Intrepid Mines Limited

Intrepid Mines Limited

April 14, 2010 08:00 ET

Intrepid Discovers New Porphyry Zone Below Zone B Oxide Mineralisation

- 86 metres at 1.11 grams/tonne gold and 0.56% copper below Zone B

- A new porphyry zone located 1.2km SE of the main Tumpangpitu porphyry-additional drilling scheduled

QUEENSLAND, AUSTRALIA--(Marketwire - April 14, 2010) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") is pleased to report that diamond drill hole GTD-10-137 from the Tujuh Bukit Project has intersected significant gold and copper in a new zone of porphyry mineralisation.

The hole is located 1.2km southeast of the Tumpangpitu porphyry zone (see diagram). Drilling stopped in mineralisation. The hole was targeted on the basis of porphyry clasts found in shallower holes targeting the Zone B oxide resource. 

The intersected mineralisation is adjacent to a post-mineralisation intrusive which has 'stoped out' a portion of the porphyry zone. New shallower targets have been defined to the west (see cross section) and will be drilled mid-year. It has not yet been established if this is a separate new porphyry or if it is part of the main Tumpangpitu porphyry.

"This latest gold rich hole continues our track record of intersecting mineralisation in every hole we drill," said Intrepid CEO, Brad Gordon. "More importantly, it is a significant breakthrough for the project as it considerably enhances the size potential of the porphyry system." 

The following figures show the hole location and a simplified cross section.

Analysis of GTD-09-137 suggests:-

Porphyry mineralisation with varying degrees of high-sulphidation overprint

From  To Metres Gold (g/t) Silver (g/t) Copper (%)
62 80 18 1.42    
144 204 60 0.12 2.26 0.41
790 875.85 (EOH) 85.85  1.11 3.27 0.56

To view the figures associated with this release, please visit the following link:

Forward-looking statements

This announcement contains certain forward-looking statements, relating to, but not limited to Intrepid's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.

Shareholders and potential investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Intrepid undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Statements relating to gold resource estimates are expressions of judgment, based on knowledge and experience and may require revision based on actual production experience. Such estimates are necessarily imprecise and depend to some extent on statistical inferences and other assumptions, such as gold prices, cut-off grades and operating costs, which may prove to be inaccurate.

Forestry Activities

The Indonesian Forestry Law restricts non forestry activities within protection forests and prohibits mining using an open pit method in protection forest areas. Intrepid's Alliance partner, PT IMN, is working with relevant Indonesian authorities to allow for a review of forest land status. The Zone A, Zone B and Zone C Resource falls within a protection forest area, and there are risks attendant upon the reclassification process and there is no assurance that the forestry reclassification will take place.

Qualified Person

The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Malcolm Norris, who is a full-time employee of Intrepid Mines Limited. Mr. Norris has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr. Norris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Sample Analysis

Intrepid exercises a strict chain of sample custody in its drilling program at Tujuh Bukit. Joint Venture personnel remove core from the drill rig and deliver it to a project geologist who logs the core and marks the core into two metre sample intervals. Intrepid and Joint Venture personnel supervise the immediate splitting, sawing and bagging of samples, and packaging of groups of samples for dispatch to the laboratory. The remainder of the split core remains on site.

Samples are securely packaged, batched, and then transported under supervision to Intertek's laboratory facility in Jakarta. At the laboratory, the samples are prepared by crushing and pulverizing and a 30 gram charge is assayed for gold by conventional fire assay and/or atomic absorption methods. Multi-element ICP analysis is carried out using a multi-acid digestion process. All samples that contain silver and/or copper, lead, and zinc values that exceed the upper detection limits for ICP are re-analysed by conventional atomic absorption methods to determine the absolute values of these metals.

Gold Equivalence Statement

Gold equivalents: Gold equivalence ("AuEq") for Tujuh Bukit has been calculated based on a US $650/oz gold price and US $11/oz silver price. Metallurgical testing results achieved recoveries of app. 87% for Au and 80% for Ag. The gold equivalent grade was calculated using the following formula: AuEq = Au + (Ag / 65). The ratio of 65:1 is derived from the relative prices and metallurgical recoveries of each metal, or (Au Price x Au Recovery) / (Ag Price x Ag Recovery) = (650*0.87)/(11*0.80) = 0.65 (rounded up). It is the Company's opinion that the gold and silver included in the metal equivalent calculation have a reasonable potential to be recovered. 

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