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

Intrepid Mines Limited

April 29, 2009 10:07 ET

Intrepid Mines Limited: Results Summary to March 31, 2009

BRISBANE, AUSTRALIA--(Marketwire - April 29, 2009) - Intrepid Mines Limited (TSX:IAU) (TSX:IXN) (ASX:IAU) (the "Company") has now released its quarterly Activities Report and Financial Results for the three months ended 31 March 2009. The Activities Report, Interim Financial Statements and Management's Discussion and Analysis are available on SEDAR (www.sedar.com), the ASX (www.asx.com.au) and on the Company's website: www.intrepidmines.com under "Reports and Presentations."

In summary, these results include:

Finance

- Group profit after tax for the three months ended 31 March 2009 of $3.8million (un-audited).

- Paulsens earnings before interest, taxes, depreciation and amortisation (EBIDTA) of $12.2 million (unaudited) for the three months ended 31 March 2009.

- Cash balance at the date of this report was $18.5 million.

Paulsens Operations

- Paulsens gold production of 20,141 fine ounces was up 8% over the prior quarter (18,713 ounces). The continued strong performance of the Paulsens operation was due to mining of higher grade Upper Zone stopes and increased air-leg stope tonnes.

- Site cash costs lower at $312 per ounce (prior quarter $407 per ounce) primarily due to 8% more ounces produced (higher grade) and lower costs of production compared with the previous quarter.

- Record underground diamond drilling continued during the quarter with both grade control drilling and resource extension targets met.

- Paulsens mineral resources at 31 December 2008 were 148,600 ounces and ore reserves were 49,300 ounces. The ore reserves do not incorporate drilling results below about 350 meters depth.

- A new structural geology study of the ore body at depth supported the extension of drilling to 600 meters below surface (current workings at 350 meters below surface). The first such hole, PDU726, intercepted 9 meters of mineralisation in quartz at more than 600 meters below surface and further drilling is planned in this area.

Casposo Development

- The Company announced during the quarter an agreement to sell the Casposo project in Argentina to Troy Resources NL for a total consideration of US$22 million of which $2 million is deferred (approximately A$31 million) cash. The sale, which is to be effective through the transfer of shares in the Intrepid Mineral Corporation (IMC), is subject to the finalisation of a formal Share Sale Agreement and all required government, legal and regulatory approvals being obtained. The completion of the Casposo sale is expected to occur in May 2009.

Exploration

- Drilling programs have been approved on all three of the Company's remaining exploration projects- Paulsens Regional in Western Australia, Tujuh Bukit in Indonesia (ongoing) and Taviche in Mexico.

- At Tujuh Bukit, mineralisation has now been defined over a strike length of 3 kilometers.

- At Tujuh Bukit, high grade gold mineralisation was intersected in Zone B drilling where hole GTD 58 intersected 22 meters at 6.35 grams per tonne gold, 15.9 grams per tonne silver from 36 meters down hole, within an interval of 64 meters at 2.65 grams per tonne gold, 17.1 grams per tonne silver from 24 meters down hole. From drilling completed to date, Zone B appears to be higher grade than zones A and C.

- At Tujuh Bukit, deep hole GTD 56 intersected 226 meters at 0.72 grams per tonne gold and 0.44% copper (includes 100 meters at 0.95 grams per tonne gold and 0.67% copper) from 450 meters down hole and confirms the continuity of the porphyry system previously defined in holes GTD 29, 35 and 42.

Contact Information

  • Intrepid Mines Limited
    Greg Taylor
    Investor Relations (North America)
    (905) 337-7673 or Mobile: (416) 605-5120
    gtaylor@intrepidmines.com