BRISBANE, AUSTRALIA--(Marketwire - June 28, 2011) - Intrepid Mines Limited (TSX:IAU)(ASX:IAU) ("the Company") reports that a group of illegal miners has damaged a small fly camp and drill rig being used by the Company to test an epithermal gold target on Gunung Manis near the eastern border of the Tujuh Bukit Project in Indonesia. The area had been evacuated shortly before the camp and equipment were set on fire on the morning of 28th June and no injuries were reported.
Groups of illegal miners - many of whom have come from outside the local area - have been extracting small amounts of gold from Gunung Manis over a period of several years. Gunung Manis is one of several mineralised targets identified thus far on the approximately 11,000 hectare Tujuh Bukit project's lease.
Intrepid and its Indonesian partner, PT IMN, have been working extensively with local authorities looking for a peaceful and equitable resolution to the issue. The Company had only begun drilling on Gunung Manis earlier this month after an agreement had been reached with the illegal miners as to how the drilling would be conducted. An investigation into this latest incident has been initiated.
"As unfortunate and unexpected as this incident was, it will have no impact on our main operations at Tujuh Bukit," said Brad Gordon, Intrepid's CEO. "It is also worth noting that none of our other resource areas or targets are subject to this illegal activity, which is some four kilometres from the main project area. The other six drill rigs are continuing to operate at Tumpangpitu and Candrian and no further interruptions are expected."
Forward-looking statements
This announcement contains certain forward-looking statements, relating to, but not limited to Intrepid's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.
Shareholders and potential investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Intrepid undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
Statements relating to gold 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.
Forestry Activities
The Indonesian Forestry Law restricts non forestry activities within protected forests and prohibits mining using an open pit method in protected forest areas. The area of the Porphyry copper-gold resource estimate, and the Zone A, Zone B and Zone C oxide resource estimate areas fall within a protected forest area. Intrepid's Alliance partner, PT IMN, is working with relevant Indonesian authorities regarding a potential review of forest land status. There is no assurance that the forestry reclassification will take place in this instance. PT IMN received an extension of the Forestry Exploration Permit dated 7 July 2010, which allows for exploration activities within forestry areas. |