tumpengan tumpang pitu

INTREPID MINES LIMITED

TUJUH BUKIT PROJECT

REPORT ON MINERAL RESOURCES, LOCATED IN EAST JAVA,

INDONESIA

TECHNICAL REPORT

FOR

INTREPID MINES LIMITED LEVEL 1, 490 UPPER EDWARD ST.

SPRING HILL, QLD 4004

AUSTRALIA

21 JUNE 2011

PHILLIP L. HELLMAN, BSC (HONS 1), DIP ED, PHD, MGSA, MAEG, FAIG

HELLMAN & SCHOFIELD PTY LTD TEL: +61 2 9858 3863

3/6 TRELAWNEY ST, EASTWOOD FAX: +61 2 9858 4077

NSW 2122 AUSTRALIA EMAIL: [email protected]

TUJUH BUKIT

HELLMAN AND SCHOFIELD | JUNE 2011

2.0 CONTENTS

2.0 CONTENTS................................................................................................................................. 2

LIST OF FIGURES ...................................................................................................................................... 4

LIST OF TABLES ....................................................................................................................................... 6

LIST OF APPENDICES ............................................................................................................................... 6

3. SUMMARY .................................................................................................................................. 1

3.1 Property ..................................................................................................................................... 1 3.2 Location .................................................................................................................................... 1 3.3 Ownership ................................................................................................................................. 1 3.4 Geology and Mineralization ..................................................................................................... 1 3.5 Exploration Concept ................................................................................................................. 1 3.6 Status of Exploration ................................................................................................................ 1 3.7 Development and Operations .................................................................................................... 2 3.8 Qualified Person’s Conclusions and Recommendations .......................................................... 2

4. INTRODUCTION ......................................................................................................................... 3

5. RELIANCE ON OTHER EXPERTS ............................................................................................... 4

6. PROPERTY DESCRIPTION AND LOCATION ............................................................................... 5

7. ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............... 8

8. HISTORY .................................................................................................................................... 9

9. GEOLOGICAL SETTING ........................................................................................................... 11

9.1 Regional Geology ........................................................................................................................ 11 9.2 Local Geology ............................................................................................................................. 16 9.3 Deposit Geology .......................................................................................................................... 21

10. DEPOSIT TYPES....................................................................................................................... 39

11. MINERALIZATION ..................................................................................................................... 39

11.1 Katak ..................................................................................................................................... 39 11.2 Gunung Manis ....................................................................................................................... 41 11.3 Candrian ................................................................................................................................ 42 11.4 Tumpangpitu ......................................................................................................................... 43

12. EXPLORATION ......................................................................................................................... 57

13. DRILLING ................................................................................................................................. 64

13.1 Drilling Contractor and Drilling Statistics .............................................................................. 66 13.2 Drilling Equipment .................................................................................................................. 66 13.3 Down hole Surveys ................................................................................................................. 67 13.4 Drill Hole Collar Survey and Topographic Survey ................................................................. 67 13.5 Summary Results of Drilling ................................................................................................... 67

14. SAMPLING METHOD AND APPROACH ..................................................................................... 68

14.1 Core Processing Protocols ....................................................................................................... 69 14.2 Measurement of Specific Gravity ............................................................................................ 71 14.3 Sampling Intervals ................................................................................................................... 71 14.4 Core Recovery Data ................................................................................................................ 72 14.5 Comparison of Sludge Samples versus Core Samples ........................................................... 73

15. SAMPLE PREPARATION AND SECURITY ................................................................................. 75

15.1 Sample Splitting, Packaging and Labelling ............................................................................ 75 15.2 Procedures Employed to Ensure Sample Integrity ................................................................. 75 15.3 Use of IMN Employees in Sampling Procedure ..................................................................... 76 15.4 Sample Security and Transport ............................................................................................... 76 15.5 Analytical Laboratories ........................................................................................................... 77

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15.6 Analytical Methods ................................................................................................................. 78 15.7 QAQC Procedures Employed ................................................................................................. 80 15.8 QAQC Results ........................................................................................................................ 83

16. DATA VERIFICATION ............................................................................................................... 84

17. ADJACENT PROPERTIES ......................................................................................................... 85

18. MINERAL PROCESSING AND METALLURGICAL TESTING ....................................................... 86

18.1 Sulfide Testwork ..................................................................................................................... 86 18.2 Summary of Oxide Testwork .................................................................................................. 86 18.3 Metcon Metallurgical Program ............................................................................................... 91 18.4 KCA Metallurgical Test Program ........................................................................................... 95 18.5 Ore and Waste Acid Neutralization Potential ......................................................................... 97 18.6 Future Work ............................................................................................................................ 97 18.7 Ore Processing ........................................................................................................................ 97

19. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATE .................................................. 100

20. OTHER RELEVANT DATA AND INFORMATION ....................................................................... 130

20.1 Porphyry Resource ................................................................................................................ 130 20.2 Summary Of Preliminary Economic Assessment For The Tujuh Bukit Oxide Project ........ 135

21. INTERPRETATIONS AND CONCLUSIONS ............................................................................... 144

21.1 Interpretations and Conclusion of the Porphyry Resource ................................................... 144 21.2 Interpretations and Conclusion of the Oxide Resource ........................................................ 144

22. RECOMMENDATIONS ............................................................................................................ 144

22.1 Recommendations for the Porphyry resource ....................................................................... 144 22.2 Recommendations for the Preliminary Economic Assessment of the Oxide Resource ........ 145

23. REFERENCES ........................................................................................................................ 151

24. DATE AND SIGNATURE PAGE ............................................................................................... 153

25. ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES

AND PRODUCTION PROPERTIES ........................................................................................... 154

26. ILLUSTRATIONS .................................................................................................................... 154

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LIST OF FIGURES Figure 1: Location of the Tujuh Bukit Project, Banyuwangi, East Java, Indonesia. .................................................................... 5 Figure 2: IUP Production Operation (outlined in red). ................................................................................................................. 6 Figure 3: IUP Exploration outlined in red. ................................................................................................................................... 6 Figure 4: Regional geology. ...................................................................................................................................................... 12 Figure 5: Location of the Tujuh Bukit project. ........................................................................................................................... 13 Figure 6 : Regional geology of the southeast corner of Java (Jawa Timur). .............................................................................. 15 Figure 7 : Distribution of mineral prospects ............................................................................................................................... 16 Figure 8 : Lithology of the Tumpangpitu prospect region ........................................................................................................... 17 Figure 9 : Lithology of the Tujuh Bukit project as mapped by Placer (2000-2001). ................................................................... 18 Figure 10 : Reduced-to-Pole magnetic image ........................................................................................................................... 20 Figure 11 : Lithology cross-section 11060 mN at Tumpangpitu ................................................................................................. 22 Figure 12 : Distribution of alteration styles at the Tumpangpitu prospect as mapped by GVM-Placer ...................................... 23 Figure 13 : Outcrop of crystal lithic tuff with possible fiame from the Salakan Prospect. ........................................................... 24 Figure 14 : Matrix-supported lithic-crystal tuff from hole GTD-34 (Zone A - Tumpangpitu) ....................................................... 25 Figure 15 : Nine locations where sediments are encountered at Tumpangpitu (Nov. 2010). .................................................... 26 Figure 16 : Images of sedimentary textures in fresh to incipiently propylitic-altered sediments ................................................ 28 Figure 17 : Interbedded, fine-grained volcanic sandstones (propylitic) ...................................................................................... 28 Figure 18 : Images of laminated and banded sediment in drill hole GTD-10-162 ...................................................................... 29 Figure 19 : Very coarse grained tonalite (CT): GTD-09-42 (667m)............................................................................................ 32 Figure 20 : Mill breccia from an interpreted diatreme complex at Zone B.................................................................................. 34 Figure 21 : Clast of intense porphyry quartz vein stockwork ..................................................................................................... 35 Figure 22 : Left - Clast of quartz-magnetite alteration (potassic zone) ...................................................................................... 35 Figure 23 : Left - Clast of porphyry related Qtz-magnetite-pyrite altered rock ........................................................................... 35 Figure 24 : Left - Accretionary lapilli from GTD-09-60 ............................................................................................................... 36 Figure 25 : Charcoal wood fragments embedded within chlorite-clay altered mill (diatreme) .................................................... 36 Figure 26 : Muddy matrix breccias (GTD-09-107; 162.10m and 163m)..................................................................................... 37 Figure 27 : Cross-section 11220 mN at Tumpangpitu. .............................................................................................................. 38 Figure 28 : Plan of 5 planned drill holes that were subsequently drilled at Katak. ..................................................................... 40 Figure 29 : Plan of 5 planned drill holes that were subsequently drilled at Katak. ..................................................................... 40 Figure 30 : Alteration map at Gunung Manis ............................................................................................................................. 42 Figure 31 : Location of the Candrian porphyry prospect ............................................................................................................ 43 Figure 32 : Vuggy massive silica (vu-Hsi) alteration of lithic tuff ................................................................................................ 44 Figure 33 : Alteration section 11,200 mN (Placer grid) at Zone A.............................................................................................. 45 Figure 34 : Alteration section 10,910 mN (Placer grid) at Zone C, ............................................................................................ 46 Figure 35 : Alteration section 9045370 mN (UTM grid) at Zone B ............................................................................................. 47 Figure 36 : Plan of the principal porphyry Cu-Au-Mo intersections at Tumpangpitu (yellow bars), ........................................... 48 Figure 37 : Resource block model section 11040 mN (Placer grid) at Tumpangpitu. ................................................................ 49 Figure 38 : Alteration section 11040 mN (Placer grid) at Tumpangpitu (Nov. 2010). ................................................................ 50 Figure 39 : Top-left, GTD-10-167 (403m) Qtz-Mo (B-vein) with Py center-line. ........................................................................ 52 Figure 40 : Average grade of As in oxide drill holes for 3 oxidation classes (fresh, strong, complete) ...................................... 53 Figure 41 : Enrichment factor of As in oxide Zones A-F ............................................................................................................ 53 Figure 42 : Core from the porphyry zone in GTD-09-112 (731.20m depth). .............................................................................. 55 Figure 43 : Core from the porphyry zone in GTD-10-163 .......................................................................................................... 55 Figure 44: Distribution of Au anomalies in -80 mesh soil samples at Tumpangpitu, ................................................................ 60 Figure 45 : Distribution of Cu anomalies in -80 mesh soil samples at Tumpangpitu, ................................................................ 61 Figure 46 : Left – Aeromagnetic data flown by Golden Valley Mines (circa 1999) .................................................................... 63 Figure 47 : Distribution of drill holes at Tumpangpitu as of 9th May 2011. ................................................................................. 65 Figure 48 : Summary of core recovery for the diamond drilling programs at Tumpangpitu. ...................................................... 73 Figure 49 : Plots of Au in core and in corresponding sludge samples for Tumpangpitu. ........................................................... 74 Figure 50 : Plots of Cu in core and in corresponding sludge samples for Tumpangpitu. ........................................................... 74 Figure 51 : Contoured elevation model showing block model limits ........................................................................................ 100 Figure 52 : Location of new mineralised intercepts (red) ......................................................................................................... 101 Figure 53 : Example of sectional interpretation of Cu mineralised zone .................................................................................. 102 Figure 54 : Relationship of elevation to Cu mineralization shell and elevated Cu drill hole intercepts .................................... 102 Figure 55 : Deposit-wide cross section, Cu in 6m composites (transition and sulfide zone) ................................................... 106 Figure 56 : Deposit-wide long section, Cu in 6m composites (sulfide zone) ............................................................................ 107 Figure 57 : Deposit-wide cross section, Au in 6m composites (transition and sulfide zone).................................................... 108

