BRISBANE, AUSTRALIA--(Marketwire - Oct. 27, 2011) - Intrepid Mines Limited (ASX:IAU)(News - Market indicators) (the "Company") is pleased to announce the release of its report for the quarter ended 30 September 2011 regarding development and exploration activities, as required under ASX listing Rule 5.1.1, as well the Company's Management's Discussion and Analysis and Interim Financial Report for the three and nine months ended 30 September 2011.
The documents are available on the Company's website (www.intrepidmines.com), will be available shortly with Intrepid's filings on Sedar (www.sedar.com) and can be reviewed on the ASX website (www.asx.com.au).
All dollar values are United States Dollars unless otherwise stated.
OVERVIEW OF THE THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2011
- Total comprehensive loss of $17.2 million and $22.1 million for the three and nine months ended 30 September 2011 (includes discontinued operations).
- Interest income was $1.4 million and $4.6 million respectively for the three and nine months ended 30 September 2011. During the quarter the Company advanced $2,675,000 to PT Indo Multi Niaga (PT IMN), Intrepid's joint venture partner in Indonesia, to meet PT IMN 's 20% of on-going exploration expenditure above the initial Intrepid commitment of A$50 million.
- Cash balance and term deposits at quarter end totalled $159.5 million.
On 12 July 2011, the Company reported that assays from hole GTD-11-201 had returned exceptional gold and copper assay results. The drill hole is part of the ongoing drilling program at the Tumpangpitu copper-gold zone of the Project. Hole GTD-11-201 intersected 676 metres ('m') at 1 gram per ton ('g/t') gold and 0.54% copper including several higher grade intervals with intercepts up to 56 m at 3.58 g/t gold and 1% copper.
On 16 August 2011, the Company reported that assay results from three holes (GTD-11-203, 205, and 208) had recorded further encouraging gold and copper assays at Tumpangpitu:
- Drill holes GTD-11-203 (120 m at 0.44 g/t gold and 0.27% copper plus 252 m at 0.45 g/t gold and 0.27% copper) and GTD-11-208 (599 m at 0.52 g/t gold and 0.70% copper) are from the area designated 'geological potential' that is to the south-east of the main Tumpangpitu zone;
- Drill hole GTD-11-205 is located on the previous north-western margin of the main Tumpangpitu porphyry zone and this result (230 m at 0.47 g/t gold and 0.35% copper) now extends that zone, opening the area to the north. The trend of extending the mineralisation to the north is consistent with magnetic anomalism, which extends north of the main drill grid;
- The grades in drill hole GTD-11-208 and GTD-11-201 (676 m at 1.0 g/t gold and 0.54% copper) exceed the average resource grade to date.
On 11 August 2011, the Company and Cornerstone Capital Resources Inc. ("Cornerstone") announced that they had completed and received all assay results for the Phase 1 diamond drilling program on the Gama prospect, located in the north-western part of the Shyri property in southern Ecuador. Eleven holes totalling 3,153 m were drilled between 6 March and 17 July 2011.
Assay results for holes GAD-11-006 to GAD-11-011 inclusive, were released.
MILESTONES TARGETED FOR 2011
For the remainder of 2011, the Company's focus will be on continuing to expand the value embedded in Tujuh Bukit by advancing the oxide project, increasing the porphyry copper-gold-molybdenum resource and testing additional targets such as the Gunung Manis epithermal gold prospect and Candrian porphyry prospects by, inter alia:
- Conducting ongoing drill testing around the main Tumpangpitu porphyry area with up to 11 drill rigs;
- Continuing drill testing of Candrian, and initial drill testing of Gunung Manis and Salakan prospects where geologic and geophysical studies have identified new targets (subject to permitting restrictions) – fourth quarter of 2011 ('Q4/2011');
- Compiling the third resource estimate for the main Tumpangpitu porphyry – Q4/2011;
- Acquiring direct equity in the entity holding the Tujuh Bukit project tenements, which was not possible under the old Indonesian mining law. The Company will continue to work towards finalising documentation with its alliance partner, PT Indo Multi Niaga, to progress the process – Q4/2011;
- Commencing an initial porphyry scoping study - first half of 2012 ('H1/2012');
- Progressing the oxide Prefeasibility Study –H1/2012; and
- Progressing, together with PT IMN, a multi-faceted plan, that includes close liaison with relevant government officials and local leaders, a review of forest land status, aimed at delivering the option to conduct open pit mining at Tujuh Bukit.
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 2010, which allows for exploration activities within forestry areas.
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 consultant employed by 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.
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.
ABN: 11 060 156 452