH 23/Dec/2009 119 BOSTIN INDONESIA, PT BANGKA SELATAN 188.45/220/DPE/2009 3.413,00 EKSPLORASI BIJIH TIMAH 23/Dec/2009 120 GALIAN RAYA, PT BANGKA SELATAN 188.45/221/DPE/2009 3.156,33 EKSPLORASI BIJIH TIMAH 23/Dec/2009 121 MEGA INTI ARDANA, PT BANGKA SELATAN 188.45/222/DPE/2009 562,40 EKSPLORASI BIJIH TIMAH 23/Dec/2009 122 TIMAH, PT BANGKA SELATAN 188.45/221/DPE/2010 3.155,00 OPERASI PRODUKSI BIJIH TIMAH 30/Apr/2010 123 TIMAH, PT BANGKA SELATAN 188.45/222/DPE/2010 360,00 OPERASI PRODUKSI BIJIH TIMAH 30/Apr/2010 124 TIMAH, PT BANGKA SELATAN 188.45/225/DPE/2010 4.403,00 OPERASI PRODUKSI BIJIH TIMAH 30/Apr/2010 125 TIMAH TBK, PT BANGKA BARAT 188.45/067/2.03.02/2010 1.277,83 OPERASI PRODUKSI TIMAH 28‐Apr‐2010 126 TIMAH TBK, PT BANGKA BARAT 188.45/068/2.03.02/2010 11.600 OPERASI PRODUKSI TIMAH 28‐Apr‐2010 127 TIMAH TBK, PT BANGKA BARAT 188.45/069/2.03.02/2010 7.275,23 OPERASI PRODUKSI TIMAH 28‐Apr‐2010 128 TIMAH TBK, PT BANGKA BARAT 188.45/070/2.03.02/2010 1.088,21 OPERASI PRODUKSI TIMAH 28‐Apr‐2010 129 TIMAH TBK, PT BANGKA BARAT 188.45/071/2.03.02/2010 2.567,19 OPERASI PRODUKSI TIMAH 28‐Apr‐2010 130 TIMAH TBK, PT BANGKA BARAT 188.45/072/2.03.02/2010 280,24 OPERASI PRODUKSI TIMAH 28‐Apr‐2010 131 TIMAH TBK, PT BANGKA BARAT 188.45/073/2.03.02/2010 833,21 OPERASI PRODUKSI TIMAH 28‐Apr‐2010 NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 132 TIMAH TBK, PT BANGKA BARAT 188.45/074/2.03.02/2010 1.060,46 OPERASI PRODUKSI TIMAH 28‐Apr‐2010 133 TIMAH TBK, PT BANGKA BARAT 188.45/075/2.03.02/2010 1.409,52 OPERASI PRODUKSI TIMAH 28‐Apr‐2010 134 ALLIED MINERALS, PT BELITUNG TIMUR 503/092/OP‐BL/BPPT/2010 115,50 OPERASI PRODUKSI KAOLIN 30/Apr/2010 135 BINTAN MINERAL RESOURCE, PT BELITUNG TIMUR 503/070/OP‐L/BPPT/2010 159,00 OPERASI PRODUKSI HEMATITE 27/Dec/2007 136 BINTAN MINERAL RESOURCE, PT BELITUNG TIMUR 503/071/OP‐L/BPPT/2010 199,80 OPERASI PRODUKSI HEMATITE 27/Oct/2007 137 BINTAN MINERAL RESOURCE, PT BELITUNG TIMUR 503/072/OP‐L/BPPT/2010 193,90 OPERASI PRODUKSI HEMATITE 12/Jun/2007 138 CAHAYA BARU, CV BELITUNG TIMUR 503/093/OP‐BL/BPPT/2010 130,80 OPERASI PRODUKSI PASIR KUARSA 30/Apr/2010 139 CHANDRA SAKTI, CV BELITUNG TIMUR 503/027/OP‐BL/BPPT/2010 12,92 OPERASI PRODUKSI PASIR KUARSA 16/Feb/2010 140 EKA MAKMUR ALAM SEJAHTERA, PT BELITUNG TIMUR 503/075/OP‐L/BPPT/2010 47,60 OPERASI PRODUKSI HEMATITE 30/Apr/2010 141 HANJAYA BELTIM, CV BELITUNG TIMUR 503/013/OP‐L/BPPT/2009 176,00 OPERASI PRODUKSI TIMAH 15/Dec/2009 142 HANJAYA BELTIM, CV BELITUNG TIMUR 503/014/OP‐L/BPPT/2009 192,00 OPERASI PRODUKSI TIMAH 15/Dec/2009 143 KEDAUNG BAHTERA, PT BELITUNG TIMUR 503/015/OP‐BL/BPPT/2011 24,5 OPERASI PRODUKSI PASIR KWARSA 15/Apr/2011 144 MULTIDINAMIK BINASEJAHTERA, PT BELITUNG TIMUR 503/009/OP‐BL/BPPT/2009 170,00 OPERASI PRODUKSI PASIR KUARSA 15/Dec/2009 145 BERKAH PUGER SEJAHTERA, PT JEMBER 541.3/056/411/2010 20,70 OPERASI PRODUKSI BATU KAPUR 27/Apr/2010 146 DWI JOYO, CV JEMBER 541.3/024/411/2010 10,00 OPERASI PRODUKSI BATU KAPUR 15/Apr/2010 147 GUNUNG KELABAT CITRA ABADI, PT JEMBER 541.3/043/411/2010 7,00 OPERASI PRODUKSI BATU KAPUR 22/Apr/2010 148 IMASCO PASIFIC MINERALS, PT JEMBER 541.3/027/411/2010 30,00 OPERASI PRODUKSI MANGAAN 15/Apr/2010 149 KARTIKA CHANDRA, CV JEMBER 541.3/035/411/2010 10,14 OPERASI PRODUKSI BATU KAPUR 20/Apr/2010 150 KARYA NUSANTARA, CV JEMBER 541.3/039/411/2010 5,19 OPERASI PRODUKSI BATU KAPUR 21/Apr/2010 151 KOPERASI SERBA USAHA GRENDEN JEMBER 541.3/037/411/2010 6,80 OPERASI