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Figure 58 : Deposit-wide long section, Au in 6m composites (transition and sulfide zone) .................................................... 109 Figure 59 : Deposit-wide cross section, Mo in 6m composites (transition and sulfide zone) .................................................. 110 Figure 60 : Deposit-wide long section, Mo in 6m composites (transition and sulfide zone) .................................................... 111 Figure 61 : Deposit-wide cross section, As in 6m composites (transition and sulfide zone) ................................................... 112 Figure 62 : Deposit-wide long section, As in 6m composites (transition and sulfide zone) .................................................... 113 Figure 63 : Cu:Au relationship, 6m composites, sulfide mineralization ................................................................................... 113 Figure 64 : Cu:Mo relationship, 6m composites, sulfide mineralization .................................................................................. 114 Figure 65 : Cu:As relationship, 6m composites, sulfide mineralization ................................................................................... 114 Figure 66 : Au:As relationship, 6m composites, sulfide mineralization ................................................................................... 114 Figure 67 : Modelled variograms for Cu (from top: down hole, 040 and 130 directions, UTM) .............................................. 116 Figure 68 : Modelled down-hole variogram for Au .................................................................................................................. 117 Figure 69 : Modelled down-hole variogram for As .................................................................................................................. 117 Figure 70 : Modelled down-hole variogram for Mo ................................................................................................................. 117 Figure 71 : Location of resource in relation to Cu mineralization ............................................................................................ 118 Figure 72 : Location of Exploration Potential in relation to Inferred Resource ........................................................................ 121 Figure 73 : Combined drill holes and block model (oblique section) ....................................................................................... 122 Figure 74 : Legend for sections .............................................................................................................................................. 123 Figure 75 : Oblique section 3, drill hole GTD-08-42 and block model .................................................................................... 123 Figure 76 : Oblique section 6, drill holes and block model ...................................................................................................... 124 Figure 77 : Oblique section 7, drill holes and block model ...................................................................................................... 124 Figure 78 : Oblique section 8, drill holes and block model ...................................................................................................... 125 Figure 79 : Oblique section 9, drill holes and block model ...................................................................................................... 125 Figure 80 : Oblique section 10, drill holes and block model .................................................................................................... 126 Figure 81 : Location of oblique sections in relation to drill holes and block model ................................................................. 127 Figure 82 : Combined drill holes and block model (oblique section) -gold .............................................................................. 128 Figure 83 : Combined drill holes and block model (oblique section) - molybdenum ............................................................... 128 Figure 84 : Combined drill holes and block model (oblique section) - arsenic ........................................................................ 129 Figure 85 : Legend for composite sections for Au, Mo & As ................................................................................................... 129 Figure 86 : Oblique oxide section 9, new results from GTD-11-194 ....................................................................................... 131 Figure 87 : Oblique section 16, new results from GTD-11-201 ............................................................................................... 132 Figure 88 : Oblique section 18, new results from GTD-11-203 ............................................................................................... 133 Figure 89 : Oblique oxide section 6, new results from GTD-11-205 ....................................................................................... 134 Figure 90 : Oblique porphyry section 10, new results from GTD-11-206 ................................................................................ 135 Figure 91: Summary - Standard Bias Plot Lab: Intertek Method; FA30 Method: Au.............................................................. 162 Figure 92: Summary - Standard Bias Plot Lab: Intertek Method: GA02 Method: Cu ............................................................. 162 Figure 93: Charts for Standard: OREAS 53Pb Lab: Intertek ................................................................................................. 163 Figure 94: Check Assays - Au (FA30/Au-AA25); Cu (GA02/ME-OG62); Ag (GA02/ME-OG62) ............................................ 165 Figure 95: Field Duplicate Charts (Au, Cu, Ag) ...................................................................................................................... 166 Figure 96: Laboratory Repeatability Summary Report (Lab: Intertek) ................................................................................... 167

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LIST OF TABLES Table 1 : Inferred Oxide Resource at Tumpangpitu as reported in January 2011 ..................................................................... 58 Table 2 : Number of core samples assayed per sampling interval (Tumpangpitu) .................................................................... 71 Table 3 : Summary of core recovery for the diamond drilling programs at Tumpangpitu .......................................................... 72 Table 4 : Method and detection limits for elements analysed in the Tumpangpitu drilling program. ......................................... 78 Table 5 : List of OREAS standards (CRM’s) used in the Tujuh Bukit Project ............................................................................ 82 Table 6 : List of OREAS standards (CRM’s) used in the Tujuh Bukit Project ............................................................................ 82 Table 7 : Summary Results of Metcon Test Program ................................................................................................................ 86 Table 8 : Summary of KCA Test Work ....................................................................................................................................... 88 Table 9 : Summary of KCA Column and Projected Field Recoveries ........................................................................................ 89 Table 10 : KCA Core Photograph Category Summary .............................................................................................................. 90 Table 11 : Metcon Composite Samples ..................................................................................................................................... 91 Table 12 : Head Assays ............................................................................................................................................................. 92 Table 13 : Comparison of Expected, Assayed, & Average Calculated Head Grades ................................................................ 92 Table 14 : Metcon Baseline Cyanidation Test Summary ........................................................................................................... 93 Table 15 : Effect of Higher Cyanide Concentration on Residue Grades .................................................................................... 94 Table 16 : Metcon Comminution Test Summary ........................................................................................................................ 94 Table 17 : Metcon Analyses of Final Leach Solutions ............................................................................................................... 95 Table 18 : Column Leach Test and Expected Field Recoveries ................................................................................................ 96 Table 19 : Cyanide Consumption ............................................................................................................................................... 97 Table 20 : Summary of assayed intervals within interpreted copper mineralised zone ........................................................... 103 Table 21 : Summary of 6m composites within interpreted copper mineralised zone (only sulfide intervals) ........................... 103 Table 22 : Summary of 6m composited densities within interpreted copper mineralised zone ............................................... 103 Table 23: Summary, by hole, of 6m composites within interpreted porphyry zone(sulfide intercepts only) ............................ 104 Table 24 : Block model extents ................................................................................................................................................ 118 Table 25 : Summary of Inferred Resources, sulfide zone ........................................................................................................ 119 Table 26: Production Statistics ............................................................................................................................................... 137 Table 27: Summary of Pre-Production Capital Costs ............................................................................................................. 139 Table 28 : Operating Costs ...................................................................................................................................................... 141 Table 29 : Summary of Financial Results ................................................................................................................................ 141 Table 30 : Internal Standards - Lab: Intertek; Method: FA30 ................................................................................................... 161 Table 31: Internal Standards - Lab: Intertek; Method: GA02 .................................................................................................. 161 Table 32: Internal Standards - Lab: Intertek; Method: GA30 .................................................................................................. 161 Table 33: Internal Blanks – Lab: Intertek ................................................................................................................................ 164 Table 34: Field Duplicates - ½ Core and Sludge samples ...................................................................................................... 165

LIST OF APPENDICES

Appendix 1. Details of drill hole locations Appendix 2. QA/QC Report by D Lulofs

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3. SUMMARY

3.1 Property

The Tujuh Bukit Project comprises two exploration tenements (“IUPs”) covering a total area of 11,621.45 hectares.

3.2 Location

The property is located approximately 205 kilometers southeast of Surabaya, the capital of the province of East Java, Indonesia and 60 kilometers southwest of the regional center of Banyuwangi. The property is centerd near 8° 35’ 20.6” S and 114° 01’ 08” N and is bound within UTM co‐ordinates 163,000‐179,000 E and 9042000‐9055000 N. 3.3 Ownership

The IUP (Izin Usaha Pertambangan) ‐Explorasi and IUP Operasi and Produksi were granted to PT. Indo Multi Niaga ("IMN") on 25th January 2010 by the Bupati of Banyuwangi (Regional Administrator, Banyuwangi, East Java) under decree number 188/05/KP/429.012/2007. Intrepid Mines Limited (“Intrepid”) and IMN have signed a Joint Venture agreement enabling Intrepid to hold an 80% economic interest in the Tujuh Bukit Project. 3.4 Geology and Mineralization

The principal styles of mineralization that are the focus of exploration and delineation drilling on the Tujuh Bukit Project are high‐sulfidation epithermal Cu‐Au‐Ag mineralization and porphyry Cu‐Au mineralization. The rocks within the porphyry environment become intensely altered by the passage of hot saline fluids of varying pH and by the late descent of cool oxidized ground‐waters that are out of equilibrium with the host rocks. These areas of rock alteration are typically zoned at the district‐scale, a feature that can provide vectors to porphyry Cu‐Au ore in magmatic‐related hydrothermal systems. Porphyry deposits contain the vast majority of the copper resources of the Pacific island arcs and significant amounts of gold, silver and molybdenum. Porphyry copper‐gold deposits tend to be large, fairly uniformly mineralized and relatively low‐grade deposits with great vertical extent. 3.5 Exploration Concept

The project is of an advanced nature, with well understood geological potential and an Inferred Resource. It will progress by infill drilling, step‐out drilling, drilling to depth and follow‐up of geophysical (e.g. magnetic) and geochemical targets around the immediate area of identified mineralization. 3.6 Status of Exploration

Resource delineation and step‐out drilling.

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3.7 Development and Operations

None as yet. 3.8 Qualified Person’s Conclusions and Recommendations

In the Qualified Person’s opinion, the character of the property is of sufficient merit to justify continued drilling.

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4. INTRODUCTION

This technical report is prepared by P. L. Hellman, an Independent Consultant to Intrepid, to comply with NI 43‐101 reporting guidelines. Technical information and data contained in the report or used in its preparation are sourced from reports compiled by previous workers of the property together with internal reports of the current tenement holders as well as the authors own observations whilst visiting the site and working with data from the site generated by others. This report documents the second Inferred Resource estimate at the Tumpangpitu porphyry Cu‐Au prospect in East Java, Indonesia. The Tumpangpitu Prospect forms a part of the broader Tujuh Bukit Project. The objective of the report is to estimate the second Inferred Mineral Resource and to assess the merits of continued drilling on the Prospect The property has been visited by the Author on four occasions from November 2007. The initial visit was focused on drilling programs at Tumpangpitu Prospects Zones C and A which were aimed at defining oxide gold‐silver resources. These have been separately reported in other NI 43‐101 reports (Hellman, 2008, 2009 & 2011). Later visits included reviews of drilling on the deeper sulfide porphyry copper‐gold system. The Author observed the progress of the drilling programs in the Zones C and A oxide areas, visited the site office at Pulau Merah and provided advice on sampling, QA/QC, geological logging, geotechnical data acquisition and general data handling protocols. The Author inspected the property over several days in October 2010 and observed drilling activities, drill core and participate with on‐site discussions with staff. The Author also inspected the property in December 2010 and observed drill core handling in the Tumpangpitu core yard as well as attending meetings in the site office at Pulau Merah.

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5. RELIANCE ON OTHER EXPERTS

The author of this report is an Independent Qualified Person and has relied on various datasets and reports that were provided by Intrepid, and project consultants to support the interpretation of exploration results discussed in this report on mineral resources. The data that was provided to the author was deemed to be in good stead, and is considered to be reliable. The author is not aware of any critical data that has been omitted so as to be detrimental to the objectives of this report. There was sufficient data provided to enable credible and well constrained interpretations to be made in respect of data. Assay data is handled by an independent database bureau that receives electronic results directly from the laboratory. The data is then directly transferred to the Author. Statements regarding tenement status, legal right to mine and explore, environmental liability have been accepted in good faith from Intrepid and are outside the expertise of Hellman & Schofield Pty Ltd.

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6. PROPERTY DESCRIPTION AND LOCATION

The Tujuh Bukit Project comprises two adjoining IUPs (Izin Usaha Pertambangan) – an IUP Exploration of 6623.45 hectares and an IUP Production Operation of 4998 hectares ‐ located approximately 205 kilometers southeast of Surabaya, the capital of the province of East Java, Indonesia and 60 kilometers southwest of the regional center of Banyuwangi. The Project is centered near 8° 35’ 20.6” S and 114° 01’ 08” N and is bound within UTM co‐ordinates 163,000‐179,000 E and 9042000‐9055000 N. The tenements are located within the desa of Sumberagung, Kecamatan Pesanggaran, Kabupaten Banyuwangi (Figure 1). The IUP Exploration (Number – 188/9/KEP/429.011/2010) abuts and surrounds to the south, west and north the IUP Production Operation. It was issued on 25 January 2010 for a period of 4 years (Figure 2).The IUP Production Operation (Number – 188/10/KEP/429.011/2010) was also issued on 25 January 2010 for a period of 20 years (Figure 2).The IUPs were issued in compliance with the new Indonesian Mining Law (Law number 4 Year 2009) and concerning the Extension Application and Adjustment of the pre‐existing KP Exploration to become an IUP Exploration, and the KP Exploitation to become an IUP Production Operation. The pre‐existing KP‐Explorasi (Kuasa Pertambangan or exploration mining permit) had been granted to PT. Indo Multi Niaga on 16 February 2007 by the Bupati of Banyuwangi (Regional Administrator, Banyuwangi, East Java) under decree number 188/05/KP/429.012/2007. This followed directly from an initial SKIP tenure period and a subsequent one year period under tenement license KP‐General Survey (decree No. 188/57/KP/429.012/2006 granted on 20 March, 2006).

