Intrepid Mines Limited: Kitumba Drilling Results at Mumbwa Project

SYDNEY, AUSTRALIA--(Marketwired - Apr 9, 2015) - Intrepid Mines Ltd. (ASX:IAU) ("Intrepid" or the "Company") advises that assay results from Phase 8 drilling conducted at the Kitumba prospect within the Mumbwa Project in west-central Zambia, have returned encouraging results.

Final drilling assay results have been received, including 13 diamond holes and 8 reverse circulation holes. The key results to note include:

• Highlights from infill drilling at Kitumba:
  • KITDD_041A: 42 metres @ 2.21% copper from 252-294 metres
  • KITDD_052: 22 metres @ 1.68% copper from 356-378 metres
  • KITDD_053: 64 metres @ 1.55% copper from 226-290 metres
  • KITDD_054: 26 metres @ 1.52% copper from 378-404 metres
• Highlights from geotechnical and sterilisation drilling:
  • KITDD_060: 12 metres @ 1.31% copper from 333-345 metres
  • KITDD_062: 7 metres @ 1.48% copper from 344-351 metres
  • KITDD_068: 39 metres @ 0.75% copper from 380-419 metres
• Highlights from drilling at Kitumba east:
  • KITDD_070: 20 metres @ 0.97% copper from 289-309 metres
• Highlights from RC drilling on new exploration targets:
  • o 7 metres at 0.71% copper from 43-50 metres, with a peak assay of 1 metre @ 0.98% copper from 46-47 metres

The Company's CEO, Scott Lowe said:

"We are pleased to provide the final assay results from the Phase 8 drilling program, as well as the results from some RC drilling on targets outside of Kitumba. We are particularly encouraged by the copper results returned from the RC drilling on Target H.

The Company recognizes that the current copper market is very challenging for new projects, and the next phase of operations will include work aimed at enhancing Kitumba economics. The objective of this work will be to deliver a project capable of attractive returns at lower copper prices and will involve a range of initiatives including drilling nearby satellite targets. We look forward to following up on Target H and other targets in the next drilling season, which will get underway immediately following the end of the wet season, expected to be around mid-April.

Feasibility work will continue to be staged to take account of economics and will incorporate these Phase 8 drill results along with 2015 drilling results and the outcome of value enhancement efforts. A revised Mineral Resource and Reserve estimate will form part of the future feasibility work."

The Company has received assay results for the following drill holes from the Phase 8 drilling program at Kitumba:

• KITDD_041A
• KITDD_052
• KITDD_053
• KITDD_054
• KITDD_056
• KITDD_057
• KITDD_058
• KITDD_059
• KITDD_060
• KITDD_062
• KITDD_068
• KITDD_069
• KITDD_070

The location of these drill holes is shown in Figure 1.

Figure 1: Phase 8 Kitumba area drill hole location plan, showing collar locations and planned development as presented in the Optimised PFS: http://media3.marketwire.com/docs/1001031-F1.pdf

Assay results for RC drilling of areas slated for infrastructure (sterilisation drilling) and on IP targets have been received for the following holes and are shown on Figure 2:

• KITRC_003
• KITRC_004
• KITRC_005
• KITRC_006
• HRC_002
• KAKRC_002
• KAKDD_004
• KAKDD_006

Figure 2. RC and sterilisation drill hole location plan showing collar locations and company tenure on hill shaded elevation model: http://media3.marketwire.com/docs/1001031-F2.pdf

Phase 8 Drilling Program

Drilling restarted at Kitumba in June 2014 and was completed in November 2014. A total of 33 diamond holes were completed for a total of 12,849 metres. The drill program was specifically designed to aid in further feasibility studies for both the proposed mine and process plant design. The drilling was targeting additional resource definition, the collection of further metallurgical samples, and geotechnical and hydrogeological assessment.

Table 1. Completed Phase 8 drill holes

The collection of material for metallurgical analysis included samples representative of ore-feed (and gangue) from a conceptual mining schedule, comminution samples and feed for a pilot plant. Initial assay results were reported to the ASX in December 2014. Metallurgical holes were also designed to fill gaps in the existing resource and to inform a future update of the Mineral Resource Estimate. Select metallurgical/infill holes were also used for geotechnical and hydrological purposes.

Drilling that was specifically designed for geotechnical purposes only was also completed (no mineralisation expected: KITDD_061, KITDD_063, KITDD_064, KITDD_065 and KITDD_066 were not assayed). These holes were drilled into areas of planned development (boxcut, decline, air shafts). Geotechnical holes have been probed with an Acoustic Televiewer ("ATV") for the collection of detailed-high resolution structural and engineering data. Geotechnical samples for laboratory analysis have been collected and planned test work includes: unconfined compressive strength, direct shear, triaxial, Cerchar abrasivity index, slake durability and petrographic analysis.

Drilling Outside of Kitumba

Additional drilling outside the Kitumba resource included a fence of three RC holes on Target F, two RC holes on Target H and sterilisation drilling on areas slated for planned infrastructure (Table 2).