PRODUKSI BATU KAPUR 20/Apr/2010 152 KSU PUGER RAHAYU JEMBER 541.3/052/411/2010 5,83 OPERASI PRODUKSI BATU KAPUR 26/Apr/2010 153 MADA KARYA, CV JEMBER 541.3/030/411/2010 6,70 OPERASI PRODUKSI BATU KAPUR 16/Apr/2010 NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 154 SARI HUTAN, CV JEMBER 541.3/012/411/2010 9,03 OPERASI PRODUKSI BATU KAPUR 12/Apr/2010 155 WIDYA UTAMA, CV JEMBER 541.3/022/411/2010 9,98 OPERASI PRODUKSI BATU KAPUR 14/Apr/2010 156 ANTAM TBK, PT SUMBAWA 506 Tahun 2010 11.320,00 EKSPLORASI EMAS 9/Apr/2010 PONTIANAK (Kabupaten) 163 Tahun 2010 5.898,00 EKSPLORASI BAUKSIT 22/Oct/2010 158 ANEKA TAMBANG, TBK SANGGAU 02 Tahun 2010 36.410,00 OPERASI PRODUKSI BAUKSIT 4/Jan/2010 159 ANEKA TAMBANG, TBK LANDAK 20.710,00 EKSPLORASI BAUKSIT 23/Dec/2009 4.148,00 OPERASI PRODUKSI BATUBARA 28 Des 2009 157 ANEKA TAMBANG TBK, PT 160 JANGKAR PRIMA,PT 544.2/284/HK‐2009 BARITO SELATAN 532 Tahun 2009 161 ADHIDAYA KARYA MANUNGGAL 1, PT BARITO UTARA 188.45/222/2010 1.285,00 EKSPLORASI BATUBARA 3/Mar/2010 162 AFIAT WAHYUNI LESTARI, PT BARITO UTARA 188.45/463/2009 4.514,00 EKSPLORASI BATUBARA 21/Dec/2009 163 ALAM BAHTERA BARITO RAYA, PT BARITO UTARA 188.45/4.a/2010 1.787,00 OPERASI PRODUKSI BATUBARA 14/Jan/2010 164 ANDORA NINDIA MAKMUR, PT BARITO UTARA 188.45/90/2010 1.874,00 EKSPLORASI BATUBARA 4/Mar/2010 165 AR COAL MINING 2, PT BARITO UTARA 188.45/87/2010 1.116,00 EKSPLORASI BATUBARA 1/Mar/2010 166 ARSY NUSANTARA, PT BARITO UTARA 188.45/38/2010 4.833,00 OPERASI PRODUKSI BATUBARA 29/Jan/2010 167 ARTHA WIGUNA SEMBADHA, PT BARITO UTARA 188.45/370/2010 3.557,00 EKSPLORASI BATUBARA 22/Mar/2010 168 AXINDO ARTHAMAS, PT BARITO UTARA 188.45/421/2010 3.039,00 EKSPLORASI BATUBARA 31/Mar/2010 169 BARITO ALAM RAYA, PT BARITO UTARA 188.45/41/2010 5.756,00 EKSPLORASI BATUBARA 7/Jan/2010 170 BARUTA ABADI, PT BARITO UTARA 188.45/404/2009 5.042,00 EKSPLORASI BATUBARA 14/Nov/2009 171 BATARA RESOURCES. PT BARITO UTARA 188.45/497/2010 2.741,00 EKSPLORASI BATUBARA 11/Feb/2010 172 BERSAMA MEMBANGUN NEGERI, PT BARITO UTARA 188.45/129/2010 3.679,00 EKSPLORASI BATUBARA 24/Mar/2010 173 BORNEO BANGUN BANUA, CV BARITO UTARA 188.45/479/2009 3.918,00 OPERASI PRODUKSI BATUBARA 29/Dec/2009 174 BUANA ALAM TEGUH, PT BARITO UTARA 188.45/473/2009 1.795,00 EKSPLORASI BATUBARA 28/Dec/2009 175 BUMI ENERGI JAYA. PT BARITO UTARA 188.45/417/2010 4.172,00 EKSPLORASI BATUBARA 31/Mar/2010 NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 176 BUMI KARUNIA PERTIWI, PT BARITO UTARA 188.45/438/2009 4.188,00 OPERASI PRODUKSI BATUBARA 16/Dec/2009 177 BUMI MULIA SEJATI, PT BARITO UTARA 188.45/323/2010 5.477,00 EKSPLORASI BATUBARA 11/Jan/2010 178 BUNDA KANDUNG, CV BARITO UTARA 188.45/47/2010 3.930,00 OPERASI PRODUKSI BATUBARA 1/Feb/2010 179 CAKRA ANDATU SUKSES, PT BARITO UTARA 188.45/483/2009 781,30 OPERASI PRODUKSI BATUBARA 30/Dec/2009 180 DANA BUANA ASIA, PT BARITO UTARA 188.45/35/2011 4.885,00 OPERASI PRODUKSI BATUBARA 8/Mar/2011 181 DANI SUMBER RISKI, PT BARITO UTARA 188.45/205/2010 9.278,00 EKSPLORASI BATUBARA 23/Apr/2010 182 DAYA PRATAMA MANDIRI, PT BARITO UTARA 188.45/221/2010 4.796,00 EKSPLORASI BATUBARA 12/Apr/2010 183 DUTA SEJAHTERA 1, PT BARITO UTARA 188.45/455/2009 4.912,00 OPERASI PRODUKSI BATUBARA 17/Dec/2009 184 ERAMITRA SUKSES MANDIRI, PT BARITO UTARA 188.45/419/2010 2.167,00 EKSPLORASI BATUBARA 2/Feb/2010 185 HARFA TARUNA MANDIRI, PT BARITO UTARA 188.45/216/2010 4.131,00 OPERASI PRODUKSI BATUBARA 24/Apr/2010 