Quarterly Activities Report for the Period Ended 30 June 2018
Quarterly Activities Report for the Period Ended 30 June 2018
Perth, July 16, 2018 AEST (ABN Newswire) - Intermin Resources Limited (ASX:IRC) ("Intermin" or the "Company") provides the June 2018 Quarterly Activities Report. Intermin is a gold exploration and development company with a key focus in the Kalgoorlie region of Western Australia (see Figure 1 in link below) and has a number of joint ventures in place with quality partners covering multiple commodities in Western Australia and Queensland.

HIGHLIGHTS

- Mining, ore haulage, toll treatment and final gold sales at the Teal gold mine completed

- Final milling campaign completed successfully with 47,140 dry tonnes of transitional ore treated at 2.59g/t Au feed grade and 87.1% recovery for 3,431 fine ounces produced

- Final gold sales of 2,036 fine ounces with A$3.5m received at an average price of A$1,734 per ounce

- In total, Teal Stages 1 and 2 produced 21,836 fine ounces from the processing of 228,850 dry tonnes grading 3.2g/t and 93.6% recovery

- Gold production from Teal exceeded Feasibility Study estimates and was in the upper range of the upgraded market guidance (see Note 1 below)

- Cash and tradeable securities of A$9.52 million (see Note 2 below)

- Fully funded 55,000m Resource extension and new discovery drilling program continues with 19,073m drilled at the Teal, Binduli and Anthill projects during the Quarter

- Excellent resource extension drilling results received from Jacques Find, Peyes Farm, Teal Stage 3 and Yolande (see Note 3 below)

- New discovery made in RC drilling east of Peyes Farm named Will's Find demonstrating multiple parallel lodes within a 4km mineralised corridor open along strike and at depth (see Note 4 below)

- Excellent initial drilling results announced from the Lehmans Joint Venture (see Note 5 below)

- Positive first pass metallurgical testwork received from the Lilyvale vanadium project with optimisation and downstream processing testwork ongoing at two Chinese Research Institutes (see Note 6 below)

- Drilling commenced at the Anthill gold project on the Zuleika Shear with results expected in the current September Quarter

- Goongarrie Lady Feasibility completed with positive economic results (see Note 7 below)

- Janet Ivy Mining Royalty payments of A$0.50/t continue with A$212,500 received for the March Quarter and regular quarterly payments expected through CY2018 (see Note 8 below)

SEPTEMBER QUARTER ACTIVITES (see Note 8 below)

- Final cost reconciliation for Teal including resolution of purported variation claims received from mining contractor Resource Mining Pty Ltd (see Note 9 below)

- Ongoing resource expansion and new discovery drilling at Binduli, Anthill and Blister Dam

- Further drilling results from the Teal, Binduli and Anthill gold projects

- Richmond Vanadium metallurgical test work results on ore pre-concentration optimisation

- Resource update for the Teal project area

- Stakeholder engagement and drill program planning for the Lilyvale vanadium prospect

OPERATIONS

TEAL OPEN PIT

Open cut mining from both Teal Stages 1 and 2 was completed on 10 March 2018 (see Figures 2-4 in link below). During the Quarter, all remaining ore was hauled to the Lakewood toll milling facility and successfully processed in June. Mine closure activities and site rehabilitation were completed and the mine site closed.

The final ore processing campaign at the 1Mtpa Lakewood toll milling facility was completed successfully and ran for 26 days up until 28 March 2018. Delays in carbon stripping and subsequent bullion production occurred during the Quarter with final gold poured (see Figure 3 in link below), shipped and refined in May and clean up completed in June. A total of 47,140 dry tonnes of transitional ore was milled at a final calculated head grade of 2.59g/t Au. Plant metallurgical recovery exceeded expectations from transitional ore at 87.1% producing 3,431 fine ounces of gold.

A full reconciliation of the mine physicals has now been completed and a summary of project performance shown in Table 1 below (see Note 10 below).

Gold production from Teal of 21,836 fine ounces exceeded Feasibility Study estimates and was in the upper range of the upgraded production guidance. Importantly, the mine performed well against the Reserve model with the grade in line, 13% more tonnes mined at the modelled grade and metallurgical recoveries 6% above Feasibility Study estimates (see Note 10 below).

Final royalty and statutory payments and cost reconciliations are currently being compiled and are expected to be completed in the September Quarter 2018 subject to resolution of purported cost variation claims received in the March and June Quarters from Resource Mining Pty Ltd ("Resource Mining") (see Note 9 below).

The Teal Gold Mine was mined under a risk share - profit share structure with mining contractor Resource Mining (see Note 11 below).

Intermin and Resource Mining co-funded development on a 50:50 cost and risk share basis to first gold production with the net operating cash flow as determined under the agreement between the parties to be shared 75% to Intermin and 25% to Resource Mining.

The Company announced to the ASX on 30 April 2018, that it had received a purported cost variation claim from Resource Mining relating to the Teal Stage 1 project up until September 2017 and that it was working to resolve this and any additional claims that may be forthcoming from Resource Mining.

The Company has subsequently received a further purported cost variation claim from Resource Mining for Teal Stages 1 and 2 through to project completion. This further purported cost variation claim adopts a different methodology to the previous claim and, as with the previous claim, the Company disputes both the form and substance of the claim.

Intermin is working to resolve this matter and will provide further updates to the market in due course.

Notes:

1 As announced to the ASX on 6 July 2016 and 6 September 2017,

2 Includes 75% profit share component from Teal gold mine as per Intermin's position, see Page 5 for details,

3 as announced to the ASX on 18 April and 12 June 2018,

4 As announced to the ASX on 24 April 2018,

5 as announced by Saracen on 1 May 2018,

6 as announced to the ASX on 8 May 2018,

7 As announced to the ASX on 28 June 2018,

8 See Forward Looking and Cautionary Statement on Pages 21 and 22,

9 As announced to the ASX on 27 June 2018.

10 As announced to the ASX on 19 July 2016, 6 September 2017 and 27 June 2018

11 As announced to the ASX on 19 July 2016

To view the full report with tables and figures, please visit:
http://abnnewswire.net/lnk/3574BGYE


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

 


Contact

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

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



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