Intrepid Mines Limited

Intrepid Mines Limited

February 25, 2009 01:11 ET

Intrepid Mines Limited: Paulsens Operation, Western Australia


BRISBANE, AUSTRALIA--(Marketwire - Feb. 25, 2009) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU) (the "Company") is pleased to report that its Western Australian gold mine, Paulsens, continues to improve production and contain costs. The operation achieved a cash margin of A$1,000 an ounce last week.

In the eight weeks since 1 January 2009, the Paulsens mine has produced 15,000 ounces of gold and it is on track to produce more than 20,000 ounces in the March 2009 quarter.

Intrepid CEO, Brad Gordon, today said that with the increase in recent weeks in the Australian denominated gold price to A$1,550 an ounce, the Paulsens mine had achieved a cash margin of A$1,000 an ounce.

"A combination of factors, including the rise in the Australian dollar gold price, the closeout of our hedging position last year which means we get full value for our production, and a lift in production grades towards 12 grams per tonne allowed us to achieve a margin of $1,000 an ounce last week.

"For an underground gold mine to have achieved such a strong performance - albeit for a week - is, I believe, exceptional and a very rare occurrence indeed.

"The gold price is out of our hands and whether we can maintain such margins is still to be seen, so the focus for the operations team at Paulsens remains on safe and efficient gold production.

"Our December quarter production costs of US$407 place us among the lowest third of world gold producers in relation to production costs."

"As the Company's year end results show, we are in a sound financial position, with US$14.2 million cash in the bank as at 24 February 2009, and no debt or hedging."

"With the recent increase in gold prices, and more recently silver prices, the Company's major development assets - the Casposo gold/silver project in Argentina and our copper/gold/silver Tujuh Bukit project in Indonesia - continue to grow in potential."


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.

ABN: 11 060 156 452

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