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- Intrepid Mines Limited (TSX:IAU - News; ASX:IAU - News; the
"Company") announces that the technical report entitled "Tujuh Bukit Project Report on Mineral Resources,"
dated November, 2010, has been filed on SEDAR (www.sedar.com)
as well as with the ASX (see the Company's news release of 30 September 2010
for the initial detail of the Resource). The report, prepared by independent
consultants Hellman and Schofield Pty. Ltd. and reported in accordance with
the JORC Code and Canadian NI 43-101, estimated an initial Inferred Resource
of 500 million tonnes at 0.4% copper and 0.5 g/t
gold, at a cut-off grade of 0.2% copper, for the known porphyry copper-gold
zone within the Tumpangpitu area of the Tujuh Bukit Project in Indonesia.
Approximately 95% of the resource occurs
within an area measuring 1,100 x 850 metres. The
vertical extent of mineralisation defined to date
is up to 800 metres. The Company is confident that
the porphyry copper-gold resource base at Tumpangpitu
will continue to grow as additional drilling is completed over the next 6
months. The system remains open in all directions, and at depth to the NE and
SW.
The above noted Resource estimate is in
addition to that occurring in the oxide gold-silver zone of 95.3 million tonnes at 0.66 g/t gold and 25.9 g/t silver for 2 Mozs contained gold and 79.4 Mozs
contained silver (see release dated 25 August 2010), and which is also
continuing to grow with ongoing drilling.
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. While similar reviews have led to the granting of reclassifications,
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.
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.
Resource Estimation Notes
Geological interpretations of the copper
mineralisation provided by Intrepid were used to
define a "top-of-porphyry" surface to restrict estimates to
geologically reasonable limits. The block model was coded by oxidation zone
and estimates were restricted to the sulphide or
transitional zones as well as to the potential porphyry zone. 6m
length-weighted composites from the transitional and sulphide
zones were used to estimate, via Ordinary Kriging,
Cu, Au, Mo, As, SG and Ag into a 40 x 40 x 15 metre
block model. Silver values within the primary mineralisation
are low (eg less than 5g/t) and their estimates are
not reported.
Inferred Resources are defined on the
basis of a 120m x 120m x 80m search ellipsoid using a maximum of 32 6m
composites and a minimum of 12. Two more passes to 240m x 240m x 160m were
used to generate "potential" blocks within the constraints of the
porphyry model. In general, these potential blocks define extra similar
tonnages at similar grades to the quoted estimates. These, however, do not
constitute "resource estimates" and there is no guarantee that they
will be upgraded to resources with further drilling. Drill spacing of the
deeper holes is approximately 200m x 200m. However, there are a considerable
number of shallower holes that intersected copper mineralisation
in transitional and primary mineralisation.
Approximately 5% of quoted resources are from transitional mineralisation. 5172 6m composites of Cu and Au are
available for estimation together with 5072 Mo, 4955 As and 3446 SG values.
Composites from the porphyry zone number 2408, 2408, 2379, 2402 and 1684 for
Cu, Au, Mo, As & SG , respectively.
Two different software products were
used to provide estimates as well as two different operators. Results closely
agree within the meaning of "Inferred". Cross sections of the modelled results were plotted in juxtaposition with assay
and geological data to check for geological plausibility. It is noted that
there is considerable scope to add to the quoted resource with most sections
having significant areas that are yet to be drill tested.
Due to the preliminary nature of the
project pit optimisation has not yet been
undertaken resulting in uncertainty as to how much of the resource may report
to a conceptual pit. At a 0.2% Cu cut off grade the following tonnages occur
at greater than 0m elevation, 0 to - 200m, -200m to -400m and -400m to -600m:
58mt, 131mt, 196mt and 114mt respectively. Although these depths preclude
open pit mining in the deeper portions of the resource, the possibility of
bulk underground mining techniques (eg block
caving) remains.
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
Contact:
Brad Gordon
Intrepid Mines Limited - Brisbane, Australia
Chief Executive Officer
+61 7 3007 8011
bgordon@intrepidmines.com |
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