Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

December 07, 2009 22:33 ET

Intrepid Mines Limited: New High Grade Resource Position Signals Recommencement of Paulsens Underground Development

BRISBANE, AUSTRALIA--(Marketwire - Dec. 7, 2009) - Intrepid Mines Limited ("Intrepid") (TSX:IAU)(ASX:IAU) is pleased to announce that deep drill testing of the Paulsens down plunge extent has identified a high grade component to the Voyager mineralisation. This release details the drill intersections received this quarter, the resultant resource estimate and operational consequences.

These latest exploration results provide positive indications that the Company is now in a position to resume gold production within six months of the previously announced production hiatus.

The Company will immediately extend 803RL drill drive and wedge off several surface holes to generate additional data for resource to reserve conversion and to extend the resource potential. It is anticipated the decline will recommence in February 2010 with first ore to the mill stockpile in June 2010.

Voyager resource estimates have been updated by Hellman & Schofield Pty Ltd based on geological interpretations by Intrepid and including recent infill drilling. The estimates (Table 1) represent a substantial upgrade to previous Voyager resource estimates.



Table 1: Paulsens Resource Estimate: December 2009
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Tonnes Au Contained Au
g/t Oz
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Voyager Upper Indicated 138,000 15.0 66,400
Inferred 40,000 14 18,000
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Voyager Lower Indicated 66,000 11.0 23,300
Inferred 70,000 9 21,000
--------------------------------------------------------------------
Total Indicated 204,000 13.7 89,700
Inferred 110,000 11 39,000
--------------------------------------------------------------------


The figures in this table are rounded to reflect the accuracy of estimates and exhibit rounding errors

The resource estimates presented represent the remnant Paulsens mineralisation reported above a cut off grade of 4.0 g/t excluding small isolated zones that are not amenable to eventual economic extraction. The current estimates include only the Voyager zones, as virtually all other areas of Paulsens mineralisation have been depleted by mining.

The most recent drill intercepts (see Tables 2 and 3) reveal a very consistent, high-grade structure within the overall Voyager mineralisation. It is controlled by a major fold, plunges at 25 degrees and is still open at depth though it will most likely be cut off by the second Apollo fault. Limited drilling to date has indicated the presence of a second Voyager style quartz body, below this fault. Figure 1 shows this in long section, and Figure 2 is a close up of the same with the resource block model.

Voyager, first postulated in mid 2007 as an offset to the main orebody, was drill tested from the 895 access with initial positive results. This then led to the extension of the 895 drill drive and the systematic drill out of Voyager. The Voyager mineralisation is structurally controlled by a series of thrust faults (Apollo Faults) creating a deposit that is different from the Paulsens orebody above the fault (above 800m RL). The highest grade zone was difficult to drill from the 895 drill drive.

The continuing development of the decline provided better drill positions which allowed the last remaining part of Voyager to be adequately tested. The subsequent drilling from these locations, led to the identification of a high grade structure, defined by the fold hinge in Voyager.



Table 2: Best Intersections received fourth quarter 2009

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Est. Grade
Downhole True (g/t) Grade (i) Ore Zone
Intersection Thickness (cut to est. true and RL of
Hole # (m) (m) 100g/t) thickness comments intersection
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PDU1104 5 4 44.2 176.7 VOY UZ 702m RL
----------------------------------------------------------------------------
PDU1098 3.05 2.9 53.6 155.4 VOY UZ 740m RL
----------------------------------------------------------------------------
PDU1097 3.18 3 44.9 134.7 VOY UZ 744m RL
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PDU1096 2.7 2.4 55.0 132.0 VOY UZ 742m RL
----------------------------------------------------------------------------
PDU1092 6 3.7 34.9 129.1 VOY UZ 746m RL
----------------------------------------------------------------------------
PDU1100 9.91 6.5 17.3 112.3 VOY UZ 720m RL
----------------------------------------------------------------------------
PDU1109 4.88 3 36.8 110.4 VOY UZ 710m RL
----------------------------------------------------------------------------
PDU1103 4 2.1 52.5 110.3 VOY UZ 707m RL
----------------------------------------------------------------------------
PDU1091 4.6 2.5 43.2 108.0 VOY UZ 757m RL
----------------------------------------------------------------------------
PDU1103 28 3 29.6 88.8 VOY LZ 630m RL
----------------------------------------------------------------------------
PDU1098 2 1.9 45.7 86.8 VOY LZ 703m RL
----------------------------------------------------------------------------



