Intrepid Mines updates E. Java gold project

Thursday, July 28 2011 - 07:12 AM WIB

The following is an excerpt from Intrepid Mines Limited quarterly report released on Thursday.

Intrepid Mines Limited is pleased to announce the release of its report for the quarter ended 30 June 2011 regarding development and exploration activities, as required under ASX Listing Rule 5.1.1, as well as the Company's Management Discussion and Analysis and Interim Financial Report for the quarter ended 30 June 2011.

East Java - Tujuh Bukit
? On 17 May 2011, the Company announced an additional forestry permit being awarded which would allow exploration activities within an additional 2,682.22 hectares within the existing Tujuh Bukit tenements.
? On 30 May 2011, the Company reported that assay results from the initial drilling at the Candrian Prospect have confirmed the discovery of a new gold-copper porphyry system, exhibiting high gold-to-copper ratios in some intervals. Results included hole CND-11-002, which intersected 138 metres at 0.8 grams per tonne (g/t) gold and .21% copper from 6 metres below surface. Candrian is located 2.2 kilometres east of the main Tumpangpitu copper gold deposit.
? On 2 June 2011, the Company announced that the technical report entitled "Preliminary Economic Assessment Tujuh Bukit Oxide Project Technical Report" ("PEA") dated 1 June 2011, had been filed on SEDAR as well as with the ASX (see the Company's news release of 20 April 2011 for a summary of the PEA). The report was prepared by independent consultants Kappes Cassidy of Reno Nevada in accordance with the JORC Code and Canadian National Instrument 43-101. Based on conservative assumptions, the PEA demonstrated a life-of-project annual average production of 143,000 recovered ounces of gold for nine years at a cash cost of US$376 per ounce, net of silver credits at US$16.50 per ounce. It detailed that the project delivers a post-tax cumulative cash flow of US$445 million, a NPV (at a 10% discount rate) of US$180 million and an IRR of 31%, at a gold price of US$1,050 per ounce (the production and financial numbers are reported on a project basis ? the Company holds an 80% economic interest in the project). The study also shows the deposit has considerable leverage to metal prices. At a gold price of US$1,450 per ounce and silver price of US$38 per ounce, post-tax cumulative cash flow increases to US$942 million (a NPV (10%) of US$446 million and an IRR of 54%).
? On 22 June 2011, the Company announced that the technical report entitled "Tujuh Bukit Project Report on Mineral Resources," dated June 2011, had been filed on SEDAR as well as with the ASX (see the Company's news release of 10 May 2011 for a summary of the porphyry resource update). The report was prepared by independent consultants Hellman and Schofield Pty Ltd in accordance with the JORC Code and Canadian National Instrument 43-101. It details an updated Inferred Porphyry Resource estimate of 990 million tonnes at 0.45 g/t gold and 0.40% copper above a 0.2 g/t gold cut-off or 0.2% copper cut-off grade for 8.8 billion pounds of copper and 14 million ounces of gold within the porphyry zone of the Tumpangpitu area of the Tujuh Bukit Project in Indonesia. The report also referenced 800-850 million tonnes of additional geological potential.
? On 28 June 2011, illegal miners operating in the area disrupted drilling and caused damage to a small camp and drill rig that was situated at Gunung Manis, an epithermal gold target near the eastern border of the Tujuh Bukit project. No injuries were reported. Drilling activity is expected to recommence in the near future. (end of excerpt)

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