Intrepid updatethis merger doesn't look as good anymore, was all this info regarding
grade variability made aware.
Intrepid Announces Covenant Waiver Received & Updates December Quarter Production Targets
Wednesday December 13, 9:00 am ET
TORONTO, ONTARIO--(CCNMatthews - Dec. 13, 2006) - Intrepid Mines Limited (TSX:IAU - News; TSX:IXN - News; ASX:IAU - News), an international gold and silver production, development and exploration company, is pleased to advise that it has received a waiver for the breach of certain project performance ratios related to the Westpac finance facility for September 30, 2006.
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Waiver
Intrepid re-filed the September 2006 Interim Unaudited Consolidated Financial Statements on December 7, 2006, following the Westpac notification, in accordance with the Australian equivalents to International financial reporting Standards AASB 101. The breach notification was a consequence of the previously advised lower Reserve Estimate and the recent period of mine underperformance. The Company has been working with its consultants to address the reclassification of certain ore reserves and resources. It is anticipated that the application of mining parameters currently in operating practice at Paulsens and infill drilling completed during the period will allow improvement in future estimates of calculated reserves.
The Company advises that it has made all principal and interest repayments due under the facility, and has delivered all hedging commitments, on schedule.
Re-filing September 2006 Financial Report and MD&A
Following receipt of the waiver the September 2006 Interim Unaudited Consolidated Financial Statements and MD&A have been re-filed today.
December Quarter Production Targets
Projected production for the December 2006 quarter was 18,000 to 20,000 ounces (September 30 Quarterly Results), however, based on reconciled production data to date management believes the mine will underperform in the present quarter due to grade variability and dilution issues. Management notes that grade variability (a function of complex gold distribution) appears to be inherent to the Paulsens orebody, impacting the ability to generate precise production forecasts on a quarterly basis. Despite this variability in predictability over short periods, the mine has produced over 100,000 ozs since inception in June 2005 to September 2006. Management, together with independent consultants, are presently reviewing production and grade control data in an effort to improve grade control processes and mine performance.
On behalf of the Board of Directors of Intrepid Mines,