Table 3: Previously released relevant intersections
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Est. Grade
Downhole True (g/t) Grade (i) Ore Zone
Intersection Thickness (cut to est. true and RL of
Hole # (m) (m) 100g/t) thickness comments intersection
----------------------------------------------------------------------------
PDU500 4.37 2.3 69.8 160.5 VOY LZ 700m RL
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PDU1072 1.95 1.6 73.6 117.8 VOY UZ 734m RL
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PDU1041 4.3 4 27.8 111.2 VOY UZ 713m RL
----------------------------------------------------------------------------
PDU973 3 1.8 51.2 92.2 VOY LZ 705m RL
----------------------------------------------------------------------------
PDU727 5.8 3 22.5 67.5 VOY LZ 714m RL
----------------------------------------------------------------------------
PDU975 4 2.5 22.7 56.8 VOY UZ 745m RL
----------------------------------------------------------------------------
PDU499 3.55 1.7 19.4 33.0 VOY LZ 707m RL
----------------------------------------------------------------------------


A full list of 4th Quarter 2009 intersections is presented in Table 4

To view figures 1 and 2 please visit the following link: http://media3.marketwire.com/docs/iau1207fig.pdf



Table 4: Full list of intersections received fourth quarter 2009

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Est. Grade
Downhole True (g/t) Grade (i) Ore Zone
Intersection Thickness (cut to est true and RL of
Hole # (m) (m) 100g/t) thickness comments intersection
----------------------------------------------------------------------------
PDU1104 5 4 44.2 176.7 VOY UZ 702m RL
----------------------------------------------------------------------------
PDU1098 3.05 2.9 53.6 155.4 VOY UZ 740m RL
----------------------------------------------------------------------------
PDU1097 3.18 3 44.9 134.7 VOY UZ 744m RL
----------------------------------------------------------------------------
PDU1096 2.7 2.4 55.0 132.0 VOY UZ 742m RL
----------------------------------------------------------------------------
PDU1092 6 3.7 34.9 129.1 VOY UZ 746m RL
----------------------------------------------------------------------------
PDU1100 9.91 6.5 17.3 112.3 VOY UZ 720m RL
----------------------------------------------------------------------------
PDU1109 4.88 3.0 36.8 110.4 VOY UZ 710m RL
----------------------------------------------------------------------------
PDU1103 4 2.1 52.5 110.3 VOY UZ 707m RL
----------------------------------------------------------------------------
PDU1091 4.6 2.5 43.2 108.0 VOY UZ 757m RL
----------------------------------------------------------------------------
PDU1080 2.5 1.8 53.7 96.7 VOY UZ2 751m RL
----------------------------------------------------------------------------
PDU1103 28 3 29.6 88.8 VOY LZ 630m RL
----------------------------------------------------------------------------
PDU1080 5 3.4 25.9 88.1 VOY UZ 760 m RL
----------------------------------------------------------------------------
PDU1105A 4.6 2.4 36.6 87.8 VOY UZ 720m RL
----------------------------------------------------------------------------
PDU1098 2 1.9 45.7 86.8 VOY LZ 703m RL
----------------------------------------------------------------------------
PDU1098 5.2 1 63.6 63.6 VOY UZ2 715m RL
----------------------------------------------------------------------------
PDU1106 22 4 15.5 62 VOY UZ 702m RL
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PDU1101 6.1 3.8 16.0 60.8 VOY UZ 720m RL
----------------------------------------------------------------------------
PDU1095 5.05 4 14.5 58 VOY UZ 742m RL
----------------------------------------------------------------------------
PDU1103 5.78 3 15.6 46.8 VOY LZ 680m RL
----------------------------------------------------------------------------
PDU1093 1.94 1.9 23.6 44.8 VOY UZ 740m RL
----------------------------------------------------------------------------
PLDD016 9 1 35.2 35.2 Unknown 1103m RL
----------------------------------------------------------------------------
PLDD014 0.5 0.5 67.8 33.9 VOY UZ 705m RL
----------------------------------------------------------------------------
VOY UZ
PDU1104 1.62 1.62 18.3 29.7 SPLAY 714m RL
----------------------------------------------------------------------------
PDU1108 2 2 14.7 29.4 VOY LZ 730m RL
----------------------------------------------------------------------------
PDU1099 1.7 1 28.7 28.7 VOY UZ2 690m RL
----------------------------------------------------------------------------
PDU1102 3.5 2.1 10.7 22.5 VOY UZ 716m RL
----------------------------------------------------------------------------
PDU1055A 6.7 4 5.0 20 VOY UZ 718m RL
----------------------------------------------------------------------------
PDU1099 7.25 5 4.0 19.8 VOY UZ 710m RL
----------------------------------------------------------------------------
PDU1108 2 1 14.3 14.3 VOY LZ 734m RL
----------------------------------------------------------------------------
PDU929 5.5 5.1 2.6 13.3 VOY LZ 819m RL
----------------------------------------------------------------------------
PDU1093 2.81 2.8 4.3 12.1 VOY LZ 734m RL
----------------------------------------------------------------------------
PDU1094 2.85 2.85 3.8 10.9 VOY UZ 755m RL
----------------------------------------------------------------------------
PDU1101 2.31 0.8 12.9 10.3 VOY LZ? 715m RL
----------------------------------------------------------------------------
PDU1109 11.38 1.5 6.1 9.2 VOY LZ 680m RL
----------------------------------------------------------------------------
VQ in
PDU1092 1.7 1 8 8 Gabbro 731m RL
----------------------------------------------------------------------------
PLDD015 2.6 1 6.6 6.6 VOY UZ 658m RL
----------------------------------------------------------------------------
PDU1108 1.2 1.2 4.9 5.9 VOY LZ 710m RL
----------------------------------------------------------------------------
PDU1107 0.8 0.8 6.9 5.5 VOY LZ 752m RL
----------------------------------------------------------------------------
PDU1108 0.2 0.2 17.5 3.5 VOY UZ 675m RL
----------------------------------------------------------------------------
VOY UZ
PDU925 2.2 1 3.3 3.3 SPLAY 852m RL
----------------------------------------------------------------------------
PDU1108 1.2 0.6 5 3 VOY LZ 710m RL
----------------------------------------------------------------------------
PDU928 1.2 1.2 2.3 2.8 VOY LZ 820m RL
----------------------------------------------------------------------------
PDU1055A 0.45 0.3 6.1 1.8 VOY UZ 672m RL
----------------------------------------------------------------------------
PDU1108 0.2 0.1 17.5 1.8 VOY UZ 675m RL
----------------------------------------------------------------------------
PDU1055A NSR VOY UZ 699m RL
----------------------------------------------------------------------------
PDU1107 NSR VOY UZ 699m RL
----------------------------------------------------------------------------
PDU925 NSR VOY UZ 780m RL
----------------------------------------------------------------------------
PDU937 NSR VOY UZ 830m RL
----------------------------------------------------------------------------
VOY LZ
(cut
PDU1107 NSR by dyke) 705m RL
----------------------------------------------------------------------------
PDU1055A NSR VOY LZ 730m RL
----------------------------------------------------------------------------
PDU1092 NSR VOY LZ 725m RL
----------------------------------------------------------------------------
PDU1094 NSR VOY LZ 714m RL
----------------------------------------------------------------------------
PDU1095 NSR VOY LZ 727m RL
----------------------------------------------------------------------------
PDU1096 NSR VOY LZ 711m RL
----------------------------------------------------------------------------
PDU1102 NSR VOY LZ 693m RL
----------------------------------------------------------------------------
PDU1107 NSR VOY LZ 723m RL
----------------------------------------------------------------------------
PDU1108 NSR VOY LZ 684m RL
----------------------------------------------------------------------------
PDU937 NSR VOY LZ 790m RL
----------------------------------------------------------------------------
PDU925 NSR VOY LZ 760m RL
----------------------------------------------------------------------------
(i)NSR - no significant result


