BRISBANE, AUSTRALIA--(Marketwire - March 4, 2010) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) (the "Company") is pleased to report that diamond drill hole GTD-09-139 at the Tumpangpitu Prospect, Tujuh Bukit Project has intersected additional significant copper, gold and molybdenum in a zone of high sulphidation overprinting porphyry mineralisation.
"This hole provides further clear evidence not only of the gold rich nature of the porphyry mineralisation at Tujuh Bukit, but also of the potential size of this system" said Intrepid CEO, Brad Gordon. "The mineralisation is open at depth here and almost everywhere else where we've conducted our deeper drilling and we are a long way from finding the limits."
Hole GTD-09-139 is the second of a six-hole drilling program designed to define the geometry of the porphyry system and allow for initial estimations of the scale of the copper-gold- molybdenum porphyry mineralisation that underlies the extensive high sulphidation gold-silver +/- copper system.
The following plans show the holes drilled to date and the 5 sections of drilled and proposed holes. Key assay intervals from these holes are summarised in the tables below. Drilling in most cases stopped at depth penetration limit of the drilling rigs, not based on limits of mineralisation. Two new rigs with depth capability of 1,200 m are now on site.
Results from GTD-09-139 are:-
Porphyry mineralisation with varying degrees of high-sulphidation overprint
Importantly, the level of the general terrain is less than 200 metres above the top of this intersection.
To view the Porphyry target zone map, please visit the following link: http://media3.marketwire.com/docs/iau303mapinter.pdf
Drill status plan. Collars of oxide holes shown in white and blue. Deep drill traces shown in black. Sections shown below. The potential porphyry zone is outlined in yellow and measures 1200 x 500m.
The diagrams below show drill intercepts on cross sections. The green bars reflect copper intervals, and the red, gold intervals. The main mineralised intervals are highlighted with the heavy black bars.
To view the section 1 map, please visit the following link: http://media3.marketwire.com/docs/iau303map1.pdf
To view the section 2 map, please visit the following link: http://media3.marketwire.com/docs/iau303map2.pdf
To view the section 3 map, please visit the following link: http://media3.marketwire.com/docs/iau303map3.pdf
To view the section 4 map, please visit the following link: http://media3.marketwire.com/docs/iau303map4.pdf
To view the section 5 map, please visit the following link: http://media3.marketwire.com/docs/iau303map5.pdf
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 recently led to the granting of reclassifications, 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.
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.
Gold Equivalence Statement
Gold equivalents: Gold equivalence ("AuEq") for Tujuh Bukit has been calculated based on a US $650/oz gold price and US $11/oz silver price. Metallurgical testing results achieved recoveries of app. 87% for Au and 80% for Ag. The gold equivalent grade was calculated using the following formula: AuEq = Au + (Ag / 65). The ratio of 65:1 is derived from the relative prices and metallurgical recoveries of each metal, or (Au Price x Au Recovery) / (Ag Price x Ag Recovery) = (650*0.87)/(11*0.80) = 0.65 (rounded up). It is the Company's opinion that the gold and silver included in the metal equivalent calculation have a reasonable potential to be recovered.