Intermin Resources Limited: 55,000m New Discovery and Resource Growth Drilling Program Commenced

Perth - Intermin Resources Ltd. (ASX:IRC) ("Intermin" or the "Company") is pleased to announce the commencement of a major discovery and Resource expansion drill program at its 100%-owned gold projects in the Kalgoorlie region of Western Australia (see Figure 2 in link below).

HIGHLIGHTS

- 55,000m drill program commenced in the Kalgoorlie region targeting new discoveries and resource growth

- Key aspects of the fully funded $4m program include:

o Program split approximately 50% on new discovery and 50% on resource growth

o Focus on three core project areas: Teal, Anthill and Blister Dam

o Resource expansion drilling at Teal, Jacques Find, Peyes Farm and Anthill testing extensions along strike and at depth outside current resource envelopes

o New discovery drilling at Blister Dam, Teal, Fire Ant and Anthill Extended targeting high grade open cut and underground orebodies (see Note below)

o RC and diamond drilling to test beyond the limits of historic drilling

- RC drilling underway at the Jacques Find discovery with first results expected early in the June Quarter 2018 (see Note below)

Commenting on the start of the major drilling program, Intermin Managing Director Mr Jon Price said:

"With the significant free cash flow that has been generated from our first mining project at Teal, our focus now turns to exploration success as we kick off the largest drill program in Intermin's history".

"New discovery drilling comprises roughly half of the fully funded $4 million program with priority walk up targets on the prolific Zuleika Shear and Bardoc Tectonic Zone. The Western Australian goldfields is a world class gold producing region with significant discoveries still being made through modern systematic exploration and investment in deeper drilling. We look forward to the first drilling results and adding our own chapter to the rich mining history of the Western Australian Goldfields."

Overview

During the last three months, the Company has compiled and reviewed a large geological database comprising geochemical, geophysical and historic drilling datasets in order to prioritise targets for drill testing. Extensive field reconnaissance investigations were undertaken during 2017 to confirm these targets and finalise the design of the 2018 drill program.

A summary of the program is shown in link below.

Anthill

At the Anthill gold project located 45km northwest of Kalgoorlie (see Figure 2 & 3 in link below), a total of 46 holes were completed for 6,509m in 2017 and all results have been released (ASX announcement 24 October 2017). A maiden JORC 2012 Mineral Resource is now being compiled for release in the current March Quarter 2018.

The geology is dominated by a variolitic basalt with lesser amounts of porphyry and ultramafic being observed. At least two mineralised trends are evident and add some complexity at Anthill. The gold mineralisation is pervasive and occurs in a number of settings, the most important being a quartz stockwork or thin veins with carbonate-sericite-silica-sulphide alteration. Some of the gold is free gold and is easily panned in RC chips.

The key to advancing Anthill to development is to delineate further, high grade resources along strike and at depth. Intermin will focus on extending the Anthill oxide area and undertake a deep drilling program to follow up the encouraging 2017 results. As with similar projects in the region, Anthill has the potential to develop into a large tonnage, medium grade open cut followed by decline development to access the higher grades in the fresh rock below the base of oxidation.

New target generation studies and initial field work has now been completed in the Anthill project area and new discovery drilling will test for repeats of the Anthill orebody. Drill testing will commence on the Fire Ant prospect and targets to the east, west and north of the Anthill project (see Figure 3 in link below).

RC and diamond drilling at Anthill is planned to commence in the June Quarter.

Blister Dam

Since September 2017, Intermin has been actively exploring the Blister Dam project located 54km northwest of Kalgoorlie (see Figure 2 & 4 in link below). This region, northwest of the Kundana Goldfield, has a similar geological setting to the large open cut and underground deposits including Frog's Leg, Raleigh, Millennium and Bullant.

An Induced Polarisation ("IP") survey, geological mapping, rock chip sampling and 46 reverse circulation ("RC") holes for 4,180m were completed in 2017 to test multiple priority targets. A total of nine out of the 21 individual targets at Blister Dam were drilled to the end of 2017. The remaining targets will be drilled in 2018 as part of the 14,000m program.

