Intrepid Mines Limited: Continued Underground Drilling Success Points to Mine Life Extension at Paulsens
Thu Apr 10, 9:15 AM
ca.news.finance.yahoo.com
TORONTO, ONTARIO--(Marketwire - April 10, 2008) - Intrepid Mines Limited (TSX: IAU.TO)(TSX: IXN.TO)(ASX: IAU.AX), an international gold and silver production, development and exploration company, reports excellent results from its Stage 1 underground drilling program at Paulsens Gold Mine.
Five underground holes were drilled during Stage 1 which has returned three excellent intercept results to date. These intercepts are comparable to the best previous intersection in this area of the mine which is below the current 300 metre depth mine planning floor. One other intercept is interpreted as being truncated by a late intrusive dyke and assays are outstanding for the remaining hole. Intervals are reported at estimated true width and with top cuts at 100 grams per tonne, such that the PDU384, 7.7 metres at 3.8 ounces (117.3 grams) per tonne is reported as 3.5 metres at 0.5 ounces or 14.9 grams per tonne.
The results confirm the concept of a structural repeat or offset to Paulsens' main producing area, the Upper Zone. The target area, half the size of Upper Zone, was previously tested by only six surface holes - the best intersection being PLRCD 0411 (12.8 metres at 8.5 grams per tonne gold).
The new zone is 40 metres vertically below the current decline access and can be integrated into existing mine design and infrastructure at minimum cost.
Stage 1 Drilling results
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gram.metres
Intersection True Assay Assay (grams per
Drill width width g/t g/t tonne X
hole metres metres (uncut) (100g/t cut) width, cut)
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PDU381 (Last hole drilled - assays pending)
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PDU382 10.4 8.9 10.2 9.2 81.9
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PDU383(1) 3.2 2.5 6.7 6.7 16.8
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PDU384 7.7 3.5 117.3 14.9 52.1
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PDU385 4.5 3.3 16.3 16.3 53.8
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Note 1 PDU383 intersection was truncated by a dyke
Background
The Stage 1 underground drill program consisted of five holes drilled from near the base of the current mine ramp and was guided by a re-interpretation and extension of a significant fault exposed by development work in a separate area of the mine. The re-interpretation postulated that several previous drill intersections of suspected Upper Zone mineralization that were spatially incongruous with the extension of the existing ore body may represent a faulted offset of the mineralization. The Upper Zone currently hosts the majority of Paulsens production.
Geological confirmation of the offset was provided when all the drill holes intersected their target; a zone of sulphide enriched quartz vein of similar dimensions and orientation to the existing Upper Zone. The mineralisation was present in the areas predicted by the mine team.
The first four holes returned assays of a grade consistent with ore currently being mined in the Upper Zone which has been the basis for the excellent mine performance of the past six months. Three of the intersections rival the best results seen to date in drilling in this area of the deposit. These latest drill results confirm the existence of the new zone and can be used to build new resource and reserve estimates for the mine. A second stage drill campaign will commence shortly and continue well into 2008 with the goal to double the mine's current operating life. If the Company's expectations can be met, this possible increase in resource will realise substantial additional value at Paulsens.
Upper Zone offset
To view the Upper Zone Offset diagram please visit the following link: media3.marketwire.com.
Stage 2 Extension drilling
With the confidence generated from this Stage 1 success, an underground drilling program to test the Upper Zone extension for the next 200 metres down dip has now been designed.
The program will be drilled from a dedicated hanging wall drive that will be developed in two campaigns, allowing the program to be fast tracked. Development of the hanging wall drive will commence in April.
Brad Gordon, Chief Executive Officer of Intrepid Mines Limited commented; "The outstanding success of the Stage 1 drilling supports the commitment of a modest amount of merger finances to fund a reserve-building program that will continue to build momentum at Paulsens after the turnaround in production noted in the December 2007 quarter results. Intrepid's corporate goals for 2008 are already well on track with the Emperor Mines merger successfully completed, Paulsens mine production tracking well against forecast, and now the reserve expansion program delivering excellent results from the Stage 1 drilling. Stage 2 drilling and the Paulsens East surface exploration target, also potentially accessible from existing underground infrastructure, add further momentum to the strong performance being seen from Paulsens".
Sample Analyses
All core is logged and whole core samples are marked and prepared for shipping at the Paulsens Mine Property and sent to an independent Laboratory for assay. All samples from which information in this press release is derived were received by ALS Chemex - Australian Laboratory Services Pty. Limited in Karratha, Western Australia. Samples are weighed and crushed to 70% passing -6mm mesh. The crushed material is split and a portion is pulverised. A 100g pulp is sent to ALS Perth, Western Australia for assay. A 30 gram portion of the pulp is treated by Fire Assay method with atomic absorption finish (Au-AA25). A second pulp sample split (150-200g) is kept in Karratha. Sample rejects are discarded after 90 days. Over limit samples (greater than 100ppm Au) are re-analysed using ALS' dilution method (Au-DIL). Intrepid does not insert its own standards or blanks at Paulsens, however standards and blanks are inserted by the laboratory and several pulp duplicates are also assayed as a determinant of mineralization variability.
Qualified Person:
Exploration and Development information in this announcement is based on information compiled by William McGuinty, P. Geo., V.P. Exploration, who is a competent person as defined in the 2004 Edition of the JORC 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and is a Qualified Person as defined in the Canadian National Instrument 43-101 (standards of Disclosure for Mineral Projects). Mr. McGuinty is a full time employee of Intrepid Mines Limited and has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken, and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.
About Intrepid Mines:
Intrepid Mines Limited has an international production, development and exploration profile, and holds interests in several gold-silver and silver-base metal properties in Australia, Argentina, Central America and Canada, either directly or through joint venture partnership. The issued capital is 427,902,350 shares comprised of 413,033,497 ordinary shares of Intrepid Mines Limited quoted on the (TSX: IAU.TO) and (ASX: IAU.AX) and 14,868,853 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the (TSX: IXN.TO).
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This release contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX & ASX has neither approved nor disapproved the information contained in this press release. Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Statements relating to gold reserve and resource estimates are expressions of judgment, based on knowledge and experience and may require revision based on actual production experience. Such estimates are necessarily imprecise and depend to some extent on statistical inferences and other assumptions, such as gold prices, cut-off grades and operating costs, which may prove to be inaccurate. The drill programme is insufficiently advanced to define a revised reserve and resource estimate for Paulsens and it is uncertain if further drilling will result in the determination of a revised reserve and resource statement at Paulsens, and therefore an extension of the mine life. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.
CUSIP: Q4968A
ABN: 11 060 156 452
Contacts
Ann Candelario
Intrepid Mines Limited - Toronto, Canada
VP Investor Relations
(416) 368-4525
Email: acandelario@intrepidmines.com
Brad Gordon
Intrepid Mines Limited - Brisbane, Australia
Chief Executive Officer
+61 7 3007 8000
Email: brisbane@intrepidmines.com.au
Website: www.intrepidmines.com |
