Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

May 30, 2011 07:30 ET

Intrepid Mines Limited: New Gold-Copper Porphyry Discovery at Candrian Prospect

BRISBANE, AUSTRALIA--(Marketwire - May 30, 2011) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) -

Highlights:

  • 138 METRES AT 0.80 GRAMS PER TONNE (G/T) GOLD AND 0.21% COPPER
  • LOCATED JUST 2.2 KM EAST OF THE MAIN TUMPANGPITU COPPER-GOLD DEPOSIT
  • HIGH GOLD – COPPER RATIOS

Intrepid Mines Limited ("the Company") reports that assay results from the initial drilling at the Candrian Prospect have confirmed the discovery of a new gold-copper porphyry system, exhibiting high gold to copper ratios in some intervals. Candrian is located 2.2km east of the main Tumpangpitu copper-gold deposit (see 8 May 2011 news release for resource details).

Candrian drill hole CND-11-002 intersected 138m at 0.8g/t gold and 0.21% copper from just 6m below surface, including an interval of 40m at 1.6g/t gold and 0.36% copper. The mineralization is in a tonalitic intrusive complex with minor breccia domains.

Holes CND-001 to 004 cover an area of 600m by 400m, and the broader Candrian prospect, due to be covered by an additional six holes in the current first pass drilling program, covers an area of 2.5km by 1.0km – an area of comparable scale to the main Tumpangpitu system.

The diagrams below show the location of Candrian relative to Tumpangpitu, the wide lateral extent of the Candrian system based on geochemical and spectral datasets, and some preliminary cross sections showing the distribution of mineralization to date.

To view the the diagrams associated with this release, please visit the following link: http://media3.marketwire.com/docs/iau530i.pdf.

CEO Brad Gordon said, "This is a significant discovery and opens up a large area of prospective geology and anomalous geochemistry for further exploration, which increases our confidence that we can deliver multiple new discoveries from the Tujuh Bukit project area. We will continue drilling in this area with the aim of delivering results that may add to the overall resource base."

Table of drill results – significant intersections
Hole IDFromToIntervalAuAgCuMoAs
(g/t)(g/t)(%)(ppm)(ppm)
CND-11-0011290780.11-0.12-112
EOH 636.95m2236140.20-0.23-123
3785862080.15-0.18-5
CND-11-00261441380.80-0.211310
EOH 400m100140401.60-0.3647
CND-11-00382172900.22-0.17
EOH 446.1m
Assays only available to 172m

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 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.

Forestry Activities

The Indonesian Forestry Law restricts non forestry activities within protected forests and prohibits mining using an open pit method in protected forest areas. The area of the Porphyry copper-gold resource estimate, and the Zone A, Zone B and Zone C oxide resource estimate areas fall within a protected forest area. Intrepid's Alliance partner, PT IMN, is working with relevant Indonesian authorities regarding a potential review of forest land status. There is no assurance that the forestry reclassification will take place in this instance. PT IMN received an extension of the Forestry Exploration Permit dated 7 July 2010, which allows for exploration activities within forestry areas.

Qualified Person

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

Sample Analysis

Intrepid exercises a strict chain of sample custody in its drilling program at Tujuh Bukit. Joint Venture personnel remove core from the drill rig and deliver it to a project geologist who logs the core and marks the core into two metre sample intervals. Intrepid and Joint Venture personnel supervise the immediate splitting, sawing and bagging of samples, and packaging of groups of samples for dispatch to the laboratory. The remainder of the split core remains on site.

Samples are securely packaged, batched, and then transported under supervision to Intertek's laboratory facility in Jakarta. At the laboratory, the samples are prepared by crushing and pulverizing and a 30 gram charge is assayed for gold by conventional fire assay and/or atomic absorption methods. Multi-element ICP analysis is carried out using a multi-acid digestion process. All samples that contain silver and/or copper, lead, and zinc values that exceed the upper detection limits for ICP are re-analysed by conventional atomic absorption methods to determine the absolute values of these metals.

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