Intrepid Mines Limited
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ASX : IAU

Intrepid Mines Limited

January 13, 2011 08:30 ET

Intrepid Mines, Tujuh Bukit-Drilling Again Extends Mineralisation

BRISBANE, AUSTRALIA--(Marketwire - Jan. 13, 2011) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") is pleased to report that assay results from four recently completed drill holes at the Tumpangpitu Prospect at the Tujuh Bukit Project on East Java in Indonesia have shown extensive intervals of copper and gold mineralisation at grades of economic interest. These extend the lateral and depth potential well beyond the previously announced porphyry resource area (see Intrepid news release 8 November 2010).

"While these latest results further expand the already large Tumpangpitu system, subsequent drilling with five rigs has reached depths up to 1,100 metres and has continued to intersect significant mineralisation beyond the margins of our interpreted generalised porphyry system. Clearly, we are yet to reach the vertical or lateral limits of mineralisation," said Intrepid CEO, Brad Gordon.

"These are outstanding results. They are consistent with the areas of exploration potential that were defined in the recently reported resource estimates and so provide us with a high degree of confidence that our next resource estimates, scheduled for release in the first half of this year, will convert a significant amount of this potential into defined resources," added Malcolm Norris, Executive General Manager, Exploration and New Business.

Hole GTD-168 was drilled approximately 350m beyond the margin of the main portion of the porphyry resource and beyond the margin of the generalised porphyry system outline (see figure below). The hole intersected 429 metres at 0.38g/t gold and 0.53% copper, including 72 metres at 0.64g/t gold and 0.97% copper. The hole ended in mineralisation at 1070.65 metres.

Hole GTD-168 is located 320 metres south of the previous southern-most traverse containing holes GTD-138, 165 and 166.

Hole GTD-172 was drilled on the fringes of the porphyry resource on the eastern side of the porphyry system (see figure below). The hole intersected 336 metres at 0.14g/t gold and 0.47% copper.

Holes GTD-169 and GTD-170 were drilled in the interpreted north-west boundary area of the porphyry system and on the fringe of the porphyry resource (see figure below).

Hole GTD-169 intersected 604 metres at 0.36g/t gold and 0.38% copper including 54 metres at 0.48g/t gold and 1.15% copper. The hole ended in mineralisation at 1101.75 metres.

Hole GTD-170 intersected 664m at 0.42g/t gold and 0.43% copper including 196 metres at 0.59g/t gold and 0.55% copper. The hole ended in 0.30g/t gold and 0.30% copper at 997.95 metres.

The results from holes GTD-169 and 170 support the geological interpretation that the mineralised zone in this area may roll over to a vertically extensive zone. The intercepts in GTD 169 and 170 are some of the thickest drilled to date. Importantly, the high grade zone intersected in GTD-169 appears to correlate with high grade zones intersected in GTD-139, GTD-167, and GTD-35.

GTD-169 and 170 have also returned locally very high molybdenum assays of >0.3% (up to 4700 molybdenum in GTD-170 and up to 3190 molybdenum in GTD-169).

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/iau0113map.pdf.

Results from holes GTD-10-168, 169, 170 and 172 comprise:-

High sulphidation mineralisation with varying degrees of relict porphyry mineralisation.

Hole ID From To Interval Au Ag Cu Mo
  (m) (m) (m) (g/t) (g/t) (%) (ppm)
               
GTD-10-172 222 232 10 0.25 77.6 0.08 14
EOH 1002.6m 236 242 6 0.61 1.5 0.33 237
  244 298 54 0.29 79.6 0.23 71
  276 612 336 0.14 8.4 0.47 122
  680 698 18 0.64 2.9 0.57 59
  712 782 70 0.27 - 0.25 80
  806 836 30 0.22 - 0.19 41
  888 906 18 0.15 - 0.22 121
               
GTD‐10‐170 36 48 12 0.41 63 - -
EOH 997.95m 58 62 4 0.93 28.5 - -
  74 90 16 1.02 106 -
  106 182 76 0.41 3.6 0.44
  188 190 2 1.69 18 0.32 7
  204 222 18 0.32 3.1 0.29 3
  274 278 4 0.37 2.5 0.2 4
  284 288 4 0.37 2.5 0.41 5
  334 997.95 663.95 0.42 1.4 0.43 151
  434 630 196 0.59 1.6 0.55 120
hole finished in 0.30g/t Au, 0.30% Cu
               
GTD10169 12 18 6 0.22 31
EOH 1101.75m 88 104 16 0.25 15.5 -
  132 162 30 0.22 29.7 1.01
  190 200 10 0.67 16.7 1.32 3
  226 236 10 0.31 21.4 0.21 2
  258 274 16 0.2 2.6 0.3 2
  298 310 12 0.39 3.8 0.28
  386 390 4 0.89 93 0.42 4
  400 420 20 0.42 2.8 0.16 3
  432 446 14 0.71 3.1 0.19 2
  498 1101.75 603.75 0.36 0.38 158
  548 600 54 0.48 1.9 1.15 666
  572 584 12 1.18 5.3 2.98 1886
  624 662 38 0.72 0.55 130
hole finished in 0.33g/t Au, 0.36% Cu
               
GTD10168 292 294 2 0.35 6 0.31 2
EOH 1070.65m 386 388 2 2.97 48 4.07 9
  498 502 4 0.57 2.3 0.13 13
  538 540 2 0.14 - 1.13
  544 546 2 0.15 - 4.85 -
  558 566 8 0.06 6.1 0.5 6
  612 620 8 0.22 - 0.16 18
  642 1070.65 428.65 0.38 - 0.53 88
  802 874 72 0.64 - 0.97 182
hole finished in 0.21g/t Au, 0.28% Cu

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 Porphyry and 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. Forestry Status: PTIMN received an extension of the Forestry Exploration Permit dated 7 July, 2010, which allows for exploration activities within forestry areas.

Qualified Person

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.

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. 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 15 metre block model was used for the quoted estimates.

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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