Figure 3: Mumbwa Project targets: http://media3.marketwire.com/docs/1001031-F3.pdf

Table 2. RC drilling

"Target H" RC Drilling - Assay Results

RC drilling in the Target H IP survey area was focused on a conductivity anomaly for HRC_001 and a coincident chargeability anomaly, conductivity lineament and copper in soils anomaly situated on an iron-breccia cap for HRC_002 (Table 2 and Figure 2). The holes were drilled at 60 degrees to crosscut key structural and stratigraphic boundaries. Samples were collected from intercepts identified as mineralised in logging and using a portable field XRF.

A total of 99 samples were collected for HRC_002, including quality control samples and were submitted to the laboratory for analysis. An oxidised zone of 7 metres at 0.71% copper ("Cu") from 43-50 metres, with a peak assay of 1 metre @ 0.98% Cu from 46-47 metres was returned. HRC_002 failed at 94 metres in leached and weathered material. Deep leaching is seen at Kitumba in response to the Kitumba fault zone, hydrothermal alteration and the acid generation capacity of sulphide material.

Given these encouraging results, a diamond tail will be drilled on HRC_002 following the end of the wet season (in the second quarter of 2015). HRC_001 was un-mineralised and not sampled.

Final results having passed QA/QC are summarised here.

Table 3. Summary of assay results for HRC_002.

"KIT" RC Drilling - Assay Results

RC drilling in the Kitumba area was focused on sterilisation drilling in areas of planned infrastructure (Table 2 and Figure 2). Samples were collected from intercepts identified as mineralised in logging and using a portable field XRF. Holes were drilled at 60 degrees to crosscut key structural and stratigraphic boundaries.

13 samples were collected for KITRC_003, 13 for KITRC_004, 211 for KITRC_005 and 138 for KITRC_006. These samples (including quality control samples), were submitted to the laboratory for analysis. Assays of note were only returned from KITRC_005. The best intercept from KITRC_005 was 4 metres @ 0.66% Cu from 202-206 metres.

Final results having passed QA/QC are summarised here.

Table 4. Summary of assay results for KITRC_005.

"Target F" RC Drilling - Assay Results

RC drilling in the southern part of the Kakozhi IP survey area was focused on "Target F", a zone of high chargeability coincident with a copper in soils anomaly (Table 2 and Figure 2). Holes were drilled at 60 degrees to crosscut key structural and stratigraphic boundaries. Samples were collected from intercepts identified as mineralised in logging and using a portable field XRF.

43 samples were collected for KAKRC_002, including quality control samples and were submitted to the laboratory for analysis. The peak assay returned was 1 metre @ 0.54% Cu from 148-149 metres. The IP and copper in soils anomaly at Target F has been interpreted as occurring on the contact between a Hook intrusive and the older Kundelungu metasediments. No samples were collected from KAKRC_001 and KAKRC_003. No further work is recommended.

Final results having passed QA/QC are summarised here.

Table 5. Summary of assay results for KAKRC_002.

Kitumba Infill Drilling

KITDD_041A - Assay Results

KITDD_041A was drilled on an azimuth of 090, inclined 75 degrees to a depth of 599 metres. This hole was drilled to collect metallurgical samples as well as for resource definition. Intercepts of note include 42 metres @ 2.21% Cu from 252-294 metres.

A series of 537 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 6. Summary of assay results for drill hole KITDD_041A (azi 090, dip 75, EOH 599 m)

KITDD_052 - Assay Results

KITDD_052 was drilled on an azimuth of 90, inclined 70 degrees to a depth of 444 metres. This hole was drilled to collect metallurgical samples as well as for resource definition in the northern extent of the ore body. Intercepts of note include 22 metres @ 1.68% Cu from 356-378 metres.

A series of 367 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 7. Summary of assay results for drill hole KITDD_052 (azi 090, dip 70, EOH 444m)

KITDD_053 - Assay Results

KITDD_053 was drilled vertically to a depth of 497 metres. This hole was drilled to collect metallurgical samples as well as for resource definition. Intercepts of note include 64 metres @ 1.55% Cu from 226-290 metres.

A series of 420 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 8. Summary of assay results for drill hole KITDD_053 (vertical, EOH 497 m)

KITDD_054 - Assay Results

KITDD_054 was drilled on an azimuth of 090, inclined 70 degrees to a depth of 551 meters. This hole was drilled to collect metallurgical samples as well as for resource definition in the northern end of the deposit. Intercepts of note include 26 metres @ 1.52% Cu from 378-404 metres.

A series of 469 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 9. Summary of assay results for drill hole KITDD_054 (azi 090, dip 70, EOH 551m)

Kitumba West drilling

KITDD_068 - Assay Results

KITDD_068 was drilled on an azimuth of 087, inclined 55 degrees to a depth of 539 metres. This hole was drilled targeting an IP chargeability anomaly and following up low-moderate grade mineralisation in KITDD_015. Intercepts of note include 39 metres @ 0.75% Cu from 380-419 metres.