186 MINERAL TAMBANG WAHANA, PT BARITO UTARA 188.45/406/2009 5.051,00 EKSPLORASI BATUBARA 14/Nov/2009 187 RIZKI TAMBANG SELARAS, PT BARITO UTARA 188.45/443/2009 5.061,00 EKSPLORASI BATUBARA 16/Dec/2009 188 SARANA TAMBANG UTAMA, PT BARITO UTARA 188.45/405/2009 5.046,00 EKSPLORASI BATUBARA 14/Nov/2009 189 SINAR KHATULISTIWA ENERGI JAYA, PT BARITO UTARA 188.45/418/2010 2.950,00 EKSPLORASI BATUBARA 2/Feb/2010 190 SINOMAST MINING, PT BARITO UTARA 188.45/96/2010 4.834,00 OPERASI PRODUKSI BATUBARA 17/Mar/2010 191 SKYLAND ENERGY POWER, PT BARITO UTARA 188.45/84/2010 3.978,00 EKSPLORASI BATUBARA 1/Mar/2010 192 SUMBER REJEKI EKONOMI, PT BARITO UTARA 188.45/410/2010 5.000,00 OPERASI PRODUKSI BATUBARA 21/Oct/2010 193 SYSTEM TATA ANUGRAH RESOURCES, PT BARITO UTARA 188.45/85/2010 3.998,00 EKSPLORASI BATUBARA 1/Mar/2010 194 TAMTAMA PERKASA, PT BARITO UTARA 188.45/37/2010 9.540,00 EKSPLORASI BATUBARA 29/Jan/2010 195 TRISULA KENCANA SAKTI 2, PT BARITO UTARA 188.45/208/2010 4.959,00 OPERASI PRODUKSI BATUBARA 26/Apr/2010 196 TRISULA KENCANA SAKTI, PT BARITO UTARA 188.45/207/2010 4.748,00 OPERASI PRODUKSI BATUBARA 26/Apr/2010 3.056,00 EMAS DMP 20/May/2009 197 BERKAT MOJANG RAYA.PT SERUYAN 19 TAHUN 2009 EKSPLORASI NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 198 BUMI NIAGA KENCANA. PT SERUYAN 15 TAHUN 2009 6.400,00 EKSPLORASI BIJIH BESI 20/May/2009 199 DAYA BAMBU SEJAHTERA. PT SERUYAN 16 TAHUN 2009 7.202,00 EKSPLORASI EMAS DMP 20/May/2009 200 DEWO PUTRA. PT SERUYAN 343 TAHUN 2010 1.300,00 EKSPLORASI BIJIH BESI 4‐NOV‐2010 201 ALAM PERSADA NUSANTARA, PT LAMANDAU Ek.540/02/IX/2009 6.641,00 EKSPLORASI BIJIH BESI 17/Sep/2009 202 ANUGRAH PETRA SEJAHTERA, PT LAMANDAU Ek.540/14/IX/2009 5.090,00 EKSPLORASI BAUKSIT 25/Sep/2009 203 BAOLY MINERAL, PT LAMANDAU Ek.540/08/IX/2009 2.000,00 EKSPLORASI BIJIH BESI 25/Sep/2009 204 BLANTIKAN PRIMA RAYA, PT LAMANDAU Ek.540/09/IX/2009 7.550,00 EKSPLORASI BIJIH BESI 25/Sep/2009 205 BORNEO LAMANDAU ORE, PT LAMANDAU Ek.540/06/IX/2009 4.503,00 EKSPLORASI BIJIH BESI 25/Sep/2009 206 KATINGAN INDONESIA, PT LAMANDAU Ek.540/07/IX/2009 3.000,00 EKSPLORASI BIJIH BESI 25/Sep/2009 207 LAMANDAU PUTRA, PT LAMANDAU Ek.540/15/IX/2009 3.000,00 EKSPLORASI BIJIH BESI 25/Sep/2009 208 LAWIN MAKMUR ABADI, PT LAMANDAU Ek.540/10/IX/2009 443,00 EKSPLORASI BIJIH BESI 25/Sep/2009 209 MILLENNIUM MINING & RESOURCES, PT LAMANDAU Ek.540/12/IX/2009 5.923,00 EKSPLORASI BIJIH BESI 25/Sep/2009 210 MILLENNIUM MINING & RESOURCES, PT LAMANDAU Ek.540/11/IX/2009 7.003,00 EKSPLORASI BIJIH BESI 25/Sep/2009 211 PERSADA MAKMUR SEJAHTERA, PT GUNUNG MAS 22/DPE/III/III/2011 6.200,00 EKSPLORASI BATUBARA 9/Mar/2011 212 SURYA KALIMANTAN SEJATI, PT GUNUNG MAS 24/DPE/III/III/2011 6.800,00 EKSPLORASI BATUBARA 9/Mar/2011 213 SURYA KALIMANTAN SEJATI, PT GUNUNG MAS 23/DPE/III/III/2011 10.000,00 EKSPLORASI BATUBARA 9/Mar/2011 214 BERLIN I RAHU PULANG PISAU 194 TAHUN 2011 5,00 OPERASI PRODUKSI PASIR SUNGAI 18/May/2011 215 DORIS HAMID PULANG PISAU 193 TAHUN 2011 2,00 OPERASI PRODUKSI PASIR SUNGAI 18/May/2011 216 GENLI EROWANTO PULANG PISAU 186 TAHUN 2011 5,00 OPERASI PRODUKSI PASIR URUG 18/May/2011 217 HAMRANI PULANG PISAU 179 TAHUN 2011 5,00 OPERASI PRODUKSI SIRTU 18/May/2011 218 SYAMSURI PULANG PISAU 192 TAHUN 2011 2,00 OPERASI PRODUKSI PASIR URUG 18/May/2011 219 AFRIAN TRADE, PT BARITO TIMUR 479.a TAHUN 2009 BATUBARA 30/Oct/2009 3.018,00 EKSPLORASI NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 220 AGRA