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 5 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 reserve and 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. Information provided relating to projected costs, capital expenditure, production profiles and timelines are expressions of judgment only and no assurances can be given that actual costs, production profiles or timelines will not differ materially from the estimates contained in this announcement.

QUALITY CONTROL

Sample Analyses - All core is logged and whole core samples (if LTK48 size, NQ2 sized core is cut and half cored) are marked and prepared for shipping at the Paulsens Mine Property and sent to an independent Laboratory for assay. The remaining half core is stored on site. All samples from which information in this press release is derived were received by ALS Chemex - Australian Laboratory Services Pty. Limited in Karratha, Western Australia. Samples are weighed and crushed to 70% passing -6mm mesh. The crushed material is split and a portion is pulverised. A 100g pulp is sent to ALS Perth, Western Australia for assay. A 30 gram portion of the pulp is treated by Fire Assay method with atomic absorption finish (Au-AA25). A second pulp sample split (150-200g) is kept in Karratha. Sample rejects are discarded after 90 days. Over limit samples (greater than 100ppm Au) are re-analysed using ALS' dilution method (Au-DIL). Intrepid inserts one standard in each hole, and one blank is now inserted in each ore zone though this practice has only recently been adopted. Lab standards and blanks are inserted by ALS and several pulp duplicates are also assayed as a determinant of mineralization variability.

QUALIFIED PERSONS

The information in this announcement that relates to exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by or under the supervision of Brook Ekers, (Member AIG), who is a full-time employee of Intrepid Mines Limited. Mr. Ekers 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 is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr. Ekers consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The information in this report that relates mineral resource estimation is based on work completed by Mr Jonathon Abbott who is a full time employee of Hellman and Schofield Pty Ltd and a member of the Australasian Institute of Mining and Metallurgy. For the current study, Hellman & Schofield were not required to review the quality of the sampling data, or geological interpretation as Intrepid are accepting responsibility for these aspects of the estimates. Mr Abbott 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 is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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