Figure 1: Location of the Tujuh Bukit Project, Banyuwangi, East Java, Indonesia.

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Figure 2: IUP Production Operation (outlined in red).

(Green areas are generalised representations of areas of Protection Forest).

Figure 3: IUP Exploration outlined in red.

Green areas are generalised representations of areas of Protection Forest.

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Surface rights in the area are held by the Department of Forestry and include farmland, production forests, protected forest areas, and some villages. The villages are located within the IUP area but not in any of the areas identified for exploration at this point. The IUPs require annual rent payments and submissions of quarterly reports regarding the company’s activities on the tenement to the regional government. The tenement boundaries were located with GPS coordinates and the boundary of the tenements has subsequently been surveyed and marked with a concrete pegs. The main mineralized prospect, Tumpangpitu, is located in the southeast portion of the tenement and covers an area of about 3 by 2 kilometers. The other significant prospect, Salakan, is located in the northwest part of the tenement and covers an area of about 6.0 by 4.0 kilometers. Other prospects at Gunung Manis, Katak and Candrian lie to the east of Tumpangpitu. No historical mining activity has been conducted within or near to the boundaries of the tenement. Under the Terms of the Alliance Agreement, Intrepid was granted an option to acquire up to an 80% economic interest in the Tujuh Bukit Project. The agreement recognizes the potential to increase the area held under IUP up to a 25km radius from the existing IUP boundaries. Intrepid has earned its 80% economic interest in the project through project funding of A$5M (to earn 51%) and through funding further exploration for an additional A$3M to earn an additional 29% stake. Intrepid then free carries IMN's 20% towards completion of a Feasibility Study but this free carry is limited to an additional A$42M. The Alliance Agreement includes payments to IMN upon meeting various conditions. Upon meeting conditions for the 80/20 economic interest, the parties then fund on a pro‐rata basis equal to their percentage interest. Standard dilution clauses apply if either party elects not to fund. Intrepid advises that there is no knowledge of any environmental liabilities associated with the project. A permit is required to conduct exploration activities within areas of protected and production forest and these have been issued by the Department of Forestry for work on this project. This report is the fifth on mineral resource estimates from this prospect area within the Tujuh Bukit Project.

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7. ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The project area encompasses Gunung Tumpangpitu (489 m ASL) and surrounding hill country which graduates into alluvial plains near to sea level. The majority of landforms are steep and rugged with poorly drained ephemeral streams having only seasonal discharges. Streams and creeks on the northern side of Gunung Tumpangpitu drain into Sungai Gede which flows actively for 8‐10 months of the year. The region has a wet and dry season climate typical of tropical equatorial countries. The wet season is subject to seasonal influence of the northwest monsoon from November to March. Rainfall in the mountain ranges to the north ranges between 1725‐3500mm/year decreasing toward the coast to 1110‐1850mm/year (Campbell, 2000). Temperatures range from 26‐31oC during the day down to 22‐24oC overnight. Relative humidity is typically high, ranging from 80 to 100%. Whilst the agreeable climate allows exploration activity to continue year‐round, prolonged dry weather may result in a lack of local water sources for drilling which then must be sourced from Sungai Gonggo some 4‐6 kilometers to the east of Tumpangpitu. On the lower slopes, government‐owned teak plantations, classified as Hutan Produksi (Production Forest), are common and are administered by the Perhutani (Forestry Department), Banyuwangi. Remnant stands of forest on the upper slopes and top of Gunung Tumpangpitu are classified as Hutan Lindung (Protected Forest). Permits are required, and have been issued, from the Perhutani for undertaking exploration within Protected and Production Forest areas. In lowland alluvial areas, or areas where tree plantations have been harvested, local farmers grow cash crops such as corn, rice, coconut, bananas, chili, tobacco, vegetables and citrus. The area also supports a small local fishing industry. Road access to the project is afforded via sealed road from Surabaya (8 hours) and Denpasar, Bali (7 hours). Roads are single lane and conditions vary from good to poor and are in a constant state of repair. The trip from Bali includes a 1‐2 hour ferry crossing of the strait between Bali and Java. Helicopter access is available to the project from Bali. IMN has a helicopter on full time hire at site and periodically uses the helicopter to transfer passengers to site. The flight takes about 40 minutes. Domestic and international flights operate daily to Surabaya and Denpasar from Jakarta, Singapore and Australia.

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8. HISTORY

The project area was first explored by PT. Hakman Platina Metalindo and its JV partner, Golden Valley Mines of Australia. Golden Valley Mines identified the potential of the Tumpangpitu and Salakan areas as prospective targets for porphyry copper type mineralization following a regional (1:50,000) drainage and rock‐chip geochemical sampling program conducted during December 1997 – May 1998. Subsequently, a rapid detailed surface geochemical sampling program was conducted over Gunung Tumpangpitu resulting in seven targets being identified for drilling. An initial drilling program of 5 diamond drill holes – GT‐001 to GT‐005 – was conducted during March – June 1999. In February 2000 Placer Dome Inc. (Placer) entered into a Joint Venture with Golden Valley Mines to earn 51% of the project and assumed operational control of the exploration program. In order to better define targets for follow‐up drilling on Tumpangpitu 32.75 kilometers of grid‐based geochemical and IP surveys were completed between April‐May 2000. Anomalous bedrock geochemistry demonstrated marked consistency with prominent ridges or topographic highs, trending to the northwest, consisting dominantly of vuggy silica altered breccia. The results of the IP survey demonstrated strong correlation between the near‐surface resistivity anomalies and the outcropping vuggy silica zones. Deeper chargeability anomalies (>200‐400 m below surface) were recorded in the northern portion of the grid. Placer targeted the shallow resistivity anomalies for high sulfidation style Au‐Ag mineralization with a further 10 diamond drill holes – GT‐006 to GT‐014. On the basis of the results from the second drilling program a further 14 holes were designed (2,700m). However, Placer withdrew from the project due to the combined influences of the relatively low metal prices at the time (i.e., the project did not appear to meet corporate thresholds of size and grade) together with an unstable economic and political climate across much of south‐east Asia (the Asian Financial Crisis). There is no report or record of further work being conducted on the project by Placer‐GVM and the area became vacant by the time IMN applied for a KP General Survey in 2006 over the project area. In June 2006 Hellman and Schofield Pty Ltd (“H&S”, an independent geological consulting group from Australia) assisted a previous Joint Venture of IMN with an Australian company in assembling exploration data and designing a drilling program aimed at advancing the Tumpangpitu prospect in order to report resource estimates according to the JORC Code and Guidelines. H&S was able to provide an indication of the size of potential mineralization within the variably oxidized gold‐silver enriched zone above the deeper copper mineralization by using the limited available drilling data along with soil sample geochemical results. This study

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suggested that approximately 3m oz Au Equivalent (“AuEq” was based on $650/Oz Au and $10/Oz Ag) was a reasonable amalgamated target size in oxide Zones A, B & C. Overall indications of potential may be expressed using cautionary language and with grade and tonnage ranges. It should never be assumed that suggested grades and tonnages from these types of studies will be realized, they are solely used in the context of understanding the types of drilling targets and broad scale of mineralization. On March 30, 2007 a Term Sheet was signed between Emperor Mines Ltd. (later to become Intrepid. through the merger of Emperor Mines and Intrepid) and IMN and IndoAust Pty. Ltd., which was followed by an Alliance Agreement between Emperor Mines Ltd, and IMN in April 2008. Drilling on the project by IMN and Intrepid commenced in September 2007 with hole GTD‐07‐015. Additional historical drill hole assays became available between February and August 2007 enabling a slightly more informed view of the geological potential. The September 2007 H&S study of Geological Potential used Ordinary Block Kriging of 2m composited AuEq data within polygon extrusions. This report documents the drilling completed by IMN and Intrepid during the period 2008‐2011 on the porphyry copper‐gold mineralization.

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9. GEOLOGICAL SETTING

9.1 Regional Geology

The Tujuh Bukit project lies on the south coast of East Java, within the central portion of the Sunda‐Banda magmatic arc which trends southeast from northern Sumatra to west Java then eastward through east Java, Bali, Lombok, Sumbawa and Flores. The Sunda‐Banda volcanic arc developed during subduction of the north‐moving Indo‐Australian plate beneath the Asian continental plate margin. The Sunda‐Banda arc of Middle Miocene to Pliocene age is thought to have initiated by subduction reversal following an Oligocene compressive event that was associated with the northward emplacement of ophiolite and island arc assemblages onto the Sunda margin and associated formation of melanges, ophiolite fragments and deformation zones offshore from western Sumatra (Daly et al., 1991; Harbury and Kallagher, 1991). The initiation of northward subduction beneath the Sunda‐Banda arc migrated eastward following this collision event. The western segment of the arc, west of central Java, developed on continental crust on the southern margin of Sundaland whilst the arc east of Central Java developed on thinner island arc crust (Carlisle and Mitchell, 1994). There are substantial tectonic variations along the length of the Sunda‐Banda arc, and these variations have been the subject of studies to understand along‐arc variations in magma chemistry. Subduction is highly oblique along the northwest segment of the arc, along Sumatra and towards the Andaman Islands and Burma (Moore et al., 1980). The strike‐slip Sumatra Fault takes up much of the oblique convergence between the plates. Along this northwest portion of the arc, very thick sedimentary sequences from the Bengal and Nicobar fans are transported into the subduction zone. Further to the southeast, subduction is near perpendicular to the Sunda‐Banda arc, off‐shore from Java, and only a very thin cover of sediment enters the subduction zone. Further to the east, incipient areas of collision are occurring along the arc where fragments of the Australian continental margin are accreting against the Banda arc (e.g. Timor). There are also variations in dominant styles of mineralization along the arc. In northern Sumatra in the Aceh province, mineralization is characterized by porphyry Cu‐Mo systems and high‐sulfidation deposits (e.g. Miwah and Martabe). In contrast, southern Sumatra, west Java and central Java are typified by a lack of known porphyry systems but an abundance of low‐sulfidation epithermal deposits or prospects/vein systems. Examples include Tambang Sawah, Rawas, Lebong Donok, Lebong Simpang and Seung Kecil in southern Sumatra, plus the Cikotok and Jampang districts, Gunung Pongkor and Cikondang in west Java and Trenggallek in central Java. Further the east, in east Java and then through Lombok and Sumbawa, there is a reappearance of porphyry and high‐sulfidation epithermal systems along the eastern arc segment, including the Tumpangpitu high‐sulfidation epithermal and porphyry system on Intrepid’s Tujuh Bukit project, The Selodong high‐sulfidation and

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porphyry district including the Motong Botek porphyry system on Lombok, and the Batu Hijau porphyry Cu‐Au system on Sumbawa. The Sunda‐Banda arc comprises both Miocene to Pliocene volcanics and younger Quaternary volcanics. The arc has migrated not only from west to east over time but also from south to north (Van Bemmelen, 1970; Whitford et. al., 1979; Katili 1989 and Claproth 1989). This migration is clearly evident by the east‐west alignment of deeply dissected Miocene to Pliocene volcanic centers along the south coast of Java, Lombok and Sumbawa and a parallel east‐west alignment of juvenile and active Quaternary volcanoes that define the present active arc further north along central Java and northern Bali, Lombok and Sumbawa (Figure below).

Figure 4: Regional geology.

Relationship of the older, Miocene age, eroded volcanic centers (blue rings) that host mineralization at Trenggalek (low sulfidation epithermal veins), Tujuh Bukit (high-sulfidation epithermal and porphyry system), Selodong (high-sulfidation epithermal and porphyry system), and Batu Hijau (porphyry system), relative to the younger, Quaternary arc volcanoes to the north which collectively make up the east-west trending present day Sunda-Banda arc.

The Sunda‐Banda arc is segmented by a series of arc‐normal structures that trend NNE and which are evident in topographic data‐sets (Figure 4). Tectonic factors appear to have localized volcanic centers of the Miocene arc at positions near the southwest margins of these transfer structures. Contemporaneous continental to deep‐ocean clastic sediments were deposited on the margins of the volcanic centers.

