A1M - AIC Mines

[exgeo]

• Gold revenue for the quarter was $10.3 million from the sale of 18,437 ounces realising an average price for the quarter of A$835 per ounce ($561). Revenues Included the final 11,444 ounces of the hedge commitment at A$627 per ounce.
• The Company is now unhedged with total exposure to the spot gold price – A$1370 per ounce at the date of this report.

 

[Go Nuke]

How awesome is that!!
The full spot price.

Man I wish i had more money to put into this stock.
They will be able to cash up at this rate!

Is 25c way undervalued for this stock? I would have thought so as not too many that are unhedged at the moment.

 

[exgeo]

From "Around the traps with the Ferret" (can be found on the news service of NAB/Bankwest online trading, and Belldirect):

INTREPID MINES (ASX:IAU): The other remaining sexy sector (apart from CSG) is gold. Intrepid has good, unhedged cashflow from its Paulsens Mine in WA, as well as growth through what is shaping up as a multi-million ounce gold deposit, Tujuh Bukit in Indonesia.

ABN AMRO thinks the share price should be 60c. It fell 1c to 22c yesterday.

 

[sinner]

Feb 19 announcement supporting the share price today even as other goldies tumbled with the market.

Intrepid Mines Limited: Tujuh Bukit Indonesia FEB 19, 2009 - 01:54 ET

COPPER GOLD PORPHYRY POTENTIAL ENHANCED

- 226 metres at 0.72g/t gold and 0.44% copper (includes 100m at 0.95g/t Au and 0.67% Cu) confirms continuity of porphyry system

- result supports the theory of an extensive system to complement the current 2.57Moz(i) gold equivalent Inferred Resource estimate (JORC compliant) in the oxide zone

BRISBANE, AUSTRALIA--(Marketwire - Feb. 19, 2009) - Intrepid Mines Limited (TSX:IAU)(TSX:IXN)(ASX:IAU) (the "Company") is pleased to report that diamond drill hole GTD 56 at the Tumpangpitu Prospect, Tujuh Bukit Project has intersected two significant intersections - high sulphidation gold-copper-silver mineralisation and porphyry related copper-gold mineralisation.

GTD 56 was drilled between the previously reported porphyry and high sulphidation mineralisation intersected in holes GTD 29 and 35 (see diagrams below).

The result from Hole 56 has delivered improved interpretation of possible geometries for the high sulphidation system which overlies and overprints the deeper and more typical porphyry mineralisation.

Results from Hole 56 are:-

High sulphidation mineralization
--------------------------------
76 - 274 metres 198 metres at 0.26 grams per tonne
gold, 12 grams per tonne silver
and 0.25% copper
Including

76 - 122 metres: 46 metres at 0.27 grams per tonne
gold and 0.26% copper, and 10
grams per tonne silver
156 - 178 metres: 22 metres at 0.36 grams per tonne
gold and 0.43% copper and 16
grams per tonne silver
228 - 274 metres: 46 metres at 0.56 grams per tonne
gold and 0.47% copper and 33
grams per tonne silver.

Porphyry copper-gold mineralization
-----------------------------------
450 - 676 metres 226 metres at 0.72 grams per
tonne gold and 0.44% copper
Including

484 - 584 metres: 100 metres at 0.95 grams per
tonne gold and 0.67% copper
550 - 584 metres 34 metres at 2 grams per tonne
gold and 1% copper.

The diagrams below show drill intercepts and mineralisation types on a composite cross section across zones A and C, and in greater detail across Zone C and the deep intercepts of holes 29, 56 and 35.

Three zones of mineralisation have been defined -

1. the near surface oxide gold-silver mineralisation which is interpreted
to be an oxidized derivative of the underlying high sulphidation
sulphide zones. Zones A and C - current combined Inferred Resource
estimate stands at 2.57 million ounces gold equivalent (gold and
silver) at a 0.5 gram per tonne gold-equivalent cut-off.
2. a high sulphidation copper-gold-silver zone with associated intense
clay- silica alteration of lithic tuffs and some lesser hydrothermal
breccias.
3. porphyry copper-gold zone associated with quartz-magnetite veining.

The geometry of the high sulphidation zones presented on the sections is a current working model and may change as additional drill holes are completed.

Hole 46 was drilled in late 2008 on the eastern side of the prospect to assist in defining the geometry of the zone beneath the Zone A oxide mineralisation. The hole 46 intersected widespread propylitic and clay alteration that most likely defines a marginal zone to the high sulphidation mineralisation. At the base of the hole, assays returned 33 metres at 0.23 grams per tonne gold and 0.2% copper in clay and hematite altered material which is interpreted to be a high sulphidation overprint on a quartz-magnetite veined porphyry zone that appears open at depth below the end of hole.