Several targets occur on the well-known Zuleika Shear, where historic drill holes have intersected two distinct gold mineralisation styles; thin high grade quartz veins and shear zones hosting broad widths (>40m) of disseminated low grade gold.

The second trend, south and subparallel to the Zuleika Shear, appears to be located near an ultramafic contact. This trend continues southeast towards the Carbine - Paradigm deposits held by Northern Star Resources Ltd.. Some small workings are present in this southern zone (see Figure 4 in link below) and a recent rock chip sample of the quartz vein returned 6.0g/t Au. Historical drilling beneath this old shaft also recorded an encouraging 9m @ 3.43g/t Au.

In addition the Company has been awarded $60,000 in WA Government Exploration Incentive Scheme co-funding ("EIS") to RC drill test recently defined induced polarisation (IP) targets at Blister Dam (see Figure 3 in link below). The 2D dipole-dipole IP survey was completed in October 2017 and comprised about 98 line kilometres. The IP results highlighted a number of small to moderate level conductor anomalies (10 - 20mV/V) and several potential (untested) fault zones.

Teal / Jacques Find / Peyes Farm

At the Teal gold project located 11km northwest of Kalgoorlie (see Figure 2 & 5 in link below), a total of 32 holes were completed for 3,024m at the Teal south, Jacques Find, Peyes Farm and Yolande prospects in 2017. Excellent high grade results were returned in the majority of holes drilled in both oxide and primary mineralisation as announced to the ASX on 18 September 2017 and 15 and 29 November 2017 (see Figure 5 in link below).

The geology is dominated by Black Flag sediments (felsic volcanics and sediments) with lesser amounts of porphyry and intermediate volcanics. Fresh rock gold is typically associated with quartz and sulphides. Faulting has displaced and pinched out some of the mineralisation. Currently Jacques Find is about 400m long and is open to the north and south and at depth. These extensions are priority drilling targets.

Several new, untested, exploration targets have recently been generated within a 1km of radius of Teal, Jacques Find and Peyes Farm. The new discovery targets will be drilled in the current March Quarter. On completion, Jacques Find will then be drilled to 200m depth across its entire 400m strike length (stage 1 ~6,000m) to extend resources in this area. If the deep drill hole RC results are positive and of a tenor suitable for underground mining, Intermin then plans to systematically diamond drill Jacques Find to 500m depth in the September quarter (stage 2 ~8,000m).

Given the success of the Teal open cut, where the supergene and transitional ore have been mined and processed through conventional processing plants, the Company is targeting additional supergene oxide and transitional material at Jacques Find, Teal extended and Peyes Farm to add to the production pipeline.

Primary mineralisation at depth exhibits semi-refractory properties and optimal recoveries are achieved through ultra-fine grinding, pressure oxidation or roasting. Deeper drilling is targeting high grade extensions to known mineralisation to grow the resource to sufficient scale to enable commercial discussions to commence on potential third party processing at existing nearby processing plants or sale of concentrate to potential offtake partners. (see Note below)

Regional Projects

Intermin has several other project areas that will be drilled during the latter half of the year. A total of 7,000m has been allocated. These include:

- West Kalgoorlie including Janet Ivy South = follow up drilling to recent intercepts of 3m @ 4.87g/t Au and 2m @ 3.32g/t Au

- Black Flag, Yarmony, Area 54, Kanowna North, Broads Dam, Windanya and New Mexico

Note: See Forward Looking Statement on Page 6

To view figures, please visit:
http://abnnewswire.net/lnk/I7HX85Q5

About Intermin Resources Limited:

Intermin Resources Ltd. (ASX:IRC) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal Stage 1 gold mine is currently in production.

Intermin is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core projects and build a sustainable development pipeline.

Intermin is targeting the definition of significant high grade open cut and underground gold deposits, has acquired highly prospective tenure and will continue to actively pursue consolidation and value-adding joint venture opportunities for the benefit of all stakeholders



Contact:

Jon Price Managing Director
Tel: +61-8-9386-9534
E: jon.price@intermin.com.au

Michael Vaughan Media Relations - Fivemark Partners
Tel: +61-422-602-720
E: michael.vaughan@fivemark.com.au