Tujuh Bukit – Indonesia
The Tujuh Bukit Project (‘the Project’ or ‘Tujuh Bukit’) is located in Indonesia on the island of Java, approximately 205 kilometres south east of Surabaya, capital of the province of East Java, and 60 kilometres south-west of Banyuwangi. The Project area covers 11,621 hectares under two IUPs which is the form of exploration/mining title introduced under the new Indonesian Mining Law. The exploration site has a potentially large porphyry and high sulphidation epithermal gold-silver-copper system Intrepid has acquired an 80% economic interest in the Project through a joint venture agreement with Indonesian company PT Indo Multi Niaga (“PT IMN”).
Tujuh Bukit comprises several mineral prospects, of which the Tumpangpitu Prospect, in the south east portion of the Project area, continued to be the major focus for exploration activity during 2009. There are five zones of known near surface gold-silver oxide mineralisation and deeper sulphide copper-gold mineralisation within Tumpangpitu. Initial drilling focused on Zones A and C before drilling commenced on Zone B. As none of these zones has yet been fully delineated, further drilling is underway on all three, in addition to more recent drill testing on Zones D and E.
During 2009 15,799.5 metres of diamond core drilling were completed, bringing the total at Tumpangpitu to 39,104 metres in 132 drill holes, including 34,932 metres in 118 holes drilled by Intrepid.
An Inferred Resource has been estimated on Zones A, B and C* by independent consultants Hellman and Schofield Pty Ltd and reported in accordance with the JORC code. As announced on 15 December 2009 Inferred Resources within these three zones now aggregate approximately 100 million tonnes at 1.0 g/t gold equivalent at a 0.5 g/t gold equivalent cut-off. The Inferred Resource estimate contributes over two million ounces of gold and almost eighty million ounces of silver (3.3 million ounces of gold equivalent at a 0.5 g/t gold equivalent cut-off). (* Based on 80 x 80 metre grids over the three zones).
A number of deeper holes below the oxidised zone intersected encouraging assays from a related but separate porphyry copper-gold zone. This included one hole, GTD 08-35, which, as reported on 17 July 2008, intersected 627 metres averaging 0.45 g/t gold and 0.44% copper. As reported on 9 July 2009 Vale S A (through a subsidiary) signed a Heads of Agreement with Intrepid and PT IMN granting Vale the option to earn an interest in the Tujuh Bukit sulphide copper-gold project. However, the parties were unable to reach agreement on several key elements of the formal option documentation and on 15 December 2009 Intrepid announced the termination of negotiations.
In addition to the results of ongoing drill testing at Tujuh Bukit, Intrepid’s exploration team has been further encouraged by the findings of their semi-regional soil sampling, detailed heli-magnetic surveys, and geological mapping over the Project area. This work has led to the identification of several new anomalies that require systematic follow-up, including additional targets at the Tumpangpitu, Salakan and Katak Prospects. At the Katak Prospect, 2.5 kilometres north east of Tumpangpitu, a coincident copper-gold-molybdenum soil anomaly over 650 x 500 metres returned a peak copper value of 0.235%.
As reported on 9 December 2009, the surface geochemistry is coincident with porphyry-altered diorites with a discrete magnetic response modelled as a steeply north-plunging body over 500 metres in vertical extent. This is considered a significant discovery and drilling commenced early in 2010.
Intrepid, consistent with its commitment to corporate responsibility, is working closely with PT IMN to further expand and develop a number of community development programs.
Tumpangpitu is situated within protection forest, a category of forest land in which Indonesian law restricts activities and prohibits open-pit mining. Intrepid and PT IMN are working with relevant Indonesian authorities to allow for a review of the status of forest land where it affects the Project’s operations. The Katak Prospect is situated within production forest, a forestry category which has far fewer development restrictions.