Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

October 20, 2009 23:22 ET

Intrepid Mines Limited: Tujuh Bukit Project Oxide Drilling Update

- Zone B oxide resource estimate on schedule for Q4, 2009 - Drilling commences at Zones D and E - Third drill rig extending current Zones A and C resource of 2.57 million ounces

BRISBANE, AUSTRALIA--(Marketwire - Oct. 20, 2009) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") is pleased to report that ongoing diamond drilling of the Tumpangpitu Prospect, Tujuh Bukit Project has continued to define encouraging gold-silver oxide zones in the Zone B oxide zone. Drill activity is also to commence in new zones identified by gold-in-soil surface sampling.

Zone B

Recent drilling has continued to return broad, and locally higher grade oxide intercepts including -



GTD-73 58-136m: 78m at 0.88 g/t Gold-equivalent(i)
GTD-75 18-94m: 76m at 1.76 g/t Gold-equivalent
GTD-80 0-20m: 20m at 1.07 g/t Gold-equivalent
GTD-85 110-130m: 20m at 4.07 g/t Gold-equivalent


With the last hole in the programme nearing completion, an inaugural resource for the oxide mineralization is on schedule for release before year end.

The drilling has also consistently defined relatively shallow sulphide copper-gold-silver mineralisation of grades comparable to that defined at depth under Zones A and C, located 1km to the NE, and consistent with previously announced results (Release of July 16, 2009.) Significant deeper sulphide intercepts include -



GTD-75: 264-300m: 36m at 0.22 g/t Gold-equiv. & 0.56% copper
GTD-78: 50-66m: 16m at 2.35 g/t Gold-equiv. & 0.27% copper
GTD-80: 266-284m: 18m at 0.15 g/t Gold-equiv. & 0.33% copper
GTD-85: 80-110m: 30m at 0.8 g/t Gold-equiv. & 0.37% copper


A complete table of intercepts is included below.

A deep hole to target very encouraging copper-gold-silver mineralization intersected to date in the lower portions of the oxide holes is planned for the current quarter.

Extending Zones A and C

Additional drilling adjacent to Zones A and C (current Inferred Resource 2.57 million ounces) has commenced with results expected during this quarter.

New Zones

Further exploration work in the project area has defined two new oxide zone drill targets -- designated Zones D and E (see diagram below).

- Zone D - a four hole drill program is intended to examine a recently discovered gold-in-soil geochemical anomaly and may define the area of Zone A mineralization where it extends laterally to the east.

- Zone E -- is a topographic high located between Zones A and B, has a distinct gold-in-soil geochemical anomaly, and has had limited historical drilling (30m at 1.38g/t Gold equiv. 0.91g/t Gold, 30.73g/t Silver in hole GTD-014).

- Drilling will also follow in the areas between Zones C and B, where historical drilling has intersected --

26m at 0.96g/t Gold equiv. (0.42g/t Gold, 35.15g/t Silver in hole GTD-013B)

33.6m at 0.33g/t Gold equiv. (0.29g/t Gold, 2.76g/t Silver for in hole GTD-007)

18m at 0.41g/t Gold equiv. (0.35g/t Gold, 3-94g/t Silver for. in hole GTD-007)

26m at 0.61g/t Gold equiv. ( 0.34g/t Gold, 17.42g/t Silver in hole GTD-009)

To view the Figure showing Zones A, B and C, plus new Zones D and E, click the following link: http://media3.marketwire.com/docs/iau1020fig1.pdf



Au Equiv.
Hole ID From To Interval Au Ag Cu (g/t) Type
(g/t) (g/t) (%) Au + Ag
----------------------------------------------------------------------------
GTD-08-85 0 4 4 1.74 0.5 1.75 oxide
EOH 275 10 36 26 0.4 0.8 0.16 0.41 oxide
northern end 52 56 4 0.83 3.5 0.88 oxide
Zone B South 66 68 2 5 0.6 semi
80 110 30 0.75 3 0.37 0.8 semi
110 130 20 4 5.85 4.07 oxide
222 234 12 0.83 2.3 0.92 0.82 semi