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The Tujuh Bukit project is located (Figure 5) near the southeast margin of a ~50‐km‐wide annular zone of strongly dissected topography that is interpreted to represent the relics of a former andesitic stratovolcanic center in East Java. This deeply dissected volcanic center appears to be eroded to near its roots, close to the volcanic‐basement contact (Rohrlach and Norris, 2006). Areas of similar topographic character occur along a WNW‐ESE linear zone that also encapsulates an area in southern Sumbawa (which hosts the Pliocene‐age Batu Hijau deposit ‐ 1640 mt @ 0.44% Cu, 0.55% Mo, 0.35 g/t Au; 3.7 Myr old (Figure 4).

Figure 5: Location of the Tujuh Bukit project.

It occurs on the southeast flank of a deeply incised Miocene-age volcanic center that is ~50 km in diameter (black dotted outline).This eroded volcanic center lies SSW of the Quaternary volcano Gunung Raung which forms part of a larger composite stratovolcano in east Java. Access to the Tujuh Bukit project area is by ferry from Gilimanuk (Bali) to Banyuwangi (regional center of Jawa Timur – East Java), and then by road through Genteng and Jajag to the project site.

Figure 6 portrays the geology over an area of approximately 70 km x 25 km in southeast Java. The broad stratigraphic succession of the area as defined on the 1:100,000 geology map of the Blambangan Quadrangle is described below and comprises various formations of the Lampon Group of Late Tertiary Age. Batuampar Formation The oldest rock in the area comprise the Batuampar Formation of Lower Miocene age. It comprises a volcanic‐dominated succession of volcanic breccia (pyroclastic deposits), tuff, sandstones and andesite lava with limestone intercalations. These rocks are described in the regional 1:100,000 map as "being strongly altered", verified by Intrepid‐IMN field

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observations, since these rocks host mineralization at the Tumpangpitu prospect and at the Salakan prospect. The volcanics of the Batuampar Formation comprise the roots of the eroded volcanic structure depicted in Figure 5. Within the immediate environs of the Tumpangpitu prospect the Batuampar Formation is dominated by intensely advanced argillic altered coarse pyroclastic lithic tuffs and very subordinate (< 3%) limestone, marl and volcanic sandstone. The limestone intercalations may become important as a source of lime for mineral processing or control acid‐mine drainage in the future, as the Tumpangpitu prospect progresses towards production stage. Batuan Intrusives Intrusive stocks of Middle Miocene age intrude the Batuampar Formation volcanic rocks and are almost certainly responsible for the widespread alteration within that formation. They are mapped on the 1:100,000 Blambangan Quadrangle as comprising porphyry andesite and granodiorite, and are confined to the southeast corner of the Tujuh Bukit project area (Figure 6). Although these intrusives are not mapped in the Salakan prospect area on the 1:100,000 scale map, they are likely to lie at shallow depth below the prospect. Intrusive bodies have been observed around the eastern periphery of the Salakan prospect by Intrepid‐IMN where they are coincident with magnetic bodies. The magnetic tonalites intersected by the deep drilling at Tumpangpitu are likely to be members of the Batuan Intrusive suite. Jaten Formation The Jaten Formation of Middle Miocene age comprises mixed sediments and tuffaceous sediments (sandstone, conglomeratic sandstone, tuffaceous sandstone, calcareous sandstone, claystone, tuff and tuffaceous limestone) which outcrop only in one mapped locality, between the Batuampar Formation on the Capil promontory and the fault‐bound sliver of Wuni Formation to the north. Wuni Formation The Wuni Formation is of Late Miocene to Pliocene age and comprises of breccia, conglomerate, sandstone, tuff, marl and limestone. It outcrops only in two isolated localities and is covered by extensive blankets of Quaternary marine sediment (limestones of the Punung Formation) and transported Quaternary sediments of largely volcanic origin (Kalibaru Formation) along the distal southern flanks of Gunung Raung.

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Figure 6 : Regional geology of the southeast corner of Java (Jawa Timur).

Punung Formation The Punung Formation comprises a Quaternary sequence of reefal limestone, bedded limestone and marl which forms a flat‐lying and recently emergent shallow marine stratigraphic unit. The extensive exposure of Punung Formation limestones on the Blambangan peninsula is likely contiguous with the isolated outlier of Punung Formation exposed north of the Capil promontory. More restricted outcrops of limestone occur in the Tujuh Bukit district in at least two localities. Kalibaru Formation The Kalibaru Formation comprises a Quaternary sequence of breccia, conglomerate, tuff and tuffaceous sandstone which covers extensive areas on the eastern side of the Tujuh Bukit property. The Kalibaru Formation appears to represent part of an extensive outwash sheet of volcanic detritus that is largely derived from the Quaternary Mount Ruang composite stratovolcano to the north. Near the Tujuh Bukit project, these Quaternary sediments lie directly on the older Miocene‐age altered volcanic sequence of the Batuampar formation.

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9.2 Local Geology

Two areas of high topographic relief occur on the Tujuh Bukit property (Figure 7). The first of these occurs on the southern‐most peninsula, coincident with the Tumpangpitu porphyry and high‐sulfidation epithermal deposit, where extensive silicification associated with an advanced argillic blanket overlies the Tumpangpitu porphyry system. This series of hills extends to the east at lower elevation and cover the Katak porphyry prospect, the Candrian porphyry prospect and the Gunung Manis low‐sulfidation epithermal prospect. The second area of high topographic relief extends from the southern end of the western peninsula northeast‐ward to the higher hills that are coincident with the Salakan prospect. Again, extensive areas of silicification associated with advanced argillic alteration are responsible for the erosional resistance of this elevated area at Salakan on the Tujuh Bukit property.

Figure 7 : Distribution of mineral prospects

Yellow outlines relative to topography mark various prospects. Numerous other exploration targets have been defined north and east of Salakan based on interpretations of helibourne-acquired magnetic data (not plotted).

Understanding of the surface geology (lithology) of the Tujuh Bukit project area is quite general in nature due to lack of detailed geological mapping over the entire region. This understanding however is steadily growing as more detailed infill mapping is undertaken by

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Intrepid, and as interpretations of a regional magnetic dataset are progressively ground‐truthed. A lithology map over the Tumpangpitu area, and the hilly terrain east of Tumpangpitu, was generated by PT Hakman Platina Metallindo prior to or during 1999 (Figure 8). This mapping identified a dominantly diorite and microdiorite substrate which had been intruded by extensive granodiorite bodies east of Tumpangpitu and by smaller quartz‐diorite bodies in and around Tumpangpitu. These intrusions are considered equivalent to the Batuan Intrusives described above. This map appears to be of “reasonable” accuracy given the regional reconnaissance scale of the map, and known geology in and around Tumpangpitu.

Figure 8 : Lithology of the Tumpangpitu prospect region

In the area east of Tumpangpitu as mapped by PT. Hakman Platina Metalindo (1999). These mapped sequences comprise volcanic breccias of the Batuampar Formation and more abundant Batuan Intrusives.

A complete lithology map also exists from the period of exploration by Placer (2000‐2001) and is shown in Figure 9. This map shows similar geology to the map above, only with a more restricted distribution of lithic tuffs mapped by Placer. In this respect, the PT Hakman map (above) appears more correct than the Placer map. The Placer map however, also includes lithology over the Salakan prospect area, where diorites are mapped intruding subvolcanic

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breccias, and with diorite intruded by quartz diorites. The extensive distribution of the mapped breccia, however, suggests that it is more likely to be volcaniclastic in origin rather than a subvolcanic breccia as labelled.

Figure 9 : Lithology of the Tujuh Bukit project as mapped by Placer (2000-2001).

Reasonably complete, though generalised, reconnaissance maps were subsequently generated by IMN in 2006 over the Salakan and Tumpangpitu prospects. However, the PT Hakman lithology map (Figure 8) is considered to be more reliable in the Tumpangpitu area. Mapping subsequently undertaken by Intrepid (2009‐2010) covers three more local and non‐contiguous areas:

1) The coastline west of Tumpangpitu 2) The Katak porphyry prospect, and 3) The Gunung Manis low‐sulfidation epithermal prospect.

These local maps are of appropriate quality and detail to understand the geology in these three areas. It is planned to progressively extend these maps to cover the entire region over and east of Tumpangpitu. Consequently, both of the main prospect areas (Tumpangpitu and Salakan) require significantly more detailed mapping to be undertaken.

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Due to limited mapping information, a significant portion of the geological understanding of the regional lithology comes from drilling cross‐sections. The structural understanding of the project area comes largely from interpretation of regional magnetic datasets. The local to deposit‐scale lithology is discussed in Section 9.3 below whilst the deposit‐scale alteration patterns are discussed in Section 11 (Mineralization) since alteration is intimately related to mineralization events.

Within the broader area of the Tujuh Bukit project, an extensive volcanic‐dominated succession of volcanic breccia (pyroclastic deposits), tuff, sandstones, and andesite lava with limestone intercalations occurs, consistent with government map descriptions of this volcano‐sedimentary sequence (Batuampar Formation). In areas of low‐terrain, these sequences are overlain by Quaternary to recent alluvial deposits, particularly around the Pancer coastal embayment south of Salakan and also northwest and east of the Salakan hills. The Batuampar Formation is intruded by numerous plutons and stocks that are identified in all generations of regional mapping, in Intrepid/IMN drilling, and extensively identified in magnetic data where they are recognized as magnetic features typical of I‐type calc‐alkaline magmas. These are the Batuan Intrusives described above. Intrusive members recognized by Intrepid include microdiorite, diorite, hornblende‐diorite, quartz‐hornblende‐diorite hornblende andesite porphyry and tonalite. In addition to the mapped distribution of intrusions, members of this suite have been identified south of Tumpangpitu and extensively along the eastern periphery of Salakan. Several of these intrusives (either mapped or inferred from magnetic data) are geochemically anomalous at surface. Intense hydrothermal alteration has obscured a substantial portion of the original protolith textures of many rocks in the district, particularly parts of the advanced argillic lithocap at Tumpangpitu. The structural framework of the Tujuh Bukit district is best interpreted using the heliborne magnetic data‐set. Figure 10 shows a Reduced‐To‐Pole (RTP) magnetic image of the broader Tumpangpitu Batholith and the East Salakan Batholith. The aggregation of high‐amplitude magnetic anomalies within and around the eastern half of the Salakan prospect are interpreted as Batuan intrusives, as are the linear array of magnetic highs that trend northwest through the Tumpangpitu Batholith. The image is overlain by a structural interpretation conducted by Chris Moore of Moore Geophysics. 1st order fault corridors trend northwest, one passing near the northeast margin of the Tumpangpitu and East Salakan batholiths, the other passing under Pancer Bay. A third sub‐parallel to low‐angle northwest‐trending structure dissects the Tumpangpitu Batholith in approximately equal halves. This fault structure localises a series of at least eight discreet magnetic high anomalies over at least a 16 km structural strike length. These discrete magnetic anomalies are interpreted as intrusive stocks emplaced along this structure. Consequently this district‐scale structure was likely active during mid‐Miocene Batuan stage magmatism. This key

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regional fault (labelled “metallogentically fertile structure”) hosts the magnetic diorite intrusion at the Katak porphyry system and the inferred magnetic intrusions immediately SSE of the Gunung Manis low‐sulfidation epithermal vein array.

Figure 10 : Reduced-to-Pole magnetic image

This is broadly coincident with the eastern half of the Tujuh Bukit property. Black lines are interpreted regional faults. Blue dashed lines envelope deep-seated batholiths, white outlines define structurally-controlled magnetic intrusive centers whilst yellow outlines define a NW array of porphyry centers at Tumpangpitu. Details of this image are discussed in the text of the report.

