Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

December 14, 2010 08:30 ET

Intrepid Mines Limited: Tujuh Bukit, Indonesia-Oxide Project Update

- Excellent Gold Recoveries Achieved in Column Leach Tests - Potential for Heap Leach Design to Improve Project Economics - Updated Resource Estimate of 130Mt at 0.55 g/t Gold and 18 g/t Silver for 2.4 Million Ounces of Contained Gold and 80 Million Ounces of Contained Silver - Preliminary Economic Assessment (PEA) Scheduled for Early 2011

BRISBANE, AUSTRALIA--(Marketwire - Dec. 14, 2010) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") is pleased to report that the previously advised column leach test work program for the Preliminary Economic Assessment ("PEA") has been completed with excellent gold recoveries from the near surface gold-silver oxide deposit at the Tumpangpitu Prospect, Tujuh Bukit in Indonesia. These positive results warrant detailed investigation into heap leach-only economics compared to a milling circuit.

This oxide deposit lies above the deeper and significantly larger main copper-gold porphyry resource (see Intrepid news release of 29 September 2010).

The gold-silver oxide metallurgical test work was completed at Kappes Cassiday in Reno, Nevada, ("KCA") and included coarse, fine and milled bottle roll leach tests, agglomeration and percolation test work, compacted permeability test work and column leach tests. A total of eight separate column leach tests were completed using material from each of the four separate composites (three oxide, one transition ore with head grades of 0.42 to 0.54 g/t gold). The composites were stage crushed to minus 25 millimetres and 9.5 millimetres and leached over 82 days.

Gold extraction for the minus 25mm crush across all zones averaged 88% in completely oxidised material and 75% in the transition zone, similar to earlier results from a grinding mill flowsheet. Improved gold recovery was noted with minus 9.5mm crush material.

Silver extraction for a 25mm crush across all zones averaged 22% in completely oxidised material (29% at minus 9.5mm) and 36% in transition (64% at minus 9.5mm). These are lower recoveries than from a grinding mill flowsheet, however, it is anticipated the lower extraction levels will be offset by significantly lower capital and operating costs, particularly lower power demand. Test work confirmed high percolation rates for stacked heaps.

The results of the gold extraction tests are tabulated below.



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Zone Type Crush Calc Extrac- Weighted Extrac- Addition Addition
Size, Head, ted, Avg. Tail ted, NaCN, Hydrated
mm gms gms Screen, % Au kg/MT Lime,
Au/MT Au/MT Au/MT gms kg/MT
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Zone A Oxide 25 0.409 0.364 0.045 89% 1.27 2.49
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Zone A Oxide 9.5 0.413 0.373 0.040 90% 1.16 0.00
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Zone A Trans 25 0.502 0.375 0.127 75% 1.74 2.50
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Zone A Trans 9.5 0.490 0.393 0.098 80% 2.23 2.50
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Zone B Oxide 25 0.536 0.477 0.059 89% 1.11 2.50
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Zone B Oxide 9.5 0.543 0.468 0.075 86% 1.29 2.49
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Zone C Oxide 25 0.465 0.409 0.056 88% 1.11 2.49
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Zone C Oxide 9.5 0.466 0.407 0.059 87% 1.11 2.49
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The results of the silver extraction tests are tabulated below.



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Zone Type Crush Calc Extrac- Weighted Extrac- Addition Addition
Size, Head, ted, Avg. Tail ted, NaCN, Hydrated
mm gms gms Screen, % Au kg/MT Lime,
Au/MT Au/MT Au/MT gms kg/MT
----------------------------------------------------------------------------
Zone A Oxide 25 9.3 2.4 6.9 26% 1.27 2.49
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Zone A Oxide 9.5 11.5 3.7 7.8 33% 1.16 0.00
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Zone A Trans 25 43.0 15.7 27.3 36% 1.74 2.50
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Zone A Trans 9.5 38.8 24.7 14.1 64% 2.23 2.50
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Zone B Oxide 25 12.9 2.8 10.2 21% 1.11 2.50
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Zone B Oxide 9.5 14.2 4.1 10.1 29% 1.29 2.49
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Zone C Oxide 25 17.8 3.4 14.3 19% 1.11 2.49
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Zone C Oxide 9.5 13.9 3.6 10.3 26% 1.11 2.49
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For feasibility study purposes, KCA normally discounts laboratory gold extractions by two to three percentage points when estimating field recoveries. This assumes a well-managed heap leach operation, and if agglomeration is required, it is assumed that this process is completed correctly. Further, KCA experience would indicate cyanide consumption in production heaps would be only 25 to 33 percent of the laboratory column test consumptions where the ore is mostly clean and non-reactive. For ores containing high amounts of leachable copper, higher factors would be utilised.

