Brisbane, Australia – 13/10/08. Intrepid Mines Limited provides the market with an update on the status of its Casposo Project in the San Juan Province of Argentina. Given the dramatic impact of financial market turmoil on the availability of funds – with debt availability uncertain and equity markets effectively closed – the Company has taken the decision to postpone construction of the Casposo Project at this stage, notwithstanding some of the best gold and silver intersections in current extension drilling being received.
By Intrepid Mines Limited
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The Company remains confident of the viability of Casposo and remains committed to its development at a time when the cost of debt and equity financing does not erode the long term intrinsic value of the business, as it would today. A drilling programme to extend the mine life is underway, potentially enhancing the project’s economics. Initial results from the drilling programme are noted above.
Meanwhile, the Company is actively reviewing alternative options to proceed with the development of Casposo without the need to undertake a fundraising. During this review process, the Company will moderate expenditure, and ensure that the Company is positioned to manage the Casposo asset in the manner which most enhances shareholder value.
In line with the decision to postpone construction at Casposo, the Company is reviewing the carrying value of this asset and will complete the review process as part of the September 2008 quarterly financial report.
