Intrepid releases Tujuh Bukit Q3 exploration results

By Ruli Setiawan

ASX-listed Intrepid Mines Limited has re-stated that it does not have direct rights to the Tujuh Bukit Project tenements and the Tujuh Bukit IUPs are held by its Indonesian joint venture partner. The Company, through a number of contractual arrangements with PT Indo Multi Niaga (IMN), has acquired an entitlement to an 80% interest in the Tujuh Bukit Project.

Since the Company has no direct interest in the Tujuh Bukit Project as yet, it is reliant on the observance by IMN, and its shareholders, of these contractual arrangements, including an agreement to issue to Intrepid or its subsidiaries 80% of the share capital in IMN.

IMN is currently in breach of the agreements in place with the Company and has excluded Intrepid's personnel from the Tujuh Bukit site and operations and ceased communications with the Company's management. Intrepid has issued a notice of dispute to IMN and its shareholders in relation to these events.

As required under ASX listing rule, Intrepid has recently released the results of explorations at the Tujuh Bukit Project, though activities have been suspended since 19 July 2012, at the instruction of IMN.

An inaugural Measured and Indicated Mineral Resource Estimate totalling 70 million tonnes at 0.71 grams per tonne (g/t) gold and 27 g/t silver (at a 0.3 g/t gold cut-off grade) containing 1.6 million ounces of gold and 60 million ounces of silver released on 11 September 2012.

An updated Inferred Mineral Resource Estimate of 1.9 billion tonnes at 0.45% copper and 0.45 g/t gold with 19 billion pounds of contained copper and 28 million ounces of contained gold at a 0.2% copper cut-off released 9 October 2012. The estimates includes a 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, a copper grade increase of 9% and increase of 34% and 23% for contained copper and gold respectively. A Scoping Study based on the high-grade core is targeted for March 2013 quarter, while metallurgical test work is nearing completion.

"Exploration expenditure for the Project for the three and nine month periods to 30 September 2012 was $7.7 million and $26.4 million respectively on a 100 percent basis, bringing the Project total to $102.7 million," the Company said in a statement.

Expenditure has continued on the Tujuh Bukit development studies since the 19 July shutdown but no further payments have been made to PT IMN. Intrepid's treasury cash and term deposits are $116.1 million at 30 September 2012, while Surya Paloh's share issue resulted in a $6.4 million share based expense to the company with a corresponding increase to equity.

Editing by Er Audy Zandri