Intrepid Minerals Corporation
TSX : IAU

Intrepid Minerals Corporation

January 18, 2006 12:58 ET

Intrepid Minerals Reports On Merger Progress

TORONTO, ONTARIO--(CCNMatthews - Jan. 18, 2006) - Intrepid Minerals Corporation (TSX:IAU) is pleased to provide a progress report on its merger with NuStar Mining Corporation Limited ("NuStar") which is anticipated to close on March 31st, 2006 subject to shareholder and regulatory approvals.

Both companies continue their due diligence, with a Merger Agreement to be signed January 31st, 2006. Under the terms of the Heads of Agreement signed on December 12th, 2005 Intrepid and NuStar are able to raise funds for normal course of business. Intrepid announced on January 17th that it will be raising up to $5 million (including an over-allotment of CDN $ 1 million) to fund its current exploration, development and acquisition programs (Press Release # 06-02).

On January 18th, 2006 NuStar released its Quarterly Results ending December 31st, 2005. Comparing results from operations in the first quarter ending September 30th, 2005 the following highlights are noted:

1) Gold Production of 19,013 ounces for the Quarter, up 11%

2) Site cash costs A$384 (US$288) per ounce down 23%

3) Mine production up 35% to 69,163 tonnes

4) Plant throughput 20% above design capacity (nameplate)

5) Metallurgical recovery averaging 94.7% for the Quarter, exceeding expectations

6) A gravity beneficiation pilot plant was installed to reduce costs.

NuStar also reported that a A$ 1.9 million principal debt re-payment had been made on time.

"The quality of the Paulsen's operation and the ability for NuStar management to achieve these milestones in such a timely manner is outstanding, and bodes well for our combined operations." said President Laurence Curtis.

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 49,929,552 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.

Contact Information

  • Grove Communications Inc.
    Stephen Coates and 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