Intrepid secures IUP licenses for E. Java gold project

Brisbane-based miner Intrepid Mines Limited Australian said on Monday that its joint venture partner PT Indo Multi Niaga (IMN) has been granted mining business licenses (IUPs) for Tujuh Bukit gold project in Banyuwangi, East Java.

The first IUP, an Exploration IUP for an area of 6,623 hectares, is valid until jan. 25, 2014 thus allowing the joint venture to conduct a broad exploration program at the project, Intrepid said.

The other, an Operation and Production IUP for an area of 4,998 hectares, covers the multi-million ounce Zones A, B and C deposits, deeper sulphide extensions, and the new Katak discovery and is valid until Jan. 25, 2030.

The latter IUP will enable the company to complete a scoping study and progress to a feasibility study, should exploration results warrant it.

The Exploration IUP may be converted to an Operation and Production IUP in due course, should all relevant conditions be fulfilled and drilling results justify the conversion, it added.

Intrepid CEO, Brad Gordon, said in Jakarta: ?We are encouraged by the issue of the IUPs, which is amongst the first demonstrations that Indonesia?s new mining regime is being implemented, providing greater certainty within the sector. We look forward to further regulatory action, which will allow for Intrepid to take a direct equity stake in PT IMN and thus enjoy direct ownership participation in the Tujuh Bukit mining rights?. (denny)