Intermin Resources Limited (ASX:IRC) Consolidates Tenure South of the Golden Mile

Intermin Resources Limited (ASX:IRC) ("Intermin" or the "Company") is pleased to announce the consolidation of tenure making up the Lakewood Gold Project, 8km south east of Kalgoorlie-Boulder in Western Australia (see Figures 1 and 2 in link below). The Company is currently mining and generated cash from the Teal gold mine and will soon commence a self-funded 50- 60,000m new discovery and resource growth drilling program.

HIGHLIGHTS

- New tenure pegged making up the Lakewood Gold Project, 8km southeast of Kalgoorlie-Boulder in the Western Australian goldfields (see Figure 1 in link below)

- Project area covers 115km2 of greenstone belt comprising 42 Prospecting Licence applications and one Exploration Licence application

- Lakewood is located within the highly prospective Black Flag Group which hosts the Teal-Jacques Find-Peyes Farm deposits in close proximity to all required infrastructure

- Data compilation and target generation underway for initial drilling upon final granting of applications expected in the second half of 2018 (see Note below)

Commenting on the Lakewood acquisition, Intermin Managing Director Mr Jon Price said:

"We have been extremely fortunate to pick up such a large contiguous block of prospective greenstone belt in the heart of the Kalgoorlie goldfields which is consistent with our strategy of low cost acquisition of assets on major geological structures. Preliminary assessment has highlighted a number of high quality targets that remain untested and we look forward to commencing drilling on the project once the tenements have been granted."

Overview

Lakewood comprises 42 prospecting licence applications and one exploration licence application with a total area of 115km2 on the greenstone belt south of Kalgoorlie-Boulder's Golden Mile and adjacent to the 1Mtpa Lakewood toll milling facility.

On final grant of the applications, expected in the second half of 2018, the Company's 100% owned project area will increase to 472km2. Data compilation and initial drill targeting has commenced with several high quality targets identified that remain untested.

The project is located within the highly prospective Black Flag Group which also hosts the Teal-Jacques Find-Peyes Farm deposits. The area was pegged and applications for tenements submitted at a total cost of $50,000.

The interpreted geology of the Lakewood Gold project is dominated by metamorphosed sedimentary rocks and felsic volcanic/intrusive porphyritic rocks of the Black Flag Formation (similar to Teal), together with lesser basalts and ultramafic and minor dolerite.

Only a small portion of the project area is covered by in situ soils, and there is virtually no outcrop. Within the remainder of the project, a thin veneer of soils overlies plastic clays that vary in thickness from 2-40m and below this are 3-30m of unconsolidated clays and sands. Sandy grey clay filled palaeo-channels exist within the tenement area, some of which host alluvial gold.

The major regional Gidji Shear is interpreted to cut across the centre of the project, whilst the Boorara Shear and the Boulder-Lefroy Fault are likely to be present below the area. All of these structures are associated with significant gold mineralisation in the region.

History of the Lakewood Project

Geological interpretations based on down hole geology, geophysics, and historical Western Mining Corporation deep diamond drilling in the vicinity suggest that the Kalgoorlie Group and, in particular, portions of the Golden Mile Dolerite and ultramafic units as seen within the Super Pit, may also occur within the western portion of the Lakewood Gold Project area (Cibej 2006). Published stratigraphy also identifies these units further south at New Celebration and St Ives (Stolz and Roache 2007, Norris 1990) which further supports this interpretation.

Ground holdings in the Lakewood Gold Project area were historically fragmented until around 2005 when the area was consolidated by Mawson West Ltd. The exploration history of the area was summarised by Mawson West in 2005 as follows:

Sovereign Gold explored part of the tenement group from 1983 to 1989. Activities were focused on discovering shallow bedrock gold deposits that could be developed into open pits. A total of 400 RAB holes were drilled with about three quarters of these holes believed to have been drilled too shallow to penetrate below the zone of gold depletion. Some 45 RAB or aircore holes that returned results of >100ppb Au were not followed up. No surface geochemical programs were conducted.

