Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

March 04, 2010 07:30 ET

Intrepid Mines Limited: Tujuh Bukit Project

MORE OUTSTANDING COPPER-GOLD-MOLYBDENUM MINERALISATION

30 M INTERCEPT AT 6.25 G/T GOLD & 1.86% COPPER WITHIN 374 M OF 1.03 G/T GOLD, 0.5% COPPER & 195 PPM MOLYBDENUM (HOLE GTD 139)

- Best intersection to date.

- Extends continuity of the porphyry system to at least 600 m x 600 m.

- Confirms the high gold grade nature of the porphyry system with an overprinting high-sulphidation system.

- The system remains open in all directions.

BRISBANE, AUSTRALIA--(Marketwire - March 4, 2010) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") is pleased to report that diamond drill hole GTD-09-139 at the Tumpangpitu Prospect, Tujuh Bukit Project has intersected additional significant copper, gold and molybdenum in a zone of high sulphidation overprinting porphyry mineralisation.

"This hole provides further clear evidence not only of the gold rich nature of the porphyry mineralisation at Tujuh Bukit, but also of the potential size of this system" said Intrepid CEO, Brad Gordon. "The mineralisation is open at depth here and almost everywhere else where we've conducted our deeper drilling and we are a long way from finding the limits."

Hole GTD-09-139 is the second of a six-hole drilling program designed to define the geometry of the porphyry system and allow for initial estimations of the scale of the copper-gold- molybdenum porphyry mineralisation that underlies the extensive high sulphidation gold-silver +/- copper system.

The following plans show the holes drilled to date and the 5 sections of drilled and proposed holes. Key assay intervals from these holes are summarised in the tables below. Drilling in most cases stopped at depth penetration limit of the drilling rigs, not based on limits of mineralisation. Two new rigs with depth capability of 1,200 m are now on site. 

Results from GTD-09-139 are:-

Porphyry mineralisation with varying degrees of high-sulphidation overprint

From  Metres Gold Silver Gold-equiv. Copper Molybdenum  
    (g/t) (g/t) (g/t) (Au + Ag) (%) (ppm) 
366 374 1.03 1.9 1.06 0.50 195  
Incl 516 106 2.78 3.16 2.83 1.24 634  
Incl 558 30 6.25 2.3 6.28 1.86 466 

Importantly, the level of the general terrain is less than 200 metres above the top of this intersection.

Results from holes GTD-29, 35, 42, 56 and 112 include – 
   
Hole ID From To Interval Au Ag Au equiv. Cu Mo Type;
        (g/t) (g/t) (Au+Ag; g/t) (%) (ppm) Porph/HS
 
 GTD-09-112 130 820 (EOH) 690 0.23 2.20 0.27 0.22 27 HS + Porphyry
 
  130 304 174 0.29 6.00 0.27 0.22 2 HS
 
incl 130 156 26 0.16 7.20 0.27 0.39 1 HS
 
incl 192 200 8 0.32 5.90 0.41 0.41 1 HS
 
incl 224 252 28 0.53 12.60 0.72 0.35 4 HS
 
incl 272 304 32 0.71 9.00 0.85 0.23 2 HS
   
  512 520 8 0.39 5.90 0.48 0.07 6 HS
 
  656 820 (EOH) 164 0.46 0.70 0.47 0.45 99 Porph
 
incl 700 756 56 0.55 0.60 0.56 0.60 77 Porph
 
 GTD-08-56 76 274 198 0.26 12.00 0.46 0.30 3 HS
 
incl 76 122 46 0.27 10.00 0.41 0.26 3 HS
 
incl 156 178 22 0.36 16.00 0.62 0.43 2 HS
 
incl 228 274 46 0.56 33.00 1.06 0.47 5 HS
 
  450 676 226 0.72 0.84 0.73 0.44 67 Porph
 
incl 484 584 100 0.95 0.90 0.96 0.67 74 Porph
 
incl 550 584 34 2.10 1.50 2.13 1.00 28 Porph
 
 GTD-08-46 12 78 66 0.35 5.00 0.43 0.00 4 HS
 
  810 843.15 (EOH) 33.15 0.20 0.50 0.21 0.20 63 HS o'print Porph
 
 GTD-08-42 28 132 104 0.25 2.75 0.30 0.44 1 HS
 
  330 540 210 0.31 1.51 0.34 0.28 63 Porph
 
incl 494 540 46 0.46 3.50 0.51 0.38 23 Porph
 
  718 739.4 (EOH) 21.4 0.13 0.59 0.14 0.18 12 Porph
                   
 
 GTD-08-35 222 849.2 (EOH) 627.2 0.45 2.40 0.49 0.44 80 HS & Porph
 
incl 424 849.2 425.2 0.60 1.60 0.62 0.46 116 HS o'print Porph
 
incl 454 668 214 0.88 1.70 0.91 0.76 188 HS o'print Porph
 
incl 522 630 108 0.95 1.70 0.98 0.90 208 HS o'print Porph
 
or 222 668 446 0.51 3.00 0.56 0.56 107 HS + Porphyry
 
 GTD-08-29 180 194 14 0.73 1.60 0.75 0.14 1 HS
 
  302 332 30 1.23 1.30 1.25 0.32 7 HS
 
incl 302 308 6 4.04 1.00 4.06 0.13 1 HS
 
  390 658 268 0.47 0.80 0.48 0.32 23 Porph
 
incl 500 630 130 0.86 1.00 0.88 0.52 30 Porph
 
incl 530 630 100 1.02 1.00 1.03 0.55 31 Porph
 
incl 546 626 80 1.21 1.20 1.23 0.64 32 Porph
 
 GTD-08-26 166 196 30 0.55 6.00 0.64 0.20 2 HS
 
  344 352 8 0.30 3.50 0.35 0.41 3 HS
 
  394 398 4 1.95 68.00 3.00 0.24 6 HS
 
  594 600 6 0.46 14.00 0.68 0.05 7 HS

To view the Porphyry target zone map, please visit the following link: http://media3.marketwire.com/docs/iau303mapinter.pdf

Drill status plan. Collars of oxide holes shown in white and blue. Deep drill traces shown in black. Sections shown below. The potential porphyry zone is outlined in yellow and measures 1200 x 500m.

The diagrams below show drill intercepts on cross sections. The green bars reflect copper intervals, and the red, gold intervals. The main mineralised intervals are highlighted with the heavy black bars.

To view the section 1 map, please visit the following link: http://media3.marketwire.com/docs/iau303map1.pdf

To view the section 2 map, please visit the following link: http://media3.marketwire.com/docs/iau303map2.pdf

To view the section 3 map, please visit the following link: http://media3.marketwire.com/docs/iau303map3.pdf

To view the section 4 map, please visit the following link: http://media3.marketwire.com/docs/iau303map4.pdf

To view the section 5 map, please visit the following link: http://media3.marketwire.com/docs/iau303map5.pdf

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 protected forests and prohibits mining using an open pit method in protected forest areas. The Zone A, Zone B and Zone C resources fall within a protected forest area. Intrepid's Alliance partner, PT IMN, is working with relevant Indonesian authorities regarding a potential review of forest land status. While similar reviews have recently led to the granting of reclassifications, there is no assurance that the forestry reclassification will take place in this instance.

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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