Shares of Intrepid Mines (IAU-T, IAU-A) in Toronto jumped 3.7% or 6¢ to $1.67 yesterday on a high-grade intercept from in-fill drilling at its Tujuh Bukit project in Indonesia. At presstime Intrepid was trading at $1.73 per share.
Hole GTD-11-201 cut 676 metres of 1 gram gold per tonne and 0.54% copper including 56 metres of 3.58 grams gold and 1% copper in the project’s Tumpuangpitu area, and will add to the currently defined resource.
The hole was drilled between holes GTD-138 and GTD-166 in an area that was classified predominantly as “geological potential” in the recent resource estimate. The intercept in GTD-201 provides continuity between high grade zones defined in holes GTD-138 (86 metres at 0.90 gram gold and 0.37% copper) and GTD-166 (84 metres at 1.33 grams gold and 0.95% copper).
“These latest assay results are exceptional and once again eclipse previous ‘best holes’ to deliver our best result to date on the project,” Brad Gordon, Intrepid’s chief executive, said in a statement.
The Tumpangpitu prospect is in the southeast portion of the Tujuh Bukit project on the island of Java, about 205 km southeast of Surabaya, the capital of East Java province, and about 60 km southwest of Banyuwangi. The project area covers 11,621 hectares and Intrepid owns an 80% economic interest.
There are five zones of known near surface gold-silver oxide mineralisation and deeper sulphide copper-gold mineralisation within Tumpangpitu.
In May Intrepid announced an updated inferred resource estimate based on drilling completed since September 2010 (26 drill holes) around the copper-gold zone of the Tumpangpitu area.
Inferred resources now total 990 million tonnes at 0.40% copper and 0.45 grams gold at a cut-off grade of 0.2% copper or 0.2 gram gold. The resource remains open at depth and laterally and the porphyry resource area now extends over an area of 2,400 by 1,400 metres, the company says.
The current resource estimate does not include the oxide gold-silver zone of 130 million tonnes at 0.55 gram gold and 18 grams silver for 2.4 million ounces of contained gold and 80 million ounces of contained silver.
“At almost one billion tonnes, this updated porphyry resource estimate brings Tujuh Bukit into the ranks of the world’s major undeveloped copper-gold projects,” Gordon said in May.
“We have yet to determine the limits of this resource,” he added. “At the same time we are starting to drill test some of our other regional porphyry targets. Adding these results to our positive preliminary economic assessment of the silver-gold oxide and US$180 million cash treasury position, we are certain that this project is destined to become an important global copper-gold-silver project.”
Shares of Intrepid Mines in Toronto have traded in a 52-week range of 47.5¢ (July 16 2010) and $2.45 (April 11 2011). The company has 520.8 million shares outstanding.
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