ANEKA MINERAL, PT BARITO TIMUR 193A TAHUN 2010 1.748,00 EKSPLORASI BATUBARA 13/Apr/2010 221 AMANAH ANUGERAH ADI MULIA, PT BARITO TIMUR 597 Tahun 2009 5.111,00 EKSPLORASI BATUBARA 31/Dec/2009 222 BARITO TIMUR ENERGI, PT BARITO TIMUR 654 Tahun 2009 710,30 EKSPLORASI BATUBARA 31/Dec/2009 223 BATU GUNUNG HARUYAN, PT BARITO TIMUR 624 Tahun 2009 100,00 EKSPLORASI BATUBARA 16/May/2009 224 BERKAH KERJA BERSAMA, CV BARITO TIMUR 601 Tahun 2009 937,00 EKSPLORASI BATUBARA 31/Dec/2009 225 DUTA CITRA KARINDO, PT BARITO TIMUR 598 Tahun 2009 358,00 EKSPLORASI BATUBARA 31/Dec/2009 226 GUNUNG EMAS ABADI, PT BARITO TIMUR 576 Tahun 2009 1.531,00 OPERASI PRODUKSI BATUBARA 14/Aug/2009 227 INDO BESI ENERGI UTAMA, PT BARITO TIMUR 462 Tahun 2009 9.987,00 EKSPLORASI BATUBARA 16/Oct/2009 228 LION MULTI RESOURCES, PT BARITO TIMUR 582 Tahun 2009 19.000,00 EKSPLORASI BATUBARA 25/Mar/2009 229 PAJU EPAT RAYA, PT BARITO TIMUR 425 Tahun 2009 5.911,00 EKSPLORASI BATUBARA 30‐Okt‐2009 230 SENAMAS ENERGINDO MINERAL, PT BARITO TIMUR 516 Tahun 2009 2.000,00 OPERASI PRODUKSI BATUBARA 8/Dec/2009 231 SINAR BARITO GLOBAL, PT BARITO TIMUR 575 Tahun 2009 1.056,00 EKSPLORASI BATUBARA 31/Jan/2009 232 SUMBER DAYA ENERGI, PT BARITO TIMUR 653 Tahun 2009 14.730,00 EKSPLORASI BATUBARA 25/Mar/2009 233 TANTRA ENERGY, PT BARITO TIMUR 655 Tahun 2009 746,00 EKSPLORASI BATUBARA 31/Dec/2009 234 TANTRA MINING RESOURCES, PT BARITO TIMUR 574 Tahun 2009 324,30 EKSPLORASI BATUBARA 19/Apr/2008 235 ALAM BHANA LESTARI, PT BERAU 704 Tahun 2009 2.000,00 EKSPLORASI BATUBARA 9/Dec/2009 236 ALAM BHANA RAYA, PT BERAU 703 Tahun 2009 2.000,00 EKSPLORASI BATUBARA 9/Dec/2009 237 ANUGRAH RIZKIE TABALAR, PT BERAU 84 Tahun 2010 2.000,00 EKSPLORASI BATUBARA 18/Feb/2010 238 BERKAT BUANA COAL, PT BERAU 256 Tahun 2010 2.089,00 EKSPLORASI BATUBARA 29/Apr/2010 239 BUKIT MUTIARA HITAM, PT BERAU 186 Tahun 2010 2.129,00 EKSPLORASI BATUBARA 31/Mar/2010 240 CIRIA PUTRA ENERGY, PT BERAU 364 Tahun 2009 714,00 EKSPLORASI BATUBARA 1/Jul/2009 241 DIRA GLEBOVA ADITYA, PT BERAU 373 Tahun 2009 4.770,00 EKSPLORASI BATUBARA 3/Jul/2009 NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 242 ENERGY PERSADA NUSANTARA, PT BERAU 295 Tahun 2010 4.973,00 EKSPLORASI BATUBARA 30/Apr/2010 243 GINDOJAYA MITRA ABADI, PT BERAU 465 Tahun 2009 4.951,00 EKSPLORASI BATUBARA 20/Aug/2009 244 MAHA RESOURCES PERSADA, PT BERAU 261 Tahun 2010 3.482,00 EKSPLORASI BATUBARA 29/Apr/2010 245 MAHKOTA MEGAH ABADI, PT BERAU 336 Tahun 2009 1.747,00 EKSPLORASI BATUBARA 19/Jun/2009 246 NAGA BORNEO ENERGI, PT BERAU 249 Tahun 2010 3.369,00 EKSPLORASI BATUBARA 28/Apr/2010 247 NARWASTU SUMBER KASIH, PT BERAU 297 Tahun 2010 4.651,00 EKSPLORASI BATUBARA 30/Apr/2010 248 PERSADA BORNEO REOSURCES, PT BERAU 433 Tahun 2009 2.311,00 EKSPLORASI BATUBARA 4/Aug/2009 249 PITU BABBANA BINANGA, PT BERAU 302 Tahun 2010 4.919,00 EKSPLORASI BATUBARA 30/Apr/2010 250 PRATAMA SUMBER BUMIBARA, PT BERAU 320 Tahun 2009 2.000,00 EKSPLORASI BATUBARA 16/Jun/2009 251 RATNA UTAMA KARYA, PT BERAU 292 Tahun 2010 5.010,00 EKSPLORASI BATUBARA 30/Apr/2010 252 SATRIA PERKASA COAL, PT BERAU 258 Tahun 2010 2.028,00 EKSPLORASI BATUBARA 29/Apr/2010 253 SINAR BARA NUSANTARA, PT BERAU 558 Tahun 2009 2.337,00 EKSPLORASI BATUBARA 15/Oct/2009 254 SURYA SERUNI, PT BERAU 766 Tahun 2009 4.633,00 EKSPLORASI BATUBARA 31/Dec/2009 255 SYAHID BERAU BESTARI, PT BERAU 294 Tahun 2010 2.070,00 EKSPLORASI BATUBARA 30/Apr/2010 775,00 EKSPLORASI BATUBARA 256 DUAMERAH, PT