Intrepid Mines Limited
TSX : IAU
ASX : IAU

Intrepid Mines Limited

March 03, 2011 08:30 ET

Intrepid Mines: Tujuh Bukit Latest Drill Results

Latest Drill Results Confirm Further Exploration Expansion Potential; Includes Deepest Mineralisation to Date

Mineralisation Now Defined Vertically Over 1.4km and Laterally Exceeds 1.5km.

Ongoing Deep Drilling With 5 Rigs.

BRISBANE, AUSTRALIA--(Marketwire - March 3, 2011) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) ("the Company") reports that assay results received from five recent deep exploratory drill holes have intercepted additional mineralisation adjacent to and south of the main Tumpangpitu porphyry Inferred Resource area. Together, diamond drill holes GTD 178, 181, 182, 183 and 184 confirm the clear potential for the expansion of this first porphyry area of Intrepid's (80% economic interest) 11,621- hectare Tujuh Bukit project.

This series of exploratory holes were drilled in three areas (see diagram below) –

  1. GTD-182 - on the SW side of the Inferred Resource block model area;
  2. GTD-178 and 183 – drilled into a magnetic 'embayment' south of the main Tumpangpitu porphyry area;
  3. GTD-181 and 184 – drilled around the area of GTD-137 which intersected 85.85m at 0.56% copper and 1.11g/t gold.

GTD-182 was drilled in the SW portion of the main Tumpangpitu Porphyry zone, testing a zone outside of the current published Inferred Resource estimate. The hole intersected 604.5 meters ('m') at 0.34% copper and 0.34g/t gold, including some higher grade zones. The hole finished in mineralisation (0.11g/t gold and 0.22% copper) at a depth of 1072.5 m. Complementary with other mineralised zones, this aggregates to a vertical extent of mineralisation (from the top of Zone A oxide mineralisation, to the bottom of hole GTD-182) of ~ 1400m.

Further, because GTD-182 intersected mineralisation in, and below, the domain of "exploration potential" as predicted in the resource block model, it is expected to add significant tonnage to future resource estimates, and provides further confidence that previously estimated exploration potential marginal to the Inferred Resource domains can be converted into Inferred Resource. This hole also provides confidence that exploration of still deeper levels – such as with current hole GTD-192 (drilling ahead) – will deliver additional mineralisation.

GTD-178 and -183 were drilled into a magnetic low embayment located between the main Tumpangpitu porphyry zone and the southern porphyry drilled by GTD-137. This drilling has confirmed that the magnetic low relates to a diatreme breccia body which postdates most of the mineralisation episodes and is therefore only weakly mineralised. However, this diatreme breccia has been identified in other drill holes and its geometry is now being defined with some confidence. The diatreme breccia contains clasts of mineralised porphyry and has in places been overprinted with what is interpreted to be the last phase of high sulphidation mineralisation – hence explaining the narrower, lower grade intervals. The relationship to good quality overlying oxide mineralisation in the western portion of Zone B and Zone F is still to be determined.

GTD-181 and -184 were targeted to follow-up the porphyry intersection in GTD-137 (85.85m at 0.56% copper and 1.11g/t gold). GTD-184 was abandoned at 572.65m, as was adjacent GTD-176 (abandoned at 567.2m). GTD-137 was also 'abandoned,' so the intersection quoted above is open at depth and in fact the hole finished in 0.42% copper and 0.71g/t gold. All holes were abandoned due to poor ground conditions and inability to drill deeper.

Whilst this drilling has failed to follow up on the very encouraging intercept in hole GTD-137 the area remains to be explored with hole GTD-193 (shown on the diagram below) scheduled.

GTD-181 was drilled to explore the irregular magnetic anomalies located ~300m south of the porphyry intercept in GTD-137 (see attached figure). GTD-181 intersected minor high sulphidation mineralisation at shallower depths before intersecting post mineral intrusive (now interpreted to be the source of the higher amplitude magnetic anomalies in this area) which has 'stoped out' any porphyry mineralisation.

While this drilling does not explain the very encouraging porphyry intercept in GTD-137, it has provided some critical geological information. It has brought focus to the trend of mineralisation in holes GTD-172 – 165 – 168 opening to SE and this will be tested by current hole GTD-195. This area has drilled significant porphyry mineralisation at grades higher than the published resource grade. This emerging trend is also consistent with 3-D magnetic modelling suggesting a link towards GTD-137.

Additionally, the 3-D magnetic modelling does suggest continuation of target zones to the north of the main Tumpangpitu porphyry and this is initially being tested with current hole GTD-194 (see diagram below).

"Overall, these results are encouraging as we build our geological model of this very large porphyry system," said Malcolm Norris, Executive General Manager, Exploration and New Business. "Integration with 3-D magnetic modelling is proving critical to our understanding of the geometry of target areas. We have five rigs now drilling in areas outside of the existing porphyry Inferred Resource (shown in red on the diagram below) and we are confident of defining significant upside. These rigs are currently at hole depths of up to 450m and we look forward seeing how they add to our understanding."

To view the first figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/iau0303fig1.pdf.

To view the second figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/iau0303fig2.pdf.

Results from holes GTD-10-176, 178, 181, 182, 183, and 184 include :-

Hole ID From
(m)
To
(m)
Interval
(m)
Au
(g/t)
Ag
(g/t)
Cu
(%)
Mo
(ppm)
GTD-10-184 178 198 20 0.58 6.1 0.12 2
EOH 572.65m (abd.) 280 292 12 0.2 2.5 0.81 -
  324 328 4 0.15 - 1.18 -
  436 440 4 0.81 1.8 1.41  
               
GTD-10-183 168 176 8 - 3.5 0.18 -
EOH 1049.55m 258 270 12 0.09 - 0.78 -
  510 512 2 0.25 - 0.27 -
  524 534 10 0.19 - 0.14 -
  792 1026 232 - - 0.17 28
incl. 792 864 72 - - 0.19 50
incl. 894 944 50 - - 0.27 45
incl. 1020 1026 6 - 2.2 0.88 -
  1036 1038 2 - - 0.35 -
               
GTD-10-182 108 116 8 0.36 4.8 - -
EOH 1072.45m 164 182 18 0.5 14.7 0.57 2
  234 286 52 0.38 - 0.12 2
  302 342 40 0.43 2.7 0.11 3
  364 370 6 3.54 2.8 0.62 11
  468
1072.5
(EOH)
604.5
0.34
-
0.34
58
incl. 534 698 164 0.59 - 0.43 35
               
GTD-10-181 48 74 26 0.14 5.6 0.3 -
EOH 1063.25m 94 146 52 - 2 0.58 -
  154 158 4 0.12 - 0.56 -
  172 188 16 0.62 - 0.27 -
  202 206 4 - - 0.36 -
               
GTD-10-178 44 56 12 0.2 5.3 - 4
EOH 1078.25m 168 226 58 0.14 17.9 - 3
  242 264 22 0.14 16.6 - -
  268 290 22 - - 0.58 -
  338 348 10 0.37 2.1 0.97 2
  450 452 2 1.1 6 0.83 8
  514 524 10 0.27 - 0.63 14
  556 568 12 0.13 - 0.26 7
  594 648 54 0.21 - 0.19 40
  796 838 42 0.12 - 0.1 47
  940 974 34 0.18 - 0.16 -
               
GTD-10-176 320 326 6 - - 0.23 -
EOH 567.2m (abd) 462 476 14 0.38 - 0.16 -

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.

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 and a Director of Hellman & Schofield Pty Ltd. 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.

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