Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

December 15, 2009 23:45 ET

Intrepid Mines Limited: Tujuh Bukit Project-Zone B Increases Total Project Inventory to 2 Million Ounces of Gold and 80 Million Ounces of Silver

HIGHLIGHTS: - Inaugural Inferred Resource estimate at Zone B together with Zones A and C aggregate approximately 100 million tonnes at 1.0 g/t gold equivalent at a 0.5 g/t gold equivalent cut-off. - Zone B (0.69 million ounce gold equivalent) remains open to the south. The Tujuh Bukit inventory - Zones A, B and C - now total 3.3 million ounces gold equivalent in the Inferred Resource category - Drilling continues in Zones A, C, D and E, with 23 holes completed, assays awaited. - In addition to the shallower targets, deep copper - gold porphyry/high sulphidation drilling continues with approximately 10 holes planned to be drilled by March 2010 in time for the scheduled June 2010 copper-porphyry resource estimate

BRISBANE, AUSTRALIA--(Marketwire - Dec. 15, 2009) - Intrepid Mines Limited (ASX:IAU)(TSX:IAU) reports that an Inferred Resource of 0.69 million ounces gold equivalent at a cut-off of 0.5 grams / tonne gold equivalent has been estimated for Zone B in the oxide and partial oxide zones of the Tumpangpitu area of the Tujuh Bukit Project in Indonesia.

The resource has been estimated by Independent Consultants Hellman and Schofield Pty. Ltd. and reported in accordance with the JORC Code. It is based on drill data from the 60 x 60 metre grid that covers an area of approximately 700 metres x 400 metres.

Zone B is one of 5 zones of known oxide and sulphide gold-silver mineralisation within the Tumpangpitu Prospect. The Zone C resource was announced in July 2008 at 1.1 million ounce gold equivalent at a cut-off of 0.5 grams per tonne gold equivalent. The Zone A resource was announced in December 2008 at 1.5 million ounce gold equivalent at a cut-off grade of 0.5 grams per tonne gold equivalent.

Together, Zones A, B and C Inferred Resource estimates contribute over two million ounces of gold and almost eighty million ounces of silver (3.3 million ounces gold equivalent).

Commenting on the resource addition, Intrepid's CEO Brad Gordon said: "The Zone B resource adds another 690 thousand ounces to this exceptional project. There is now 3.3 million ounce gold equivalent defined in the Inferred Resource category. There are more zones to drill, and together with the underlying copper-porphyry potential, the latest results confirm our belief that this project will define exploration success in the region for years to come."



Summary of Inferred Resource Estimates, by AuEq cut-offs, Zone B

---------------------------------------------------------------
Cut-off Tonnes Au (g/t) Ag (g/t) AuEq (g/t) Moz Au Moz AuEq
(AuEq)
---------------------------------------------------------------
0.50 21,500,000 0.74 16 0.99 0.51 0.69
---------------------------------------------------------------
0.75 12,500,000 0.99 17 1.25 0.40 0.50
---------------------------------------------------------------
1.00 7,300,000 1.27 17 1.52 0.30 0.36
---------------------------------------------------------------
(Significant figures used are to minimise round-off errors and do not imply
precision)


Further details of the resource estimation, at various gold only cut-off values, and on the basis of oxide, and transition mineralisation are tabulated in the Appendix below.

During drilling of the Zone B resource, significant anomalous intercepts were received from primary sulphide material below the oxide and transitionary material, which could contribute to a sulphide resource in the future. Intercepts have included 62m @ 1.12g/t Au equivalent and 0.47% Cu in hole GTD-09-62. This will be followed up immediately with deeper sulphide copper - gold drilling. Approximately 4 deep holes are planned to be drilled by March 2010 in Zone B.

The delivery of the Zone B Inferred Resource achieves one of the Company's stated goals for the project for 2009.

To view the image, please visit the following link - http://media3.marketwire.com/docs/iau1215fig1.pdf

Plan showing the location of the Zone B drilling relative to Zones A and C, and to the distribution of deep drill holes targeting copper-gold porphyry and high sulphidation mineralisation.

To view the image, please visit the following link - http://media3.marketwire.com/docs/iau1215fig2.pdf

Diagram (UTM grid lines are at 250m intervals) showing the location of drill holes within Zone B. The holes have been drilled primarily to the west (Intrepid-IMN drilling), with a few to the northeast and southwest (Placer drilling). Hole dips are mostly -60 degrees, though they vary from -45 to -80 degrees (see section below).

Drilling at Zone B for the oxide resource estimate comprised 45 diamond drill holes completed by Intrepid Mines and JV partner PT Indo Multi Niaga during 2008/9. Zone B also includes historical hole GTD005 drilled by Golden Valley Mines, and GTD006, GTD007, GTD013A and GTD013B drilled by Golden Valley Mines in JV with Placer Dome.

