Other exploration activities outside the more advanced mineralized prospects on the Taliwang property have also carried out by Southern Arc. In August 2006, geological field work activities, such as geological mapping and sampling, were carried out at the Kalanir, Mereseng and Lampok areas.

Geological Mapping

In August 2006 Southern Arc carried out geological field work activities, such as geological mapping and sampling at the Kalanir, Mereseng and Lampok areas.

The Kalanir anomaly area is located about 0.8 km north of the Lemonga Prospect (see Sumbawa - Taliwang SIPP Geochemical Anomalies map on Overall Maps Page). It covers an area of approximately 0.4km by 0.4km, displaying a medium aero-magnetic response inferred as an intrusive, or sub-volcanic body. It was selected as a target of interest by EGI. There is no significant BLEG geochemistry from previous work, although alteration and lithology consists of fresh to weak propylitic alteration of volcanic rocks. No other alteration and/or veining were observed and no samples were collected.

The Mereseng anomaly area (see Sumbawa - Taliwang SIPP Geochemical Anomalies map and also Mereseng Geology and Alteration map) is located immediately north of the Taliwang township and about 2.0km southeast of Lemonga. It covers an area of approximately 2km by 3km and displays a low magnetic response, however previous sampling in 2004 returned rock float values of 0.18 to 0.42 ppm Au, 15 to 30 ppm Ag, and 8,840 ppm Cu.

Field descriptions suggest that the area is underlain by volcanic breccia, andesite and fine-grained clastic units (volcanic siltstone to sandstone). The main structural features appear to trend both northwest and northeast, producing narrow zones of silica-kaoline±pyrite alteration, brecciation, and shear zones in fine clastics. Silica±alunite±pyrite alteration with a vuggy texture was observed at the top of Olat Mereseng (162m elevation). It varies from 0.5 to 2.0m in width, trends NE, and is hosted in more extensive silica>kaolinite-alunite±illite altered volcanic(?) breccia. Abundant vuggy (residual) silica and kaol>sil±alunite altered volcanic(?) breccia boulders were noted on the slopes of Olat Mereseng. A total of 11 rock samples (9 RC & 2 RF) were collected during August 2006.

The Lampok anomaly area is located about 5.0km southeast of Taliwang (see Sumbawa - Taliwang SIPP Geochemical Anomalies map) and covers an area of approximately 2km by 3 km. The area displays a low-medium aero-magnetic response and previously returned elevated BLEG (18.1 to 18.7 ppb Au and 40 to 241 ppb Ag) and rock float (max. 0.14 ppm Au and 3260 ppm Pb) geochemistry.

The area is underlain by dacite, quartz feldspar porphyry and andesite volcanics, with localized limestone cappings. Dacite and quartz feldspar porphyry intrusives are predominantly altered to argillic (kaol±silica±pyrite), with locally strong silicification occurring along narrow fracture/fault zones. Localized quartz ± base metal sulfide veining was observed in small fault traces and as a minor component of stream bed load. A total of 11 rock samples (7 RC & 4 RF) were collected during August 2006.