Intrepid 2007 AGM Results and Chairman’s Address
Intrepid Mines Limited (TSX: IAU)(TSX: IXN)(ASX: IAU), an international gold and silver production, development and exploration company, today held its Annual General Meeting in Brisbane, Australia.
All resolutions recorded in the Notice of Annual General Meeting were put to shareholders and were approved on a show of hands.
Details of the proxies received (including Intrepid NuStar Exchange Corporation Exchangeable share voting directions) were as follows: In Favour Against Discretionary Abstained ————————————————————————- Resolution 1 The Remuneration 114,122,639 5,835,940 320,185 5,199,328 Report, included within the Directors’ Report, for the year ending 31 December 2007 was approved ————————————————————————- Resolution 2 Mr Colin Jackson 111,794,645 13,154,515 320,185 208,747 was re-elected as a Director ————————————————————————- Resolution 3 Mr Robert 116,982,156 7,957,592 320,185 218,159 McDonald was re-elected as a Director ————————————————————————- Resolution 4 Mr Ian McMaster 116,981,856 7,957,892 320,185 218,159 was re-elected as a Director ————————————————————————- Resolution 5 The issuance to Mr Brad Gordon 115,973,766 8,125,411 299,909 1,079,006 of 235,294 options each to subscribe for one ordinary share in the capital of the Company, at an exercise price of A$0.30 per share and an expiry date of 1 January 2013, was approved ————————————————————————- Resolution 6 KPMG was appointed as the auditor of 117,890,041 2,546,560 320,185 4,721,306 the Company with effect for the financial year commencing 1 January 2008 ————————————————————————-
In addition to the Chairman’s Report included below, it was reported at the Annual General Meeting that, with the aim to deliver increased value to Intrepid’s shareholders, the Board is considering a number of options in respect of Intrepid’s Central American assets. Shareholders will be kept informed of developments in respect of this decision-making process.
Intrepid Mines Limited (TSX: IAU)(TSX: IXN)(ASX: IAU), an international gold and silver production, development and exploration company, today held its Annual General Meeting in Brisbane, Australia.
Tomorrow is the third anniversary of the commencement of operations at Paulsens. Importantly, this business is now set to become the cash generating engine room for Intrepid.
This operation is now debt free, and as of next month will also be lease free, having met the final lease payments on both the power plant and camp which became assets of the Company. Our remaining hedge commitments stand at a negligible 26,000 ounces. Once delivered, we will immediately benefit from a spot price which today is US$300 per ounce higher than our committed hedge price.
The dramatic turnaround in production for both the December 2007 and March 2008 quarters has been sustained with production of 8,229 ounces in April 2008 and 7,076 ounces for the first 24 days of May 2008.
Most importantly, we have strong evidence for an extension to our resource position below the 300m vertical horizon, the current mine plan limit. A drill programme targeting a structured repeat of the Paulsens’ main producing zone recorded a 100% success rate with three of the underground drill holes, 3.5m true width at 14.9g/t cut (117g/t uncut), 1.8m true width at 33.8g/t cut (73g/t uncut) and 8.9m true width at 9.2g/t cut (10.2g/t uncut) comparable to the best ever recorded in this area of the mine.
This new zone is 40 metres below the current decline access and can be rapidly and easily integrated into the mine design and infrastructure at minimum cost.
Further exploration drilling below this position is planned with access to be gained from an 80 metre drill drive currently being progressed. A second underground drill rig is also being secured.
Whilst there is much positive news at Paulsens, the operating team has to remain vigilant with the impact of constant inflationary pressures on operating costs. Year-on-year, the cost of diesel for power generation is up 47 percent and grinding balls are up 30 percent. To put the cost of diesel into perspective on-site generation costs are equivalent to 32c/kWhr or US$72 per ounce of gold recovered based on the life of mine reserve grade. On this basis I am glad that Paulsens is a high grade underground mine rather than a low grade, high strip ratio open pit mine.
As referenced earlier, with Paulsens debt extinguished and lease payments almost complete, the operation becomes a very valuable asset of the Company. The process plant and infrastructure have a written down value of $7.5million in our books. I suspect that the replacement cost today of these facilities would be three to four times higher. The recent transaction price for the sale and purchase of the Newcrest managed Cracow Gold Mine in Queensland, reinforces the view of inherent value.
