Intrepid Mines Limited

Intrepid Mines Limited

October 29, 2012 08:00 ET

Intrepid Mines Releases Activities Report for the Third Quarter

BRISBANE, AUSTRALIA--(Marketwire - Oct. 29, 2012) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company" or "Intrepid") is pleased to announce the release of its report for the quarter ended 30 September, 2012 regarding development and exploration activities, as required under ASX listing Rule 5.1.1, as well the Company's Management's Discussion and Analysis ("MD&A") and Interim Financial Report for the three and nine months ended 30 September 2012.

The documents are available on the Company's website (, will be available shortly with Intrepid's filings on Sedar ( and can be reviewed on the ASX website (

Intrepid's principal activity is the exploration and evaluation of the Tujuh Bukit Project ('Tujuh Bukit' or the 'Project').


  • Surya Paloh, a prominent Indonesian businessman was issued 27,680,017 ordinary shares, representing 5% of the Company's expanded issued capital, plus 51,208,032 unlisted restricted performance rights (one half of which were issued subsequent to quarter end following Toronto Stock Exchange approval).

  • Clayton (Tony) Allen Wenas was appointed in the newly-created role of Executive General Manager, Indonesia.

  • Dispute notice issued to PT IMN shareholders and PT IMN for breaches of the Project agreements.

  • Concerted efforts ongoing to address issues with PT IMN shareholders.

  • Mr Ian McMaster succeeded Mr Colin Jackson as Intrepid Mines' chairman effective from 22 October 2012. Previously Mr McMaster was deputy chair and the former chairman of Emperor Mines Limited with whom Intrepid merged in 2008.


  • Activity on the Tujuh Bukit site has been suspended since 19 July 2012, at the instruction of PT IMN.


  • An inaugural Measured and Indicated Mineral Resource Estimate totalling 70 million tonnes at 0.71 grams per tonne ('g/t') gold and 27 g/t silver (at a 0.3 g/t gold cut-off grade) containing 1.6 million ounces of gold and 60 million ounces of silver released on 11 September 2012.

  • Mine, process and engineering activities continue.


  • An updated Inferred Mineral Resource Estimate of 1.9 billion tonnes at 0.45% copper and 0.45 g/t gold with 19 billion pounds of contained copper and 28 million ounces of contained gold at a 0.2% copper cut-off released 9 October 2012.

  • The estimates includes a high-grade core of 1.0 billion tonnes at 0.61% copper and 0.61 g/t gold at a 0.4% copper cut-off, a copper grade increase of 9% and increase of 34% and 23% for contained copper and gold respectively.

  • A Scoping Study based on the high-grade core is targeted for March 2013 quarter.

  • Metallurgical test work is nearing completion.


  • Exploration expenditure for the Project for the three and nine month periods to 30 September 2012 was $7.7 million and $26.4 million respectively (on a 100% basis), bringing the Project total to $102.7 million.

  • Expenditure has continued on the Tujuh Bukit development studies since the 19 July shutdown but no further payments have been made to PT IMN.

  • Treasury cash and term deposits are $116.1 million at 30 September 2012.

  • Surya Paloh's share issue resulted in a $6.4 million share based expense to the Company (with a corresponding increase to equity). Refer to page 6 of the MD&A for a discussion on this transaction.

As previously reported, the Company does not have direct rights to the Tujuh Bukit Project tenements and the Tujuh Bukit IUPs (the form of mining licence under which activities are conducted) are held by its Indonesian joint venture partner. The Company, through a number of contractual arrangements with PT IMN, has acquired an entitlement to an 80% interest in the Tujuh Bukit Project. Since the Company has no direct interest in the Tujuh Bukit Project as yet, it is reliant on the observance by PT IMN, and its shareholders, of these contractual arrangements, including an agreement to issue to Intrepid or its subsidiaries 80% of the share capital in PT IMN. PT IMN is currently in breach of the agreements in place with the Company and has excluded the Company's personnel from the Tujuh Bukit site and operations and ceased communications with the Company's management. The Company has issued a notice of dispute to IMN and its shareholders in relation to these events.

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 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.

Competent Person and Qualified Person

The information in this report that relates to exploration results at Tujuh Bukit is based on information compiled by or under the supervision of Gary Snow, who is a fellow of The Australasian Institute of Mining and Metallurgy as well as the Australian Institute of Geoscientists. Gary Snow is employed by Intrepid Mines Limited and 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 is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Gary 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 Robert Spiers, who is a member of the Australian Institute of Geoscientists. Mr Spiers 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". Mr Robert Spiers is an independent consultant to Intrepid Mines Limited and a full time employee of H&S Consultants Pty Ltd (formerly Hellman & Schofield Pty Ltd). He 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.

Ian McMaster (Chairman)
Colin G. Jackson (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 8.5%
Acorn Capital 8.2%
Van Eck Associates 7.8%
Surya Paloh 5.0%

Issued Capital
9,015,095 unlisted options
6,181,693 unlisted share rights
51,208,032 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 850 505
+61 3 9415 4000

Contact Information

  • Intrepid Mines Limited
    Brad Gordon
    Managing Director / Chief Executive Officer
    Brisbane, Australia
    (office) +61 7 3007 8000 / (mobile) +61 400 036 636

    Intrepid Mines Limited
    Greg Taylor
    Investor Relations
    Toronto, Canada
    (office) +1 905 337 7673 / (mobile) +1 416 605 5120