Pancontinental Mining Ltd joint ventured with Sovereign Gold in 1989 to 1990 and conducted some geochemical surveys. Pancontinental sampled buried "ironstone" layers on a 0.5km x 1km wide grid utilizing a shallow RAB program. This drilling identified some broad low-level Au and As anomalies. They also conducted a soil sampling program and an auger program targeting the pedogenic carbonate layer. Some anomalies defined by these programs were drilled with minor bedrock anomalism recorded in a few holes.

Zanex Resources NL, Orion Resources NL and Herald Resources NL explored various tenements in the area from 1991 to 1997. Between 1992 and 1995 Orion Resources conducted extensive soil geochemical surveys. Sampling was initially conducted on a 400 x 25m grid which was followed up by 25 x 200m grid in anomalous areas. Orion recorded results including 1m at 1.1g/t and 1m @ 2.5g/t Au in their aircore drilling program in 1995. They also reported finding extensive porphyry, dolerite and basalt rocks and also veining similar to that seen at Golden Mile.

In 1997 Sons of Gwalia Ltd (SOG) conducted a pedogenic carbonate soil geochemical survey and analysed for pathfinder elements. Some gold anomalies were defined by Orion and SOG which were followed up by some limited drilling with a best result of 7m @ 0.53g/t Au including 1m @ 2.85g/t Au. Orion surmised that the soil Au anomalies could be related to the edges of concealed alluvial channels.

In 1996 Herald Resources conducted a detailed aeromagnetic survey which showed that dolerite could exist within the tenement area. Aircore drilling found bedrock comprising basalt and porphyry in a felsic volcanic sequence. The best intercepts were 3m @ 1.73g/t Au, including 1m at 4.28g/t Au in weathered rock.

In 1997 to 1998 Battle Mountain (Australia) Inc. (BM) held the Lakewood tenement group and carried out geochemical surveys and bedrock geochemical drilling. The geochemical survey was conducted on the north-eastern side of the area and defined some Au and broad platinum anomalies in mainly residual soils. A surface sampling program of limonitic clay over interpreted ultramafic rocks at depth was strongly anomalous in platinum. BM also drilled 53 holes to test a number of the surface anomalies. The drilling program met with significant trouble including sticky clays, cemented sands, and unconsolidated sands. BM subsequently withdrew from Australia leaving all anomalies untested.

Lakewood Gold NL conducted a detailed aeromagnetic survey in 1997 on a 50m line spacing and 25m terrain clearance. Several structural targets were defined by the aeromagnetics including the contact between the eastern and western terrains, where it is intersected by north-east and eastern lineaments. It is unclear whether these targets have been adequately drilled.

Geoscience Australia (then AGSO) between 1997 and 1999 conducted seismic, gravity and magnetic profiling to the north of the project area. From the data, they were able to interpret gabbro (high density), dolerite or basalt, felsic volcanics and sediments in this region. They suggested that the eastern Kalgoorlie sequence comprising the Golden Mile Dolerite lies within the tenement area at depth. This is a similar interpretation conducted by WMC in the 1960's when they drilled several deep holes located about 1.5km north-west of the project area.

After consolidation of the project area in 2005, various exploration programs were conducted across the tenements by Mawson West and then by St Barbara Mines under a JV between 2007 - 2008 with the later undertaking a substantial re-logging program of historic drilling and also drilling 420 AC holes, 15 RC holes and flying an airborne EM (TEMPEST) survey.

Mawson West spun-out the Lakewood Gold Project into Orrex Resources Limited during 2010. Since then Orrex have undertaken various data-compilation and targeting exercises and completed 5 aircore drilling programs, one RC drilling program and in conjunction with the DMP, drilled a 1,099m deep diamond hole to test the conceptual extension of the Golden Mile Dolerite, as postulated by AGSO.

Intermin intends to undertake a more detailed review of the historical exploration and compile a working database with a view to target generation. Work will be fast tracked once the tenements are granted.

Note:

1 See Forward Looking Statement on Page 6

To view figures, please visit:
http://abnnewswire.net/lnk/37BSUSA4


About Horizon Minerals Limited

Horizon Minerals Limited (ASX:HRZ) 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.

Horizon 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.

Horizon 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 $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.

 

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