Intrepid Mines Has Cash Flow, Cash in the Booth #2324

www.intrepidmines.com
Bank and Significant Upside in Indonesia. +61.7.3007.8000
Australian, underground gold mine. Not too BG: When we acquired the project there were
much can go wrong with the mine. There are about 14 holes drilled into it from when it was
several mines similar to it in Western Australia. an old Placer project. We’ve now drilled an addi-
Last year it generated US$30 million dollars so tional 140 holes and more than 35,000m. This
it’s performing quite well. year we’ll spend about US$15 million on the pro-
ject. Depending on how successful we are with
RI: Intrepid recently published encouraging drill pre-feasibility and with defining the inferred re-
results from the Tujuh Bukit Project in Indo- source with the deeper copper-gold sulphide we
nesia. Can you tell me about the exploration go- could be spending more than that. There’s also a
ing on there? new discovery called Katak some distance from
BG: The project is really two projects in one. For the original discoveries, which we started to drill
the last two years we’ve been focusing on near as well. So this is really our third significant leg to
surface gold-silver the exploration program.
oxides and we’ve RI: For people following
brought that up to
3.3 million ounces
“We have $40 million the Tujuh Bukit project,
what will the next few
gold equivalent. cash sitting in the bank months look like?
Below that we’ve
also discovered a and in addition to the BG: Well the news flow
gold-copper por-
phyry system as well
oxide project we’ve got from Tujuh Bukit is
really more results from
as other porphyry what looks like a very the deeper copper-gold
systems on our tene- porphyry drilling. We
ments. large copper-gold proj- announced one of those

We’re now at the pre- ect.” results a week ago and

Brad Gordon
President & CEO
Intrepid Mines is in the enviable posi-
tion of having discovered a high-grade
gold deposit lying in wait at their
Paulsens Mine, which was slated to
close this month. Revenues from the
new deposit will help fund exploration
in Indonesia where the political tide
just happens to be turning in favour of
foreign mining companies like Intrepid.
liminary economic ~President & CEO Brad Gordon
we’re getting more results
every few weeks. So there
assessment stage on will be a steady flow of
the gold-silver sys- news over the next few
tem with a report months, moving to the maiden inferred resource
due to come out in April this year. Depending on on the copper-gold in the third quarter of this
the results of that report we will move through to year. On the oxide you can expect a preliminary
a pre-feasibility study. At the moment, explora- economic assessment in April as I said and maybe
tion has moved toward establishing an inferred an uplift in the resource numbers from 3.3 mil-
resource in the deeper copper-gold sulphide sys- lion ounces of gold equivalent. We’re currently
tem. The initial discovery hole on that sulphide drilling the new Katak discovery and results from
system was 627m at 0.5% copper and 0.5 g/t that will be coming through in the next couple of
gold. We’re following up on that discovery. months as well. So the next few months for us, up

R RI: How big is the exploration program at Tujuh until July are going to be quite busy in terms of
esource Intelligence: The Paulsens gold mine
was due to close this month but in Decem- Bukit? news flow from the company.
ber Intrepid reported a new resource esti-
mate at the site. Could you comment on plans
at Paulsens?

Brad Gordon: Paulsens has been going for about

five years producing between 70,000 and 80,000
ounces per year. We were due to close the mine
about now, but we’ve discovered a new resource
about 40 m below where we finished mining
early this year. The resource is 12g/t, which is
higher grade than any of the previous mining
at the mine. We will be restarting the treatment
plant in June and the new resource will take us
well into 2011. So, it’s a bonus for us because the
cash flow will come in handy as we develop our
Indonesian operation.

RI: Before we talk about the Tujuh Bukit project

in Indonesia, could you let us know some of the
advantages of having a mine located in Australia.

BG: Low risk is the key advantage. It is a typical

52 See page 96 for Disclosure, Disclaimers & Info on Mineral Resource and Reserves
Intrepid Mines
- Continued
RI: What’s the current political climate for mining
in Indonesia?
BG: Improving. We’re starting to see more com-
panies moving into Indonesia. The new mining
law has created more certainty than there was
before and there are a couple of specific reasons
for that. We have now just been issued new IUPs
which are the new form of tenement in Indonesia
such that we now have a twenty year mining li-
cense over our three main targets. We also have
a new four year exploration license surrounding
our mining license. For the first time that allows
for companies like us to own a direct equity
in our project rather than a beneficial interest
through an offshore company. That’s a real bonus
because it removes one of the more significant
risks of operating in Indonesia.
International mining companies are encouraged
by the new mining law. The law is bringing the
climate for mining closer to what we would ex-
pect in countries like Canada or Australia. In
addition to the mining law, the forestry law,
which affects mining in Indonesia as well, is also
being renewed and updated. We see Indonesia as
Free Revolutionary Online Investment Calculators and all 43-101 data with sources and project values www.resourceintelligence.net
an improving destination for mining investment.
We’ve been in there now a couple of years and it’s
now a better destination than what it was a few
years ago.
RI: How vulnerable is Intrepid to the gold price?
BG: We don’t have any hedging so we’re totally
exposed to the gold price, which is good. The lar-
ger question to us is margin. I won’t comment on
where I think the gold price is going to go, but
our focus is more controlling cost, keeping those
down so that when the gold price does revert to
lower levels, Intrepid is protected. So far, we’ve
been very successful at doing this.
RI: What do you think investors should know
about Intrepid?
BG: We’re quite a unique investment opportunity.
We’re a producer through the Paulsen’s mine in
Western Australia but we also have a significant
growth profile through the two projects at Tujuh
Bukit. I look at companies like East Asia Min-
erals, another company operating in Indonesia
that has a good following in Canada recently.
Comparatively speaking, East Asia Minerals has
Booth #2324
www.intrepidmines.com
+61.7.3007.8000
yet to announce a resource. The drilling inter-
sections we have are at least as good as theirs.
We have $40 million cash sitting in the bank
and in addition to the oxide project we’ve got
what looks like a very large copper-gold project.
Intrepid has cash flow, cash in the bank, and sig-
nificant upside potential with the two projects
we’ve been developing in Tujuh Bukit.
Milestones:
• April 2010: Preliminary
economic assessment from
Tujuh Bukit Project
• June 2010: Restarting
treatment plant at Paulsens
mine
• Present until July 2010: Steady
flow of drill results from Tujuh
Bukit
• Q3 2010: Inferred resource
estimate from copper-gold
sulphide at Tujuh Bukit
53