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Intermin Resources update on Goongarrie Lady Feasibility Study

Mining News - Published on Mon, 02 Jul 2018

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Intermin Resources Limited announced that the results of the Goongarrie Lady Feasibility Study. The proposed mining project comprises the predominantly oxide material contained within the project's maiden Ore Reserve. The 100% owned project is located 85km north of Kalgoorlie-Boulder in Western Australia.

1. Positive scoping study released in April 2017 and additional infill drilling completed and released in October 2017 to increase geological confidence

2. Updated JORC 2012 Mineral Resource Estimate now completed totalling 0.31 Mt @ 2.40 g/t Au for 24,000 ounces (1.0g/t Au lower grade cut-off)

3. Over 87% of the Mineral Resource Estimate now in the Measured and Indicated categories.

4. Maiden Ore Reserve of 0.135Mt at 2.94g/t for 12,700 ounces

5. Metallurgical test work completed on representative samples from all ore zones with estimated recoveries of 94%

6. Statutory approvals well advanced and study assumes contract mining and haulage and ore processing at one of three nearby third party facilities

7. Feasibility Study findings indicate a technically strong and financially viable project with the following results:

o Open pit mine design producing 135,000t at a fully diluted grade of 2.94g/t Au for 12,700 ounces over a 7 month mine life

o Third party milling at 94% metallurgical recovery produces 11,938 ounces recovered

o Low up-front capital costs of AUD 0.73m

o Attractive C1 Costs of AUD 1,131/oz and All In Sustaining Costs of AUD 1,164/oz

o Project generates AUD 5.7m in free cash flow in seven months at AUD 1,700/oz gold price

8. Study confirms Goongarrie Lady as Intermin's next mining project in the production pipeline to enable continued aggressive, self-funded Goldfields exploration growth strategy

9. Next steps include:

o Completion of statutory approvals in the September and December quarters

o Review of development options and negotiation with mining and haulage contractors and third party toll milling operators

o Board approval for mine development in 2019

Commenting on the Goongarrie Lady Study outcomes, Intermin Managing Director Mr Jon Price said that "The Goongarrie Lady Feasibility Study has delivered robust economic results with strong projected cash margins and reduced geological risk. As with the successful Teal gold mine, the Company has taken a conservative approach to both Resource estimation and development studies with the infill drilling increasing geological confidence and mine optimisation studies adopting conservative cut off grades to ensure acceptable cash margins."

Mr Price said that "The Company now looks forward to completing final statutory approvals and determining the optional development pathway to maximise and realise value for Intermin shareholders as Goongarrie Lady is confirmed as the next development in the production pipeline to enable our self-funded organic growth."

Meanwhile, Intermin Resources Limited is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.

Intermin is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.

Intermin has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over USD 20 million over 5 years enabling focus on the gold business while maintaining upside leverage.

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Posted By : Joykumar Irom on Mon, 02 Jul 2018
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