Intrepid Mines Limited

Intrepid Mines Limited

November 03, 2011 08:00 ET

Intrepid Mines Limited: Tujuh Bukit Indonesia-Candrian Copper-Gold Porphyry Defined Over 1.8km by 0.6km

BRISBANE, AUSTRALIA--(Marketwire - Nov. 3, 2011) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") reports that, following receipt of all assay results from the first-pass eight hole drilling program at the Candrian Prospect, the Company has confirmed that the third gold-copper porphyry system discovered on its Tujuh Bukit project in Indonesia (80% interest) has a minimum areal extent of 1.8 kilometres by 0.6 kilometres. Candrian is located 2.2 kilometres east of the main Tumpangpitu copper-gold deposit.

As previously reported, following receipt of assay results from the first three holes of this initial drill program (see Intrepid announcement dated 30 May 2011) drill hole CND-11-002 returned very encouraging results, intersecting 138 metres at 0.8 g/t gold and 0.21% copper from just 6 metres below surface, including an interval of 40 metres at 1.6 g/t gold and 0.36% copper.

Holes CND-001 to 008 were all mineralised to varying extents and have defined a broad mineralised porphyry system that now requires infill drilling to define resources.

Drill hole CND-006 intersected 50 metres at 0.25 g/t gold, and 0.16% copper, and 46 metres at 0.42g/t gold and 0.18% copper. Hole CND-008 intersected 46 metres at 0.27 g/t gold, and 0.24% copper. All intersections returned very low arsenic assays.

The diagram below shows the location of Candrian relative to Tumpangpitu, the wide lateral extent of the Candrian system based on geochemical and spectral datasets, and the extent of drilling to date. Follow-up drilling will be prioritised post completion of the current Gunung Manis drilling and initial Salakan drill programme.

Intrepid CEO, Brad Gordon said: "These results confirm the mineralised system at Candrian and add another prospect to our pipeline for further work which may contribute to our resource base. Our mineralised 'cluster' is now extending to over six by four kilometres, and we hope to expand that even further with imminent drilling at Salakan."

Table of drill results – significant intersections

Hole ID From To Interval Au
CND-11-008 346 392 46 0.27 0.24 - 230 10
EOH 534.45m 474 486 12 0.32 0.25 - 4 34
CND-11-007 392 400 8 0.1 0.12 - - 8
EOH 452.1m
CND-11-006 354 386 32 0.13 0.20 - 5 50
EOH 663.7m 410 460 50 0.25 0.16 - 3 10
522 568 46 0.42 0.18 - 1 12
CND-11-005 114 226 112 0.32 0.22 - 4 14
EOH 622.95m 558 560 2 0.25 0.15 - 5 -
CND-11-004 no significant assays
EOH 401.75m
CND-11-003 88 166 80 0.24 0.18 - 18 12
EOH 446.1m
CND-11-002 6 144 138 0.80 0.21 - 10 13
EOH 400m 100 140 40 1.60 0.36 - 7 4
CND-11-001 12 90 78 0.11 0.12 - 112 -
EOH 636.95m 22 36 14 0.20 0.23 - 123 -
378 586 208 0.15 0.18 - 5 45

To view Figure 1, please visit the following link:

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 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 consultant 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.

ABN: 11 060 156 452

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