DRILLING ON THE BARDOC TECTONIC ZONE DELIVERS ENCOURAGING RESULTS

Perth, Aug 29, 2017 AEST (ABN Newswire) - Intermin Resources Limited (ASX:IRC) ("Intermin" or the "Company") is pleased to announce initial drilling results from reverse circulation ("RC") and aircore drilling at the 100% owned Baden Powell and Olympia gold prospects located 60km northwest of Kalgoorlie-Boulder in Western Australia (Figure 1 in link below). Intermin completed 5 RC holes for 574m at the Baden Powell prospect and 27 aircore holes for 2,174m at the Olympia gold prospect. The drilling is part of a major ongoing program on the company's Bardoc Tectonic Zone (BTZ) project area (Black Flag, Windanya, Baden Powell and Goongarrie Lady)

HIGHLIGHTS

- First pass reconnaissance drilling completed at the 100% owned Baden Powell and Olympia prospects on the Bardoc Tectonic Zone (BTZ) 60km north of Kalgoorlie-Boulder

- Reverse circulation (RC) drilling at the Baden Powell prospect focused on extensions at depth to the south of the historic shallow workings

- Hole BPRC1703 intersected high grade mineralisation returning 17m @ 3.00 g/t Au from 104m depth (including 7m @ 5.95g/t Au from 111m)1

- The drilling has confirmed increasing tenor at depth in this area with follow up and step out drilling planned for the December Quarter

- Shallow aircore (AC) drilling at Olympia focused on testing part of the 3,800m by 500m gold-in-soil auger anomaly (maximum assay 169ppb Au) with anomalous levels of moderately oxidised quartz-sulphide related gold and supergene mineralisation intercepted at 50 -70m vertical depth at grade up to 1.4g/t Au

- Follow up drilling at Olympia will now focus on two key areas to test both the quartz sulphide mineralisation at depth and for the presence of a larger supergene blanket, similar to that seen at the 1.3Moz Aphrodite deposit 4km along strike to the north

- Diamond and RC drilling continues at multiple prospects in the Kalgoorlie region with results expected throughout the remainder of the 2017 calendar year

Commenting on results, Intermin's Managing Director, Mr Jon Price said: "The high grade intercept at Baden Powell is very encouraging and demonstrates the increasing widths and grades at depth to the south of the historic workings where very little drilling has been conducted in the past. This is also the first ever drilling at Olympia in our understanding and it is extremely pleasing to see anomalous gold mineralisation supporting the gold in soils work completed last year. The Company is investing heavily in new discovery exploration this year and will continue to apply the very latest in science and technology to systematically expand on the results to date."

Baden Powell

The Baden Powell prospect is located 20km south of the Goongarrie Lady gold project (Figure 1) and has received little systematic exploration in the last 30 years. Mineralisation at Baden Powell is hosted in a well-defined shear zone within a porphyry. Typically quartz and pyrite are associated with the gold. Small scale open pit mining occurred to a depth of ~15m to recover oxide mineralisation in the 1980's (Figure 2 in link below) however only limited deeper drilling occurred at that time.

Intermin completed a detailed technical review of the Baden Powell prospect with a view to targeting deeper potential underground resources. The best result was from BPRC1703 which recorded 17m @ 3.00 g/t from 104m depth. A high grade core of 7m @ 5.95 g/t was located at 111m. The true width here is estimated to be about 15m.

A further two holes were drilled south of BPRC1703 on the eastern side of the pit aimed to hit the mineralised shear at about 80m-100m drill depth. Holes BPRC1704 and BPRC1707 both hit the interpreted shear with BPRC1707 returning 3m @ 0.39 g/t from 56m. Faulting has possibly offset the shear.

Despite the low grade, the result is encouraging as typically these grades and thicknesses are often seen in this part of the vertical profile at Baden Powell. Better potential appears to be at depth underneath these intercepts. Importantly it confirms that the mineralised shear extends and is open to the south.

Two more holes were drilled grid east from the western side of the pit to test some west dipping quartz veins seen in the pit. Only moderate grades were returned within porphyry with relatively high levels of disseminated pyrite and a best result of 2m @ 0.83 g/t Au from 63m in BPRC1705

Further drilling to test the grade variability at depth and along strike will be carried out as a priority in 2017.

Olympia

At the Olympia gold prospect (Figure 2), located 2.5km northeast of the Baden Powell Pit, first pass aircore drilling (27 holes for 2,174m) was completed to test a 3,800m by 500m +25ppb gold-in-soil auger anomaly (maximum assay 169ppb Au).

The area has very little outcrop and is dominated by surficial laterites and calcrete and has had limited historical drilling. The auger anomalies are restricted to this near surface material. Drilling immediately beneath the calcrete encountered barren clays and occasional quartz veins. It is thought that these clays have been subject to intense leaching to at least 50m depth. Two significant results were returned:

- OLAC1712 - 1m @ 1.37ppm and 5m @ 0.73ppm Au from 68m and 88m depth respectively;

- OLAC 1708 - 6m @ 0.18ppm Au from 63m.

OLAC1712 was particularly encouraging in that quartz veining with minor amounts of fresh pyrite and possible biotite alteration were observed in the weathered drill chips. Nearby holes also contained oxidised cubic pyrite. The mineralisation in OLAC1708 is restricted to a narrow supergene zone. Adjacent holes 50m away failed to demonstrate similar mineralisation. This suggests a more local source of gold. Interestingly OLAC1708 is located on the intersection of two interpreted structures.

Further work including multi-element analysis of selected anomalous zones has commenced and additional drilling to follow up OLAC1712 and OLAC1708 is planned for 2018. All results for both the Baden Powell and Olympia prospects have been received with drill hole collar details and significant downhole intervals included in Table 1 and 2 in link below respectively.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/LINT54I0


About Intermin Resources Limited

Intermin Resources Ltd ASX IRCIntermin Resources Limited (ASX:IRC) 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 Stage 1 gold mine is currently in production.

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

Intermin is targeting the definition of significant high grade open cut and underground gold deposits, has acquired highly prospective tenure and will continue to actively pursue consolidation and value-adding joint venture opportunities for the benefit of all stakeholders.

 


Contact

Jon Price
Managing Director
Tel: +61-8-9386-9534
E: jon.price@intermin.com.au

Lorry Hughes
Director - Business Development
Tel: +61-8-9386-9534
E: lorry.hughes@intermin.com.au

Michael Vaughan
Media Relations - Fivemark Partners
Tel: +61-422-602-720
E: michael.vaughan@fivemark.com.au



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