The zone of high sulphidation and porphyry mineralisation across holes 29, 56 and 35 on section covers a width of 500 metres.

An extensive soil geochemistry program is currently underway at Tujuh Bukit and additional detailed geophysics are being planned for the second quarter of 2009. These data will allow for further definition of sulphide drill targets.

(i)2.57 Million ounce gold equivalent Inferred Resources based on -

- Zone C: 1.1 Million ounce gold equivalent Inferred Resource at a 0.5
gram per tonne gold equivalent cut-off based on 39.3 Million tonne at
0.55 grams per tonne gold, 26 grams per tonne silver
- Zone A: 1.47 Million ounce gold equivalent Inferred Resource at a 0.5
grams per tonne gold equivalent cut-off based on 43.6 Million tonne at
0.62 grams per tonne gold, 28 grams per tonne silver.

 

[sinner]

Am I talking to myself in here? : Is Intrepid invincible? Didn't even flinch when gold dropped a whole 100USD from 1000 to 900.

Now up again (I dare not mention the price lest I jinx it) on decent volume + small rebound in POG + optimistic ann on the 3rd again:

3 March 2009: Intrepid Mines Limited (ASX: IAU; TSX:IAU, IXN) (the “Company”) is pleased to report that
diamond drill hole GTD 58 at the Tumpangpitu Prospect, Tujuh Bukit Project has intersected near surface
high grade gold-silver mineralisation.

... (check website for this bit) ...

Results from hole GTD 58 are -

Oxide mineralisation
24 – 88 metres: 64 metres at 2.65 grams per tonne gold, 17.2 grams per tonne
silver, 2.91 grams per tonne gold equivalent
Including 36 – 58 metres: 22 metres at 6.43 grams per
tonne gold, 15.9 grams per tonne silver, 6.67 grams per
tonne gold equivalent.


High Sulphidation mineralisation
248 – 292 metres: 44 metres at 0.11 grams per tonne gold, 0.31% copper, and
13.3 grams per tonne silver
310 – 338 metres: 28 metres at 0.22% copper, 1.5 grams per tonne silver.



The high grade oxide gold-silver results from hole GTD 58 are consistent with intercepts from the
historical hole GTD 5 –

GTD 5 - Oxide mineralisation
25.1 – 82.1 metres: 57 metres at 0.71 grams per tonne gold, 6.5 grams per tonne
silver, 0.81 grams per tonne gold equivalent
106.1 – 193.1 metres: 87 metres at 1.8 grams per tonne gold, 13 grams per tonne
silver, 2.0 grams per tonne gold equivalent
Including 163.1 – 178.1 metres: 15 metres at 6.14 grams
per tonne gold, 9.4 grams per tonne silver, 6.29 grams per tonne gold equivalent

 

[Uncle Festivus]

No Sinner, walking beside you too - some things are just too good to pass up. Compelling fundamentals but have to watch the sovereign risk with the Indonesian play. A cash generating machine?

 

[Go Nuke]

Great to see IAU break 29c today and hold 30c!!

I'm almost breaking even after 12 months (38c)

 

[J.B.Nimble]

Cash generation looks impressive but it is all coming from Paulsens. How long will this continue? I note the MD&A announcement on 25 Feb refers to a key initiative for 2008 being to extend mine life to 2011. What do we think of the propsects for Paulsens extending to 2011 and/or beyond?

 

[So_Cynical]

What do we think of the propsects for Paulsens extending to 2011 and/or beyond?

Looks to be a no brainer...from memory there were some very impressive drill results from last year.

I sold out of IAU 2 weeks ago...Paulsens is a great operation, its Casposo and Tujuh Bukit
that are the worries...the Dev costs.

 

[Ghetto23]

Intrepid Mines has sold Casposo to Troy Resources for US$22 million.

Construction costs are too high I imagine.

 

[Go Nuke]

I think this is a good result!

Unhedged gold company and now cash to put into Paulsens and the Indonesia mine.

Looks like the market liked it too.

 

[CapnBirdseye]

There has been a bottleneck of volume sitting at .27 for a few days now. Looks like it's been broken up nicely - hoping for equality of TSX listed shares today at .28

This one has been going sideways for far too long...

 

[banska bystrica]

I took out 300K at 27.5/28c today. If a major resource company is not eyeing off Tujut Bukit I would be very surprised. Fundamentally, Paulsens + cash is worth more than 28c. Buying IAU at these prices you are getting Tujut Bukit for free.

 

[Amor_Fati]

I took out 300K at 27.5/28c today. If a major resource company is not eyeing off Tujut Bukit I would be very surprised. Fundamentally, Paulsens + cash is worth more than 28c. Buying IAU at these prices you are getting Tujut Bukit for free.