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The broader East Salakan Batholith and Tumpangpitu Batholiths are about 5 km in diameter. At East Salakan, the batholith appears to be intruded in its core by a highly magnetic intrusive about 1.5 km in diameter, and which is surrounded by a complex annual rim or zone of magnetite destruction interspersed with small discrete magnetic highs (between the two yellow outlines within the East Salakan Batholith). This magnetic pattern has the hallmarks of a large hydrothermal system developed around the periphery of the intrusive core at East Salakan. Other 2nd order fault sets observed in the data shown in Figure 10 and trend ENE and WNW. The overall geometry of these structures, forming braided to complex arrays of parallel and curved, en echelon faults is reminiscent of major transcurrent fault systems. Thus the district‐scale structural picture is of a regional NW‐trending structural corridor which is likely to be a major crustal‐scale and near arc‐parallel strike‐slip fault zone. This transcurrent fault system potentially guided the emplacement of the two large batholiths beneath the eroded volcanic center. The erosional level within the Tujuh Bukit district is at the right level to expose the top of porphyry systems whilst preserving the lower parts of their respective epithermal environments, in other words, around the sub‐volcanic brittle‐ductile transition. This opportune level of erosion has produced the complex magnetic patterns characteristic of terrains that preserve the apical levels of multiple intrusive stocks typical of the carapace of deep‐seated batholiths. 9.3 Deposit Geology

The Tumpangpitu deposit comprises a high‐sulfidation Cu‐Au‐Ag epithermal system that is telescoped onto a large underlying and Au‐rich porphyry Cu‐Au‐Mo system. In general terms, the overall mineralizing system broadly comprises a deep, magnetic tonalite intrusion that has intruded into an older and more extensive feldspar‐hornblende diorite stock. This older diorite intrusion has in turn intruded a cover sequence of lithic and crystal‐lithic volcanic breccias that lie at shallow levels of the deposit. These volcaniclastic tuffs and breccias conformably overlie a sequence of sediments that are ‘partly’ constrained to dip inward towards the tonalitic intrusive center. The interface between the tonalite stock, which is interpreted to be the progenitor of porphyry ore, and the overlying intrusive and extrusive country rocks is characterized by the presence of one or more extensive diatreme breccia bodies and numerous smaller hydrothermal breccias bodies. The upper portions of the intensely altered and fluid metasomatised tonalite stock are transitional upward to intrusive breccias (breccias with upward entrained interstitial melt) which in turn are transitional at shallower levels to hydrothermal breccias as fluids have progressively exsolved from the entrained and decompressing melt.

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Figure 11 : Lithology cross-section 11060 mN at Tumpangpitu Deep porphyry holes (26, 29, 56, 112, 172, 182 and 192) are projected onto the 050-230° section. The high‐sulfidation epithermal component of the Tumpangpitu mineralizing system can be divided into four sub‐types based on oxidation intensity, metal grade and metal suite.

1) Completely oxidized high‐sulfidation ore (Au‐Ag strongly enriched; Cu severely leached).

2) Partially oxidized high‐sulfidation mineralization (Au‐Ag +/‐ Cu; Cu is strongly leached).

3) Unoxidized but low‐grade high‐sulfidation mineralization (Au‐Ag‐Cu). Au‐Ag grade is significantly lower than the overlying oxide component. 4) Unoxidized but higher‐grade high‐sulfidation mineralization (Au‐Ag‐Cu) in deeper

structural conduits and proximal to inferred upflow zones. Components 3) and 4) only are reported for the current porphyry resource estimation, however all four components of the high‐sulfidation mineralization are discussed in Section 11 of this report. The geology of the Tumpangpitu prospect in the shallow epithermal environment is dominated by intense hydrothermally altered (silica‐clay‐alunite‐pyrite) andesitic lithic volcanic breccias, diatreme breccias, hydrothermal breecias and diorite, with the alteration footprint covering an area in excess of 4 km x 2.5 km. The broader envelope of argillic altered volcanics and intrusives are cross‐cut by several northwest‐trending and potentially

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structurally‐controlled zones of hydrothermal breccias which are advanced argillic altered (vuggy silica, silica‐alunite, silica‐alunite‐clay, silica‐clay‐alunite and silica‐clay). These zones of more siliceous alteration form multiple parallel ridges (2.5 km x 300 m) trending northwest across the prospect (Figure 12), and they trend parallel to regional structures that are evident in aeromagnetic imagery.

Figure 12 : Distribution of alteration styles at the Tumpangpitu prospect as mapped by GVM-Placer Showing the locations of 14 historical drill holes (GVM – Holes 1 to 5 and Placer – Holes 6 to 14). The geology of the deeper portions of the Tumpangpitu prospect is characterized by alteration and vein assemblages characteristic of porphyry systems (Section 11). A large tonalite intrusion is encountered in the lower parts of the deepest drill holes at Tumpangpitu. This tonalite intrusion has a broad apex in the vicinity of cross‐sections 11040mN to 11360mN and plunges to greater depths to the SW and NE. The geometry of the intrusion in detail is still being refined by infill drilling and magnetic modelling. An interpreted diatreme breccia body (ovoid in plan and upward flaring) with a diameter of approximately 500m occurs below the Zone C area of the oxide zone. This breccia is dominated by polymict mill breccia in its middle and upper parts, and has roots that penetrate down into the tonalite intrusions. At deeper levels near the tonalite intrusion, the breccia has increasing characteristics of an intrusion breccia. This breccia is a major feature on two of the porphyry cross‐sections, and clasts of porphyry mineralization are incorporated into the breccia (detailed descriptions provided in Section 9.3.4). Steeply‐oriented structural feeders to high‐sulfidation mineralization have been intersected over‐printing this diatreme breccia. Both these observations suggest that the timing of diatreme emplacement was broadly syn‐mineral with respect to the porphyry system.

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Porphyry Cu‐Au‐Mo mineralization occurs within a carapace or shell of magnetite, quartz‐magnetite and quartz vein stockwork that occurs within and around the periphery of the causative tonalite intrusion, overprinting both the outer margins of the intrusion as well as the proximal country rock. This mineralization occurs dominantly within areas characterized by phyllic overprint of potassic alteration and lesser areas of potassic alteration within the tonalite intrusion. 9.3.1 Volcaniclastic Breccias Volcaniclastic breccias are a major rock type on the Tujuh Bukit project area (Figure 13 and Figure 14). They comprise dominantly lithic tuff and crystal lithic tuff of andesitic (?) composition, and are characteristically intensely argillic and advanced argillic altered. They occur in the upper part of many oxide drill cross‐sections at Tumpangpitu, particularly in the Zone A area which lies on the northeast side of the prospect, but are also observed occurring widely around the eastern flank of the deposit, as well as around the Katak porphyry system 2 km northeast of Tumpangpitu, where the breccias are intruded by the Katak diorite body. Volcaniclastic breccias are also present around the northern and eastern fringes of the Salakan prospect. These volcaniclastic breccias are believed to be part of the Batuampar Formation described above. The breccias tend to be heteorolithic in lithology and clast alteration intensity. The volcanic breccias at Tumpangpitu are increasingly being viewed as part of an extensive and large diatreme breccia complex that has poor internal layering.

Figure 13 : Outcrop of crystal lithic tuff with possible fiame from the Salakan Prospect.

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Figure 14 : Matrix-supported lithic-crystal tuff from hole GTD-34 (Zone A - Tumpangpitu) This shows a strong alignment of flattened fiame-like pyroclasts. Sample from a zone of Hsi-cy alteration (silica-clay) with clay-altered clasts and phenocrysts fragments, and silicified matrix.

In cross‐section, the breccias that occupy the Zone A hill (Gunung Tumpangpitu) were previously interpreted as coarse lithic tuffs, but are currently interpreted as remnants of a larger diatreme breccia body. Current interpretations have these massive units dipping radially inward at a gentle angle towards the porphyry core. Crystal tuffs and broadly conformable sediments mapped along the coastline west of Tumpangpitu dip gently to the southeast, whilst other parts of the same sediment package further south along the coastline dip to the northeast. On the Zone A oxide drill‐grid, the shallow lithic tuffs (currently re‐interpreted on the two porphyry cross‐sections as diatreme breccias) are thought to dip towards the southwest, based on the dips of concordant acid alteration zones. These geometries collectively suggest a radially inward‐dipping series of volcanic ejecta. The polymict nature of clasts in the lithic tuffs (or diatreme breccias) is consistent with a near‐vent source. Two possible scenarios for this pattern can be considered: Deflation of an underlying magma chamber causing structural subsidence above and around the chamber. Inward‐dipping blankets of volcanic ejecta developed around the inner rim of one or more diatreme bodies within the region. If this is the case, these volcanic breccias must have erupted onto the substrate rather than be intruded by it. The relationship between the old diorite intrusion and the overlying volcaniclastic breccias continues to be investigated to resolve the relative timing.

9.3.2 Sediments A sedimentary sequence is widespread within the stratigraphic pile at Tumpangpitu (Figure 15), and occurs at RLs near and below sea‐level. The sedimentary sequence is likely to be a

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turbidite accumulation of sedimentary breccia, juvenile volcanic sandstone or wacke and lesser mudstone, intercalated with rare marine limestone.

Figure 15 : Nine locations where sediments are encountered at Tumpangpitu (Nov. 2010). Shapes are coastal outcrops whilst bars are subsurface drill-hole intersections of sediment units. Black and red dots show the distribution of drilling at Tumpangpitu. This sedimentary sequence is overlain by andesitic volcanics on the northeast side of Tumpangpitu (Holes GTD‐08‐46 and GTD‐09‐94). The sediments are interpreted to dip inward towards the porphyry center. Controls on dips are reasonably well constrained on the southwest flank of the porphyry system, but are poorly constrained on the northeast flank of the system. It is postulated that the inward dip of these sediments is related to the geometry of a diatreme‐related porphyry system. Geometric similarities are tentatively being made by B. Rohrlach (Intrepid chief geologist) with the Marcapunta deposit in central Peru, where a diatreme and dome complex is rooted above a porphyry system, with 400‐500m inward subsidence of sediments within the host stratigraphic pile. The sedimentary sequence at Tumpangpitu shows increasing degrees of metasomatism (hydrothermal alteration) and veining as the sediments approach the porphyry center. The degree of hydrothermal overprint observed in these sediments range from near fresh (Area 1 coastline and GTD‐08‐26), to propylitic altered and fractured (GTD‐08‐28), to intermediate

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argillic and argillic altered (GTD‐09‐94), and subsequently to strong advanced‐argillic and phyllic alteration (GTD‐08‐46 and GTD‐08‐42), often with intense overprinting stockwork. Areas of the sedimentary sequence that occur in close proximity to the main Tumpangpitu tonalite body are intensely disrupted by cross‐cutting intrusive breccias, microdiorite and tonalite bodies (potential dykes). The occurrences of these features in the sediment sequence indicate close proximity to the main tonalite porphyry body. The sediments, and in particular the calcareous and carbonaceous component of these sediments, show increasing signs of sulfidation and incipient skarn development as the tonalite porphyry body is approached, as evidence by:

Intense sulfidation (pyrite) in mudstone horizons, with anomalous Cu, Au and Zn in sulfidized sediment (GTD‐08‐26).

Garnet alteration of sediment with anomalous Zn reflecting incipient calcic exoskarn assemblages (GTD‐09‐94).

Garnet and vesuvianite alteration (skarn assemblage) in local carbonate units within the sedimentary package (GTD‐08‐46).

Incipient magnetite skarn type replacement of sediments, grossly concordant to bedding at the scale of drill core (GTD‐08‐42).

The collective observations above suggest increasing degrees of contact metamorphism and skarn development within reactive (non‐siliciclastic) units of the sediment package, in close proximity to the Tumpangpitu tonalite. Clasts derived from the surrounding sediment host sequence are incorporated into some of the major diatreme breccia bodies, particularly in GTD‐08‐29 where the mudstone component of the sediments is intensely brecciated, with clasts of sediment incorporated into the cross‐cutting diatreme breccia. Various examples are provided in Figure 16 to Figure 18.

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Figure 16 : Images of sedimentary textures in fresh to incipiently propylitic-altered sediments

From drill hole GTD-08-26, southwest of Zone C.

Figure 17 : Interbedded, fine-grained volcanic sandstones (propylitic)

Includes recessively weathered tuffaceous? siltstone (Locality 2). Thicknesses of individual beds are similar to those in the type section in drill hole GTD-08-26 where the sediments have a turbidite appearance.

