Intrepid Mines-Exploration Activities Suspended
BRISBANE, AUSTRALIA -- (Marketwire) -- 07/20/12 -- Intrepid Mines Limited ("Intrepid", the "Company") (TSX: IAU)(ASX: IAU) advises that its Indonesian joint venture partner, PT Indo Multi Niaga ("PT IMN"), without prior reference to Intrepid, has suspended operations at the Tujuh Bukit Project in East Java Indonesia beginning immediately. PT IMN has requested several members of senior management, including all expatriate employees seconded to PT IMN from Intrepid, to leave site and this has occurred.
Intrepid is in compliance with, and has always been in compliance with, all of its obligations under the joint venture agreements in place and applicable law. This interruption will impact the Company's timetable for delivery of an updated porphyry resource estimate and, further, may impact work on the updated oxide resource.
Project expenditure, solely funded by Intrepid to date, in compliance with the joint venture agreement, is US$95 million. This includes financing to the original shareholders of PT IMN to allow them to meet their 20% contribution commitments in excess of the initial full carry of A$50 million.
Intrepid is attempting to establish discussions with both the new and original PT IMN shareholders (see Intrepid news release of 28 June 2012) regarding arrangements which would allow the resumption of drilling activity at the earliest opportunity.
Intrepid's immediate objective is completion of technical studies which will demonstrate the financial viability to develop a world class mine for the benefit of shareholders and stakeholders - community, and local, provincial and central government, alike.
Background
Tujuh Bukit (the "Project") is located on the island of Java in Indonesia, and covers 11,621 hectares under two "IUPs", which is the form of exploration/mining title introduced under the 2009 Indonesian Mining Law. Intrepid has acquired an 80% economic interest in the Project through a joint venture agreement with Indonesian company, PT IMN.
Tujuh Bukit comprises several mineral prospects, of which the Tumpangpitu Prospect, in the south-east portion of the Project area, continues to be the major focus for exploration activity. There are five zones of known near surface gold-silver oxide mineralisation and deeper sulphide copper-gold mineralisation within Tumpangpitu.
The main porphyry mineralisation at depth currently measures an extent of approximately 3.4 kilometres ("km") by 2.8 km and contains an Inferred Mineral Resource, estimate of 1.7 billion tonnes at 0.41% copper ("Cu") and 0.46g/t gold ("Au"), at a cut-off grade of 0.2% Cu for a total 15 billion pounds of contained copper and 25 million ounces of contained gold. The Mineral Resource Estimates were prepared by independent consultants H&S Consulting Pty. Ltd. in accordance with the JORC Code and guideline and the National Instrument 43-101.
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 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.
Competent Person and Qualified Person
The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Gary Snow, Executive General Manager Exploration and New Business at Intrepid Mines Limited. Mr Snow 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), and is a Fellow of the Australian Institute of Geoscientists. Mr Snow consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Directors
Colin G. Jackson (Chairman)
Brad A. Gordon (Managing Director)
Laurence W. Curtis (Non-executive Director)
Robert J. McDonald (Non-executive Director)
Ian McMaster (Non-executive Director)
Alan Roberts (Non-executive Director)
Adrianto Machribie (Non-executive Director)
Nyla Bacon (Company Secretary)
Stock Exchange Listing
ASX and TSX symbol: IAU
Substantial Shareholders
Taurus Funds Management 9.2%
Acorn Capital 5.7%
Van Eck Associates 5.5%
Issued Capital
524,428,289 shares
6,086,557 unlisted options
4,018,110 unlisted share rights
Shareholder Enquiries
Matters related to shares held, change of address and tax file numbers
should be directed to:
Computershare Investor Services
GPO Box 2975, Melbourne, Victoria 3001, Australia
Telephone: 1 800 805 505
+61 3 9415 4000
Contacts:
Intrepid Mines Limited
Brad Gordon
Chief Executive Officer
Brisbane, Australia: +61 7 3007 8011
Mobile: +61 400 036 636
bgordon@intrepidmines.com
Intrepid Mines Limited
Greg Taylor
Toronto, Canada: +905 337 7673
Mobile: +416 605 5120
gtaylor@intrepidmines.com
www.intrepidmines.com