Our next mine will be the 100 percent owned Casposo gold/silver deposit in San Juan province of Argentina. The exploration success statistics to discover a commercial deposit and then achieve permitting are quite daunting. Time, patience and persistence are all key ingredients. In Casposo, we not only have a high grade, at surface deposit, but we are also fully permitted – with full credit due to our Toronto and Argentina based colleagues.
With silver by-product credits at today’s metal price, Casposo can deliver gold at sub US$100 per ounce. It must therefore be developed, even if we see some capital expenditure cost creep when the revised numbers are finalised and presented to the Board next month.
On the positive side, the San Juan Province has facilitated an extension to the national power grid to include Casposo and the nearby town of Callingasta. Importantly, the source of power is predominantly hydro, and in particular snow melt from the Andes, and as such should insulate the operation from the seemingly unending cost increases for power generated from diesel or even gas.
Whilst Casposo production might only be modest at start up there is much unfinished business on the exploration front. In the first instance, the recent 23 percent increase in resources is the subject of the current project update. Resource drilling has also recommenced at the main Kamila zone and resource development drilling at Kamila Southeast Extension, Mercado and Cerro Norte. The Company continues an active regional exploration programme.
On the exploration front, Tujuh Bukit, which was acquired as a consequence of the recent merger is already demonstrating a substantial mineralised endowment. Management’s confidence was reinforced by the purchase of the right to earn an additional 10 percent in the project whilst simultaneously simplifying the joint venture structure.
Earlier this week this action was supported when the Company reported a highly significant intersection below the near surface gold-silver cap, which itself, boasts intersections of 154 metres of 1.08 g/t gold and 37 g/t silver and 90 metres of 0.87g/t gold. Hole 29 intersected a predicted copper-gold porphyry position with a 268 metre intersection of copper-gold. A continuous 100 metres interval assayed 1.02 g/t gold and 0.55% copper. A significant follow-up programme has already commenced.
In parallel with the Intrepid led exploration activity, our Indonesian partner, PT IMN, is working urgently with the relevant authorities through a prescribed process for the reclassification of land from protected forest status to one which would allow open pit mining should on-going results justify such a decision.
In Mexico, the Taviche gold and silver property continues to deliver interesting rather than compelling results. Additional drilling has been recommended at West Taviche, but at greater depths and more in line with significant discoveries by others in the district. Further targets have been identified at East Taviche. First results at the newly acquired Alma Delia tenements add to the prospective mineralised inventory.
For much of 2007 the Intrepid share price reflected a difficult eight month period at Paulsens, and the consequential restricted cash availability for developing Casposo. Gold equity prices were out of favour despite the performance of the underlying commodity which was up 40 percent. Year-on-year the senior gold producers are up only 16 percent, junior producers and explorers are down 36 percent and 17 percent respectively. It was these operational and financing uncertainties that ultimately lead to the merger with Emperor.
I am pleased to advise that the outlook for 2008 is much stronger. Paulsens is delivering and its position as a cash cow is imminent. Casposo is permitted and will become the Company’s second mine with a development decision within the next six weeks. Our exploration success over the reminder of this year at Tujuh Bukit and/or Taviche will determine whether there is a third mine on the horizon.
Colin G Jackson, Chairman
About Intrepid Mines:
Intrepid Mines Limited is an international gold and silver production, development and exploration company. The Company’s producing property is the Paulsens Gold Mine, located in northwestern Australia. The Company’s advanced development property is the Casposo Project located in San Juan Province, Argentina. The Company’s exploration properties are located in Argentina, Australia, Canada, El Salvador, Indonesia and Mexico. The issued capital is 427,902,350 shares comprised of 413,086,497 ordinary shares of Intrepid Mines Limited on the TSX (TSX: IAU) and ASX (ASX: IAU) and 14,815,853 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the TSX (TSX: IXN).
Contacts: Intrepid Mines Limited Brad Gordon Chief Executive Officer +617 3007 8011 Email: bgordon@intrepidmines.com.au
SOURCE: Intrepid Mines Limited