I agree.. I did the numbers from the March financial statements substituting 22m cash for the 13m property for sale that they had Capsoso held as at that time, with other cash of 16m, total liabilities of 10m which are largely covered by receivables, equipment etc. Paulsens is making quarterly profits of 10m and this is all described in USD. I didn't include the properties in this because they are much harder to value/realise so I wouldnt want to be relying on them. Still, not bad for a market cap of roughly 130m AUD (based on 420m shares)

BUT Paulsens will not last long, have a look at the technical report their new estimate is actually less than the old one, so there is not much extending that can be done. After that Tujuh is potentially a massive resource but its so potential potential potential that if we got a decent spike I'd be happy to play elsewhere with one eye on the news from IAU.

In short, slightly bullish in the medium term, no clue after that.

Just my thoughts...

 

[exgeo]

May 21, 2009 (minesite.com)

Intrepid Wins Best Of Breed, But It Certainly Isn’t A Dog

“Best of breed” is a description normally heard in horse, cat or dog competitions. It can, however, also be applied in the mining sector, especially if the exploration results are in the eye-popping category such as the 627.2 metres of copper and gold mineralisation encountered by Intrepid Mines at its Tujuh Bukit project in Indonesia. It was that drill hit, plus follow up results, which prompted the stockbroking firm, ABN-AMRO Morgans to describe Intrepid in a March 30 research note as a “best of breed” stock with the potential for a “10-fold” share price re-rating. It hasn’t happened, of course. In fact, Intrepid has slipped back a few cents since Morgans got a little excited. But, rather than accuse anyone of premature exuberance Minesite’s Man in Oz decided to find out what it was that caused so much excitement.
The answer does not lie in a single, albeit spectacular, drill hole. It is found in the overall structure of Intrepid, a company emerging from years of wandering in the wilderness under different names and different management. In a previous life Intrepid was known as Taipan and its primary asset was the small, unloved, and misplaced Paulsens goldmine. Located in the heart of Australia’s Pilbara iron ore country Paulsens is a dead-set winner of a competition for forgotten Australian mines – though that is perhaps the first mistake when looking at Intrepid. A second would be looking too much at its history and overlooking the future.

There are three key assets driving Intrepid. Paulsens, Tujuh Bukit and a fresh management team. Paulsens is providing immediate cash flow. It is not a big mine, but it is very profitable, turning out around 80,000 ounces of gold a year at less than US $400 an ounce. Concern about a short life has been eased somewhat by recent drilling which has added to resource estimates and could help add a few more years to the operation. Tujuh Bukit is the big prize. It is a classic Indonesian-style discovery complete with a shallow, surface “cap”, of material containing at least 2.57 million ounces of gold, sitting atop a potential monster porphyry structure from which the 627.2 metre drill core was recovered.

Maximising value from the two in-ground assets is a management team with deep goldmining knowledge. Six key executives all have Placer Dome, Emperor Mines or Newmont experience under their belts. It’s those years of experience chalked up by people such as the chief executive, Brad Gordon (Placer, Delta, Emperor) and new business manager, Malcolm Norris (Emperor, WMC), and chief financial officer, Steve Smith (Placer, Peabody) which is behind at least one hard-nosed asset-sale decision, and the formulation of a clear business plan.

“We’re very focused on Tujuh Bukit,” is how Gordon described Intrepid’s future when Minesite caught up with him for a chat on the sidelines of a gold conference recently. “It is shaping as a world-class discovery with the hallmarks of Batu Hijau.” For anyone unfamiliar with mining names Batu Hijau is one of the biggest open pit copper and gold mines operated by Newmont. Located at the eastern end of the island of Java, not far from Tujuh Bukit, it contains more than a billion tonnes of ore assaying 0.4 % copper and 0.4 g/t gold. It is, to use a non JORC-code description, a bloody big lump of very valuable rock.

At Tujuh Bukit, where exploration is still in its early stages, the grades and geological structure bear a strong similarity. That monster drill hole, which has caused seasoned observers to sit up and take notice, returned assays of 0.5 % copper and 0.5 grams a tonne of gold, almost identical to Batu Hijau. Getting to that potential bloody big lump of rock will be a challenge for Intrepid. Bulk mining of the type being undertaken at Batu Hijau is big company stuff and Gordon openly talks about the need to “find a partner” for the bulk mining phase of Tujuh Bukit – though the early stages might be a different matter because the gold “cap” which might be relatively easy to treat, and sustain a mine producing 200,000 ounces of gold for at least 10 years.

Intrepid’s plan is to clear the decks of surplus assets, keep Paulsens going for as long as possible and tackle Tujuh Bukit. That process started in March when Intrepid sold its Casposo gold and silver project in Argentina to Troy Resources for US$22 million, with closure of the deal achieved in early May. “We’re emerging in a very strong position after the Casposo sale,” said Gordon. “We’re debt free, with Paulsens contributing around US$3 million a month, and with a sizeable amount of cash in the bank.”

