Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

September 10, 2012 08:00 ET

Intrepid Mines Limited: Tujuh Bukit, Indonesia

Tumpangpitu Oxide Gold-Silver Resource Update

- New Oxide mineral resource estimate increases confidence in deposit with 76% of contained gold in Measured and Indicated categories

- Measured and Indicated Resource now stands at 70 million tonnes at 0.71g/t gold and 27g/t silver (1.6 million ounces of contained gold and 60 million ounces of contained silver)

- Inferred Resource now stands at 19 million tonnes at 0.75g/t gold and 21g/t silver (0.5 million ounces of contained gold and 13 million ounces of contained silver)

Porphyry resource update scheduled December 2012 quarter

BRISBANE, AUSTRALIA--(Marketwire - Sept. 10, 2012) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) ("the Company") is pleased to report that assay results from recently completed drilling of the Tumpangpitu oxide gold-silver deposit (in which the Company has an 80% economic benefit) has delivered a major upgrading of the resource categorisation, increased metal inventory and demonstrated significant mineralisation continuity within the deposit.

Independent consultant H&S Consultants Pty. Ltd. has provided an inaugural Measured and Indicated Mineral Resource estimate of 70 million tonnes at 0.71g/t gold and 27g/t silver (at a 0.3g/t gold cut-off grade) containing 1.6 million ounces of gold and 60 million ounces of silver. This updated estimate is in accordance with the JORC Code and National Instrument 43-101.

An additional 19 million tonnes at 0.75g/t gold and 21g/t silver containing 0.5 million ounces of gold and 13 million ounces of silver have been estimated in the Inferred category.

This compares to the previously reported Inferred Resource of 85 million tonnes at 0.74g/t gold and 21g/t silver (see Intrepid news dated 14 December 2010.) and represents an approximately 5% and 33% increase in gold and silver inventory respectively. Importantly, 24% of the resource is now classified in the Measured category and 52% in the Indicated category; the previous estimate was entirely in the Inferred resource category (see Tables 1 and 2).

The updated Mineral Resource Estimate incorporates results from drill-holes GTD-10-168 through to GTD-12-387, which were completed between late-2010 and late June 2012 (Figure 1). This programme comprised an additional 175 oxide holes for approximately 27,400 metres of drilling plus the near surface oxide zone results from holes drilled to test the deeper porphyry deposit.

The drilling programme was specifically designed to in-fill the core of each of the Zone A, B, C and E deposits from the existing 80 by 80 metre spacing to an approximate spacing of 40 by 40 metres. The correlation between the new drilling and the initial broadly spaced drilling provides strong confidence in the continuity of mineralisation. The in-fill drilling has also allowed for an improved geological domaining and tighter control on the mineralisation; again, increasing confidence in the resource. The increase in silver content is interpreted to relate to increased drilling through the base of oxidation, where silver tends to be concentrated, and to some very high silver grades intercepted in the Zone C deposit.

Oxide mineralisation is defined down to the base of partial oxidation; beneath this contact, all mineralisation is defined within the porphyry resource model. The relationship between the gold oxide zones and the underlying porphyry deposit is shown in Figure 2. An updated porphyry resource estimation is in progress and is anticipated to be completed and reported in the December 2012 quarter.

Mr Brad Gordon, Intrepid CEO, noted that the updated Oxide resource estimate, the results of further metallurgical test work and on-going engineering studies, continue to confirm a viable project as previously indicated in the March 2011 Oxide gold-silver Preliminary Economic Assessment. "Once the current dispute with joint venture partner, PT Indo Multi Niaga is resolved, and permitting achieved, Intrepid looks forward to the day when the mine development can proceed, to the benefit of shareholders, central and provincial governments and a local workforce of over 400 permanent employees."

