Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

February 27, 2012 08:00 ET

Intrepid Mines Limited: Tujuh Bukit Indonesia

Highest Copper and Gold Intersection to Date at Tujuh Bukit - East of Known Mineralisation at Tumpangpitu Copper-Gold Porphyry

- 689 metres at 1.00% copper and 0.85g/t gold

- Includes higher grade intervals - 244 metres at 1.42% copper and 1.06g/t gold or 466 metres at 1.19% copper and 1.05g/t gold

BRISBANE, AUSTRALIA--(Marketwire - Feb. 27, 2012) - Intrepid Mines Limited (ASX:IAU)(TSX:IAU) ("the Company") reports that assay results from deep drill hole GTD-11-248, in the on-going drilling program at the Tumpangpitu copper-gold porphyry within its Tujuh Bukit Project in Indonesia, has returned the highest grade copper and gold intersection to date from a position east of previously known porphyry mineralisation boundary.

The intersection is within an area previously identified as "geological potential" and can therefore be reasonably expected to provide a significant increase in metal inventory to the global resource.

The intersection occurs at a higher level (RL) than, and to the east of, the 1.7 billion tonne Inferred porphyry resource (at 0.41% copper and 0.46g/t gold) announced on 8 December 2011. The current evidence points to this being a separate intrusion and associated stockwork vein system. The mineralisation is typical of porphyry style mineralisation and no overprinting high sulphidation-style mineralisation is seen.

Drill hole GTD-11-248 is collared east of the porphyry resource and drills toward the east, away from known mineralisation. The hole location is 160m north west of GTD-11-208, which had an intercept of 602m at 0.70% copper and 0.52g/t gold, including a high grade zone of 146m at 1.06% copper and 0.87g/t gold. GTD-12-286 is currently being drilled 160m south of GTD-11-208 and a high grade intercept may reasonably be expected. The next hole to the northwest, GTD-10-172, intersected wide zones of mineralisation, including 336m at 0.47% copper and 0.14g/t gold from 276m, in high sulphidation-style mineralisation.

Further drilling will be undertaken to determine if the intersections in GTD-11-208, GTD-11- 172 and GTD-11-248 can be correlated.

"Drilling at Tujuh Bukit continues to deliver outstanding results, further supporting the view that the Tumpangpitu copper - gold oxide and porphyry system represents an emerging world class discovery. The fact that GTD-11-248 intersected very high grade copper and gold east of the known Tumpangpitu mineralisation and potentially represents a new porphyry discovery is very exciting," said Brad Gordon, CEO. "We are confident that the aggressive drilling program will continue to increase the porphyry resource, infill the oxide resources at Tumpangpitu and deliver new discoveries."

"We now have a total of eleven drill rigs active at Tujuh Bukit, one of which is drilling ahead on the second Salakan hole. Finally, the Pre-Feasibility Stage of the Oxide Heap Leach project is also advancing as planned."

Results from drill hole GTD-11-248

Intersections comprise porphyry mineralisation and have been calculated using a minimum down hole width of no less than 10m, Cu greater ≥ 0.2%, Au ≥ 0.2g/t, Mo ≥ 50ppm. Collar survey by DGPS.

Hole ID From To Interval Au
(g/t)
Ag
(g/t)
Cu
(%)
Mo
(ppm)
As
(ppm)
GTD-11-248 350 1039 689 0.85 1.39 1.00 143 330
EOH
1039.0m

412

656

244

1.06

2.08

1.42

160

357
Incl. 736 878 142 1.01 1.22 1.07 194 209
Northing Easting RL
9046285.39 174385.44 321.5

Drill hole GTD-11-248 ended in copper and gold mineralisation.

To view the figure accompanying this press release, please visit the following link:

http://media3.marketwire.com/docs/769222.pdf

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 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.

Competent Person and Qualified Person

The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Gary Snow, Executive General Manager Exploration and New Business at Intrepid Mines Limited. Mr Snow 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), and is a Fellow of the Australian Institute of Geoscientists. Mr Snow 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, the Managing Director of Hellman and Schofield Pty Ltd and a Fellow of The Australian Institute of Geoscientists. 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 a 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. H&S has undertaken two independent verification sampling programs of drill core and assays closely agree with those previously reported.

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.

Directors
Colin G. Jackson (Chairman)
Brad A. Gordon (Managing Director)
Laurence W. Curtis (Non-executive Director)
Robert J. McDonald (Non-executive Director)
Ian McMaster (Non-executive Director)
Alan Roberts (Non-executive Director)
Adrianto Machribie (Non-executive Director)
Nyla Bacon (Company Secretary)
Stock Exchange Listing
ASX and TSX symbol: IAU
Substantial Shareholders
Taurus Funds Management 9.2%
Acorn Capital 6.6%
Van Eck Associates 5.5%
Issued Capital
524,401,963 shares
4,472,356 unlisted options
3,211,010 unlisted share rights
Shareholder Enquiries
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Computershare Investor Services
GPO Box 2975, Melbourne, Victoria 3001, Australia
Telephone: 1 800 805 505
+61 3 9415 4000

ABN: 11 060 156 452

Contact Information