Intrepid Minerals Corporation

Intrepid Minerals Corporation

January 06, 2005 08:30 ET

Intrepid Prepares for 2005 Exploration at San Cristobal, El Salvador


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTREPID MINERALS CORPORATION

TSX SYMBOL: IAU

JANUARY 6, 2005 - 08:30 ET

Intrepid Prepares for 2005 Exploration at San
Cristobal, El Salvador

TORONTO, ONTARIO--(CCNMatthews - Jan. 6, 2005) - Intrepid Minerals
Corporation (TSX:IAU) has completed its 2004 exploration program in
eastern El Salvador. 2004 was a very positive year, with the discovery
of several new prospects and the confirmation of extensive mineralized
areas during its drilling campaigns. In addition, the Company has
continued its creation of value through the establishment of a joint
venture with Au Silver Inc. (formerly Au Martinique) and the
establishment of production royalty with the sale of the Aldea Zapote
Project (including the Cerro Colorado silver resource).

Since 1998, Intrepid Minerals Corp., through its Salvadoran
subsidiaries, has explored a large area of eastern El Salvador referred
to as the San Cristobal Project. San Cristobal is located within an
east-southeast trending graben structure that comprises all of the
historical gold-silver mining districts in the country and also acts as
a control to significant gold deposits in Nicaragua and Costa Rica.
(Please view the country map at
http://www.intrepidminerals.com/goldbelt.pdf.)

The San Cristobal Project covers approximately 200 square kilometres and
contains 7 distinct historical gold-silver districts. Intrepid continues
to explore these districts particularly in the vicinity of Montecristo,
El Gigante, Hormiguero and Divisadero. Additionally the company's
greenfields reconnaissance activities in 2004 have been very successful,
revealing new and exciting gold occurrences in the country including Oro
Nuevo, Minitas and San Jacinto. A map showing the San Cristobal property
package and major mineralized districts where Intrepid is active can be
seen at http://www.intrepidminerals.com/elsalprojects.pdf.

The Oro Nuevo Corridor

Reconnaissance activities by Intrepid's exploration team in late 2003
resulted in the discovery of the Oro Nuevo Corridor where
epithermal-style gold and silver mineralization has now been identified
over a north-south zone approximately 10 kilometers in length and 2-3
kilometers wide. Several prospects have been identified including:

Oro Nuevo

The Oro Nuevo prospect (see 2004 Press Releases: #04-08, March 11;
#04-09, April 6; and #04-24, October 27) covers an area of at least 4
km2. The work conducted in 2004 has revealed the following:

-The geologic setting consists of a volcanic/sedimentary package
composed of silicified epiclastic sediments intercalated with
pyroclastic dacitic tuffs and intrusive phases;

-The prospect is located in a regional extensional feature or possibly a
more local volcanic setting such as a maar diatreme complex;

-Gold mineralization is hosted by a myriad of quartz veinlets, veins and
hydrothermal breccias deposited during several stages. Trenching
returned anomalous intervals ranging up to 52 metres of 2.91g/t Au and
3.34g/t Ag in Trench # ON-4.

-Elevated precious- (including 1.69 g/t Au over 30 metres) and
base-metals values have been identified by drilling within: 1) a shallow
dipping structural "volcaniclastic package" ranging from 25 to 50 metres
wide; and 2) discrete veins in the footwall of this sequence;

-All core holes encountered broad zones of quartz veins and hydrothermal
breccias and 11 out of the 13 holes encountered gold values above 1 g/t
Au.

Intrepid geologists are currently evaluating geological and geochemical
data from the 2004 programs to better 'vector' toward the source of the
gold-bearing mineralization. Owing to the size of the prospect (2004
drilling tested about 5% of the prospect area), Intrepid continues to
aggressively explore Oro Nuevo in preparation for additional drilling in
2005.

Minitas

The Minitas prospect is located on the south end of the Oro Nuevo
prospect and consists of a series of small mine workings localized along
a strong NW-trending wrench fault. Vein exposures are very limited and
sampling has been mostly limited to several small dumps and mine
workings. Vein samples consist of multiple stage breccias with vein and
wallrock fragments (dacite and epiclastic sediments) cemented by massive
to colloform banded, fine grained quartz with up to 5%
pyrite-chalcopyrite-sphalerite. Analytical results reveal the vein to be
strongly enriched in gold and silver with values of grab samples up to
15.15 g/t gold and 859 g/t silver. Intrepid geologists believe the Oro
Nuevo and the Minitas prospects are related and that the Minitas vein's
mineralogy and precious metal grades are viable target expectations at
Oro Nuevo. Detailed mapping and sampling are proposed for the Minitas
vein with a view to defining specific drill targets.

San Jacinto

The San Jacinto prospect is located about 5 kilometers S-SW from Oro
Nuevo and is considered to be part of the Oro Nuevo Corridor. The
prospect consists of a north-trending vein system that can be traced for
at least one kilometer. Values up to 40 g/t gold have been obtained in
grab samples of outcrop and float from this massive to banded quartz
vein system. Additional field work will be done in early 2005 but the
prospect is already considered to be drill ready.

