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Intrepid Mines Provides Updates on Kitumba Project in Zambia

Intrepid Mines Limited ("Intrepid" or the "Company") is pleased to provide the following update regarding the Kitumba project in Zambia.

KEY POINTS

  • Fourth drill rig mobilised
  • Drilling begins at Kakozhi
  • Encouraging early indications from drilling at Target H

The Company's CEO, Scott Lowe said:

"We are pleased to be drilling at Kakozhi, an exciting target which is approximately 6 kilometres from our Kitumba deposit. A discovery of any significance could potentially have a significant positive impact on Kitumba economics.

We are also encouraged by the early results from our drilling at Target H, which follows on from the results from the first diamond drill hole drilled on this target and reported on 28 July 2015. Drilling on the remainder of the targets is also progressing to plan, with results to be announced to the market once final assay results are received."

KAKOZHI TARGET

Drilling is now underway to test the Kakozhi high priority satellite target. An additional diamond drill rig has been mobilised to site and has started drilling the first of two 500 metre diamond core drill holes.

Previously at Kakozhi, drilling was focused on testing a coincident soil geochemical and airborne gravity anomaly. The three holes drilled at the time were designed to gain the best stratigraphic coverage centred on a gravity and soil copper geochemical anomaly.

These previous holes (KAKDD_001, KAKDD_002 and KAK_003) confirmed a mineralised system displaying a replacement style of mineralisation with the best results being KAKDD_001, 202.54 metres at 0.35% copper from 15.9 metres to 218.44 metres, including 8.56 metres at 0.42% copper from 185.44 metres to 194 metres.

In addition to the gravity and geochemical anomaly described above, further work conducted during the 2014 exploration season identified an IP chargeability anomaly and outcropping hematite breccia.

Two holes have been designed to test these targets.

Figure 1. Mumbwa project targets showing priority

To View Figure 1, please visit the following link: http://media3.marketwire.com/docs/150928_IAU_Fig_1.pdf

UPDATE ON 2015 EXPLORATION DRILLING

Drilling at the Mumbwa Project for the 2015 drilling season began on 24 April 2015, following mobilisation of the first of the diamond drill rigs at the "Target H" prospect. Approximately 10,000 metres of diamond and reverse circulation (RC) drilling was planned for 2015 on 11 targets, with priority placed on targets anomalous in multiple datasets (soils, magnetics, gravity and mapping) and located within the Kitumba mining licence area. An update on progress is given below.

Assay results from the first exploration drill hole at "Target H" have already been reported, with some encouraging results as detailed below. (Refer to announcement lodged with AXS on 28 July 2015, "Intrepid Mines Limited: Mumbwa Project - Target H Delivers Encouraging Copper and Gold Results".)

COPPER HIGHLIGHTS FROM HDD_001 INCLUDED:

  • 8 metres at 1.12% copper from 42 metres including
    • 1 metre at 2.09% copper from 45 metres
  • 1 metre at 2.36% copper from 131 metres
  • 58 metres at 0.61% copper from 185 metres including
    • 16 metres at 1.02% copper from 193 metres

GOLD HIGHLIGHTS FROM HDD_001 INCLUDED:

  • 5 metres at 0.65 g/t gold from 204 metres including
    • 1 metre at 1.14 g/t gold from 206 metres

Follow-up drilling at "Target H" via a 200 metre step-out hole along strike (HDD_004) has also indicated some encouraging results.

During the course of drilling HDD_004, hematite was regularly observed in brecciated and fractured rock, both supergene and hypogene mineralisation has been observed and elevated results from field XRF analyses confirmed that the extension of the mineralised zone in HDD_001 has been intersected (Figure 2).

Final assay results for HDD_004 (along with results from other completed drilling) will be reported as soon as they become available (expected Q4 2015).

Figure 2 Native copper mineralisation in a highly weathered portion of the mineralised specular hematite breccia at 243 m.

To View Figure 2, please visit the following link: http://media3.marketwire.com/docs/150928_IAU_Fig_2.pdf

OTHER DRILLING COMPLETED

A total of approximately 6,000 metres of the planned 10,000 metres of drilling has been completed so far as detailed in the following tables.

RC DRILLING

To View Table RC Drilling, please visit the following link: http://media3.marketwire.com/docs/RC-DRILLING.jpg

DIAMOND DRILLING

To View Table Diamond Drilling, please visit the following link: http://media3.marketwire.com/docs/DIAMONDDRILLING.jpg

DRILLING ON OTHER TARGETS

Kantonga

Kantonga drilling has also returned interesting early indications and drilling to date has shown that the system does host chalcopyrite, as drilled in KANDD_002. Results are expected in Q4 2015. A third and final diamond hole is currently being drilled at Kantonga.

Quantec H

Quantec H is located to the immediate NW of Kitumba and returned pyrite rich material in heavily altered syenites, however, little chalcopyrite was observed. Given the depth of the target and lack of copper mineralisation, no further work is recommended.

MUM_S37

MUM_S37, a geophysical target under alluvial (river bed) cover has now been drill tested and returned a barren dioritic intrusive. No further work is recommended.

Target J

Target J was tested with a single RC hole. It is thought possible that this hole did not adequately test the geophysical target at depth and surface soil anomaly. Once all data is returned a more thorough review will be completed.

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