Intrepid Mines Limited
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Intrepid Mines Limited

August 17, 2009 09:10 ET

Intrepid Mines Limited: Drilling Intercepts 533 g/t Silver-Equivalent Over 12.1 Metres at Taviche J-V, Mexico

INCLUDES 2.5 KG/T OVER 1.3 M

BISBANE, AUSTRALIA--(Marketwire - Aug. 17, 2009) - Intrepid Mines Limited ("Intrepid") (TSX:IAU)(ASX:IAU) is pleased to report the assay results from the first three drill holes of a 1,500-metre drill program at Taviche JV Project in Oaxaca, Mexico. All three holes intercepted consistent mineralization, with HBET-03 encountering 34.2 metres (m) averaging 219.5 grams per tonne (g/t) silver equivalent at a depth of only 85 m, including 12.1 metres averaging 533.4 g/t silver equivalent, and 1.3 m grading 2,466.8 g/t silver equivalent (see table below).

Intrepid, which is project manager, is earning a 35% share in the Taviche Project, as is Aura Silver (TSX VENTURE:AUU) Pan American Silver (TSX:PAA) holds the remaining 30% share.

The first phase of drilling is focused on the Higo Blanco silicified limestone-volcanic complex. This is delineated by a two-kilometre wide geologic structure containing a gold (Au)-silver (Ag)-antimony (Sb) anomaly extending approximately seven kilometres along strike. Much of the silver mineralization occurs in a brecciated silica replacement of limestone, but a more gold-rich part of the system is associated with extensive quartz veining in the overlying volcanic strata.

Drill holes HBET-01 and HBET-02 were designed to determine the geologic structure of Higo Blanco with special attention given to the Mezcal vein. This structure contains Au-enriched veins at surface, and seems to be confined to the section where the structure intersects the volcanic rocks. The vein system was confirmed to at least 100 metres in depth, and in addition, HBET-02 encountered a silicified limestone breccia unit containing much higher precious metal content at 62 m with 11.6 m averaging a silver equivalent 166.3 g/t including 1.2 m grading 754.4 g/t silver equivalent. HBET-03 was designed to intersect the silicified unit to the east of the Mezcal structure.

Noted Brad Gordon, Chief Executive Officer of Intrepid Mines, "This initial drilling provides exciting evidence that, in addition to our producing Paulsen's gold mine in Australia, and our separate near surface gold-silver oxide cap over a copper-gold porphyry at the Tujuh Bukit Project in Indonesia, we may be adding an additional significant asset to Intrepid's portfolio. Still, we are at an early stage and further drilling is under way."

In addition, during February, 2008, the Taviche JV obtained the social licence to operate in the area and is pleased to announce that on Aug. 9, 2009, the community renewed its support for the company's project. The recent signing of this agreement allows the Taviche JV to enjoy access to the community lands which encompass the entire Higo Blanco project. This agreement includes a significant corporate social responsibility component whereby the Taviche JV has supported and will continue supporting projects selected by the community including road maintenance, design and engineering of water projects, support for local schools and clinic, reforestation and small business development. All projects are designed to promote the community's sustainable development, increasing their productivity, improving the environment and strengthening its social fibre.



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Hole SAMPLE FROM TO LENGTH Au Ag AgEq
No. (m) (m) (m) (g/t) (g/t) (g/t)
HBET-01
Au-zone 2522-2542 0 29.55 29.55 0.50 15.39 45.5
Including 2534-2543 19.45 31.1 11.65 0.7 20.13 62.13
2542 28.05 29.55 1.50 1.89 108 221.4

HBET-02
Ag Zone 2581-2607 14.9 73.05 58.15 0.07 65.05 69.25
Including 2593-2607 59.5 73.05 13.55 0.13 137.5 145.3
2596-2607 61.5 73.05 11.55 0.15 157.3 166.3
2597 61.5 62.15 0.65 0.14 667 675.4
2607 71.85 73.05 1.20 0.19 743 754.4
Au zone 2642-2668 107.65 158.75 51.1 0.54 12.2 44.7
Including 2642-2649 107.65 117.45 9.8 0.87 12.39 64.3

HBET-03
Ag Zone 2679-2711 85 119.2 34.2 0.13 211.7 219.5
Including 2701-2711 107.1 119.2 12.10 0.24 519 533.4
2701-2705 107.1 111.8 4.7 0.15 1077 1086
2683 88.05 89.5 1.45 0.27 1100 1116.2
2701 107.1 107.9 0.80 0.12 646 653.2
2703 108.9 110.2 1.30 0.28 2450 2466.8
Au zone 2715-2727 135.00 149.1 14.1 0.56 3.44 37.18
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(i) Intervals shown are downhole intervals. True widths are not yet known
in the initial phase of drilling.


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.

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.

Statements relating to silver and 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. The drill programme at Taviche is insufficiently advanced to define a resource estimate and it is uncertain if further drilling will result in the determination of a resource statement at the project.

SAMPLE ANALYSIS

Core samples collected by the Taviche JV have been analyzed by SGS Labs in Durango, Mexico, for multi-element geochemical analyses by ICP-OES (40 element), gold by fire assay and AAS finish (greater than 0.005 g/t) and silver by AAS (greater than 0.3 g/t). Silver values in excess of 300 g/t are rerun by fire assay. Every tenth sample, a blank is included while every 25th sample is a known standard.

SILVER EQUIVALENTS

Silver equivalent for the purposes of this drilling program is defined as silver grade plus 60 times gold grade. Metallurgical recoveries and net smelter returns are assumed to be 100 per cent for the silver equivalent value. Base metal values are not included in the silver equivalent.

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