Hormiguero District

In 2004, Intrepid drilled six holes across the Guadalupe vein, a major
NNE-oriented vein structure which is exposed on the surface for over 1.5
kilometers. The first drilling phase consisted of two holes and was
described in Press Release #04-13 (June 2, 2004). Discovery Hole EH01-04
intersected 7.45 metres of 7.50 g/t gold, 648 g/t silver and 9.49%
copper from 174.65 to 182.10 metres. The second phase of drilling
consisted of four holes that stepped-out 50 to 70 metres from Hole
EH01-04. These holes tested north and south strike extensions as well as
up and down dip extensions. The Guadalupe vein was identified in all
holes and ranged in core thickness (down-hole) from 17.4 to 49.85
metres. The vein mineralogy is dominated by calcite containing two
fragment types: gold-bearing quartz-chlorite-pyrite and massive to
banded sulfides composed of chalcopyrite-bornite-covellite. Hole
EH04-04, located about 60 metres south of Hole EH01-04 contained 17.50
metres (180.95 to 198.45 metres) of 2.73 g/t gold including values up to
9.17 g/t gold over 1.45 metres. Hole EH03-04 and Hole EH05-04
encountered gold values up to 1.98 g/t over 6.2 metres and 3.04 g/t gold
over 1.6 metres, respectively.

In 2004, Intrepid has explored the Guadalupe vein for approximately 250
metres of its 1.5+ km strike length. Several historically mined veins
remain to be tested in the Hormiguero District. Drilling to date has
revealed that the Guadalupe vein is robust, complex and continuous at
depth. Further work will attempt to define a significant
gold-silver-copper resource along the vein. Activities for the first
quarter of 2005 will focus on deciphering the geology and geochemistry
of this strong, multi-stage Au-Ag-Cu-rich 'hybrid' epithermal system and
expand this knowledge to the adjacent veins in the district.

Rio Seco/Montecristo

The Montecristo District operated continuously from 1934 to 1960
producing in excess of 5 million ounces of silver and 100,000 ounces of
gold. Montecristo was El Salvador's second largest producer of silver
and second only to the neighbouring Divisadero District. Production was
predominantly from high-grade epithermal veins hosted by andesite flows.
Over the past several years, Intrepid has identified broad zones of
gold-rich quartz veins and veinlets at shallower depths than the
previously productive zones. These targets are amenable to bulk tonnage
mining techniques. In late 2004, access permits were obtained for an
aggressive surface program which is currently in progress and will
continue into 2005. Owing to the thick vegetation covering the prospect
(approximately 200m x 800m), trenches must be cut to assist in the
mapping as well as provide qualitative geochemical information necessary
for drill program design. The initial phase of this program should be
completed by March 1st, 2005.

Divisadero District

The Divisadero District produced gold-silver ore from two vein systems
between 1874 and 1917. The District's main target was tested at depth in
2003 but was not successful in identifying the desired grades and widths
adjacent to the historical workings. In late November of 2004, Intrepid
initiated a drill program at the Protectora mine, located about one
kilometer north of the main district. Previous surface trench sampling
conducted by Intrepid across the vein yielded values up to 8.54 g/t gold
and 575 g/t silver over 4 metres. Hole DV19-04, drilled below these
trenches intersected a broad zone of quartz stockwork, vein and
quartz-cemented breccias in silicified volcanics from about 80 to 123
metres. Analytical results from this interval failed to produce
ore-grade intercepts. As a result, Intrepid has terminated exploration
at Protectora for the near term.

Gigante District

From 1886 to 1951, the Gigante mine produced gold and silver
intermittently but had never been systematically explored. In 2004
Intrepid drilled six core holes, for a total of 425 metres, immediately
adjacent to the old workings. The drilling was shallow and holes ranged
up to 85.70 metres in depth. The results were very encouraging with
highlights including: 3.35 metres of 15.61 g/t gold and 1393 g/t silver
in Hole EG01-04; 0.20 metres of 44.86 g/t gold and 2516 g/t silver in
Hole EG04-04; and 9.65 metres of 4.0 g/t gold and 136 g/t silver in Hole
EG06-04. Other holes encountered zones of hydrothermal vein breccia up
to 20 metres wide with anomalous gold (up to 1.59 g/t) and silver (up to
253 g/t) values. The combination of these encouraging preliminary
results and the strength and continuity of the Gigante vein system,
leads management to believe that 2005 could be a very exciting year for
exploration in the Gigante district.

Intrepid Minerals is a TSX listed company engaged in the acquisition,
exploration and development of mineral prospects. The Company, either
directly or through joint venture partnership, holds interests in
several gold-silver and silver-base metal properties in Argentina, El
Salvador, and Canada. William McGuinty is the designated qualified
person for the San Cristobal Project. Intrepid has 46,010,220 shares
outstanding.

The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties.

Actual events or results could differ materially from the Company's
expectations and projections.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Intrepid Minerals Corporation
    Stephen Coates
    Investor Relations
    (416) 368-4525 or toll free: (866) 409-4716
    (416) 368-3859 (FAX)
    scoates@intrepidminerals.com
    or
    Intrepid Minerals Corporation
    Laurence Curtis PGeo.
    President & CEO
    (416) 368-4525 or toll free: (866) 409-4716
    (416) 368-3859 (FAX)
    www.intrepidminerals.com
    or
    Cavalcanti Hume Funfer Inc.
    Cathy Hume
    CEO
    (416) 868-1079, ext. 231
    cathy@chfir.com
    www.chfir.com
    The TSX has neither approved nor disapproved the information contained
    in this press release.