Intrepid Minerals Corporation
TSX : IAU

Intrepid Minerals Corporation

November 11, 2005 08:30 ET

Intrepid Launches Feasibility Study of the Kamila Gold-Silver Deposit, Casposo Project, Argentina

TORONTO, ONTARIO--(CCNMatthews - Nov. 11, 2005) - Intrepid Minerals Corporation (TSX:IAU) is pleased to announce that it will further advance its 100% owned Kamila Deposit with the commissioning of Phase I of a feasibility study. The Kamila Deposit has been identified as the most advanced of several targets that comprise the Casposo Project located in the Province of San Juan, Argentina. This decision is based on results of a Preliminary Assessment Study completed by E. Puritch, P.Eng., J. Good P.Eng., and M. Buck P.Eng., and a review of the project by AMEC (Peru) S.A. "AMEC". AMEC reviewed all of Intrepid's work over the past two years and provided a program of work to advance the project to a feasibility study stage.

To follow-up this work, Intrepid Minerals has commissioned AMEC, who has South American mine project experience, to undertake Phase I of the feasibility study activities. The purpose of this feasibility study is to advance the Kamila Deposit to the development stage with AMEC providing the initial metallurgy, geotechnical investigations, mining method selection, facilities siting, financial modelling, environmental and social review services and an audit of the mineral resource and reserves.

The principal consultant for AMEC will be William Colquhoun, Pr Eng, study manager and metallurgist with the firm. This work will be completed in conjunction with Intrepid's independent Qualified Persons, Malcolm Buck, P.Eng. (costing and mine planning), John Goode, P.Eng. (metallurgy), and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc. (resource estimation and pit optimization).

Based on the data collected to date and the Preliminary Assessment Study, the Kamila Deposit is expected to sustain a five year mine life recovering an average of 55,000 ounces of gold and one million ounces of silver (68,000 ounces of gold equivalent) annually from an open-pit with a final depth of 200 metres. Further drilling may enhance this mine life beyond the currently optimized pit limits.

Current processing is envisaged to be a combination of gravity concentration and cyanidation at a moderate grind size. A Merrill Crowe recovery process will be incorporated into the mill circuit, and recoveries are currently anticipated to be about 94% for gold and 80% for silver from feed with an average ore grade of 5.5 g/t gold and 123 g/t silver.

An updated mineral resource(3) estimate and an optimized pit model has been completed by Eugene Puritch, P. Eng. on behalf of the Company. This latest estimate incorporates an additional 3,240 metres of diamond drilling completed by the Company in 2005. This drilling has upgraded the potentially mineable portion of the resource to 95% indicated category material on an ounce basis and in excess of 90% on a tonne basis. The resource estimate and block model for the Kamila Deposit has been independently reviewed by Brett Gossage, Partner & Manager of Resources for RSG Global (Australia) who confirmed that the drill density is adequate to define this resource as optimized and that previous studies indicate exploration data to be robust.



Highlights for Kamila (US $400 gold, US $6.50 silver)

Table 1 - Global Resource(2)
---------------------------------------------------------------------
Tonnes Grade Gold
Equivalent(1)
-------------------
Gold g/t Silver g/t g/t
---------------------------------------------------------------------
Indicated 1.4 g/t Au Eq
Cut off 1,879,000 5.04 127 6.69
---------------------------------------------------------------------
Inferred 1.4 g/t Au Eq
Cut off 439,000 1.90 91 3.08
---------------------------------------------------------------------

Table 1 - Global Resource(2)
(continued)
---------------------------------------------------------------------
Contained Contained Contained Gold
Gold Silver Equiv. (1)
oz oz oz
---------------------------------------------------------------------
Indicated 1.4 g/t Au Eq
Cut off 304,500 7,665,800 404,000
---------------------------------------------------------------------
Inferred 1.4 g/t Au Eq
Cut off 26,800 1,287,000 43,500
---------------------------------------------------------------------

Table 2 - Kamila Potentially Mineable Portion of Resource(2)
---------------------------------------------------------------------
Tonnes Grade Gold
Equivalent(1)
-------------------
Gold g/t Silver g/t g/t
---------------------------------------------------------------------
Indicated 1.4 g/t Au Eq
Cut off 1,534,000 5.75 127 7.40
---------------------------------------------------------------------
Inferred 1.4 g/t Au Eq
Cut off 145,000 2.40 87 3.54
---------------------------------------------------------------------

Table 2 - Kamila Potentially Mineable Portion of Resource(2)
(continued)
---------------------------------------------------------------------
Contained Contained Contained Gold
Gold Silver Equiv. (1)
oz oz oz
---------------------------------------------------------------------
Indicated 1.4 g/t Au Eq
Cut off 283,700 6,237,100 364,700
---------------------------------------------------------------------
Inferred 1.4 g/t Au Eq
Cut off 11,200 404,900 16,500
---------------------------------------------------------------------


(1) One ounce of recoverable gold is equivalent to 77 ounces recoverable silver based on recoveries of 94% for gold and 74% for silver at a gold price of US$400 per ounce and silver price of US$6.50 per ounce.

(2) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

(3) Current viability of the resource is established using a 1.4 g/t gold equivalent cut off grade based on stated recoveries and
densities, processing and G&A costs of US$13.80 and US$2.92 respectively.

The next phase of drilling at the Casposo project is scheduled to commence this month with several targets, including the recently discovered Julieta Zone. Julieta is a target for near surface mineralisation which could add ounces to the Kamila resource. Intrepid is currently building a drill road to access the Julieta Zone, approximately 4 km northwest of the Kamila Deposit. Julieta constitutes a 1.5 km long colloform banded quartz vein system which carries gold values up to 52 g/t gold over a width of 1.5 metres.

President Laurence Curtis stated, "With Kamila launched to feasibility, our exploration team can now focus their attention on our discovery at Julieta as well as at Cerro Norte and the Inca Southeast targets at Casposo. Further success at these satellite zones will have a significant impact on the mine life and economics at Casposo". Intrepid retains 19 other properties within the Central San Juan region covering extensive low and high sulphidation systems. These properties are also being actively explored by Intrepid's Argentine exploration team.

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. Intrepid has 49,344,552 shares outstanding.

FORWARD LOOKING STATEMENTS

This Press 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 has neither approved nor disapproved the information contained in this press release.

The TSX Venture Exchange has neither approved nor disapproved the information contained in this press release.

Contact Information

  • Grove Communications Inc.
    Stephen Coates or Cathie Simon
    (416) 368-4525 or Toll Free: (866) 409-4716
    (416) 368-3859 (FAX)
    or
    Intrepid Minerals Corporation
    Laurence Curtis, PGeo.
    President & CEO and Designated Qualified Person
    (416) 368-4525 or Toll Free: (866) 409-4716
    (416) 368-3859 (FAX)
    info@intrepidminerals.com
    www.intrepidminerals.com