Intrepid Mines updates Indonesian gold exploration activity
Wednesday, February 1 2012 - 10:43 AM WIB
Tujuh Bukit (Intrepid 80%)
Exploration activities at Tujuh Bukit during the quarter focussed on in-fill drilling of the oxide resources and continued exploration of the Tumpangpitu porphyry, follow-up drilling at the regional Gunung Manis prospect (located 3.5km east of Tumpangpitu), plus stream sediment, rock chip and Induced Polarity (IP) surveys at the Salakan prospect (located 6km north northwest of Tumpangpitu).
Drilling totalled 11,195.55 m during the quarter, 1,515 soil and 39 stream sediment samples were collected. An additional 80,250 line km of IP was also collected. Table 1 summarises exploration activity by location.
Total expenditure for the period was $8,879,000.
Tumpangpitu
Eight holes were drilled during the period with full results available for GTD-1 1- 212, 213, 214, 216, 220, 221, 225 and 234.
Better intersections include:
? 450.6 m at 0.33% copper and 0.21 g/tgold (GTD-11-214); 682.25 m at 0.39% copper and 0.47 g/t gold (GTD-1 1-216).
? 290.6 m at 0.70% copper and 0.54 g/t gold (GTD-1 1-220);
? 629.6 m at 0.40% copper and 0.61 g/t gold (GTD-1 1-221);
? 172.0 m at 0.56% copper and 0.86 g/t gold and 112.0 m at 0.34% copper and 0.24g/t gold (GTD-1 1-225);
These form part of a major on-going diamond drilling program into the copper-gold porphyry at the Tumpangpitu prospect at Tujuh Bukit .These results, plus additional drilling, continue to record encouraging gold and copper assays, plus provided further information on the geometry of the mineralize system.
These results were incorporated in the expanded Inferred Resource estimated at 1.7 billion tonnes at 0.41% copper and 0.46 g/t gold, at a cut-off grade of 0.2% copper, released on 8 December 2011.
The previous resource estimate, released on 9 May 2011, was 990 million tonnes at 0.40% Cu and 0.45g/t Au at a 0.2% copper or 0.2g/t gold cut-off.
Candrian
Assay results were received from the first-pass eight hole drilling program (CND-11-001 to CND-11-008) at the Candrian Prospect.
Candrian is the third gold-copper porphyry system discovered on the Tujuh Bukit and has a minimum areal extent of 1.8 km by 0.6 km.
Candrian is located 2.2 km east?of the main Tumpangpitu copper-gold deposit. Holes CND001 to 008 were all mineralised to varying extents and have defined a broad mineralised porphyry system that now requires infill drilling to define resources.
Feasibility studies
The Oxide Project Prefeasibility Study (PFS) inf ill drilling program experienced disruption to activities as a consequence of unsatisfactory performance of the helicopter contractor. Negotiations with an alternative contractor were completed and their services commenced in December. This has caused a potential delay to the completion of the resource definition component of the PFS schedule by approximately two months.
There has been no change to existing mineralisation (Inferred Resource) identified for the Oxide Project.
Preliminary evaluation the merits to the business case of a grinding circuit treating selective high grade material at the Oxide Project was completed. The results have indicated that only a minimal return will be achieved on this investment option. Until further metallurgical testwork and basic engineering has been completed, no decision will be made on the final project configuration.
Bulk composite and variability samples were prepared and despatched to AMDEL Laboratories Perth and Kappes, Cassiday and Associates Reno, Nevada for further metallurgical testwork. This program has been designed to provide comminution data and additional heap teach variability data for design purposes. No further test work is anticipated for the Detailed Feasibility Study, which is scheduled to be completed late in 2013
A tender for the provision of Environmental, Social and Health Impact Assessment consultancy services for the PFS was conducted during the quarter. PT Hatfield Indonesia was awarded the contract scheduled to commence in January 2012.
A tender for the provision of consultancy services to complete the Porphyry Project Scoping Study was also conducted and was awarded to AMEC Minproc (Brisbane) and is scheduled to commence in January 2012.
The study team will consist of AMEC mining specialists from their South American offices and process specialists from their North American offices.
Shareholder?s Agreement
Intrepid has an 80% economic interest in the Tujuh Bukit lUPs, derived through contractual arrangements with the tenement holder, PT Indo Multi Niaga (?PT IMN?).
Negotiations with PT IMN to finalise the shareholders? agreement (the commercial terms upon which the conversion and share issue will be effected were agreed between the parties in June 2011) were ongoing during the quarter. Once completed, PT IMN wilt be converted to a foreign investment company, in which Intrepid will acquire an 80% direct equity stake.
PT IMN has engaged additional commercial advisors to assist in the negotiation process, while the Intrepid negotiating team has been strengthened by the addition of Adrianto Machribie.(end of excerpt)