----------------------------------------------------------------------------
GTD-08-83 70 80 10 0.3 1 0.32 oxide
EOH 201
Zone B South

----------------------------------------------------------------------------
GTD-08-82 NSA
EOH 229.75
Zone B South

----------------------------------------------------------------------------
GTD-08-81 212 224 12 0.22 10.17 0.38 oxide
EOH 250
Zone B South

----------------------------------------------------------------------------
GTD-08-80 0 20 20 1.01 3.6 1.07 oxide
EOH 299 44 52 8 0.12 9.75 0.43 0.27 semi
118 124 8 0.12 18.75 0.41 oxide
138 150 12 22 0.39 oxide
166 172 6 23.67 0.42 oxide
178 246 68 0.33 16.66 0.59 oxide
266 284 18 0.12 2.12 0.33 0.15 sulph

----------------------------------------------------------------------------
GTD-08-79 182 188 6 0.61
EOH 201
Zone B South

----------------------------------------------------------------------------
GTD-08-78 50 66 16 2.26 5.62 0.27 2.35 semi
EOH 100
Zone B South

----------------------------------------------------------------------------
GTD-08-77 NSA
EOH 90.4
Zone B South

----------------------------------------------------------------------------
GTD-08-76 0 2 2 0.32 0.5 0.32 oxide
EOH 100.5
Zone B South

----------------------------------------------------------------------------
GTD-08-75 0 8 8 0.63 0.5 0.64 oxide
EOH 300 18 94 76 1.57 12.45 1.76 oxide
146 174 28 0.56 19.64 0.86 oxide
254 274 20 0.4 2.7 0.36 0.45 sulph
264 300 36 0.19 1.78 0.56 0.22 sulph

----------------------------------------------------------------------------
GTD-08-74 0 4 4 0.4 0.5 0.41 oxide
EOH 300.3 30 38 8 0.23 6 0.32 oxide
Zone B South

----------------------------------------------------------------------------
GTD-08-73 0 46 46 0.62 5.3 0.7 oxide
EOH 240.4 58 136 78 0.68 12.72 0.88 oxide
156 220 64 0.18 31.13 0.66 oxide

----------------------------------------------------------------------------
GTD-08-72 0 6 6 1.96 0.5 0.1 1.97 oxide
EOH 131.1
Zone B South

----------------------------------------------------------------------------
GTD-08-71 0 2 2 0.43 0.5 0.44 oxide
EOH 192.5 52 66 14 0.2 2.93 0.1 0.24 semi
Zone B South

----------------------------------------------------------------------------


Note: Intervals shown are down hole intervals. This is the first pass of drilling in Zone B and true widths are not yet known.

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. Accordingly, Intrepid's Alliance partner, PT IMN, is working with relevant Indonesian authorities to allow for a review of forest land status.

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 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 Tujuh Bukit 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

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.

(i)Gold equivalents

The gold equivalent ratio for silver has been set at 65:1 based on US$650/oz gold and US$10/oz silver. Historical bottle roll tests have shown recoveries of 83% Gold and 84.5% Silver, supporting a 65:1 ratio. Recently received CIL metallurgical testing results from Zone C achieved recoveries of approximately 90% for both Gold and Silver at a grind of 80% passing 75 um. Comparable recoveries for both gold and silver in the recent tests from 4 composite samples from Zone C oxide material also support the 65:1 gold equivalence ratio.

Contact Information

  • Intrepid Mines Limited
    Brad Gordon, Chief Executive Officer
    Brisbane, Australia
    +61 7 3007 8011 or Mob: +61 400 036 636
    bgordon@intrepidmines.com
    or
    Intrepid Mines Limited
    Greg Taylor
    Toronto, Canada
    +905 337 7673 or Mob: +416 605 5120
    gtaylor@intrepidmines.com