Just how far Intrepid has come under its new management is demonstrated by a check list of achievements over the past 16 months. Back in January last year the company was carrying debt of US$18.5 million. It is now debt free. A hedge book covering almost 44,000 ounces of gold has been closed. Revenue has risen strongly. Costs cut and resource ounces, thanks to the inclusion of the Tujuh Bukit gold cap have risen from 416,100 to 2.8 million.

Australian stockbrokers, if not yet their British cousins, have become increasingly interested in Intrepid. Of the seven brokers covering the stock all have a buy rating, or speculative buy rating. There is no dominant shareholder with Taurus Funds Management sitting on a 9.5 per cent stake, followed by Acorn Capital with 7.8 per cent, Sprott Asset Management with 3.4 per cent. Taurus, for non-followers of Australian funds features former Australian rugby captain, Nick Farr-Jones, as a director, plus seasoned mining industry executive, Gordon Galt.

“It’s really about Tujuh Bukit,” was Morgans snappy description of Intrepid’s future which included a comparison with another Indonesian gold project, Martabe, sold recently by the troubled OZ Minerals for US$211 million. Intrepid has a much more work to do at Tujuh Bukit before it can claim to have its foot on a Martabe or a Batu Hijau. That’s one reason why the stock is trading around A30 cents, less than half the latest value estimate from Morgans and at a market capitalisation of A$124 million, which is less than half the sale price of Martabe. But, with Paulsens ticking over, and an estimated A$50 million in free cash after the Casposo sale, and with Tujuh Bukit to come it’s little wonder that Intrepid has won a best-in-class rating.

 

[banska bystrica]

IAU has broken resistance at 30c, pushed through 32c resistance on Thursday and today has smashed through to 37c/38c on good volume.
Debt free, unhedged, Paulsens looks like it will be extended and Tujut Bukit has an oxide cap which IAU can fund on their own (200,000 ounces per annum for 10 years) and then the massive upside comes from the copper/gold porphyry system underneath the oxide cap which will require a farm in from a major.

 

[Sean K]

IAU has broken resistance at 30c, pushed through 32c resistance on Thursday and today has smashed through to 37c/38c on good volume.
Debt free, unhedged, Paulsens looks like it will be extended and Tujut Bukit has an oxide cap which IAU can fund on their own (200,000 ounces per annum for 10 years) and then the massive upside comes from the copper/gold porphyry system underneath the oxide cap which will require a farm in from a major.

Outstanding run over the past few months and an outstanding breakout. Just running with POG perhaps?

 

[banska bystrica]

Wilson HTM have bought over 5M shares since the start of June. They are very close to IAU. Does that tell us something is brewing on the Tujut Bukit front or as kennas said, is it just gold price related?

 

[Amor_Fati]

Good news today with Vale signing a Heads of Agreement (non-binding) to give them an option for 60% of the deeper copper-gold ore body at Tujuh Bukit, leaving the smaller gold-silver "cap" to IAU. Intrepid management expect to finalise the agreement by Sept 09. I see it as a good deal for both parties, Vale would be paying 40m and funding the feasability study completely giving Intrepid a big boost in capital, which they can use to exploit those two gold-silver deposits (I think this alone is 2.5m oz au equivalent but don't quote me on that). Vale on the other hand are setting themselves up for what could be a major copper source for a very reasonable price.

I hold, and even better I doubled my holding yesterday at 27c

 

[banska bystrica]

From ABN Amro:
"Intrepid’s deal with Vale on Tujuh Bukit is a major strategic milestone for the company. It
strengthens IAU’s financial position, provides a means for ongoing evaluation of the (potential)
world class copper-gold project, and implies a value on IAU well above that being recognised by
the market. The deal has similarities with that struck by Indophil with Xstrata over Tampakan, and
should at least force Australian investors to sit up and take more notice of Tujuh Bukit which is
going largely unrecognised in IAU’s current market cap. Intrepid will retain 100% of its share of
the overlying oxide gold-silver project - a much more manageable project for a company of IAU’s
size, with scope for developing a 100-150kozpa gold-silver operation. Importantly, Vale will sole
fund both the pre-feasibility and Bankable feasibility studies on the sulphide project - worth
upwards of US$60-70m in drilling, assaying and testwork alone.
IAU remains our key small-cap gold pick, with the growing potential to evolve into a much larger
copper-gold play in the longer term. And remember that copper is by far the most favourable
commodity exposure, given that China is structurally short of the metal. This deal will take time to
be recognised by the market for IAU, however it highlights the potential of the project, as seen by
the second largest global miner, Vale."