BRISBANE, AUSTRALIA--(Marketwire - May 17, 2011) - Intrepid Mines Limited (ASX:IAU)(News - Market indicators) (the "Company") is pleased to announce that exploration is to commence at the Salakan prospect, and that a drilling program will be initiated at the Gunung Manis prospect at the Tujuh Bukit Project in East Java within the next two months.
The Indonesian Forestry Ministry has recently granted the Company's joint venture partner, PT IMN, a "borrow and use" permit, which allows for the conduct of exploration activities for gold and associated minerals within an additional 2,682.22 hectares of forestry land within the existing Tujuh Bukit mining lease. The permit is valid for two years, commencing 31 March 2011, and is renewable. This latest permit, together with the earlier forestry borrow and use permit renewed last year (see Intrepid announcement 20 July 2010), allows for exploration activities to be undertaken over the entire area of the IUP Operation and Production.
The Forestry Ministry issued the permit after conducting a review of relevant technical data and receiving a recommendation from the Governor of East Java in relation to PT IMN's continued exploration activities at Tujuh Bukit. The permit application was further supported by the Director-General of Minerals and Coal within the Department of Energy and Mineral Resources.
Speaking from Brisbane, the Company's CEO, Brad Gordon, said: "We are excited to be extending exploration to an additional two known mineralised areas, with a view to delivering further discoveries. I would like to express our appreciation to our partners, PT IMN, who have worked closely with us and several government officials in managing the application process. We are particularly pleased by the ongoing support of the Ministry of Energy and Mineral Resources and the Governor of East Java, whose cooperation was key to the successful grant of the permit."
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 Zone A, Zone B and Zone C 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.
ABN: 11 060 156 452