The head assays for Total Copper and Cyanide Soluble Copper are presented below and are typical of the resource, suggesting that cyanide consumption will be modest.



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Cyanide Cyanide
Zone Type Total Soluble Soluble
Copper, Copper, Copper,
mg/kg mg/kg %
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Zone A Oxide 267 7.83 3%
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Zone A Trans 648 7.35 1%
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Zone B Oxide 340 16.6 5%
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Zone C Oxide 235 9.82 4%
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KCA will continue as metallurgical and engineering consultants to the Company through the progression of the PEA, and will provide a Qualified Person for the purposes of National Instrument 43-101 reporting.

Resource Update

With the addition of assay results from 31 new drill holes, independent consultants Hellman and Schofield Pty Ltd have provided an updated resource for the gold-silver oxide deposit resource of 130 million tonnes (M/T) at 0.55 grams-per-tonne (g/t) gold (Au) and 18 g/t silver (Ag). The entire resource is classified in the Inferred category. This updated estimate, reported in accordance with the JORC Code and National Instrument 43-101, represents a total of 2.4 million ounces of contained gold and 80 million ounces of contained silver.

The previous estimate (see Intrepid news release of 15 December 2009) used information up to and including hole GTD-136. The updated estimate uses results up to and including hole GTD-167. It also incorporates all oxide zones at Tujuh Bukit in a single, combined estimate. New and revised geological interpretations were also included in the updated estimate, which confirms the tonnage and grade of previous estimates.

There are two possible processing routes being considered for the project. The Company's previous practice of quoting estimates with gold equivalent cut-offs will be discontinued as different recoveries are achieved from each route. The results of the column leach test work can be compared to the previously reported grinding circuit results (see news release dated 16 December 2009.) In that case, base line cyanidation tests completed over 24 hours at P80 75 micrometers under non-CIL conditions ranged from 84% to 90% recovery for gold (average being approximately 87%) and 67% to 85% for silver (average being approximately 80%). The recovery range in the transition zones was 51% to 89% for gold and 15% to 81% for silver.

The Company believes that a heap leach scenario provides an attractive option for economic extraction, consequently the previous practice of reporting resources at a 0.5 g/t gold equivalent cut-off (which reflected a higher cost grinding mill scenario and lower metal price assumptions) will change to a 0.2 g/t gold reporting cut-off. This cut-off grade is based upon an open-pit mining scenario followed by heap leach processing, assuming a gold price of US$1000 per ounce and a silver price of US$20 per ounce. Results for different cut-off grades are presented below.



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Cut-Off Tonnage Grade Contained Metal
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Au g/t Mt Au g/t Ag g/t Au Moz Ag Moz
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0.20 130 0.55 18 2.4 80
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0.30 85 0.74 21 2.0 55
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0.40 60 0.91 23 1.7 45
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0.50 45 1.06 24 1.5 35
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0.75 25 1.39 27 1.1 20
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1.00 15 1.69 29 0.9 15
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To view the graphs associated with this Press Release, visit the following link: http://media3.marketwire.com/docs/IAU_graphs.pdf.

Gold-Silver Oxide Drilling Results

A summary of drilling results are listed in the attached Appendix.

To view the diagram associated with this Press Release, visit the following link: http://media3.marketwire.com/docs/IAU_figure.pdf.

The diagram above illustrates the drill holes (marked in black) that define the December 2010 resource estimate. Red drill holes have been completed, but are not included in the estimate.

