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Intrepid Mines Limited (IAU)
StoneBridge Research – Intrepid Mines Limited (IAU $0.34) – Paulsens production solid, focus on Tujuh Bukit
Reiterating BUY recommendation, price target increased from $0.36/share to $0.40/share
- IAU owns 100% of the Paulsens Gold Mine in Western Australia and an 80% interest in the Tujuh Bukit exploration joint venture in Indonesia.
- Paulsens produced 20.0koz of gold in the 2QCY09 at a cash cost of US$484/oz.
- Production was 9% higher than we had forecast while cash costs were in line.
- Drilling at Tujuh Bukit is ongoing and work completed to date suggests that Zone B is likely to be larger than Zone A & Zone C combined.
- We have upgraded our valuation on IAU from $0.36/share to $0.40/share to reflect the solid production result at Paulsens and an increase in our resource estimate for Zone B at Tujuh Bukit.
- The release of an initial resource for Zone B is likely to have a positive impact on IAU’s share price and we are reiterating our BUY recommendation on the stock.
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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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