BRISBANE, AUSTRALIA--(Marketwire - Feb. 26, 2013) - Intrepid Mines Limited (IAU.TO)(IAU.AX) (the "Company" or "Intrepid") is pleased to announce the release of its Annual Financial Report as well as its Management's Discussion and Analysis for the three and twelve months ended 31 December 2012.
Intrepid Mines Limited's ('Intrepid' or the 'Company') principal activity is the technical advancement of studies related to the Tujuh Bukit Project in Indonesia ('Tujuh Bukit' or the 'Project'), the pursuit of legal remedies to protect and enforce the Company's rights in the Project, and the pursuit of additional precious metal projects and exploration assets.
- Concerted efforts ongoing to confirm Intrepid's 80% interest in Tujuh Bukit.
- Criminal complaints against the parties associated with joint venture partner, PT Indo Multi Niaga ('PT IMN'), commenced.
- Other legal remedies being prepared or actioned.
- Law suit initiated against various parties, including the Company in the South Jakarta District in Indonesia.
- Prominent Indonesian businessman, Mr Surya Paloh, issued with the second and final tranche of 25,604,016 unlisted restricted Performance Rights following Toronto Stock Exchange approval.
- The Company shares were removed from the S&P/ASX 200 Index.
- Mr Ian McMaster succeeds Mr Colin Jackson as Company Chairman.
- Directors continue to subscribe for shares from fees received.
- Activity on the Tujuh Bukit was suspended on 19 July 2012, when access to the site was denied to the Company.
- $C1.0 million Private Placement in New Nadina Explorations Limited completed.
- Notice issued to Cornerstone Resources that Intrepid is exiting the Shyri Project in Ecuador.
OXIDE PROJECT STUDY
- The technical work required for a pre-feasibility study on the oxide project will be completed during the coming quarter.
- Resource upgraded with 76% in Measured and Indicated categories.
- Measured and Indicated Resources stands at 70 million tonnes at 0.71 grams per tonne ('g/t') gold and 27 g/t silver (1.6 million ounces contained gold and 60 million ounces of contained silver).
- Inferred Resources at 19 million tonnes at 0.75 g/t gold and 21 g/t silver (0.5 million ounces contained gold and 13 million ounces contained silver).
PORPHYRY PROJECT STUDY
- Resource updated.
- Inferred resource now stands at 1.9 billion tonnes at 0.45% copper and 0.45 g/t gold (19 billion pounds of contained copper and 28 million ounces of contained gold )at a 0.2% copper cut-off.
- The high grade core of 1.0 billion tonnes at 0.61% copper and 0.61 g/t gold (at a 0.4% copper cut-off) is the focus of an on-going scoping study.
- The new resource estimate delivers a 9% increase in copper grade (and an increase in contained copper and gold by 34% and 23% respectively) at a 0.4% copper cut-off.
- The technical work for the Scoping Study for the porphyry deposit is still expected to be completed in the June quarter 2013.
- Exploration expenditure for the Project for the three and twelve month periods to 31 December 2012 was $3.1 million and $29.5 million respectively (on a 100% basis), for a Project total to $105.8 million.
- Expenditure principally relates to development studies since the 19 July 2012 shutdown. No further payments have been made to PT IMN since that date.
- Directors are cognisant of media reports that suggest the IUPs may have been transferred by PT IMN to another Indonesian entity. Material uncertainty may be assumed to exist as a consequence with respect to the Company's ability to recover the carrying value of its mining property assets relating to Tujuh Bukit, which total $16.6 million. Accordingly in the December 2012 quarter, a provision for impairment was raised against the mining properties.
- Treasury cash and term deposits - $108.9 million at 31 December 2012.
On 20 April 2011, the Company announced the results of a Preliminary Economic Assessment on the Oxide component of the Tujuh Bukit Project. This announcement was supported by a technical report prepared in accordance with National Instrument 43-101, dated 1 June 2011 (the "PEA Report"). Subsequent to the filing of the PEA Report, the Company continued to undertake infill drilling on the Oxide Inferred Resource. On 10 September 2012, the Company announced a new calculation for the Oxide Resource, which included recategorisation of a significant portion of the Inferred Resource to the Measured and Indicated category. On 9 October 2012, the Company announced an updated Porphyry Resource and, as required by the National Instrument, updated the project technical report, which was lodged on SEDAR on 22 November 2012 (the "2012 Report"). The 2012 Report included the updated Oxide Resource and reported that, as a result of the updated Oxide resource calculation, the PEA Report is no longer considered current and should no longer be relied upon. The Company continues technical work at a level of definition commensurate with that required for a prefeasibility study on the Oxide resource.
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.
Competent Person and Qualified Person
The Mineral Resource Estimates were prepared by Rob Spiers (MAIG) who is a Director and full time employee of H&S Consultants Pty Ltd. Mr Spiers 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 as an Independent Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr Spiers consents to the inclusion of these estimates in the form and context in which they appear.
The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Mr Gary Snow, who is a full-time employee of 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). 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.
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.
|Ian McMaster (Chairman)|
|Colin G. Jackson (Deputy Chairman)|
|Brad A. Gordon (Managing Director)|
|Laurence W. Curtis (Non-executive Director)|
|Robert J. McDonald (Non-executive Director)|
|Alan Roberts (Non-executive Director)|
|Adrianto Machribie (Non-executive Director)|
|Vanessa Chidrawi (Company Secretary)|
Stock Exchange Listing
ASX and TSX symbol: IAU
|Taurus Funds Management 9.0%|
|Acorn Capital 7.9%|
|Van Eck Associates 6.5%|
|Surya Paloh 5.0%|
|8,528,635 unlisted options|
|2,954,150 unlisted share rights|
|51,208,032 unlisted restricted performance rights|
|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:||1300 805 505|
|+61 3 9415 4000|
ABN 11 060 156 452