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Figure 18 : Images of laminated and banded sediment in drill hole GTD-10-162

The sediments here are much more strongly metasomatized than in GTD-08-26 where they are almost unaltered. Nevertheless, textural similarities can be seen that identify these rocks in GTD-10-162 as sediments, namely centimetre-scale banding, finer laminations, and local preservation of cross-bedding textures. The sediments are overprinted by sparse networks of Fe-carbonate veins, potentially akin to those calcite veins observed in GTD-08-26. 9.3.3 Intrusives The geology of Tumpangpitu deposit consists of a multiple intrusion complex with members that vary in composition (diorite to tonalite), in texture (equigranular to porphyritic) and in size (small dykes to stocks). The intrusive rocks observed to date in chronological order include coarse‐grained diorite (CD), fine‐grained Tonalite (FT), coarse‐grained Tonalite (CT),

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quartz diorite (QD), intrusive breccia unit and microdiorite (MD). The coarse‐grained diorite is thought to be the earliest or pre Au‐Cu mineralization and microdiorite (MD) is likely to post date Au‐Cu‐Ag mineralization. A series of tonalite intrusions, referred to as fine‐grained (FT) and coarse‐grained tonalite (CT) are identified in drill holes. Tonalite dykes are interpreted to be temporally and spatially associated with copper mineralization at Tumpangpitu, in a similar manner to observations in the region along the eastern Sunda magmatic arc, at the Selodong, Batu Hijau and Elang deposits. The coarse‐grained diorite (CD), a larger intrusive body with more equigranular texture and dioritic composition than other intrusive bodies, is seen widespread as a pre‐mineralization intrusive unit coeval to the andesitic volcaniclastic host rocks. It is assigned as Early Diorite. The fine‐grained and coarse‐grained Tonalite bodies (FT and CT) are considered to be causative intrusions associated with copper and gold mineralization at Tumpangpitu. Early Diorite is characterized by an equigranular texture with grain size of 3 to 4mm and dominant plagioclase crystals. It forms a large intrusive body or stock. Quartz is less than 5% by volume and rarely observable as phenocrysts. It is interpreted as the earliest intrusive phase or pre‐porphyry mineralization phase, emplaced within the andesitic volcaniclastic edifice of Tumpangpitu volcanic complex. The texture of the tonalite intrusive series is more porphyritic, phenocrysts are 1 to 3mm in size for fine‐grained Tonalite and 2 to 5mm in size for the coarse‐grained Tonalite. They are emplaced in the center of the mineralized system as a complex of nested multiple intrusions, and are extensively exposed in the district as small to medium size stocks, typically with 40 to 50% feldspar (plagioclase dominant) and 5 % quartz (2 to 5mm diameter) phenocrysts set in fine‐grained groundmass. The coarse‐grained Tonalite (CT) is typically characterized by ‘large quartz crystals’ (+5mm size) in comparison to homogeneous quartz crystals (2 to 3mm in size) for the fine‐grained Tonalite. High‐grade portions of Cu‐Au porphyry mineralization at Tumpangpitu are commonly associated with Tonalite bodies. A similar intrusive unit to the tonalite series is the quartz diorite (QD) that has similar characteristics with the coarse‐grained Tonalite but displays a coarser grain size (3 to 5mm) and lower quartz content (<15% volume). It is also characterized by large quartz phenocrysts. Its relationship to the tonalite series has yet to be established. Due to its close association with high‐sulfidation epithermal mineralization, the quartz diorite may be contemporaneous with the coarse‐grained Tonalite. Late polymict breccia bodies with tonalitic crystalline matrix (Intrusive Breccias, see below) appear to have been emplaced in close temporal and spatial relationship to the Tonalite intrusive phase. The breccia body is polymict and has a tonalitic matrix. It has been logged as part of an early diatreme breccia. The clasts are composed of all intrusive rock units; coarse‐grained diorite, fine‐grained Tonalite, coarse‐grained Tonalite and quartz diorite, except microdiorite. In addition, early mineralized fragments of porphyry Au‐Cu mineralization, residual vuggy silica and silica‐tennantite‐tetrahedrite of early high‐sulfidation epithermal Au‐Ag mineralization have also been observed in the intrusive breccia body. Significant Au‐Ag assay results up to 3 g/t Au and 30g/t Ag respectively have been obtained from parts of this intrusive breccia body where there is a high concentration of mineralized clasts. A later event

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of high‐sulfidation epithermal Au‐Ag mineralization post‐dates the intrusive breccia phase as is observed in GTD‐08‐56. Weak to moderate high‐sulfidation epithermal mineralization in the form of fracture‐filling pyrite‐tennantite‐tetrahedrite+‐enargite‐chalcopyrite cross cuts the intrusive breccia bodies. The latest intrusive events are marked by the presence of microdite (MD) and late diatreme breccia. The microdiorite has very fine‐grained crystals ~1mm or less in size, with equigranular texture and dominanted by plagioclase, minor alkali feldspar and minor quartz. The breccia bodies exhibit polymictic fragments set within a fragmental or comminuted dacitic? matrix. These rocks are fresh or weakly altered to a chlorite‐carbonate ± epidote assemblage, and are observed in several drill holes and along the western coastline. The breccia has dominant fragments of microdiorite along its contacts and may have been affected by fluvial processes, as observed from imbricated fragments, accretionary lapilli, graded bedding sedimentary structures and local but poorly developed bedding. In summary, the intrusive phases that are currently recognized at Tumpangpitu, described from oldest to youngest, are:

1. Coarse grained Diorite (CD): Pre‐mineral, Equigranular textured phenocrysts (non‐tabular), coarse grained (3‐ 4mm), plagioclase‐rich (60‐70%), quartz 0‐5%, no large quartz 'eye' phenocrysts. 5% mafic phenocrysts preserved in patches despite alteration. Generally poorly to non‐mineralised (Au <0.1 g/t; Cu 7‐50ppm). Can occur as fragments in cross‐cutting intrusive breccias.

2. Fine grained Tonalite (FT):

Pre‐mineral, Very fine grained microdiorite(?) 5‐10% quartz phenocrysts (1‐2%). Subhedral, equigranular ex‐plagioclase phenocrysts 1‐3mm. When highly altered looks almost like a sst. Generally poorly to non‐mineralised (Au <0.1 g/t; Cu 7‐50ppm).

3. Coarse grained Tonalite (CT, Figure 19):

Syn‐Mineral. Cu‐Au mineralising porphyry. 2‐4mm subhedral plagioclase phenocrysts are dominant. 15‐25% 1‐5mm quartz eye phenocrysts set in quartz‐rich crystalline groundmass. Variably to strongly mineralized. Alteration ‐ Potassic (magnetite‐hematite ± Kspar ± chlorite ± biotite ± Fe‐Carb) to Phyllic (quartz‐sericite‐pyrite) to Adv‐Arg (high‐sulfidation overprint).

4. Coarse grained Quartz Diorite (QD):

Syn‐Mineral. Sub‐porphyritic to equigranular, >80% phenocrysts (4‐5mm plagioclase + alkali feldspar; dominantly plagioclase) with >5mm quartz phenocrysts (> 20% set in 20% crystalline groundmass).

5. Microdiorite (MD):

Post‐Mineral Equigranular, fine‐grained (~1mm) crystals. Plgioclase, alkali feldspar and minor quartz.

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The most dominant intrusive phases encountered in drilling are the pre‐mineral coarse grained diorite (CD) which is intruded by the syn‐mineral coarse grained tonalite (CT). The suite of breccias described below have a timing relationship that links them genetically to the late stages of emplacement of the coarse grained tonalite (CT) and the very coarse grained quartz diorite (QD).

Figure 19 : Very coarse grained tonalite (CT): GTD-09-42 (667m).

9.3.4 Diatremes and Associated Intrusive Breccias, Mill Breccias, Muddy Matrix Breccias and Hydrothermal Breccias. Several types of sub‐surface breccias (emplaced from below) are recognized at Tumpangpitu. The main categories are: Intrusive Breccia Mill Breccia and Porphyry Clast Breccia (Diatreme) Muddy Matrix Breccia Hydrothermal Breccia and Tuffisite Breccias (clast‐ and matrix‐supported). These breccias may broadly reflect differing levels within one or more sub‐surface breccia pipes (diatremes) that have breached the palaeosurface, evidence for which is discussed below. Intrusive Breccias These breccias are commonly observed in drill core in contact with, and immediately above the deep central tonalite intrusion. They exhibit a distinct fragmental texture with generally increasingly polymict clast assemblages at higher levels. The clasts within the intrusion breccias can be highly variable in composition, and some clast types identified include coarse

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quartz diorite, vuggy silica, silica‐pyrite. Coarse quartz eye clasts (fluid disaggregated phenocrysts derived from the tonalite parent) are often observed in the intrusion breccias. The clasts are surrounded or encased in a siliceous or quartz‐rich crystalline igneous matrix. Whilst this siliceous matrix in places has a component of secondary silica due to deep advanced‐argillic alteration overprint, petrographic descriptions often identify the matrix silica as being of magmatic origin. The intrusion breccias have abundant phenocrysts within the igneous matrix (feldspar and quartz). These breccias show complex and gradational textural forms. At the base of the main diatreme breccia shown on Section 11060 mN, the intrusion breccias exhibit complex textural and alteration fabrics, with thin‐section petrography identifying a high proportion of secondary silica in addition to primary magmatic silica of the tonalitic matrix. The intrusion breccias that are located around the carapace of the tonalite intrusion have experienced intense and focussed hydrothermal fluid flow, likely dominated by magmatic fluids exsolving from the tonalite stock and buoyantly mobilising upward with the intrusion breccias. This primary fluid component has resulted in precipitation of much secondary quartz within the matrix to the intrusion breccias. Mill Breccias and Porphyry Clast Breccias At shallower levels the intrusion breccias showing increasing evidence of mixing (transport) and milling, where they are transitional upward to mill breccias. This transition reflects the change from an igneous matrix rich in exsolving hydrothermal fluids to a purely fluid matrix (magmatic liquid and gas driven) comprising comminuted rock fragments. The mill breccias are heterolithic, both in terms of clast lithologies and clast alteration styles and highly comminuted. They may be clast‐supported or matrix‐supported depending on the degree of transport and milling. The mill breccias (Figure 20) at Tumpangpitu are texturally characteristic of diatreme breccias. Clasts vary from sub‐angular to sub‐rounded indicating rotational transport and break‐up. Clast sizes within the large mill breccia bodies tend to have a broad clast size distribution, ranging from large clasts (5‐10cm) through to intermediate clasts of 1‐3cm and finer comminuted sandy fragments. The matrix is characteristically fragmental and rarely if ever crystalline or igneous (except where transitional to intrusion breccias at depth).

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Figure 20 : Mill breccia from an interpreted diatreme complex at Zone B

From drill hole GTD-09-102. Polymict clasts lithologies and alteration types, with subrounded to subangular clasts and a wide spectrum of clast size due to progressive clast comminution during repeated diatreme eruption episodes. Local sediment (siltstone) clast in lower field of view. On cross‐sections 11040mN and 10830 mN, the same upward‐flaring mill breccia body is encountered on both sections. Within this breccia body there is a variant of the mill breccia class which Intrepid have labelled "…Porphyry Clast Breccia” (PCB). These breccias occur embedded within the Mill Breccias and are simply domains where porphyry mineralized clasts are recognized within the mill breccia clast assemblage. The following types of mineralized porphyry clasts have been recognized in many intersections of mill breccia, and enable a ‘PCB’ classification for these intervals:

i) Quartz‐magnetite clasts ii) Quartz‐magnetite‐chalopyrite +/‐ bornite clasts iii) Clasts of quartz‐magnetite‐chlorite (locally veined). iv) Clasts of quartz‐magnetite‐KSpar v) Quartz‐rich clasts with single porphyry B‐Vein fragments. vi) Clasts of intense quartz stockwork

The presence of chalcopyrite and bornite mineralized and veined clasts, as well as quartz‐magnetite +/‐ K‐feldspar clasts is good evidence for transport of clasts from the potassic zone of an underlying porphyry system. Such clasts have now been recognized within mill (diatreme) breccias from a number of localities at Tumpangpitu, including in drill holes GTD‐08‐22 and GTD‐09‐139 (below the Zone C oxide zone), (GTD‐09‐65 and GTD‐09‐78 (below the Zone B oxide zone), GTD‐09‐112, and in GTD‐10‐151 (in the Zone E oxide area) amongst others. Exaamples are provided in Figure 21 to Figure 25.

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Figure 21 : Clast of intense porphyry quartz vein stockwork Showing transport within a Hsi-cy (Advanced-Argillic) altered intrusive breccia from drill hole GTD-08-22, below the Zone C oxide area.