To view the image, please visit the following link - http://media3.marketwire.com/docs/iau1215fig3.pdf

Zone B alteration cross-section on UTM grid line 9045370 mN which shows sub-vertical to steep east-dipping and north-south trending mineralized structures that are associated with zones of advanced argillic alteration hosted within epiclastic and hydrothermal breccias. Clasts of transported porphyry Cu-Au mineralization associated with quartz-magnetite alteration and stockwork veining were identified in the upper part of GTD-09-65.

METALLURGICAL TESTWORK UPDATE

Twelve composites representing four ore types from Zones A, B and C at Tujuh Bukit were subjected to cyanidation, comminution and other test work. The results of base line cyanidation tests completed over 24 hours at P80 75 micrometres under non-CIL conditions ranged from 84% to 90% recovery for Au (average being app. 87%) and 67% to 85% for Ag (average being app. 80%) in the completely oxidised zones. The recovery range in the transition zones was 51% to 89% for Au and 15% to 81% for Ag. The majority of the Tujuh Bukit resource is in the completely oxidised zone. Tests were also completed at grind sizes of P80 106 micrometres, 150 micrometres and 212 micrometres under the same conditions as the P80 75 micrometres base line test. There were only small increases in the gold and silver residue grades over the size range tested. This indicated that gold and silver extractions from the Tujuh Bukit mineralization are relatively insensitive to grind size, and that the optimum grind size is likely to be much coarser than P80 75 micrometres. The results of the comminution testwork indicated a Ball Mill Work Index range of 12 to 17 kWh/t across the ore types.

APPENDIX

The tables below show the various tonnages, grades, and contained metal equivalence at various gold equivalent and gold only cut-off values. Significant figures used are to minimise round-off errors and do not imply precision.



Inferred (by Aueq cut-off) - Oxide and Transition
COG Tonnes Au Ag Aueq Au Aueq
(Aueq) g/t g/t g/t Moz Moz
0.50 21,543,041 0.74 16.2 0.99 0.51 0.69
0.75 12,451,638 0.99 17.3 1.25 0.40 0.50
1.00 7,330,912 1.27 16.5 1.52 0.30 0.36

Inferred (by Aueq cut-off) - Oxide Only
COG Tonnes Au Ag Aueq Au Aueq
(Aueq) g/t g/t g/t Moz Moz
0.50 14,197,809 0.76 16.3 1.01 0.35 0.46
0.75 8,472,156 1.00 17.4 1.27 0.27 0.35
1.00 4,926,353 1.29 17.3 1.56 0.20 0.25

Inferred (by Aueq cut-off) - Transition Only
COG Tonnes Au Ag Aueq Au Aueq
(Aueq) g/t g/t g/t Moz Moz
0.50 7,345,231 0.69 16.1 0.94 0.16 0.22
0.75 3,979,482 0.96 17.1 1.22 0.12 0.16
1.00 2,404,560 1.23 14.6 1.46 0.10 0.11

Inferred (by Au cut-off) - Oxide Only
COG Tonnes Au Ag Aueq Au Aueq
(Au) g/t g/t g/t Moz Moz
0.50 8,952,337 1.00 14.1 1.22 0.29 0.35
0.75 5,025,420 1.31 14.1 1.52 0.21 0.25
1.00 2,916,196 1.63 14.0 1.84 0.15 0.17

Inferred (by Au cut-off) - Transition Only
COG Tonnes Au Ag Aueq Au Aueq
(Au) g/t g/t g/t Moz Moz
0.50 3,706,583 1.05 10.1 1.21 0.13 0.14
0.75 2,329,945 1.31 8.4 1.44 0.10 0.11
1.00 1,709,289 1.47 7.5 1.59 0.08 0.09

Inferred (by Au cut-off) - Oxide and Transition
COG Tonnes Au Ag Aueq Au Aueq
(Au) g/t g/t g/t Moz Moz
0.50 12,658,921 1.01 13.0 1.21 0.41 0.49
0.75 7,355,366 1.31 12.3 1.50 0.31 0.35
1.00 4,625,485 1.57 11.6 1.75 0.23 0.26


GOLD EQUIVALENCE STATEMENT

Gold equivalence ("AuEq") 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 equals 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) equals (650 x 0.87)/(11 x 0.80) equals 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 as outlined in the Metallurgical Testwork Update section of this announcement. All ounces are reported and calculated as troy ounces.

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.

QUALIFIED PERSON

The information in this announcement that relates to mineral resources is based on information compiled by or under the supervision of Dr. Phillip Hellman, who is an independent consultant to Intrepid Mines Limited. Dr Hellman 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 an Independent Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and an Independent Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Dr Hellman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Dr Hellman has undertaken independent verification sampling and assaying of drill core with a close agreement of results with those previously reported. A 40 x 40 x 6 metre block model was used for the quoted estimates.

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.

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. Zones A, B & C entirely fall within protection forest areas.

Contact Information