Arc Exploration : Geophysical Analysis and Targeting at Dobroyd Junee Project

Sampling

techniques



Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under



No new drilling results are reported herewith.

investigation, such as down hole gamma sondes, or handheld XRF instruments, etc).

These examples should not be taken as limiting the broad meaning of sampling.



Include reference to measures taken to ensure sample representivity and the

appropriate calibration of any measurement tools or systems used.



Aspects of the determination of mineralisation that are Material to the Public Report.



In cases where 'industry standard' work has been done this would be relatively

simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3

kg was pulverised to produce a 30 g charge for fire assay'). In other cases more

explanation may be required, such as where there is coarse gold that has inherent

sampling problems. Unusual commodities or mineralisation types (eg submarine

nodules) may warrant disclosure of detailed information.

Drilling



Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,



No drilling results are reported herewith.

techniques

Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of

diamond tails, face-sampling bit or other type, whether core is oriented and if so, by

what method, etc).

Drill sample recovery



Method of recording and assessing core and chip sample recoveries and results assessed.



No new drilling results are reported herewith.



Measures taken to maximise sample recovery and ensure representative nature of

the samples.



Whether a relationship exists between sample recovery and grade and whether

sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Logging



Whether core and chip samples have been geologically and geotechnically logged to



No new drilling results are reported herewith.

a level of detail to support appropriate Mineral Resource estimation, mining studies

and metallurgical studies.



Whether logging is qualitative or quantitative in nature. Core (or costean, channel,

etc) photography.



The total length and percentage of the relevant intersections logged.

Sub-sampling



If core, whether cut or sawn and whether quarter, half or all core taken.



No new drilling results are reported herewith.

techniques and

sample



If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

preparation



For all sample types, the nature, quality and appropriateness of the sample

preparation technique.



Quality control procedures adopted for all sub-sampling stages to maximise

representivity of samples.



Measures taken to ensure that the sampling is representative of the in situ material

collected, including for instance results for field duplicate/second-half sampling.



Whether sample sizes are appropriate to the grain size of the material being

sampled.

Quality of



The nature, quality and appropriateness of the assaying and laboratory procedures



No new drilling results are reported herewith.

assay data and

used and whether the technique is considered partial or total.

laboratory tests



For geophysical tools, spectrometers, handheld XRF instruments, etc, the

parameters used in determining the analysis including instrument make and model,

reading times, calibrations factors applied and their derivation, etc.



Nature of quality control procedures adopted (eg standards, blanks, duplicates,

external laboratory checks) and whether acceptable levels of accuracy (ie lack of

bias) and precision have been established.

Verification of sampling and



The verification of significant intersections by either independent or alternative company personnel.



No new drilling results are reported herewith.

assaying



The use of twinned holes.



Documentation of primary data, data entry procedures, data verification, data storage

(physical and electronic) protocols.



Discuss any adjustment to assay data.

Location of data points



Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource



No new drilling results are reported herewith.

estimation.



Specification of the grid system used.



Quality and adequacy of topographic control.

Data spacing



Data spacing for reporting of Exploration Results.



No new drilling results are reported herewith.

and distribution



Whether the data spacing and distribution is sufficient to establish the degree of

geological and grade continuity appropriate for the Mineral Resource and Ore

Reserve estimation procedure(s) and classifications applied.



Whether sample compositing has been applied.

Orientation of data in relation



Whether the orientation of sampling achieves unbiased sampling of possible



No new drilling results are reported herewith.

Criteria

JORC Code explanation

Commentary

Mineral tenement and

land tenure status

 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

 The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

 The Dobroyde gold deposit is wholly contained within EL 6516 and is held 100% by a private company, New South Resources ("NSR") Pty Ltd. ARX has an option to farm- in to the Junee Project, which includes EL 6516. Details were announced in an ARX report released to the ASX 3 July

Exploration

done by other parties

 Acknowledgment and appraisal of exploration by other parties.

 The airborne magnetic and radiometric survey mentioned in this announcement was flown by Kevron Geophysics for Gold Mines of Australia (GMA) in1996, with a line spacing of 50m and a mean terrain clearance of 50m.

 The ground IP-Resistivity survey referred to in this announcement was conducted by Fugro for North South Resources in 2007. The IP and resistivity data were collected using an offset pole dipole array on 50m stations and lines 100m apart.

Geology

 Deposit type, geological setting and style of mineralisation.

 Located in the central-southern part of the Lachlan Orogen

 EL 6516 straddles the highly prospective and regionally significant Gilmore Fault Zone and contains rocks of the Junee-Narromine Volcanic Belt, part of the highly prospective Ordovician-Early Silurian Macquarie Volcanic Arc. Large porphyry- related gold and gold-copper deposits, such as Northparkes, Gidginbung and Cowal, occur along this fertile volcanic belt and their distribution is also spatially related to the Gilmore Fault Zone and its associated fault splays.



EL 6516 is prospective for high sulphidation-style epithermal gold & porphyry gold- copper within the Ordovician volcanic rock unit.



Deposit Geology: The Dobroyde high-sulphidation epithermal gold deposit lies

within an inlier of Junawarra Volcanics, which contain andesitic to dacitic lavas,

pyroclastics and rhyolitic dykes. It occurs in northwest-trending linear structures

adjacent to the major regional Gilmore Fault Zone. The interpreted mineralised

envelope is approximately 350m long and 40 to 80 m wide, plunging 20-25 degrees

northward.

Drill hole



A summary of all information material to the understanding of the exploration results



No new drilling results are reported herewith.

Information

including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill

hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.



If the exclusion of this information is justified on the basis that the information is not

Material and this exclusion does not detract from the understanding of the report, the

Competent Person should clearly explain why this is the case.

Data



In reporting Exploration Results, weighting averaging techniques, maximum and/or



No new drilling results are reported herewith.

aggregation

minimum grade truncations (eg cutting of high grades) and cut-off grades are usually

methods

Material and should be stated.



Where aggregate intercepts incorporate short lengths of high grade results and

longer lengths of low grade results, the procedure used for such aggregation should

be stated and some typical examples of such aggregations should be shown in

detail.



The assumptions used for any reporting of metal equivalent values should be clearly

stated.

Relationship



These relationships are particularly important in the reporting of Exploration Results.



No new drilling results are reported herewith.

between

mineralisation widths and intercept lengths





If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear

statement to this effect (eg 'down hole length, true width not known').

Diagrams



Appropriate maps and sections (with scales) and tabulations of intercepts should be



Diagrams are included with this announcement.

included for any significant discovery being reported These should include, but not

be limited to a plan view of drill hole collar locations and appropriate sectional views.

Balanced reporting



Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be



No new drilling results are reported herewith.

practiced to avoid misleading reporting of Exploration Results.

Other substantive



Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical



There is no other substantive data to report other than what has appeared in previous announcements on Dobroyde by ARX.

exploration

survey results; bulk samples - size and method of treatment; metallurgical test

data

results; bulk density, groundwater, geotechnical and rock characteristics; potential

deleterious or contaminating substances.

Further work



The nature and scale of planned further work (eg tests for lateral extensions or depth



A ground evaluation of the geophysical targets is in progress.

extensions or large-scale step-out drilling).



Diagrams clearly highlighting the areas of possible extensions, including the main

geological interpretations and future drilling areas, provided this information is not

commercially sensitive.