Appendix - Drill hole intercepts



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Hole No. EOH (m) From (m) To (m) Interval Au (g/t) Ag (g/t)
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GTD-09-86 200 28 46 18 0.36 4.8
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106 124 18 0.71 10.7
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GTD-09-87 200 0 6 6 0.31 19.0
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144 158 14 0.69 6.0
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GTD-09-88 232.3 0 6 6 0.55 -
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26 38 12 0.37 -
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106 144 38 0.64 41.2
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162 202 40 0.33 13.8
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228 232.3 4.3 0.40 1.2
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GTD-09-89 174.4 40 142 102 1.05 32.3
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46 86 40 2.00 48.4
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GTD-09-90 150 0 4 4 0.72 1.3
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88 104 16 1.22 67.6
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GTD-09-91 150.3 30 96 66 0.31 10.1
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GTD-09-92 150.3 50 78 28 0.93 4.4
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GTD-09-93 150 20 24 4 0.67 3.5
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54 66 12 0.39 2.0
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120 150 30 0.89 41.3
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GTD-09-94 200 no significant assays
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GTD-09-95 150.2 no significant assays
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GTD-09-96 231.2 20 26 6 0.44 -
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78 82 4 0.49 1.8
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126 174 48 0.39 17.8
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GTD-09-97 192.2 166 176 10 0.75 2.0
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GTD-09-98 168.5 20 28 8 1.15 1.3
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40 48 8 0.36 6.5
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104 106 2 0.23 18.0
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GTD-09-99 184.8 42 68 26 2.83 1.7
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120 162 42 0.71 4.4
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GTD-09-100 172.4 20 34 14 - 16.1
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124 136 12 0.38 14.8
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144 150 6 0.25 69.7
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142 162 20 0.15 40.8
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GTD-09-101 187 0 6 6 1.01 31.3
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52 54 2 0.82 2.0
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GTD-09-102 151.8 64 68 4 0.35 3.0
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136 151.8 15.8 0.47 2.6
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GTD-09-103 150.4 40 42 2 0.62 17.0
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82 100 18 0.89 49.3
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GTD-09-104 399.5 6 34 28 0.36 1.9
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42 94 52 0.31 8.3
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134 138 4 0.39 6.0
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162 192 30 0.24 9.2
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206 286 80 0.53 6.1
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294 312 18 0.31 29.2
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324 362 38 0.37 24.0
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374 388 14 0.54 47.3
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GTD-09-105 165 24 30 6 0.59 6.0
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42 102 60 0.65 25.2
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GTD-09-106 256.5 0 20 20 0.48 2.4
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74 76 2 0.89 9.0
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98 136 38 0.34 13.2
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144 158 14 0.48 4.7
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164 166 2 0.88 7.0
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240 256.5 16.5 1.1 15.8
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GTD-09-107 172 22 60 38 0.37 22.8
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84 98 14 0.48 4.9
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GTD-09-108 154 24 28 4 0.7 23.0
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106 108 2 0.63 16.0
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GTD-09-109 150 no significant assays
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GTD-09-110 179 no significant assays
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GTD-09-111 378 0 136 136 0.7 3.4
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4 30 26 1.52 2.1
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154 258 104 0.27 6.9
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282 312 30 0.44 34.0
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GTD-09-112 820 porphyry hole - no oxide intercept
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GTD-09-113 140 no significant assays
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GTD-09-114 191 158 190 32 0.51 58.8
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158 166 8 1.67 195.0
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GTD-09-115 157.75 122 140 18 0.28 4.8
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GTD-09-116 207 64 66 2 0.5 10.0
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84 86 2 0.55 5.0
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170 172 2 0.19 52.0
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180 188 8 0.275 45.8
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GTD-09-117 107 0 4 4 0.38 2.5
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GTD-09-118 133 64 66 2 0.46 -
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GTD-09-119 150 54 82 28 0.05 2.0
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GTD-09-120 163 0 16 16 0.40 3.3
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GTD-09-121 156 142 156 14 0.25 -
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GTD-09-122 150.5 no significant assays
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GTD-09-123 176 no significant assays
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GTD-09-124 150 no significant assays
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GTD-09-125 175 60 90 30 0.36 26.1
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GTD-09-126 150 no significant assays
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GTD-09-127 150 56 72 16 0.31 15.2
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GTD-09-128 158 4 6 2 0.3 165
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36 50 14 1.12 7
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108 124 16 0.26 21.9
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132 146 14 0.26 26.3
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GTD-09-129 200.1 10 16 6 0.14 41.7
