Intrepid Mines Limited
TSX : IAU
ASX : IAU
TSX : IXN

Intrepid Mines Limited

July 17, 2008 00:17 ET

Intrepid Mines Limited: Casposo to Proceed to Production

Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU) Today Announces a Decision to Proceed With the Development of the Casposo Project

BRISBANE, AUSTRALIA--(Marketwire - July 17, 2008) - As previously reported on 27 May 2008, Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU) ("Intrepid") engaged AMEC to review the Casposo Project ("Casposo") Feasibility Study of March 2007 (ref: www.sedar.com). The review is based upon an updated Total Indicated Resource (June 2008 at $760 gold and $13.00 silver) from the Kamila and Mercado deposits containing 2.1Mt grading 5.07 g/t gold and 136 g/t silver (6.81 g/t gold equivalent) indicating contained metal of 454,874 equivalent ounces of gold. This translates into a Probable Reserve (June 2008 at $690 gold and $11.80 silver) estimated to be 1.7Mt at a grade of 5.16 g/t gold and 120 g/t silver (6.86 g/t gold equivalent) which equates to in-situ mineable material of 382,535 equivalent ounces of gold. This compares to a previously announced Probable Reserve of 1.8Mt at a grade of 4.69 g/t gold and 113.8 g/t silver (6.11 g/t gold equivalent) for 351,935 equivalent ounces of gold. The new ore Reserve is based upon applying an annual production rate of 63,000oz gold equivalent over the current 5.5 year mine life.

The AMEC review provides for a capital cost estimate at US$86 million (June 2008 dollars). Intrepid have decided on a development timetable that allows for commencement of production in the third quarter of 2010. The capital cost increase is consistent with current industry experience since March 2007. The average life-of-mine operating cost was also reviewed and confirms a gold cash cost of production at $90 per ounce (after allowance for silver credits at US$14 per ounce).

Brad Gordon, Chief Executive Officer, said "The minor revision to the Casposo development timetable defers the timing of an anticipated capital raise for the equity component of the Casposo mine development until the second quarter of 2009."

Initial results from the current extension drill programme point to the potential for further positive reviews of the resource estimate. Holes reported intercept the Inca vein in a previously undrilled area ranging from 50m to 150m away from currently defined mineral reserves.



2008 Drill Programme Initial Results - Inca Vein (July 11, 2008)

HOLE # SAMPLE # FROM (m) TO (m) WIDE (m) Au (g/t) Ag (g/t) AuEq (g/t)
----------------------------------------------------------------------------
CA-08-222 14776 102.60 103.75 1.15 5.67 825 17.46
----------------------------------------------------------------------------
CA-08-223 14795-799 23.55 29.15 5.6 1.04 14 1.24
----------------------------------------------------------------------------
CA-08-224 14895-898 161.3 165.3 4 4.52 438 10.78
----------------------------------------------------------------------------
CA-08-225 14976-980 223.7 227.8 4.1 1.70 332 6.43
----------------------------------------------------------------------------
CA-08-226 15024-15025 143.95 146.25 2.3 17.76 827 29.57
----------------------------------------------------------------------------
CA-08-227 15055-059 185.9 190.35 4.45 1.63 165 3.99
----------------------------------------------------------------------------
Holes CA-08-220 and 221 reported anomalous values only. Gold equivalency is
calculated by using 71:1. All intersections are reported as core length.
True width is not known at this time.


For the future, Intrepid remains well funded through balance sheet strength and the continuing cash Flow performance at Paulsens to fund ongoing aggressive exploration at Tujuh Bukit, where an inaugural resource estimate is due in the coming months and continuation of the Company's successful reserve drilling programme at Paulsens.

Gold Equivalent Reporting:

The assumptions used by the Company in reporting on gold equivalent targets are as follows:



A Gold Price 733
-------------------------------------------------
B Silver Price 12
-------------------------------------------------
C Gold Recovery avg 93%
-------------------------------------------------
D Silver Recovery avg 80%
-------------------------------------------------

Equiv Calc equals (733/12) x (0.93/0.80)
-------------------------------------------------
Equiv Calc 71
-------------------------------------------------


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 reserve and 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. Information provided relating to projected costs, capital expenditure, production profiles and timelines are expressions of judgment only and no assurances can be given that actual costs, production profiles or timelines will not differ materially from the estimates contained in this announcement.

Qualified Person:

The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of William McGuinty, P.Geo, who is a full-time employee of Intrepid Mines Limited. Mr McGuinty 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 is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr McGuinty consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Resource estimates on Casposo is based on information compiled by or under the supervision of Rodrigo A Marinho, who is a member of AIPG and a full-time employee of AMEC International. Mr Marinho 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 is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr Marinho consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Reserve estimates on Casposo is based on information compiled by or under the supervision of Ralph H Penner, who is a member of AUSIMM and a full-time employee of AMEC International. Mr Penner 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 is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr Penner consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Quality Control

A Quality Control sampling programme of blanks and duplicates has been in operation at the Casposo Project since 2002 to monitor the integrity of all assay results. All core samples are split at the Company's Calingasta core facility and core samples with inserted control samples are currently shipped to Alex Stewart Assayers Argentina S.A. in Mendoza Argentina, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold values are determined by fire assay with an atomic absorption (AA) finish and Silver values are obtained using gravimetric methods for mineralized veins. These samples and those from other areas are also analyzed using an ICP multi-element scan.

ABN: 11 060 156 452

Contact Information