Intrepid updates drilling results from E. Java gold project

(March 03, 2011)--Intrepid Mines Limited reports that assay results received from five recent deep exploratory drill holes have intercepted additional mineralisation adjacent to and south of the main Tumpangpitu porphyry Inferred Resource area. Together, diamond drill holes GTD 178, 181, 182, 183 and 184 confirm the clear potential for the expansion of this first porphyry area of Intrepid?s (80% economic interest) 11,621-hectare Tujuh Bukit project.

This series of exploratory holes were drilled in three areas:
1. GTD-1 82 - on the SW side of the Inferred Resource block model area;
2. GTD-178 and 183? drilled into a magnetic ?embayment? south of the main Tumpangpitu porphyry area;
3. GTD-181 and 184?drilled around the area of GTD-137 which intersected 85.85m at 0.56% copper and 1.llg/t gold.

GTD-182 was drilled in the SW portion of the main Tumpangpitu Porphyry zone, testing a zone outside of the current published Inferred Resource estimate. The hole intersected 604.5meters (?m?) at 0.34% copper and 0.34g/t gold, including some higher grade zones. The hole finished in mineralisation (0.1lg/t gold and 0.22% copper) at a depth of 1072.5 m. Complementary with other mineralised zones, this aggregates to a vertical extent of mineralisation (from the top of Zone A oxide mineralisation, to the bottom of hole GTD-182) of ~ 1400m.

Further, because GTD-1 82 intersected mineralisation in, and below, the domain of ?exploration potential? as predicted in the resource block model, it is expected to add significant tonnage to future resource estimates, and provides further confidence that previously estimated exploration potential marginal to the Inferred Resource domains can be converted into Inferred Resource. This hole also provides confidence that exploration of still deeper levels ? such as with current hole GTD-192 (drilling ahead) ? will deliver additional mineralisation.

GTD-178 and -183 were drilled into a magnetic low embayment located between the main Tumpangpitu porphyry zone and the southern porphyry drilled by GTD-137. This drilling has confirmed that the magnetic low relates to a diatreme breccia body which postdates most of the mineralisation episodes and is therefore only weakly mineralised. However, this diatreme breccia has been identified in other drill holes and its geometry is now being defined with some confidence. The diatreme breccia contains clasts of mineralised porphyry and has in places been overprinted with what is interpreted to be the last phase of high sulphidation mineralisation ? hence explaining the narrower, lower grade intervals. The relationship to good quality overlying oxide mineralisation in the western portion of Zone B and Zone F is still to be determined.

GTD-181 and -184 were targeted to follow-up the porphyry intersection in GTD-1 37 (85.85m at 0.56% copper and 1.1lg/t gold). GTD-184 was abandoned at 572.65m, as was adjacent GTD-1 76 (abandoned at 567.2m). GTD-137 was also ?abandoned,? so the intersection quoted above is open at depth and in fact the hole finished in 0.42% copper and 0.71g/t gold. All holes were abandoned due to poor ground conditions and inability to drill deeper.

Whilst this drilling has failed to follow up on the very encouraging intercept in hole GTD-137 the area remains to be explored with hole GTD-193 (shown on the diagram below) scheduled.

GTD-181 was drilled to explore the irregular magnetic anomalies located ?300m south of the porphyry intercept in GTD-137. GTD-181 intersected minor high sulphidation mineralisation at shallower depths before intersecting post mineral intrusive (now interpreted to be the source of the higher amplitude magnetic anomalies in this area) which has ?stoped out? any porphyry mineralisation.

While this drilling does not explain the very encouraging porphyry intercept in GTD-137, it has provided some critical geological information. It has brought focus to the trend of mineralisation in holes GTD-172 ? 165? 168 opening to SE and this will be tested by current hole GTD-195. This area has drilled significant porphyry mineralisation at grades higher than the published resource grade. This emerging trend is also consistent with 3-D magnetic modelling suggesting a link towards GTD-137.

Additionally, the 3-D magnetic modelling does suggest continuation of target zones to the north of the main Tumpangpitu porphyry and this is initially being tested with current hole GTD-194.

?Overall, these results are encouraging as we build our geological model of this very large porphyry system,? said Malcolm Norris, Executive General Manager, Exploration and New Business. ?Integration with 3-D magnetic modelling is proving critical to our understanding of the geometry of target areas. We have five rigs now drilling in areas outside of the existing porphyry Inferred Resource (shown in red on the diagram below) and we are confident of defining significant upside. These rigs are currently at hole depths of up to 450m and we look forward seeing how they add to our understanding.? (ends)