Intrepid Mines Limited

Intrepid Mines Limited

May 07, 2007 13:00 ET

Intrepid Implements Silver-Gold Program in Mexico

TORONTO, ONTARIO--(CCNMatthews - May 7, 2007) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU), an international gold and silver production, development and exploration company, is pleased to provide recent results from a sampling program conducted over the Taviche property in Oaxaca State, southern Mexico. The Taviche property was acquired by Intrepid in 2006 and is held under option from Plata Panamerican S.A. de C.V., a wholly owned subsidiary of Pan American Silver Corporation. Intrepid subsequently optioned 50 percent of Intrepid's interest to Aura Silver Resources Inc.

The Taviche property is located in central Oaxaca, Mexico about 10 km South-Southeast of the City of Ocotlan. In this area, gold and silver production has occurred intermittently since Spanish colonial times and a few of the mines were active until 2000. The Intrepid/Aura holdings in Taviche are contained in two blocks: the West Taviche Block with 6,254 hectares and the East Taviche Block with 7,494 hectares (See Figure 1).

The gold-silver mineralization is hosted by quartz veins with variable adularia and amethyst. Ore-related minerals consist of pyrite, gold, silver, argentite and silver-bearing sulfosalts; base metal contents are typically low but locally can be up to several percent in the San Martin area. Geologic mapping of the vein systems by Intrepid/Aura personnel reveal that surface vein exposures are dominated by hydrothermal breccias with lesser amounts of massive to banded quartz-chalcedony vein. Historical mines, although small, developed along both the West and East Taviche vein systems appear to be located at structural intersections.

A total of 537 samples have been collected to date. Selected samples from veins and old mine dumps contain values up to 94.2 grams per tonne gold and 1,845 grams per tonne silver. The geochemical and textural results suggest an epithermal vein environment that is exposed at relatively high-levels in the northern extent of the vein system and at somewhat lower levels in the south.

The West Taviche Block contains two significant, north-south trending, sub-parallel vein systems: the West and the East. A western system has been traced over 7.0 kilometers and consists of four distinct veins: La Noria; El Viejo; San Antonio; and San Martin. A second system, located about two kilometers east, can be followed along a series of anastamozing veins for about 6.0 kilometers and contains the Portillo, Donaji/Marias and San Jose/Corona vein segments. The northern three kilometers of the East System (the San Jose/Corona segment) is held by Fortuna Silver Mines and Continuum Resources, who recently announced a 43-101-qualified resource comprising an indicated mineral resource of 1.47 million tonnes grading 262.2 grams per tonne silver and 2.19 grams per tonne gold containing 17.7 million silver equivalent ounces and an inferred mineral resource of 3.9 million tonnes grading 260.6 grams per tonne silver and 2.57 grams per tonne gold containing 49.1 million silver equivalent ounces. Drilling along the northern boundary of the Fortuna/Continuum property indicates that the on-strike, down plunge extension potential for the San Jose vein system may lie on Intrepid's West Taviche Concession.

In addition to the detailed studies along the two known vein systems, a reconnaissance program has been conducted by Intrepid geologists over the remainder of the West Taviche Block where initial visits have identified several large, prospective areas. Analytical results from samples collected in these areas are currently pending. A reconnaissance program has also been conducted over the East Taviche Block where the Mexican Government ("Consejo") has identified numerous gold-silver bearing vein prospects. Several promising areas have been identified and initial assays should be available by mid-May.

Intrepid, together with partner Aura Silver, has initiated the permitting process for a proposed drilling program at Taviche totalling 5,000 meters planned to commence in the third quarter of 2007.

Figure 1:

On behalf of the Board of Directors of Intrepid Mines,

Laurence Curtis, President & CEO

About Intrepid Mines:

Intrepid Mines Limited is an international gold and silver production, development and exploration company. The Company's producing property is the Paulsens Gold Mine, located in northwestern Australia. The Company's advanced development property is the Casposo Project located in San Juan Province, Argentina. The Company's exploration properties are located in Argentina, El Salvador, Mexico, Australia and Canada. The issued capital is 164,374,243 shares comprised of 145,269,489 ordinary shares of Intrepid Mines Limited on the TSX:IAU and ASX:IAU and 19,104,754 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the TSX:IXN.

Qualified Person:

Information in this announcement is based on information provided by competent persons as defined in the 2004 Edition of the JORC 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and as Qualified Persons as defined in Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Information has been compiled by William McGuinty P.Geo. VP Exploration, a full time employee of Intrepid Mines Limited who has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken, and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.


This release contains certain 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. The TSX & ASX has neither approved nor disapproved the information contained in this press release. Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.


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