Intrepid Mines Limited

Intrepid Mines Limited

July 30, 2009 03:09 ET

Intrepid Mines Limited: Tujuh Bukit Project, Indonesia


BRISBANE, AUSTRALIA--(Marketwire - July 30, 2009) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") is pleased to report that semi regional soil sampling, completed over the area surrounding the Tumpangpitu drilling area, has defined significant additional gold-copper anomalies worthy of follow-up.

The results of these surveys, together with geological mapping and interpretation of aeromagnetic data further support the interpretation of a large mineralised district over an area of 5 x 5 kilometers. This suggests that the scale of mineralisation is likely to be greater than that defined to date at Zones A, B and C.

Follow-up work is planned immediately and includes further definition of the surface anomalies and a detailed helicopter magnetic survey which is expected to commence in August. These combined results will form the basis for further follow-up work in preparation for additional drilling in late 2009 and early 2010.

To view the plan showing KP Exploration area (blue), area of alteration (black dash) and soil sampling areas, please visit the following link:

To view the diagrams that show gold in soil anomaly results (left) and copper in soil results (right), please visit the following link:

The data as presented above highlights several key points -

- The areas of drilling at Zones A, B and C are highlighted as discrete anomalies in gold and copper.

- Other smaller gold (+/- copper) anomalies exist between these zones. One in particular is located between A and B and corresponds with the site of previously reported hole GTD - 14, which intersected 24m @ 1.71g/t Au equivalent (see Emperor Mines news release of August 2007)

- Significant gold-copper anomalies occur to the NE of the Zones A-B-C cluster and these are logical drill targets once more detailed (50 x 50m) soil sampling is completed, and the planned helicopter supported magnetics survey is completed.

- Several gold anomalies occur in a roughly NW trending belt on the eastern side of the survey coverage. This belt is well defined in the magnetics image shown below. Initial field reconnaissance suggests that at least some of these anomalies may be low sulphidation, higher grade gold zones.

- The images below show gold and copper anomalism as point data over "Reduced to Pole" magnetics data, and over satellite imagery. The middle image shows leveled data with a 310 degrees search angle, consistent with the 310 degree structural corridor defined by the magnetics data.

- The images below also show a portion of the historical sampling at Salakan Prospect (located NW of the recent Tumpangpitu sampling) defining significant areas of gold and copper anomalism. This area of sampling covers only the SE most quadrant of the broader Salakan Prospect.

To view the images showing recently compiled soil geochemistry overlain on aeromagnetics (400m line spacing and local ground magnetics), please visit the following link:

The results of these surveys is most encouraging and supports the interpretation of multiple mineralised areas beyond those currently known at Zones A, B & C. These results form the basis for follow-up work to allow for drilling in late 2009 and early 2010.


The Indonesian Forestry Law restricts non forestry activities within protection forests and prohibits mining using an open pit method in protection forest areas. Accordingly, Intrepid's Alliance partner, PT IMN, is working with relevant Indonesian authorities to allow for a review of forest land status where it affects the Company's operations.


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 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.

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.


Intrepid exercises a strict chain of sample custody in its drilling program at Tujuh Bukit. Joint Venture personnel collect the soil samples under the direction of technical specialists. Orientation surveys were completed to establish appropriate sampling protocols.

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.


The gold equivalent ratio for silver has been set at 65:1 based on US$650/oz gold and US$10/oz silver. Historical bottle roll tests have shown recoveries of 83% Au and 84.5% Ag, supporting a 65:1 ratio. Recently received CIL metallurgical testing results from Zone C achieved recoveries of approximately 90% for both Au and Ag at a grind of 80% passing 75 um. Comparable recoveries for both gold and silver in the recent tests from 4 composite samples from Zone C oxide material also support the 65:1 gold equivalence ratio.

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