Figure 22 : Left - Clast of quartz-magnetite alteration (potassic zone) Clast is cross-cut by banded quartz-magnetite B-veins, with internal vein textures identical to porphyry vein textures in holes GTD-08-42, 35 and 56 (Zone B; GTD-09-65; 108.60m). Right - Clast of porphyry mineralization within a chlorite-altered breccia (transitional intrusive to mill breccia). Assemblage comprises quartz-chalcopyrite-magnetite and cross-cut by milky high-temperature and early-stage feldspar veins (Zone B; GTD-09-65; 95.40m).

Figure 23 : Left - Clast of porphyry related Qtz-magnetite-pyrite altered rock Hairline magnetite stringers and traces of chalcopyrite are associated with pyrite (Zone B; GTD-09-65; 100.05m). Right – Clast within a diatreme breccia, comprising Porphyry B-Vein stockwork with Qtz-Mt-Cpy veins in quartz-chlorite-magnetite alteration (GTD-09-78; 29.35m).

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Figure 24 : Left - Accretionary lapilli from GTD-09-60

within a fluidized mill breccia. Right - Accretionary lapilli from GTD-10-172 (14m depth) likely formed by fluidized transport and rotation within a subsurface diatreme breccia.

Figure 25 : Charcoal wood fragments embedded within chlorite-clay altered mill (diatreme)

breccia at depths >100m below the surface in drillhole GTD-09-88. The combined set of features shown in above, i.e. vertically transported clasts of porphyry mineralization, fluidisation, mixing, rounding and comminution of clasts, the presence of accretionary lapilli suggesting fluidization, and the unambiguous presence of charcoal wood fragments, attest to the likely presence of major diatreme breccia bodies in the Tumpangpitu prospect area. Muddy‐matrix breccias (described below) are prevalent in the Zone B oxide area interspersed with mill (diatreme) breccias, and a developing hypothesis is that these reflect the upper portions of a diatreme complex where partly consolidated maar‐lake sediments were periodically ingested into the underlying breccia pipe or being injected into breccias as a result of eruption and over‐pressuring of soft maar‐lake sediments by volcanic breccia fallout within the vent of the maar. Whilst the geometry of a small diatreme below the Zone C oxide area (on sections 11040 mN and 10830 mN) is being increasingly constrained, the exact geometry of a large interpreted diatreme complex in the Zone B area awaits further compilation of drill data in that region.

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Muddy Matrix Breccias Muddy matrix breccias (Figure 26) are a distinctive class of breccia that are particularly common in the Zone B oxide area. They are characterized by breccias having a matrix of soft deformed mudstone, and in many areas the mudstone appears to have been injected under high pressure into fractures and cracks within the clasts.

Figure 26 : Muddy matrix breccias (GTD-09-107; 162.10m and 163m).

Left – contorted soft-sediment deformation between breccia clasts. Right – injection of soft thixotropic mudstone sediment into fractures in diorite. These breccias occur preferentially within and beneath the Zone B oxide area. They occur in close association with Porphyry Clast Breccias and Mill Breccias as well as rarer accretionary lapilli and charcoal wood breccia fragments. They are presently interpreted to represent an upper facies within a diatreme breccia complex in the Zone B area. Figure 27 illustrates the distribution of the main lithologies at Tumpangpitu.

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Figure 27 : Cross-section 11220 mN at Tumpangpitu.

Hydrothermal Breccias Hydrothermal breccias are abundant in the Tumpangpitu deposit in the shallow epithermal environment, and are divided into three classes:

i) Clast‐supported hydrothermal breccias; ii) Matrix‐supported hydrothermal breccias; iii) Tuffisite breccias.

There identification is based on several factors including intense silica or clay alteration of the matrix to these breccias and the common presence of mosaic and jigsaw breccia textures. These breccias have been identified in association with or near the margins of highly milled diatreme breccias, since the latter are typically fluidised.

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10. DEPOSIT TYPES

The deposit type of the Tujuh Bukit project remains as stated in the “Report on Mineral Resources” by Phillip L. Hellman, BSC (Hons 1), Dip Ed, PhD, MGSA, MAEG, FAIG, dated January 27 2011, which is filed on SEDAR.

11. MINERALIZATION

The Tujuh Bukit property has four main recognized mineralized zones, these being the Tumpangpitu coupled high‐sulfidation epithermal and porphyry system, the Katak porphyry system, the Candrian porphyry system and the Gunung Manis low‐sulfidation epithermal system. The later three are very briefly summarized below before discussing in more detail the mineralization at Tumpangpitu. 11.1 Katak

The Katak prospect is a porphyry system located about 2 km northeast of Zone A at Tumpangpitu. It was discovered as a result of follow‐up of a regional Cu‐Mo soil anomaly with associated Au anomalism. The Katak area was subsequently mapped, and mapping identified a diorite intrusion exposed over an area of approximately 800m x 300m, surrounded by lithic tuffs. The intrusion coincides with a magnetic anomaly which was subsequently modelled in 3D (Figure 28). Five drill holes were planned on the basis of this magnetic model and anomalous Cu, Mo and Au in soil geochemistry. 4 of the 5 drill holes encountered porphyry mineralization in stockwork style mineralization, with sulfide species dominated by chalcopyrite‐pyrite (Figure 29).

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Figure 28 : Plan of 5 planned drill holes that were subsequently drilled at Katak.

Holes are plotted on the mapped diorite intrusion and the magnetic model. Holes KTD-10-001 and KTD-10-002 yielded significant porphyry Cu-Au intersections at sites P16 and P15 respectively.

Figure 29 : Plan of 5 planned drill holes that were subsequently drilled at Katak.

Holes are plotted on the mapped diorite intrusion. The base map is a Google Earth image, overlain by a semi-transparent layer of Cu in soils.

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Selected intersections encountered at Katak were: KTD‐10‐001: 168‐268m, 100m @ 0.45% Cu, 0.30 g/t Au KTD‐10‐002: 0‐350.3m, 350.3m @ 0.16% Cu, 0.14 g/t Au KTD‐10‐004: 70‐176m, 106m @ 0.29% Cu, 0.37 g/t Au The overall geometry and extent of the Katak mineralization is presently unknown. It does not form any part of the current resource estimates. 11.2 Gunung Manis

The Gunung Manis prospect is a low‐sulfidation epithermal system that lies about 4 km east of Tumpangpitu. The area was reported to have yielded visible Au in historical pan concentrate samples. The area was identified by 400m reconnaissance soil lines conducted by Intrepid‐IMN in 2009. Au and Zn anomalies at Gunung Manis are spatially limited but distinct. The area has been the site of active and ongoing small‐scale mining activity. Intrepid‐IMN conducted infill sampling and geological mapping, identifying an area of argillic alteration within a diorite body, and which coincides with a magnetic low anomaly in regional magnetic data. Figure 30 illustrates the alteration at Gunung Manis and the location of visible gold in workings of small‐scale miners. Mineralization at Gunung Manis comprises narrow sheeted veins and fractures that are interpreted to trend north‐south. The veins are typically several millimetres to centimetres wide, and exhibit replacement and open‐space textures as well as bladed calcite textures that may be indicative of boiling of hydrothermal fluids. Chalcedony is observed in many veins and calcite within the veins is particularly abundant. Local QSP (quartz‐sericite‐pyrite) veins are also present. Sulfides that have been observed in the veins from surface mapping include pyrite, chalcopyrite, galena and tetrahedrite‐tennantite. The full lateral extent, width of any mineralized zones and depth extent of these veins is presently unknown as is their average grade. Further constraints on the scale of mineralization await drill testing of this prospect.

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Figure 30 : Alteration map at Gunung Manis

showing the relationship between the mapped zone of argillic (smectite) alteration and localities of mapped visible Au being worked by local small‐scale miners.

11.3 Candrian

The Candrian porphyry prospect is located approximately 2.2 km due east of the Tumpangpitu porphyry system (Figure 31). The prospect area was initially identified as having anomalous geochemistry in stream sediment samples that were collected by Golden Valley Mines. Follow‐up soil sampling by Intrepid on a 50 x 50m grid identified areas of Cu soil anomalism, and Mo soil anomalism that was coincident with an underlying magnetic high. A series of diamond drill‐holes were targeted in the region. Analysis of Pima spectra acquired on soil samples in the Candrian region in 2011 identified a 2.5 km x 1 km area in which the acid‐stable minerals pyrophyllite, dickite and alunite were discernable within the soil profile. These minerals are typical of the shallow epithermal level of porphyry systems. Drill hole CND‐11‐002 intersected porphyry mineralization which graded 138m @ 0.80 g/t Au, 0.21% Cu from 6‐144m depth, and which contained a higher grade interval that assayed 40m @ 1.60 g/t Au, 0.36% Cu from 100‐140m depth. Drilling is continuing at the Candrian prospect.

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Figure 31 : Location of the Candrian porphyry prospect

relative to the Tumpangpitu porphyry resource and the Katak and Gunung Manis prospects. 11.4 Tumpangpitu

The mineralization at Tumpangpitu comprises a Au‐rich porphyry Cu‐Au‐Mo system that is deeply overprinted by a telescoped high‐sulfidation epithermal Cu‐Au‐Ag system. The high‐sulfidation mineralization is in turn strongly oxidized near the surface. Oxidation of the high‐sulfidation sulfide protore results in an enrichment in Au, Ag and As and a depletion in Cu. Consequently the Tumpangpitu deposit has an oxide cap that was the subject of a scoping study into its potential economic feasibility. The results of this study is available on the SEDAR website. 11.4.1 High‐Sulfidation Oxide Mineralization The oxide mineralization at Tumpangpitu occurs on topographic ridges, in close association with Au and Ag soil anomalies. This oxide mineralization occurs in a series of pods or pockets that are labelled as Zones A through to F. These pods of oxide mineralization (eg Figure 32) have two gross forms:

i) As tabular dipping shelves or ledges of mineralized and advanced argillic altered breccia (Zones C and A).

At Zone A – these mineralized zones dip moderately to the southwest. At Zone C – these mineralized zones dip moderately to the northeast.

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ii) As steep structurally controlled loads that are best defined in the Zone B area. At Zone B – these mineralized zones strike north‐south and dip steeply to the east.

Two surfaces are defined from logging of oxidation through the upper high‐sulfidation portion of the deposit, Base of Complete Oxidation (BOCO) and base of Semi‐Oxidation (BOSO). At Zones A and C, for the most part, these surfaces are relatively smooth and plunge deeply but smoothly beneath the ridge tops to depths of between 50 and 300m below surface. The mineralized dipping silica ledges described above are highly fractured and sulfide‐rich, so oxidation appears to extend pervasively down into these ledges. In contrast, at Zone B where the mineralized structures are narrower and very steep, the BOCO and BOSO surfaces have complex and high relief morphologies, yielding very complex oxidation surfaces, with islands of transitional material lying above BOCO and islands of oxidized material lying below BOCO. The orientation of high‐sulfidation mineralization (oxide + sulfide) at Zones E and F await further drilling to improve cross‐section resolution. The character of oxide mineralization was described in detail in the reports by Hellman (2008 & 2009). Au and Ag is enriched in intervals of core that exhibit increased degrees of oxidation as well as increased intensity of sulfide fracture networks, to the degree that visual inspection of the core can provide a qualitative estimate of likely Au grade (low, medium, high).

Figure 32 : Vuggy massive silica (vu-Hsi) alteration of lithic tuff

cross-cut by a dense network of oxidized, limonitic, crackle breccia veins (GTD-49; 303-305m). Grade: 5.56 g/t Au/0.10 % Cu and 5.08 g/t Au/0.12 % Cu (Interval 302-304m and 304-306m).

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Mineralization in the oxide zone mimics the form and distribution of mineralization in the underlying HS‐sulfide zone except that it has an oxidation overprint which has upgraded Au and Ag grades. Mineralized intervals of core tend to be tens to locally hundreds of metres thick. The intersected thickness is believed to be close to true thickness at Zone C since drilling was perpendicular to the NE‐dipping ledge. At Zone A, mineralization is thought to dip in the same direction as the a larger fraction of the holes (i.e. towards the southwest), however because of the continuity of mineralization between holes and the style of mineralization (widely dispersed fracture networks within a deep and extensive oxidation zone), the intersected widths are likely to be close to the true widths. Detailed resolution of the dip and geometry of these wide fracture networks, both in the oxide and sulfide HS zones, awaits further infill drilling. 11.4.2 High‐Sulfidation Sulfide Mineralization As described above for the oxide zone, advanced argillic alteration at Zones A and C forms extensive and thick silica ledges which dip to the SW and NE, respectively and appear to emanate or flare upward, away from the deep porphyry tonalite core that is centered at depth (Figure 33, Figure 34). These ledges are zoned perpendicular to their dip, with cores of silica and silica‐alunite that zone outward to silica‐alunite‐clay, silica‐clay, clay‐silica, clay‐chlorite and finally in distal areas to propylitic alteration, typical of high‐sulfidation systems where neutralization of acid fluids is the dominant control on alteration patterns.