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54 60 6 0.46 3.7
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68 72 4 0.41 9.0
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78 80 2 0.92 63.0
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102 116 14 0.37 8.5
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GTD-09-130 192 88 100 12 0.28 -
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170 186 16 0.69 8.3
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GTD-09-131 200.1 40 52 12 1.74 43.7
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62 70 8 0.48 18.5
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80 84 4 0.35 31.5
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140 144 4 0.45 3.5
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178 190 12 0.13 24.8
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GTD-09-132 258 134 168 34 0.23 27.3
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214 244 30 0.43 3.8
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GTD-10-133 220 0 38 38 1.17 15.1
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42 62 20 0.38 32.8
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118 124 6 0.40 20.0
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152 200 48 0.26 11.0
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GTD-10-134 199 34 50 16 0.69 7.8
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GTD-10-135 208.65 0 24 24 - 25.8
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98 108 10 0.62 7.0
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GTD-10-136 200 no significant assays
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GTD-10-137 875.85 62 80 18 1.42 1.0
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GTD-10-138 965 porphyry hole - no oxide intercept
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GTD-10-139 782 porphyry hole - no oxide intercept
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GTD-10-140 204.1 8 12 4 0.3 2.5
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28 40 12 - 62.2
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62 90 28 - 24.6
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148 166 18 - 52.4
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192 200 8 0.26 3.0
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GTD-10-141 150 14 44 30 1.09 27.1
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GTD-10-142 147.6 20 130 110 0.33 12.6
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50 68 18 0.55 15.2
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112 122 10 0.73 36.2
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GTD-10-143 150.4 102 150.4 48.4 0.11 7.0
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108 120 12 0.17 11.7
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GTD-10-144 147.2 50 98 48 0.31 11.9
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72 88 16 0.3 15.8
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GTD-10-145 142.9 16 26 10 0.92 12.8
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GTD-10-146 830 porphyry hole - no oxide intercept
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GTD-10-147 150.4 no significant assays
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GTD-10-148 150.1 60 120 60 0.38 90.0
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84 94 10 1.06 322.6
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104 118 14 0.26 150.6
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GTD-10-149 150.3 38 54 16 0.41 19.1
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GTD-10-150 176.2 74 138 64 0.22 4.5
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76 84 8 0.37 12.3
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GTD-10-151 145.8 0 30 30 1.59 11.1
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GTD-10-152 150.5 42 136 94 0.28 19.3
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70 78 8 1.94 31.3
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120 136 16 0.12 73.3
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GTD-10-153 165.3 no significant assays
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GTD-10-154 141 48 52 4 0.39 19.0
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92 136 44 0.43 7.5
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108 130 22 0.74 9.5
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GTD-10-155 150.3 0 30 30 1.71 6.1
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0 14 14 3.09 10.0
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GTD-10-156 251.8 14 18 4 0.57 7.0
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62 66 4 0.29 27.5
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GTD-10-157 700.25 porphyry hole - no oxide intercept
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GTD-10-158 150.6 0 82 82 0.1 24.0
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0 20 20 0.05 49.9
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44 69.1 25.1 0.12 19.6
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74 82 8 0.19 32.5
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GTD-10-159 163.1 8 20 12 0 36.7
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66 94 28 0.03 27.7
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GTD-10-160 510 18 22 4 0.48 7.5
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GTD-10-161 249.1 140 156 16 0.56 50.3
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198 238 40 0.33 17.8
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GTD-10-162 997.55 porphyry hole - no oxide intercept
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GTD-10-163 855.5 70 92 22 0.46 53.7
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GTD-10-164 235.7 0 64 64 0.85 98.8
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164 188 24 0.63 32.2
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222 235.7 13.7 0.83 39.0
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GTD-10-165 1000.1 54 74 20 0.52 8.7
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GTD-10-166 1102.8 24 28 4 0.36 11.5
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80 88 8 1.15 21.0
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GTD-10-167 591.65 0 6 6 0.23 3.7
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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. . The information in this announcement relates to recoveries which are indicated in the event that the Tujuh Bukit project proceeds to production, although production is dependent on and subject to various risks and uncertainties, as set out herein.

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 Tujuh Bukit gold-silver oxide 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 mineral resources is based on information compiled by or under the supervision of Dr. Phillip Hellman, FAIG, who is an independent consultant to Intrepid Mines Limited and a Director of Hellman & Schofield Pty Ltd. 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. A detailed description of geology and resource estimation methodology has been provided in previous NI43-101 reports (September 2008, February 2009, September 2010).

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 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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