A series of 403 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 10. Summary of assay results for drill hole KITDD_068 (azi 087, dip 55 EOH 539 m)

KITDD_069 - Assay Results

KITDD_069 was drilled on an azimuth of 090, inclined 70 degrees to a depth of 249 metres. This hole was drilled to follow up shallow hypogene (sulphide) mineralisation intersected in KITDD_015 and KITDD_057. A shallow zone of sulphides was intersected including an assay of 1 metre @ 1.15% from 57-58 metres within a low- grade zone of 44 metres at 0.32% Cu from 40-84 metres.

A series of 145 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 11. Summary of assay results for drill hole KITDD_069 (azi 090, dip 70 EOH 249 m)

Kitumba East drilling

KITDD_070 - Assay Results

KITDD_070 was drilled on an azimuth of 088, inclined 65 degrees to a depth of 414 metres. This hole was drilled targeting the southern extension of the "Kitumba East" zone, a hematite breccia situated to the east of the Kitumba Fault Zone (the main ore body is located on the western side) previously intersected in KITDD_036. The hole successfully intersected "Kitumba East" in multiple zones, however grades are below ore grade. Best intercepts include 20 metres @ 0.97% Cu from 289-309 metres. KITDD_067 was drilled targeting the interpreted northern extension of Kitumba East, however was un-mineralised and not sampled.

A series of 209 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 12. Summary of assay results for drill hole KITDD_070 (azi 088, dip 65 EOH 414 m)

Geotechnical drilling

KITDD_056 - Assay Results

KITDD_056 was drilled vertically to a depth of 196 metres. This hole was drilled for geotechnical information on the planned position of a ventilation shaft. No assays of note were returned.

A series of 110 samples, including quality control samples, were submitted to the laboratory for analysis.

KITDD_057 - Assay Results

KITDD_057 was drilled vertically to a depth of 196 metres. This hole was drilled for geotechnical information on the planned position of a ventilation shaft.

A series of 131 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 13. Summary of assay results for drill hole KITDD_057
(vertical, EOH 196 m)

KITDD_058 - Assay Results

KITDD_058 was drilled vertically to a depth of 329 metres. This hole was drilled for geotechnical information on the planned position of a ventilation shaft.

A series of 197 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 14. Summary of assay results for drill hole KITDD_058
(vertical, EOH 329 m)

KITDD_059 - Assay Results

KITDD_059 was drilled vertically to a depth of 214 metres. This hole was drilled for geotechnical information on the planned position of a ventilation shaft.

A series of 140 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 15. Summary of assay results for drill hole KITDD_059
(vertical, EOH 214 m)

KITDD_060 - Assay Results

KITDD_060 was drilled on an azimuth of 115, inclined 70 degrees to a depth of 522 metres. This hole was drilled on the planned position of the decline. Narrow zones of mineralisation including 12 metres @ 1.31% Cu from 333-345 metres.

A series of 402 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 16. Summary of assay results for drill hole KITDD_060 (azi 115, dip 70 EOH 522 m)

KITDD_062 - Assay Results

KITDD_062 was drilled on an azimuth of 115, inclined 70 degrees to a depth of 500 metres. This hole was drilled on the planned position of the decline. Narrow zones of mineralisation (outside of the mine design) including 7 metres @ 1.48% Cu from 344-351 metres.

A series of 311 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 17. Summary of assay results for drill hole KITDD_062 (azi 115, dip 70 EOH 500 m)

Notes:

Sampling and assaying of the drill core and RC chips collected follows a standard site protocol with samples being submitted to the Intertek Genalysis Laboratory preparation facility in Chingola, Zambia before being shipped to the Intertek Genalysis Laboratory in Perth, Australia for analysis (4-acid digest with an ICP finish).

A cut-off grade of 0.25% copper, a maximum internal dilution of 2 metres (drilled thickness) and a drilled thickness of >2 metres are used as a guideline when delineating the drilled thickness intervals of mineralisation, with length-weighted average grades reported. True-widths are not quoted, as the mineralised zone is associated with a sub-vertical "pipe" shaped zone of brecciation. No upper limit has been applied to copper grades in these exploration results.

A total of 8 elements were analysed. Multi-element analyses (including copper) were performed using Inductively Coupled Plasma - Mass Spectrometry (ICP-MS) and Inductively Coupled Plasma - Optical Emission Spectroscopy (ICP-OES) analyses by the fully NATA accredited Intertek Genalysis Laboratory in Perth, Australia. Samples were analysed for total copper and Ca, Fe, K, Mn and S by 4-acid digest with an ICP-OES finish, U by 4-acid digest with an ICP-MS finish, and acid-soluble copper (ASCu) by cold acid leach with an AAS finish.

A Quality Assurance/Quality Control ("QA/QC") program includes chain of custody protocol, a systematic submittal of 20% QA/QC samples including field duplicates, field blanks and certified reference samples into the flow of samples submitted to the laboratory and submission of samples for umpire analysis by a second accredited laboratory.

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.

Contact

Intrepid Mines Ltd.
Scott Lowe
Chief Executive Officer
+61 2 9357 9000
info@intrepidmines.com
www.intrepidmines.com