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Intrepid Mines Limited: Intrepid Reports Operating Activities for the Quarter Ended 31 December 2008

^{Published on 2009-01-29 19:56:36, Last Modified on 2009-01-29 19:59:36 - Market Wire}
 

BRISBANE, AUSTRALIA--(Marketwire - Jan. 29, 2009) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU) ("Intrepid" or 'Company'), an international precious metals producer, developer and explorer operating in Australia, Argentina, Indonesia and Mexico, reports operating activities for the quarter ended 31 December 2008. The principle activities of Intrepid and its controlled subsidiaries (collectively referred to as the 'Consolidated entity') were the operation of the Paulsens Gold Mine, developing the Casposo gold and silver project, the exploration of the Company's tenement portfolio, and the pursuit of precious metal projects and explorations assets. All dollar figures are in United States dollars unless otherwise indicated. Intrepid today filed its Activities Report for the quarter ended 31 December 2008 which is available on the Intrepid website [ www.intrepidmines.com ] and at [ www.asx.com.au ]. The highlights of that report are provided below.

HIGHLIGHTS

Paulsens Operations

- Paulsens gold production of 18,713 fine ounces, up 14% on the prior quarter. The higher gold production resulted from the mining of higher grade Upper Zone stopes and record mill throughput. Annual gold production at 78,252 fine ounces was at the high end of the previous guidance.

- Unit operating costs at Paulsens recorded lower at $88 per tonne (prior quarter $111 per tonne) due to weakening Australian currency

- Site cash costs lower at $407 per ounce (prior quarter $558 per ounce) primarily due to the weakening Australian dollar (positive impact $135/oz), and 14% higher ounces produced (higher grade) than the previous quarter on a relatively fixed cost structure.

- Decline advanced to 64 metres vertically below the deepest stopes

- Demonstrated potential for significant extensions to mine life

-- 2 metres at 69.8 grams per tonne intersection 200 metres below current workings

-- 17 metres at 25.5 grams per tonne gold intersection within 40 metres of current level development

-- 4.5 metres at 58.2 grams per tonne gold (207g/t uncut) intersection more than 40 metres from the nearest drill intercept

Casposo Development

- The Casposo Development Project was suspended following the onset of the global financial crisis, with efforts focused on completion of the drill program, maintaining the granted licences and liaising with local and national governments on the project's future direction.

Exploration

- At Casposo, the 13,000 metre drilling program was completed. An updated Mineral Resource is due mid 2009.

- At Tujuh Bukit, the inaugural inferred resource at Zone A was declared - 1.47 million ounces gold equivalent at a cut-off of 0.5 grams per tonne gold equivalent. The project aggregate inventory (Zone A and C) totals 2.57 million ounces gold equivalent.

Finance

- Gold revenue for the quarter was $10.3 million from the sale of 18,437 ounces realising an average price for the quarter of A$835 per ounce ($561). Revenues Included the final 11,444 ounces of the hedge commitment at A$627 per ounce.

- The Company is now unhedged with total exposure to the spot gold price - A$1,370 per ounce at the date of this report.

Tujuh Bukit Inferred Resources, by Gold equivalent cut-offs, Zone A

Data is shown for Gold Equivalent (AuEq) cut-off values. The gold equivalent ratio for silver has been set at 65:1 based on US$650/oz gold and US$10/ oz silver. Historical bottle roll tests have shown recoveries of 83% gold and 84.5% silver, supporting a 65:1 ratio. Recently received CIL metallurgical testing results from Zone C achieved recoveries of approximately 90% for both gold and silver at a grind of 80% passing 75 um.

Qualified Person

Information that relates to mineral resources at Tujuh Bukit 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. Dr Hellman has undertaken independent verification sampling and assaying of drill core with a close agreement of results with those previously reported.

The information in this report that relates to exploration results at Casposo, Taviche, El Salvador and Indonesia is based on information compiled by or under the supervision of Malcolm Norris, who is a member of The Australasian Institute of Mining and Metallurgy. Malcolm Norris is a full-time employee of Intrepid Mines Limited and 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 is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Malcolm 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 report that relates to exploration results at Paulsens is based on information compiled by or under the supervision of Brook Ekers, (Member AusIMM), who is a full-time employee of Intrepid Mines Limited. Mr. Ekers 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 is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Brook Ekers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Quality Control

A Quality Control sampling program of blanks and duplicates has been in operation at the Casposo Project since 2002 to monitor the integrity of all assay results. All core samples are split at the Company's Calingasta core facility and core samples with inserted control samples are currently shipped to Alex Stewart Assayers Argentina S.A. in Mendoza, Argentina, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold values are determined by fire assay with an atomic absorption (AA) finish and Silver values are obtained using gravimetric methods for mineralized veins. These samples and those from other areas are also analysed using an ICP multi-element scan.

Intrepid exercises a strict chain of sample custody in its drilling program at Tujuh Bukit, Indonesia. 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.

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. The drill programmes at Taviche are insufficiently advanced to define a resource estimate and it is uncertain if further drilling will result in the determination of a resource statement at these projects.

All core is logged and whole core samples (if LTK48 size, NQ2 sized core is cut and half cored) are marked and prepared for shipping at the Paulsens Mine Property and sent to an independent Laboratory for assay. The remaining half core is stored on site. All samples from which information in this document is derived were received by ALS Chemex - Australian Laboratory Services Pty (ALS) Limited in Karratha, Western Australia. Samples are weighed and crushed to 70% passing -6mm mesh. The crushed material is split and a portion is pulverised. A 100g pulp is sent to ALS Perth, Western Australia for assay. A 30 gram portion of the pulp is treated by Fire Assay method with atomic absorption finish (Au-AA25). A second pulp sample split (150-200g) is kept in Karratha. Sample rejects are discarded after 90 days.

Limit samples (greater than 100ppm Au) are re-analysed using ALS' dilution method (Au-DIL). Intrepid inserts one standard in each hole, and one blank is now inserted in each ore zone though this practice has only recently been adopted. Lab standards and blanks are inserted by ALS and several pulp duplicates are also assayed as a determinant of mineralisation variability.

ALS has AS/NZS ISO 9001:2000 certification in Perth. This does not cover the sample prep facilities; however these prep labs follow the same Quality management system. They are not audited by NCSI but are audited internally.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This release 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 reserve and 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. Information provided relating to projected costs, capital expenditure, production profiles and timelines are expressions of judgment only and no assurances can be given that actual costs, production profiles or timelines will not differ materially from the estimates contained in this announcement.