PENAJAM PASER UTARA 545/22 ‐ IUP EKS/DISTAM/V/2011 06‐Mei‐11 257 PIPIT MUTIARA JAYA, PT TANA TIDUNG 503/118/K‐IV/2010 3.000,00 EKSPLORASI BATUBARA 20/Apr/2010 258 SANTY PERMATASARI, PT TANA TIDUNG 503/15/K‐II/2010 3.138,00 EKSPLORASI BATUBARA 23/Feb/2010 541.15/56/DISTAMBEN 5.000,00 EKSPLORASI NIKEL 28/Jan/2011 540.2/SK.030/DESDM/II/2010 10.100,00 EKSPLORASI NIKEL DMP 25/Feb/2010 259 SINAR MAKMUR CEMERLANG, PT 260 TIGA SAMUDRA PERKASA, PT BANGGAI MOROWALI 261 DILA ADI SAPUTRA, PT KEPULAUAN SELAYAR 237/I/TAHUN 2010 10.000,00 EKSPLORASI NIKEL 5/Jan/2010 262 NIAGA MAJU PASIFIK, PT KEPULAUAN SELAYAR 238/I/TAHUN 2010 5.652,00 EKSPLORASI PASIR BESI 5/Jan/2010 263 NIAGA MAJU PASIFIK, PT KEPULAUAN SELAYAR 239/I/TAHUN 2010 13.000,00 EKSPLORASI PASIR BESI 5/Jan/2010 NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 264 ALAM MITRA MANDIRI, PT BUTON 406 TAHUN 2011 400,00 OPERASI PRODUKSI ASPAL 10/Jun/2011 265 ALAM MITRA MANDIRI, PT BUTON 684 TAHUN 2011 280,00 OPERASI PRODUKSI ASPAL 18/Aug/2011 266 ALAM MITRA MANDIRI, PT BUTON 683 TAHUN 2011 251,00 OPERASI PRODUKSI ASPAL 18/Aug/2011 267 BUMI NIAGA LESTARI, PT BUTON 688 TAHUN 2011 196,00 OPERASI PRODUKSI ASPAL 18/Aug/2011 268 EXPERTINDO SOLUSI PRATAMA, PT BUTON 290 Tahun 2011 635,00 EKSPLORASI ASPAL 25/Apr/2011 269 INTI BUMI SELARAS, PT BUTON 690 TAHUN 2011 801,00 OPERASI PRODUKSI ASPAL 18/Aug/2011 270 INTI BUMI SELARAS, PT BUTON 691 TAHUN 2011 773,00 OPERASI PRODUKSI ASPAL 18/Aug/2011 271 KARUNIA ALAM INDONESIA, PT BUTON 686 TAHUN 2011 1.751,00 OPERASI PRODUKSI ASPAL 18/Aug/2011 EKSPLORASI EMAS 30/Nov/09 854,30 OPERASI PRODUKSI NIKEL 7/Jul/2011 EKSPLORASI NIKEL 29/Mar/2010 39.040,00 OPERASI PRODUKSI NIKEL 11/Jan/2010 EKSPLORASI BATUBARA 17/DES/2009 749,2 OPERASI PRODUKSI BATUBARA 05‐Jan‐10 272 ANEKA TAMBANG, PT MAMASA 540.1/KPTS‐138.C/XI/2009 273 FAJAR BHAKTI LINTAS NUSANTARA, PT HALMAHERA TENGAH 540/KEP/253/2011 274 FAJAR BHAKTI LINTAS NUSANTARA HALMAHERA TENGAH 540/KEP/113.a/2010 275 ANEKA TAMBANG TBK, PT HALMAHERA TIMUR 188.45/540‐04/2010 276 GARIS EMAS SELARAS, PT TELUK BINTUNI 100 TAHUN 2009 277 FAJAR MINERAL ALAMI INTERNATIONAL, PT TANAH BUMBU 545/006/IUP‐OP/D.PE/2010 278 TAWABU MINERAL RESOURCES, PT KUTAI TIMUR 279 SEMESTA ALAM BARITO, PT MURUNG RAYA 280 PENTA DHARMA KARSA, PT BANGGAI 281 MILLENIUM MINING & RESOURCES, PT 282 HENGJAYA MINERALINDO, PT 283 HANSON ENERGY, PT KUTAI TIMUR MOROWALI 888,00 2.000,00 12.553,00 540.1/K.15/HK/1/2010 6.205,00 EKSPLORASI BATUBARA 14‐Jan‐10 188.45/176/2010 5.105,00 EKSPLORASI BATUBARA 20‐Apr‐10 1.220,00 OPERASI PRODUKSI NIKEL 27/MEI/2011 EKSPLORASI BATUBARA 22‐Jan‐10 6.249,00 OPERASI PRODUKSI NKEL 16‐Jun‐11 541.15/653/DISTAMBEN 540.1/K.2/HK/1/2010 540.3/SK.001/DSDM/VI/2011 3.248,00 OGAN KOMERING ULU TIMUR 302 TAHUN 2009 4.000,00 EKSPLORASI BATUBARA 21‐Nop‐09 284 SUN INDO BARA BAHANA, PT BARITO UTARA 188.45/507/2010 863,8 EKSPLORASI BATUBARA 15‐Feb‐10 285 SARIPRATAMA INDORESOURCES, PT BARITO UTARA 188.45/511/2010 3.237,00 EKSPLORASI BATUBARA 20‐Feb‐10 NO NAMA PERUSAHAAN 286 SINAR INTI BERSAMA, PT KABUPATEN / KOTA NO DAN TAHUN SK BARITO UTARA 188.45/509/2010 ACEH BESAR 288 GEBE SENTRA NICKEL, PT 289 HARUM SUKSES MINING, PT 287 TAMBANG INDRAPURI JAYA, PT LUAS WILAYAH (HA) KOMODITAS TANGGAL SK EKSPLORASI BATUBARA 11‐Feb‐10 545/115/IUP/2011 538,00 OPERASI PRODUKSI BIJIH BESI DMP 4‐Apr‐11 HALMAHERA TENGAH 540/KEP/347/2011 1.354,00 OPERASI PRODUKSI NIKEL 5‐Dec‐11 HALMAHERA TENGAH 540/KEP/327/2009 