Intrepid Mines Limited

Intrepid Mines Limited

March 22, 2010 08:00 ET

Intrepid Mines Limited: Tujuh Bukit Indonesia-Katak Drilling Confirms New Mineralised Porphyry System in Production Forest

- 100 metres at 0.45 grams/tonne (g/t) gold, 0.30% copper intersected in the first Katak drill hole (KTD-10-001).

- Katak Prospect is in Production Forest (not Protection Forest)

- Drill results from a further four holes pending.

- Katak is 2.5 km from Zones A, B & C and the associated porphyry at Tumpangpitu

QUEENSLAND, AUSTRALIA--(Marketwire - March 22, 2010) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) ("Intrepid" or the "Company") is pleased to report that diamond drill hole KTD-10-001 at the Katak Prospect, Tujuh Bukit Project has intersected significant copper, gold and molybdenum in a newly- discovered, near-surface zone of porphyry mineralisation. The mineralisation is hosted within a porphyritic diorite exhibiting alteration and stockwork vein characteristics consistent with a standard porphyry system. The coincident mapped diorite, copper, gold and molybdenum-in-soil geochemistry, and magnetic body measures 500m x 650m (refer Intrepid release dated 10 December 2009).

"This is the second well mineralised porphyry system we've found at Tujuh Bukit and, when combined with our gold-silver oxide resource, it's the third of what we now know are multiple mineralised zones over a large area." said Intrepid CEO, Brad Gordon. "What makes it even more exciting is that Katak is within Production Forest, and within the recently granted IUP Operation and Production, significantly lessening the timing issues associated with access and development (refer Intrepid release dated 8 February 2010).

Success at Katak reinforces the potential of several other regional exploration targets that show similar characteristics. The clustering of mineralised systems at Tujuh Bukit is exhibiting similarities to other world class porphyry camps."

KTD-10-001 confirms:

  • Katak is a well-mineralised porphyry system with initial ore grade intercepts.
  • This new discovery lies 2.5km NE of the main Tumpangpitu Prospect (refer Intrepid release dated 4 March 2010).
  • Another gold rich porphyry system with grades up to 1.04g/t gold.
  • Anomalous molybdenum intervals with values up to 224ppm Mo.

Results from KTD-10-001 are:-

From To Metres Gold Silver Gold-equiv. Copper Molybdenum
      (g/t) (g/t) (g/t) (Au + Ag) (%) (ppm)
Is 114 128 14 0.08 .5 0.09 0.11 87
168 268 100 0.45 1.3 0.47 0.30 7

To view the Location of Katak Prospect relative to Tumpangpitu Prospect, please visit the following link: 

Location of Katak Prospect relative to Tumpangpitu Prospect. Backdrop is Reduced to Pole detailed heli-magnetics. Yellow dots are drill collars. 

To view the Katak Prospect drill status plan, please visit the following link: 

Katak Prospect drill status plan. Backdrop is Reduced to Pole detailed heli-magnetics. 3-D modelling of the heli-magnetics suggests a northerly plunge to the main magnetic body.

About Tujuh Bukit

The Tujuh Bukit (the "Project") is located in Indonesia on the island of Java, approximately 205 km south-east of Surabaya, capital of the Province of East Java, and 60 km south west of Banyuwangi, seat of the local Bupati (Regent).

The Project area covers 11,621 hectares under mining exploration title "IUP" the form of exploration/ mining title introduced under the new Mining Act. Intrepid, through a joint venture agreement with Indonesian title holder, PT Indo Multi Niaga, has an 80% economic interest in the Project.

Tujuh Bukit comprises several mineral prospects, of which Tumpangpitu, in the south east portion of the Project area, was the major focus for exploration activity during 2009. Five zones of known, near surface gold-silver oxide mineralisation covering a one-by-two kilometre area have been identified thus far above an area of deeper sulphide copper-gold mineralisation within the Tumpangpitu Prospect. Inferred Resources within part of the oxide mineralisation currently aggregate approximately 100 million tonnes at 1.0 g/t gold equivalent (0.5 g/t gold equivalent cut-off), contributing approximately two million ounces of gold and eighty million ounces of silver (3.3 million ounces of gold equivalent at a 0.5 g/t gold equivalent cut-off).

In addition to its continued development of both the oxide resource and the extensive deeper sulphide porphyry within the Tumpangpitu prospect, Intrepid has recently begun exploration activities on a number of newly discovered areas elsewhere on its IUP license.

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 recently led to the granting of reclassifications, there is no assurance that the forestry reclassification will take place in this instance.

Qualified Person

Information that relates to mineral resources at Tujuh Bukit is based on information compiled by or under the supervision of Dr Phillip Hellman, who is an independent consultant of Hellman and Schofield Pty Ltd to Intrepid. 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 is a Fellow of the Australian Institute of Geoscientists. 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.

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.

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 pulverising 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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