Reserve updateIntrepid Announces Update to Resource and Reserve at Paulsens
Thursday February 22, 9:16 am ET
TORONTO, ONTARIO--(CCNMatthews - Feb. 22, 2007) - Intrepid Mines Limited (TSX:IAU - News; TSX:IXN - News; ASX:IAU - News), an international gold and silver production, development and exploration company, announced an update to the resource/reserve estimates for the Paulsens Mine in Australia as at December 31, 2006.
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At Paulsens, from inception through to December 31, 2006, gold production totaled 117,266 ounces from 488,260 tonnes processed, at an average grade of 7.94 grams per tonne gold and mill recovery of 94.1%. The mine is expected to produce an average of 75,000-80,000 ounces of gold per year for the first five years of operation.
Resources and reserves have been updated for the Paulsens Mine (as of December 31, 2006) resulting in an increase in both categories. The previous estimates were carried out in August 2006 (see press release dated October 2, 2006). Since that time a program of surface drilling comprising 20 holes for 7,591 metres was completed with results included in the current model (see press release dated January 3, 2007). In addition, a detailed review was undertaken by independent consultant ResEval to examine the mine model and review grade control data as well as reconciliation of mill production data.
The new resource (Measured plus Indicated) is 1,105,000 tonnes grading 10.7 grams per tonne for 379,700 ounces of gold. In addition, the Inferred resource is 122,000 tonnes at 9.3 grams per tonne for 36,300 ounces of gold (see Table 1). The main change has been the increase in Indicated Mineral Resource in the deeper portion of the deposit after incorporation of the results from the 2006 drilling program. The increase to Measured and Indicated resources since the last estimate (see press release dated October 2, 2006) net of mining depletion was 77,100 ounces gold.
The new reserve (Proven and Probable) at Paulsens is 821,000 tonnes grading 9.22 grams per tonne for 243,000 ounces of gold (see Table 2). The increase to reserve since the last estimate (see press release dated October 2, 2006) net of mining depletion was 66,150 ounces gold.
The new reserve was calculated at a cut-off of 4.8 grams per tonne gold versus the August reclassification of 4.0 grams per tonne gold in conformance with revised stope design parameters.
Based on these updated reserves the Paulsens mine has a defined three year mine plan at current production targets. In addition, deeper exploration below the 300 metre historical reserve limit continues to provide further opportunity to expand the mine resource.
Further diamond drilling will be conducted from underground during 2007-2008 in order to convert these deeper resources into reserves. The deepest intersection of the Paulsens vein structure to date is 490 metres vertically below surface (approx 150 metres below the current mine reserve). The structure remains open at depth.