Despite being unable to gain access to the Tujuh Bukit project owing to an ongoing and lengthy ownership saga with joint venture partner PT Indo Multi Niaga (IMN), Intrepid Mines continues the technical advancement of studies and the pursuit of legal remedies to protect and enforce the company’s rights in the project.
Technical work required for a pre-feasibility study on the oxide project will be completed during this quarter. Part of this work has seen the oxide resource upgraded by 76% in the measured and indicated categories, which now stand at 70 million tonnes @ 0.71 grams/tonne gold and 27 grams/tonne silver for 1.6 million ounces of contained gold and 60 million ounces of contained silver. Inferred oxide resources presently stand at 19 million tonnes @ 0.75 grams/tonne gold and 21 grams/tonne silver for 500,000 ounces of contained gold and 13 million ounces of contained silver.
The porphyry project study has also resulted in a resource update with contained copper and gold in the inferred category increased by 34% and 23% respectively at the 0.4% copper cut-off. The inferred resource stands at 1.9 billion tonnes @ 0.45% copper and 0.45 grams/tonne gold for 19 billion pounds of contained copper and 28 million ounces of contained gold at a 0.2% copper cut-off. Technical work for the scoping study for the porphyry deposit is still expected to be completed in the June quarter of 2013.
Exploration expenditure for the project for the three and 12 month periods to December 31, 2012 was $3.1 million and $29.5 million respectively on a 100% basis, for a project total to $105.8 million. This principally relates to development studies since the July 19, 2012 project shutdown. No further payments have been made to PT IMN since that date.
“In regards to the ownership dispute Intrepid continues to make concerted efforts to confirm its 80% interest in Tujuh Bukit,” says newly appointed chairman Colin Jackson. “Criminal complaints against the parties associated with PT IMN are under way and other legal remedies are being prepared or actioned. A law suit has been initiated against various parties, including the company, in the South Jakarta District Court in Indonesia.”
Tujuh Bukit is on the island of Java, about 205km southeast of Surabaya, capital of East Java province, and 60km southwest of Banyuwangi. The project covers 11,621 hectares under two IUPs. The exploration site has a potentially large porphyry and high sulphidation epithermal gold-silver-copper system.
A prominent Indonesian businessman, Surya Paloh, has been issued with the second and final tranche of 25.6 million unlisted unrestricted performance rights in the project following approval from the Toronto Stock Exchange.