990,00 OPERASI PRODUKSI NIKEL 28‐Dec‐09 5.000,00 OPERASI PRODUKSI BATUBARA 23‐Dec‐09 5.000,00 EKSPLORASI BATUBARA 5‐Feb‐10 290 DAHLIA BIRU, PT BARITO SELATAN 527 TAHUN 2009 291 GALA RAYA SENTOSA, PT BARITO SELATAN 47 TAHUN 2010 8,27 TAHAPAN KEGIATAN 292 FARIS MOTOR, CV TANAH LAUT 545/26‐IUP.OP/DPE/2011 126,86 OPERASI PRODUKSI BATUBARA 19‐Aug‐11 293 BILLY INDONESIA, PT LUWU TIMUR 540/02/DESDM/TAHUN 2011 3.756,00 OPERASI PRODUKSI BESI LATERIT 7‐Feb‐11 HALMAHERA SELATAN 54 TAHUN 2010 1.128,83 OPERASI PRODUKSI TEMBAGA, EMAS DMP 22‐Mar‐10 BERAU 559 TAHUN 2011 EKSPLORASI BATUBARA 13‐Oct‐11 3.993,00 OPERASI PRODUKSI BATUBARA 18‐Jan‐11 503/65/IUPEKSPLORASI/BPTSP/2011 4.000,00 EKSPLORASI BATUBARA 14‐Dec‐11 294 GANE PERMAI SENTOSA, PT 295 ARTHA TUNGGAL MANDIRI, PT 296 RENCANA MULIA BARATAMA, PT 297 BUKIT TAMBI, PT KUTAI KARTANEGARA BATANG HARI 540/014/IUP‐OP/MB‐PBAT/I/2011 2.993,00 298 BUMI LESTARI JAYA, PT KAUR 1230 TAHUN 2009 34.060,00 EKSPLORASI EMAS DMP 22‐Dec‐09 299 MAG ENERGY PACIFIC BARITO UTARA 188.45/532/2010 5.004,00 EKSPLORASI BATUBARA 18‐Mar‐10 300 MIFA BERSAUDARA ACEH BARAT 117.b TAHUN 2011 3.134,00 OPERASI PRODUKSI BATUBARA 30‐Mar‐11 301 GROUP RAHMAT BERSAMA, PT TANAH LAUT 545/34‐IUP.OP/DPE/2011 197,47 OPERASI PRODUKSI BATUBARA 24‐Oct‐11 302 SUCHAI KRISH INTERNATIONAL, PT MUARA ENIM 737/KPTS/TAMBEN/2009 4.489,00 EKSPLORASI BATUBARA 30‐Dec‐09 303 MULTI KREASI PERSADA, PT MUARA ENIM 555/KPTS/TAMBEN/2009 780,6 EKSPLORASI BATUBARA 2‐Oct‐09 304 ENIM ENERGY, PT MUARA ENIM 736/KPTS/TAMBEN/2009 402,6 EKSPLORASI BATUBARA 30‐Dec‐09 305 BUBUHAN MULTI SEJAHTERA, PT BATANG HARI 503/99/IUPEKSPLORASI/BPTSP/2010 1.805,00 EKSPLORASI BATUBARA 30‐Nov‐10 306 BUBUHAN MULTI SEJAHTERA, PT BATANG HARI 503/64/IUPOP/BPTSP/2011 2.000,00 OPERASI PRODUKSI BATUBARA 28‐Sep‐11 NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 307 BUBUHAN MULTI SEJAHTERA, PT BATANG HARI 503/20/IUPEKSPLORASI/BPTSP/2011 1.000,00 EKSPLORASI BATUBARA 6‐May‐11 308 BUBUHAN MULTI SEJAHTERA, PT BATANG HARI 503/22/IUPEKSPLORASI/BPTSP/2011 2.000,00 EKSPLORASI BATUBARA 6‐May‐11 309 BUBUHAN MULTI SEJAHTERA, PT BATANG HARI 503/21/IUPEKSPLORASI/BPTSP/2011 2.000,00 EKSPLORASI BATUBARA 6‐May‐11 310 ALASJAYA NATURAL RESOURCES, PT ACEH TENGGARA 543/106/2009 28.710,00 EKSPLORASI TIMAH HITAM 7‐Jul‐09 311 ALASJAYA NATURAL RESOURCES, PT ACEH TENGGARA 543/107/2009 10.260,00 EKSPLORASI TIMAH HITAM 7‐Jul‐09 540/03/DESDM/TAHUN 2011 3.793,00 OPERASI PRODUKSI BESI LATERIT 21‐Feb‐11 188.45/152‐540/2009 2.117,00 OPERASI PRODUKSI NIKEL 7 des 09 312 BILLY INDONESIA, PT 313 INDO BUMI NICKEL, PT LUWU TIMUR HALMAHERA TIMUR 314 BUMI PANGKEP SUMBER SEJAHTERA, PT PANGKAJENE KEPULAUAN 540.11/20‐IUP/DPE/V/2009 21,00 OPERASI PRODUKSI MARMER 18‐May‐09 315 ANUGRAH KUARI ABADI, PT PANGKAJENE KEPULAUAN 540.11/19‐IUP/DPE/V/2009 21,00 OPERASI PRODUKSI MARMER 18‐May‐09 316 PERSADA MAKMUR SEJAHTERA, PT 317 KEMANG MITRASWADAYA, PT 318 WAHANA ALAM LESTARI, PT GUNUNG MAS KUTAI KARTANEGARA TEBO 21/DPE/III/II/2011 10.000,00 EKSPLORASI BATUBARA 9‐Mar‐11 540/0777/IUP‐ER/MB‐PBAT/IV/2010 4.653,00 EKSPLORASI BATUBARA 13‐Apr‐10 195,00 OPERASI PRODUKSI BATUBARA 12‐Apr‐10 EKSPLORASI MARMER 1‐May‐11 197/ESDM/2010 319 BLORA MARMER KUSUMA, CV GROBOGAN 503/662/IUP.E/V/2011 320 GEOLAVA MANUNGGAL TEKNIK UTAMA, PT MOJOKERTO 188.45/267/HK/416‐012/2010 219,52 OPERASI PRODUKSI PASIR URUG 8‐Apr‐10 MALANG 180/421/KEP/421.013/2011 6,00 OPERASI PRODUKSI PIROFILIT 31‐May‐11 PASURUAN 