Intrepid Mines says E. Java copper-gold resource increase

Australian mining firm Intrepid Mines Limited said on Monday that assay results from drilling completed since September 2010 in its porphyry copper-gold zone of the Tumpangpitu area in Tujuh Bukit Project East Java have been increased.

The results have been utilized to provide an expanded Inferred Resource estimated at 990 million tonnes at 0.40% copper and 0.45 g/t gold, at a cut-off grade of 0.2% copper or 0.2 g/t gold (previously released resource estimate of 500Mt at 0.4% Cu and 0.5g/t Au at a 0.2% Cu cut-off)

The resource estimate covers an ovoid area of approximately 2,400 x 1,400 metres. The vertical extent of mineralisation defined to date is in excess of 1 kilometre.

This expanded resource has been estimated by Independent Consultants Hellman and Schofield Pty. Ltd. and reported in accordance with the JORC Code, the company said.

The estimate is based on 26 deep drill holes.

Intrepid notes that, while this latest Inferred resource estimate is a significant increase to that of the September 2010 estimate, the company remains confident that the porphyry copper-gold resource at Tumpangpitu will continue to grow, as additional drilling is completed over the coming months.

This current resource estimate does not include the oxide gold-silver zone of 130 Mt at 0.55 g/t gold and 18 g/t silver for 2.4 million ounces of contained gold and 80 million ounces of contained silver and which is also continuing to expand with ongoing drilling.

CEO Brad Gordon said, ?At almost one billion tonnes, this updated porphyry resource estimate brings Tujuh Bukit into the ranks of the world?s major undeveloped copper-gold projects. We have yet to determine the limits of this resource. At the same time we are starting to drill test some of our other regional porphyry targets. Adding these results to our positive Preliminary Economic Assessment of the silver-gold oxide and US$180 million cash treasury position, we are certain that this project is destined to become an important global copper-gold-silver project.?

Available data indicates the presence of a significant tonnage of material referred to here as ?geological potential?. ?High confidence? geological potential material..., based on cut off grades comparable to those applied for the Inferred resource estimate delivers potential for an additional 800 - 850Mt at grades of 0.3 - 0.4% copper and 0.3 - 0.4g/t gold. This potential is conceptual in nature as there has been insufficient exploration to define a Mineral Resource and it is uncertain whether further exploration will result in the determination of a Mineral Resource. (romel)