StoneBridge Research – Intrepid Mines Limited (IAU)

StoneBridge Research – Intrepid Mines Limited (IAU $0.27) – Vale to farm in to Tujuh Bukit

Reiterating BUY recommendation, price target $0.36/share

• IAU owns the Paulsens Gold Mine in Western Australia and an 80% interest in the Tujuh Bukit exploration project in Indonesia.
• Paulsens is nearing the end of its life with production expected to cease in late 2010.
• Drilling completed to date at Tujuh Bukit has identified a JORC compliant resource of 1.5Moz in the oxide zone.
• Deeper drilling has also identified large low grade copper/gold porphyry mineralisation. Exploration at Tujuh Bukit is currently focused on defining additional oxide resources.
• A resource at Zone B is due for release in August which we believe will lift total resources at Tujuh Bukit to nearly 2.5Moz of gold.
• Vale has just signed a heads of agreement with IAU to earn a 60% interest in the Tujuh Bukit sulphide project by spending US$40M.
• Confirmation of the Vale farm in and resource upgrade are likely to provide positive catalysts for the share price and we are reiterating our BUY recommendation on IAU and set a price target of $0.36/share.

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