545/328/424.077/2010 315,71 OPERASI PRODUKSI PASIR URUG 23‐Apr‐10 323 KARYACITRA MITRASEJATI, PT MOJOKERTO 188.45/266/HK/416‐012/2010 445,14 OPERASI PRODUKSI PASIR URUG 8‐Apr‐10 324 WIRA BHUMI SEJATI, PT JAWA TIMUR 188.4/01/119/IUP‐OP/2010 299,24 OPERASI PRODUKSI BATU GAMPING 27‐Apr‐10 325 WIRA BHUMI SEJATI, PT PASURUAN 545/327/424.077/2010 TOJO UNA‐UNA 188.45/370/DISTAMBEN 321 GUNUNG BALE, PT 322 IMAASKOJAYA BHUMIPERSADA, PT 326 WADUK MAS PERSADA, PT 5,00 74,45 OPERASI PRODUKSI 9.053,00 EKSPLORASI PASIR URUG 23‐Apr‐10 BIJIH BESI DMP 10‐May‐11 NO NAMA PERUSAHAAN 327 BANUA SANGGAM LESTARI, PT KABUPATEN / KOTA LUAS WILAYAH (HA) TAHAPAN KEGIATAN KOMODITAS TANGGAL SK 29 TAHUN 2011 12.740,00 OPERASI PRODUKSI MANGAN 3‐Mar‐11 HALMAHERA UTARA 540/123/HU/2011 1.500,00 OPERASI PRODUKSI PASIR BESI 23‐Jun‐11 329 INDO SNL, PT SERUYAN 233 TAHUN 2010 5.000,00 EKSPLORASI BIJIH BESI 3‐Jul‐10 330 INDO MINERAL PRIMA, PT SERUYAN 235 TAHUN 2010 1.479,00 EKSPLORASI GALENA DMP 3‐Jul‐10 331 MULIA ANUGERAH SAWITINDO, PT KOTA TIDORE KEPULAUAN 7.5 TAHUN 2012 8.304,00 EKSPLORASI NIKEL 26‐Jan‐12 332 MULIA ANUGERAH SAWITINDO, PT KOTA TIDORE KEPULAUAN 7.4 TAHUN 2012 4.000,00 EKSPLORASI BIJIH BESI 26‐Jan‐12 333 BERKAT ANUGERAH MAJU ABADI (1), PT KOTA TIDORE KEPULAUAN 7.2 TAHUN 2012 1.468,00 EKSPLORASI PASIR BESI 26‐Jan‐12 334 BERKAT ANUGERAH MAJU ABADI (2), PT KOTA TIDORE KEPULAUAN 7.3 TAHUN 2012 5.033,00 EKSPLORASI PASIR BESI 26‐Jan‐12 335 SHANA TOVA ANUGERAH, PT KOTA TIDORE KEPULAUAN 7.1 TAHUN 2012 9.063,00 EKSPLORASI EMAS 26‐Jan‐12 02/09/DISTAMBEN/ 10.088,00 EKSPLORASI EMAS DMP 5‐Jan‐11 376,40 OPERASI PRODUKSI BATUBARA 22‐Jun‐11 328 HALMAHERA SENTRA MINERAL, PT 336 INDOTAN LOMBOK BARAT BANGKIT, PT HALMAHERA SELATAN NO DAN TAHUN SK LOMBOK BARAT 337 BERINGIN JAYA ABADI, PT KUTAI KARTANEGARA 338 INTAN BUMI PERSADA, PT KAPUAS 362/DISTAMBEN TAHUN 2011 5.000,00 EKSPLORASI BATUBARA 14‐Sep‐11 339 PIRANTI JAYA UTAMA, PT KAPUAS 363/DISTAMBEN TAHUN 2011 4.800,00 EKSPLORASI BATUBARA 14‐Sep‐11 1.563,00 OPERASI PRODUKSI BATUBARA 31‐Dec‐09 BATUBARA 15‐Apr‐09 EKSPLORASI BATUBARA DMP 14‐Dec‐09 340 SARANA PUTRA PERDANA, PT BARITO TIMUR 540/123/IUP‐OP/MB‐PBAT/VI/2011 579 TAHUN 2009 341 BUMI LESTARI JAYA, PT HALMAHERA TENGAH 540/KEP/147.A/2009 8.457,60 342 BUMI SENTOSA JAYA, PT HALMAHERA TENGAH 540/KEP/317.A/2009 16.590,00 EKSPLORASI 343 RIYANTA JAYA, PT KAPUAS 164/DISTAMBEN TAHUN 2011 5.000,00 EKSPLORASI BATUBARA 2‐May‐11 344 PELITA INDAH, CV KAPUAS 165/DISTAMBEN TAHUN 2011 9.117,00 EKSPLORASI BATUBARA 2‐May‐11 345 MARIOGI KHARISMA JAYA, PT KAPUAS 163/DISTAMBEN TAHUN 2011 10.000,00 EKSPLORASI BATUBARA 2‐May‐11 05 TAHUN 2010 10.030,00 EKSPLORASI EMAS DMP 11‐Jan‐10 540/155/IUP‐EKSPLORASI/2010 15.610,00 EKSPLORASI EMAS DMP 17‐Mar‐10 346 BUMI LESTARI JAYA, PT 347 SYNERGY MINING BENGKULU SELATAN GAYO LUES NO NAMA PERUSAHAAN 348 BINTANG SINAR PERKASA, PT KABUPATEN / KOTA MOROWALI NO DAN TAHUN SK 540.2/SK.058/DESDM/IV/2010 LUAS WILAYAH (HA) 2.163,00 TAHAPAN KEGIATAN KOMODITAS TANGGAL SK EKSPLORASI NIKEL DMP 30‐Apr‐10 349 KEMUNING TAMBANG SENTOSA, PT INDRAGIRI HILIR 02/DPE‐PU/I/2010 615,00 OPERASI PRODUKSI BATUBARA 16‐Jan‐10 350 KERITANG BUANA MINING, PT INDRAGIRI HILIR 03/DPE‐PU/I/2010 965,00 OPERASI PRODUKSI BATUBARA 16‐Jan‐10 351 ARTA USAHA BAHAGIA, PT BARITO UTARA 188.45/56/2010 3.211,00 OPERASI PRODUKSI BATUBARA 16‐Feb‐10 352 BUKIT ASAM (PERSERO), PT MUARA ENIM 2402 K/30/MEM/2011 4.500,00 OPERASI PRODUKSI BATUBARA 10‐Oct‐11 