AUSTINDO RESOURCES CORPORATION NL - ASX: ARX

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Description

Formed in 1983, Arc Exploration Limited (ASX code: ARX) is an Australian publicly listed company focused on gold exploration in Indonesia. Arc Exploration plans to capitalise on its unique expertise to explore for new projects in the region.

Trenggalek Project – East Java (ARX 95%)

Located in East Java, the Trenggalek Project is a 95% joint venture with P.T. Sumber Mineral Nustantara. The Exploration IUP license covers an area of over 30,000 hectares in the Southern Mountains of East Java Province. Displaying multiple high grade gold vein targets, exploration drilling at Trenggalek is expected in 2011. There is the potential for both high grade epithermal vein systems and bulk tonnage gold resources at this Project.

Summary Description of Drilled Prospects:

Sentul - Veins are up to 10-15 m wide and have greater than 10 km collective strike length. The veins host locally high-grade intervals. Highlights include: 2.0 m at 17.2 g/t Au & 13 g/t Ag within an intersection of 9.6 m at 4.5 g/t Au & 8 g/t Ag from 111.3 m in hole TRDD-4.

Kojan - Contains multiple parallel veins up to 5 m wide having a collective strike length of several kilometres, and notably high silver grades. Highlights include: 1.9 m at 11.3 g/t Au & 293 g/t Ag within an intersection of 6.6m at 4.9 g/t Au & 149 g/t Ag from 62.4 m in hole TRDD-35.

Buluroto - Potential for near surface gold and possibly gold-copper in mineralised breccia (e.g. 27 m at 0.49 g/t Au & 0.19% Cu in TRDD-25) developed at the intersection of two epithermal veins. A porphyry-style gold-copper system may occur at depth or adjacent to the breccia. Highlights include: 2.0 m at 8.7 g/t Au & 48 g/t Ag within an intersection of 13.7 m at 3.2 g/t Au & 60 g/t Ag/t from 13.4 m in hole TRDD-37.

Dalangturu - While no discrete veins were intersected, the alteration system is gold bearing and anomalous in arsenic, antimony and mercury. An intersection of 31 m grading 0.11 g/t gold from 74.3 m in hole TRDD-20 confirms this.

Bima Project – East Sumbawa (ARX 95%)

Located in East Sumbawa, the Bima Project is a 95% joint venture with P.T. Sumber Mineral Nustantara. The Exploration IUP license covers an area of over 24,900 hectares on the eastern side of Sumbawa in west Nusa Tenggara Province. The Bima Project has displayed multiple bulk gold targets with scout drilling expected in 2011 with the potential for shallow bulk gold and deeper gold and copper porphyry systems.

Summary Description of Prospects:

Kowo - Greater than 1km by 1km zone of silica-clay-chlorite alteration and quartz-baryte-sulphide stockwork in a window of older volcanics within younger cover rocks. Selective rock chip sampling has produced up to 2.7 g/t gold, 686 g/t silver, 125 ppm molybdenum, 0.2% copper, 0.4% lead, 0.7% zinc and 13% barium. The early geological and geochemical results suggest the presence of a large epithermal stockwork system possibly located above or beside a deeper porphyry target.

Baku - Greater than 300m by 400m zone of silica-clay/vughy silica alteration and quartz-sulphide/limonite stockwork centred on a quartz-feldspar porphyry intruding andesitic volcanics. Selective rock chip sampling has produced up to 27.2 g/t gold, 23 g/t silver. Initial trenching returned up to 86m at 2.78 g/t gold. The early geological and geochemical results highlight potential for a shallow bulk-tonnage gold target in a mineralised lithocap that may overlie a deeper porphyry target.

Soro - Greater than 1km by 1km zone of gossanous silicified limestone and fresh limestone outcrops underlying a 400m by 600m gold-soil anomaly containing of up to 0.75 ppm gold in soil. The altered limestone may contain replacement-style gold mineralisation or overlie mineralised stockwork in volcanic rocks that are similar to Kowo and Baku.

Papua Strategic Alliance (ARX 20%)

Located in West Papua, Arc Exploration has a 20% interest in a Strategic Alliance with Anglo American, with Anglo American funding exploration through to decision to mine. The Project is highly prospective for large copper and gold deposits. The first project in this alliance, Aisasjur is a large gold-copper system in the Grasberg Belt with an Exploration IUP license covering an area of over 99,400 hectares.

The key results of work completed to-date by the Alliance at Aisasjur:

* Confirmed the potential for deeper porphyry-style mineralisation.
* Deep drilling intercepts included 13m at 0.5 g/t gold & 0.21% copper from 561m in ASD-23 and 192m at 0.2 g/t gold & 0.13% copper from 698m in ASD-26 obtained in porphyry-related quartz-pyrite-chalcopyrite/bornite veins.
* Confirmed the presence of shallow gold mineralisation. Widespread gold intercepts including 68m at 0.5 g/t gold from 322m in ASD-24, 9m at 3.2 g/t gold from 124m in ASD-28, and 14m at 3.2 g/t gold in ASD-29 were returned in epithermal chalcedony-quartz-sulphide stockwork.

Mine For

gold, copper, silver

Location of operation(s)

Indonesia

Address

C/- Suite 1502, Level 15 Keycorp Tower B 799 Pacific Highway
CHATSWOOD, NSW, AUSTRALIA

Phone

02 9419 8044

Email

Website

http://www.austindoresources.com.au

Last Updated

26/04/2011