Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

May 25, 2010 08:30 ET

Intrepid Mines Limited: Tujuh Bukit Indonesia 568 Metres at 0.60 g/t Gold, 0.49% Copper & 105 ppm Molybdenum in Hole GTD 146

Confirms Gold-Copper-Molybdenum Porphyry System of at Least 900 by 600 Metres-Remains Open in All Directions

BRISBANE, AUSTRALIA--(Marketwire - May 25, 2010) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") is pleased to report that diamond drill hole GTD-10-146, located within the main Tumpangpitu Prospect, Tujuh Bukit Project, has intersected additional significant copper, gold and molybdenum in a zone of high sulphidation overprinting porphyry mineralisation.

"This porphyry system continues to deliver broad intersections at very good grades and, importantly, the mineralisation is open laterally and at depth." said Intrepid CEO, Brad Gordon. "These latest drill results provide still more exciting evidence that the Tumpangpitu porphyry system shows significant potential in terms of both scale and grade."

Hole GTD-10-146 was drilled within the main Tumpangpitu area (see plan below), 200 metres from Hole GTD-10-139 (374 metres at 1.03g/t gold, 0.50% copper and 195ppm molybdenum). It is the eighth of a planned 13-diamond drill hole program at Tumpangpitu that will be used for an initial resource estimation of this portion of the porphyry system, in August 2010, to be reported under JORC and National Instrument 43-101 rules and guidelines.

Additional follow-up drilling in 2010 will also test the zone of potential mineralisation between the main Tumpangpitu zone and underneath the Zone B oxide resource, 1.2km to the SE (hole GTD-137; 86m at 1.11g/t gold, 0.56% copper).

Zone B is one of several near surface areas of oxidized gold-silver mineralisation located above the deeper porphyry system. The oxide zones comprise an aggregate Inferred Resource estimate of 3.3 million ounces of gold-equivalent (approximately 100 million tonnes at 1.0 grams per tonne gold equivalent at a 0.5 grams per tonne gold equivalent cut-off).

(See Intrepid announcement dated 15 December 2009).

The following plans show the holes drilled to date on the 5 sections of the main Tumpangpitu zone. Key assay intervals from these holes are shown on section. In many cases, drilling stopped in mineralisation due to the ~800 metre depth penetration limit of the previous drilling rigs. Two new rigs with depth capability of 1,200 metres are now on site.

Results from GTD-10-146 include :-

Porphyry mineralisation with varying degrees of high-sulphidation overprint

      Gold Silver Gold-equiv. Copper Molybdenum
From To Metres (g/t) (g/t) (g/t) (Au + Ag) (%) (ppm)
6 26 20 0.11 11.50 0.29 0.51  
106 120 14 0.36 3.70 0.42    
               
158 726 568 0.60 1.61   0.49 105
including              
158 174 16 0.50 6.70 0.60 0.35  
246 284 38 0.71 3.74   0.89 506
332 404 72 1.00 0.96   0.45 99
550 612 62 0.79 1.97   0.73 60

To view the figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/iau525fig1.pdf

Drill status plan: Collars of oxide holes shown in white and blue. Deep drill traces shown in black, and proposed in blue. The potential porphyry zone is outlined in the yellow solid line and measures 1,200 x 1,000m. The porphyry target zone is outlined in the yellow solid and dashed lines.

The diagrams below show drill intercepts on cross sections spaced approximately 200m apart with locations shown on the plan above. On section, the green bars reflect copper intervals, and the red, gold intervals. The main mineralised intervals are highlighted with the heavy black bars.

To view the diagrams associated with this release, please visit the following link: http://media3.marketwire.com/docs/iau525diagrams.pdf

Forestry Status:

The Forestry Permit which allows PT IMN to conduct exploration activities within forestry areas expired on 16 February 2010. Application had been lodged for the renewal of the permit, but PT IMN understands that, as a matter of informal policy, the Forestry Department is currently not issuing renewals nationally pending reviews of projects within the resources sector. The Forestry Department requested PT IMN temporarily to halt exploration activities at Tujuh Bukit, pending a decision on the renewal of the permit.

The Company has been advised that a team from the Forestry Department will be undertaking a site visit to the project in the next five days.

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 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 Zone A, Zone B and Zone C resources 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. While similar reviews have led to the granting of reclassifications, there is no assurance that the forestry reclassification will take place in this instance.

Qualified Person

The information in this announcement that relates to exploration results 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.

The information in this announcement that relates to mineral resources is based on information compiled by or under the supervision of Dr. Phillip Hellman, who is an independent consultant to Intrepid Mines Limited. Dr Hellman 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 an Independent Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and an Independent Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Dr Hellman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Dr Hellman has undertaken independent verification sampling and assaying of drill core with a close agreement of results with those previously reported. A 40 x 40 x 6 metre block model was used for the quoted estimates. If smaller selective mining units are considered it is estimated that an approximate 10 to 20% lift in grade may result. In future, increasing the drilling density in areas of higher gold grades is anticipated to achieve a higher grade outcome.

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.

Gold Equivalence Statement

Gold equivalents: Gold equivalence ("AuEq") for Tujuh Bukit has been calculated based on a US $650/oz gold price and US $11/oz silver price. Metallurgical testing results achieved recoveries of app. 87% for Au and 80% for Ag. The gold equivalent grade was calculated using the following formula: AuEq = Au + (Ag / 65). The ratio of 65:1 is derived from the relative prices and metallurgical recoveries of each metal, or (Au Price x Au Recovery) / (Ag Price x Ag Recovery) = (650*0.87)/(11*0.80) = 0.65 (rounded up). It is the Company's opinion that the gold and silver included in the metal equivalent calculation have a reasonable potential to be recovered.

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