Intrepid Mines Limited

Intrepid Mines Limited

December 15, 2008 09:32 ET

Intrepid Mines Limited: Paulsens Operation, Western Australia

Paulsens' Hedge Book Retired, Company Debt Free

BRISBANE, AUSTRALIA--(Marketwire - Dec. 15, 2008) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU) (the "Company") is pleased to announce that its Western Australian gold mine, Paulsens, has delivered the final ounces to Westpac under existing hedge arrangements.

Completion this week of hedge delivery ounces at A$627 per ounce will now allow the Company to enjoy full exposure to the spot gold price - currently A$600 per ounce higher - and significantly enhance the mine's current positive operating cash flow.

In the eleven months to November 2008, Paulsens has produced 72,500 ounces of gold at a cash cost of US$481 per ounce, of which a total of 43,971ounces were delivered against the Westpac hedge arrangements.

These hedge positions were a requirement of the project financing facility provided for construction of the process plant and site facilities at Paulsens.

The debt associated with this facility was prepaid in June 2008 and the Company is net debt free with US$12 million cash at bank as at 30 November 2008 (unaudited).

Intrepid CEO, Brad Gordon, said: "In the current financial environment, where the ability to self-fund is critical, I am delighted that we can enjoy the benefit of full exposure to current highly favourable gold prices."

"Paulsens is looking to a resource upgrade soon to extend the mine life and underpin future development," he said.

Whilst continuing to focus on extracting maximum value for shareholders from its three main assets, the Company has continued a programme of non-core exploration and non-mining asset divestments, to protect and enhance the Company's cash position.


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.

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