Table 1 - Total Oxide Resource by category
Cut-off Grade Category Tonnes Grade Contained Metal
Au (g/t) (Mt) Au (g/t) Ag (g/t) Au (Moz) Ag (Moz)
0.30 Measured 25 0.82 31 0.7 25.6
Indicated 45 0.64 24 0.9 34.3
Total Measured & Indicated 70 0.71 27 1.6 59.8
Inferred 19 0.75 21 0.5 13.1
Table 2 - Total Oxide Resource by cut-off grade
Category Cut-off Grade Tonnes Grade Contained Metal
Au (g/t) (Mt) Au (g/t) Ag (g/t) Au (Moz) Ag (Moz)
Measured & Indicated 0.20 101 0.56 24 1.8 76
0.30 70 0.71 27 1.6 60
0.40 49 0.86 30 1.4 47
0.50 36 1.00 32 1.2 38
0.75 20 1.33 36 0.9 23
1.00 12 1.63 37 0.6 15
Inferred 0.20 31 0.55 19 0.6 19
0.30 19 0.75 21 0.5 13
0.40 13 0.93 24 0.4 10
0.50 10 1.11 25 0.3 8
0.75 6 1.45 23 0.3 4
1.00 3 1.88 21 0.2 2
Notes to Tables 1 and 2: Figures may not sum due to rounding. Significant figures do not imply an added level of precision.

To view the graph associated with this press release, please visit the following link: http://media3.marketwire.com/docs/817750_graph.pdf

To view Figure 1. Drilling locations and resource outlines, please visit the following link: http://media3.marketwire.com/docs/817750_fig_1.pdf

To view Figure 2. Relationship between Oxide and Porphyry mineralisation, please visit the following link: http://media3.marketwire.com/docs/817750_fig_2.pdf

Qualified Person

The Mineral Resource Estimates were prepared by Rob Spiers (MAIG) who is a Director and full time employee of H&S Consultants Pty Ltd.

All resource work was reviewed by Dr Phillip Hellman FAIG, who is a consultant to H&S Consultants Pty Ltd. Both Mr. Spiers and Dr. Hellman have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as Independent Qualified Persons as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr. Spiers and Dr. Hellman consent to the inclusion of these estimates in the form and context in which they appear.

The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Gary Snow, who is a full-time employee of 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). 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.

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 the Intertek 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.

Nature of data

A total of 125,295 metres in 392 drill holes were available for the resource estimate and comprise entirely diamond core (DD) drilling. DD holes were almost all sampled in two metre intervals for PQ, HQ or NQ sized core. For estimation purposes the assay data was composited into two metre intervals. The block model consists of blocks of 20m x 20m x 5m (XYZ).

Block Classification

Ordinary kriging was used for the estimation with the search and data acceptance parameters used for the oxide domains being; pass 1 (Measured) a search ellipse of 42.5m x 42.5m x 15m using a minimum of 12, 2 metre composites and a maximum of 32, 2 metre composites; pass 2 (Indicated) with a search ellipse of 85m x 85m x 30m and using a minimum of 12, 2 metre composites and a maximum of 32, 2 metre composites; and a pass 3 (Inferred) with a search ellipse of 85m x 85m x 30m and using a minimum of 6, 2 metre composites and a maximum of 32, 2 metre composites. Searches were aligned consistent with the orientations defined during the geometry modelling for each individual mineralised domain.

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.

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 2014, which allows for exploration activities within forestry areas.

Directors
Colin G. Jackson (Chairman)
Ian McMaster (Deputy Chairman)
Brad A. Gordon (Managing Director)
Laurence W. Curtis (Non-executive Director)
Robert J. McDonald (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 8.7%
Acorn Capital 8.2%
Van Eck Associates 6.6%
Surya Paloh 5.0%
Issued Capital
553,657,757 shares
5,922,608 unlisted options
4,620,450 unlisted share rights
25,604,016 unlisted restricted performance rights
Shareholder Enquiries
Matters related to shares held,
change of address and tax file
numbers should be directed to:
Computershare Investor Services
GPO Box 2975, Melbourne, Victoria 3001, Australia
Telephone: 1300 805 505
+61 3 9415 4000

ABN 11 060 156 452

Contact Information

  • Inquiries regarding this report and Company business may be
    directed to: Intrepid Mines Limited
    Brad Gordon, Managing Director, Chief Executive Officer,
    Brisbane, Australia
    (office) +61 7 3007 8000 or (mobile) +61 400 036 636
    bgordon@intrepidmines.com

    Intrepid Mines Limited
    Greg Taylor
    Investor Relations, Toronto, Canada
    (office) +1 905 337 7673 or (mobile) +1 416 605 5120
    gtaylor@intrepidmines.com
    www.intrepidmines.com