353 BUKIT ASAM (PERSERO), PT SUMATERA SELATAN 751/KPTS/DISPERTAMBEN/2010 7.621,00 OPERASI PRODUKSI BATUBARA 29‐Oct‐10 MOROWALI 540.2/SK.014/DESDM/XII/2010 5.041,00 EKSPLORASI KROMIT DMP 30‐Dec‐10 EKSPLORASI 354 DUA RAJAWALI PROENERGI, PT 355 ANEKA TAMBANG, Tbk, PT PEGUNUNGAN BINTANG 540/2876/SET TAHUN 2010 49.740,00 356 ANEKA TAMBANG, Tbk, PT PEGUNUNGAN BINTANG 540/2892/SET TAHUN 2010 49.830,00 357 PUTRA DEWA JAYA, PT KUTAI KARTANEGARA 540/072/IUP‐OP/MB‐PBAT/V/2011 EMAS, PERAK, TEMBAGA, SENG EMAS, PERAK, EKSPLORASI TEMBAGA, SENG 1.057,00 OPERASI PRODUKSI 25‐Aug‐10 25‐Aug‐10 BATUBARA 10‐May‐11 358 DIVA DUNIA INTERNASIONAL, PT BOMBANA 126 TAHUN 2009 3.230,00 EKSPLORASI EMAS 24‐Apr‐09 359 KAYAN RESOURCES, PT SUKAMARA 545/260/HUK/2010 6.055,00 EKSPLORASI BAUKSIT 17‐Apr‐10 360 BORNEO METALINDO SENTOSA, PT SUKAMARA 545/172/HUK/2010 5.000,00 EKSPLORASI BIJIH BESI 15‐Jan‐10 361 KILAUAN KEBAHAGIAAN INTI TAMBANG, PT SUKAMARA 545/274/HUK/2010 7.482,89 EKSPLORASI BAUKSIT 14‐Apr‐10 362 NUSANTARA MEGAH UTAMA TAMBANG, PT SUKAMARA 545/273/HUK/2010 8.969,00 EKSPLORASI BAUKSIT 14‐Apr‐10 363 GEMA KARYA KILAUAN MINERAL, PT SUKAMARA 545/275/HUK/2010 6.770,39 EKSPLORASI BAUKSIT 14‐Apr‐10 SUMBAWA BARAT 602 TAHUN 2010 31.204,00 EKSPLORASI EMAS 9‐Jul‐10 365 SUMBER ENERGI JAYA, PT MINAHASA SELATAN 87 TAHUN 2010 822,30 OPERASI PRODUKSI EMAS 4‐Jun‐10 366 ANEKA TAMBANG, Tbk, PT MERANGIN 178/ESDM/2010 14.910,00 EKSPLORASI BATUBARA 24‐May‐10 367 BINTANG BIMASAKTI INDONESIA, PT MOROWALI 540.2/SK.008/DESDM/V/2010 25.550,00 EKSPLORASI NIKEL 18‐May‐10 364 INDOTAN SUMBAWA BARAT, PT 368 ANEKA TAMBANG, Tbk, PT PEGUNUNGAN BINTANG 540/2884/SET TAHUN 2010 49.920,00 EKSPLORASI EMAS 25‐Aug‐10 369 ANEKA TAMBANG, Tbk, PT PEGUNUNGAN BINTANG 540/2883/SET AHUN 2010 49.830,00 EKSPLORASI EMAS 25‐Aug‐10 NO NAMA PERUSAHAAN KABUPATEN / KOTA NO DAN TAHUN SK LUAS WILAYAH (HA) 370 SUMBER ENERGI JAYA, PT MINAHASA TENGGARA 130 TAHUN 2011 371 ANUGERAH PANCARAN BULAN, PT KUTAI KARTANEGARA 540/2552/IUP‐Er/MB‐PBAT/IX/2010 5.000,00 372 ANUGERAH PANCARAN BULAN, PT KUTAI KARTANEGARA 540/2551/IUP‐Er/MB‐PBAT/IX/2010 545/09‐IUP.EKS/DPE/2011 373 PRAFA COAL MINING, PT TANAH LAUT TAHAPAN KEGIATAN 836,10 OPERASI PRODUKSI KOMODITAS TANGGAL SK EMAS 10‐Oct‐11 EKSPLORASI BATUBARA 28‐Sep‐10 5.000,00 EKSPLORASI BATUBARA 28‐Sep‐10 158,90 EKSPLORASI BATUBARA 16‐Mar‐11 (insignia) CLEAR AND CLEAN CERTIFICATE Number: 685/Min/06/2013 has been granted to Name : PT INDOTAN LOMBOK BARAT BANGKIT Address : Graha Sentana, 4th floor Jl. Buncit Raya No.2 Jakarta Selatan 12760 Decision Letter : Regent of Lombok Barat, Nusa Tenggara Barat Number : 02/09/DISTAMBEN/2011 Phase : Exploration Commodity Type : Metal Mineral, Gold Ratified in Jakarta on: 25 March 2013 Director General of Mineral and Coal, (stamp and signature) Dr. Ir. Thamrin Sihite, ME. At the time of issuance of this certificate the company has met the following requirements: 1. 2. 3. Administration: a. Not Overlapping b. Permits documents STAMP Technical: a. Exploration report b. Feasibility study report c. Environmental documents approval Financial obligations: a. Fixed fee b. Royalty Note: In the event of error during the issuance of this certificate, revision is to be done in accordance with the prevailing statutory regulations. The above has been translated from Bahasa Indonesia into English by: Sylvia Longdong – Sworn Translator SK.GUB.DKIJAYA No. 3064/2003 Jakarta, August 20th, 2013 Sylvia Longdong