Figure 33 : Alteration section 11,200 mN (Placer grid) at Zone A

illustrating the moderately dipping silica ledge which occurs within dipping lithic breccias, and which controls high-sulfidation mineralization emanating from the southwest (left of section).

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Figure 34 : Alteration section 10,910 mN (Placer grid) at Zone C,

illustrating the moderately dipping silica ledge which dips to the northeast, and which exhibits distinct alteration zonation. Steep mineralized high-sulfidation structures to the right of this section (e.g. as intersected in the middle-upper parts of GTD-08-56) likely provided the conduits for volatiles which migrated upward to the southwest (right-to-left). The purple zones are silica and silica-alunite cores to the silica ledge. High suphidation mineralization forms networks and arrays of sulfide fractures and veins, containing pyrite +/‐ enargite +/‐ tetrahedrite‐tennantite +/‐ chalcocite +/‐ bornite that occur widely within the more silica‐rich portions of the silica ledges. At Zone B (Figure 35), the advanced argillic zones occur not in the form of gently dipping ledges but in the form of steeply dipping structural zones. Here, the silica‐rich alteration envelopes are ~30‐100m wide, though the mineralised zones within the sub‐vertical cores to these alteration envelopes tend to be narrower (5‐15m in true width). Thus intersection lengths in the “upper” sulfide zone at Zone B do not represent true widths which may be significantly narrower.

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Figure 35 : Alteration section 9045370 mN (UTM grid) at Zone B

showing steep mineralized structures in the shallow high-sulfidation environment which dip steeply to the east (left). The host rocks to these structurally-controlled high-sulfidation veins and planar vein networks are predominantly Mill Breccia and Muddy Matrix Breccia which are interpreted to represent the upper parts of a large diatreme complex in the Zone B area.

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11.4.3 Porphyry Cu‐Au‐Mo Mineralization – Broad Geometry The broad geometry of the mineralized porphyry shell at Tumpangpitu is depicted in plan (Figure 36) and in 2D (Figure 37and Figure 38). Compilations are still underway to understand the geometry in 3D.

Figure 36 : Plan of the principal porphyry Cu-Au-Mo intersections at Tumpangpitu (yellow bars),

superimposed on an RTP magnetic image. The diagram shows the lateral distribution of the mineralized porphyry intersections and the open nature of the mineralization on all sides. The intersections shown in the bottom of hole GTD-09-137, GTD-10-188 and GTD-11-195 is a new area of porphyry mineralization, and ongoing drill testing is being conducted to test if it will link to the main mineralized porphyry body to the northwest. Red collar traces are holes that are currently being drilled (14 June 2011).

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Porphyry stockwork mineralization forms an annular or inverted shell that lies around the margins of a deep tonalite stock. The tonalite stock is broadly coincident with a magnetic anomaly in magnetic data (Figure 38). Mineralization occurs both within the outer margins of the stock as well as within the inner‐most parts of the overlying and adjacent country rock. The country rock on the margins of the tonalite intrusion, where drilled to date, comprises a medium grained diorite (labelled “Old Diorite” in section 9), which is a pre‐existing intrusive within the local volcanic center. The zone of strongly mineralized stockwork, covers an area of approximately 1.2 km on section (NE‐SW), with porphyry mineralization having been drilled on nine cross‐sections, yielding an extent of approximately 1.7 km in the NW‐SE dimension. The true thickness of the most strongly mineralized part of the broader porphyry shell is approximately 200m (Figure 38).

Figure 37 : Resource block model section 11040 mN (Placer grid) at Tumpangpitu.

The strongly mineralized porphyry stockwork shell is about 1200m wide on section and about 200m in vertical width around the carapace of the tonalite intrusion. The inverted blue outline is the estimated 0.1% Cu grade boundary, the upper half of which comprises high-sulfidation sulfide mineralization. This line forms a bounding surface to the sulfide block model.

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Figure 38 : Alteration section 11040 mN (Placer grid) at Tumpangpitu (Nov. 2010).

The top of the quartz stockwork surface (blue line) extends beyond the contact of the tonalite and lies within the surrounding country rock. Advanced argillic alteration forms an upward flaring zone that extends into Zone A and Zone C as moderately dipping silica ledges. These ledges of silica (Hsi), silica-alunite (Hsi-al), silica-clay (Hsi-cy) and clay-silica (Hcy-si) contract down-ward onto the tonalite stock along its northeast margin, where a family of syn-HS feeder structures are inferred to occur, tapping volatiles from a magmatic source. The steeply dipping massive silica bodies (Hsi) in the vertical hole GTD-08-56 coincide with 3 sub-vertical HS-mineralized structures. Drill-hole GTD-10-163, which was collared off this section 200m to the NW (see Figure showing status of deep porphyry holes above) yielded a very long intersection (589.5m @ 0.57 g/t Au, 0.65% Cu), a site drilled down the axis of the advanced argillic high-sulfidation root that projects northeastward in under Zone A.

Alteration zones grade from subordinate relics of potassic alteration within the tonalite intrusion, upward to extensive areas of phyllic alteration that overprint potassic alteration within the outer carapace region of the tonalite stock, and then laterally to propylitic alteration on the flanks of the diorite and upward to advanced‐argillic alteration above the tonalite stock. The advanced argillic alteration flares upward to the NE and SW on section (Figure 38) towards the Zone C and Zone A areas. The broader advanced argillic alteration zone impinges and contracts downward onto the tonalite and associated intrusion breccias, presumably along major syn‐mineral stuctures that focussed acid volatiles from the Tonalite or a near coeval intrusive phase. 11.4.4 Porphyry Mineralization – Molybdenum Character and Distribution Molybdenite (MoS2) occurs in several forms through the Tumpangpitu porphyry system. Molybdenite is a hypogene sulfide and originates from the deep Cu‐Au mineralising tonalite

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porphyry. The earliest form of molybdenite occurs within porphyry ‘B‐vein’ stockworks within the tonalite, often forming a ‘train‐track’ like margin to the early B‐veins (Qtz ± py ± cpy ± bn, Photo 1). Where molybdenite is observed within the porphyry ‘B’ veins, the grade of molybdenum is typically low (5‐50ppm). Zones of molybdenite mineralization at Tumpangpitu are also observed in core mainly above the contact of the mineralising Cu‐Au tonalite, and overprint the country rock which includes older fine‐grained tonalite and pre‐mineral quartz diorite higher in the intrusive sequence. An example is in hole GTD‐10‐167 (drilled post resource estimation) which encountered 220m @ 459 ppm Mo from 284‐504m downhole. Molybdenite is also associated with the intrusion breccia carapace to the main tonalite body. Zones of molybdenite mineralization at Tumpangpitu are better developed above the main high‐grade porphyry Cu and Au mineralization. Due to the mobile nature of the metal and sulfide, Mo from the porphyry zone is remobilized by the acid overprint of the high‐sulfidation system. The most common form of molybdenite occurs in drillcore where high‐sulfidation zones have permeated deep onto porphyry mineralization within the tonalite porphyry and associated tonalitic intrusion breccias. Here, its form is disseminated throughout the tonalite, and forms stringers and veinlets (without vein quartz) in association with acidic, high‐temperature high‐sulfidation associated clays (dickite and pyrophyllite ‐ HyChip analysis), and it also occurs as fracture linings that overprint all generations of porphyry stockwork veining. This late overprinting of molybdenite from its deep porphyry origin to higher levels in the system suggests re‐mobilisation of molybdenite from early B‐type porphyry stockwork veining during one or more intermediate‐high‐sulfidation events (as shown in Figure 39).

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Figure 39 : Top-left, GTD-10-167 (403m) Qtz-Mo (B-vein) with Py center-line.

402-404m = 639ppm Mo. Top right, GTD-10-167 (360m) Molybdenite stringer cut by later Py (QSP) vein, 360-362m = 854 ppm Mo. Bottom left, GTD-10-139 (548.2m) Disseminated molybdenite in late clay veining (pyrophyllite and kaolinite - HyChip). Very intense pyrite and minor chalcopyrite, 548-550m = 1650ppm Mo. Bottom right, GTD-10-139 (532.9m) Coarse Molybdenite aggregate (re-mobilised) and covellite associated with Advanced argillic clays (dickite and minor pyrophyllite), 532-534m = 2110 ppm Mo). 11.4.5 Porphyry Mineralization – Arsenic Character and Distribution

Arsenic (As) in the deposit in the sulfide zone occurs within the Tennantite‐ ((Cu, Ag, Fe, Zn)12As4S13 ) – Tetrahedrite (( Cu, Fe, Ag, Zn)12Sb4S13,) series, and as the Enargite/Luzonite (Cu3AsS4) series. The form of arsenic in the overlying oxidized zone, where As is most enriched, is unknown, though it likely occurs in complex hydrated Fe‐oxides that develop by oxidation of the above sulfide species. Scorodite has been observed in some oxide samples, though this is not considered to be the main mode of As in the oxide zone. Figure 40 shows a plan plot of the average As grade per hole (for oxide drilling only) in cores for 3 of 5 routinely logged oxidation categories (Fresh, Strong and Complete). This plot shows that As is significantly lower in fresh rocks and is strongly enriched in the most oxidized intervals. This suggests that whilst the As is ultimately sourced from high‐sulfidation sulfide minerals, the As values are enriched by a factor of around 4 due to oxidation near the surface. Figure 41 shows the relationship of logged oxidation to As concentration. In the sulfide zone, the Arsenic minerals occur in the form of fracture‐fillings and veinlets which have a width of few millimetre to a few centimetre, or as fine sulfide grains disseminated within breccia matrix. Tennantite, Tetrahedrite and Enargite occur both as solitary grains and interlocking with pyrite and chalcopyrite, and very locally with minor sphalerite and galena. Detailed observations suggest that the arsenic minerals are not homogeneous, they behave erratically and tend to occur preferentially along structurally‐controlled veins. The arsenic‐bearing sulfides are most commonly distributed at shallower level within the Sulfide zone of the high‐sulfidation epithermal system, directly below the Oxide zone (typically 150‐200m below the current surface). These arsenic‐bearing sulfides precipitated mostly above the porphyry Cu‐Au mineralization, the latter is typically developed 400m below the surface.

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Figure 40 : Average grade of As in oxide drill holes for 3 oxidation classes (fresh, strong, complete)

at Tumpangpitu (Nov. 2010). A-F refer to oxide Zones A-F. The oxide holes plotted here bottomed in the unoxidized or fresh high-sulfidation zone, some of which were incorporated into the porphyry resource.

Figure 41 : Enrichment factor of As in oxide Zones A-F

Oxidation increases in intensity from fresh rocks at depth to completely oxidized rocks closer to the surface. The As grade, on average, increases by a factor of around 4 in going from fresh to completely oxidized rocks. In the Sulfide zone of the high‐sulfidation epithermal system, arsenic content range from a few hundred ppm up to 0.5% in some mineralized fractures. These veins and fractures typically contain tetrahedrite‐tennantite and/or enargite. Arsenic values are much lower in porphyry Cu‐Au mineralization, typically varying from <10 ppm to a few tens of ppm. Typical porphyry vein generations (“A”, “B” and “C” veins of Gustafson and Hunt, 1975) typically lack arsenic‐copper‐sulfide minerals, since they tend to be characterized by Chalcopyrite (CuFeS2), Bornite (Cu5FeS4), and Covellite (CuS), with low temperature re‐equilibration to minerals like Chalcocite and Digenite (Cu2S) which lack Arsenic.

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However, where epithermal high‐sulfidation mineralisation overprints the porphyry, arsenic levels increase to a few hundreds of ppm. The Cu‐As‐sulfide bearing veins occur as late veinlets cutting through porphyry Cu‐Au mineralization and can be structurally‐controlled. They occur in 2 main forms:

i) As sparse and distributed arrays of 1‐10cm‐scale veins that occur at frequencies

of 1‐10 veins/10m. ii) As steep structurally‐controlled arrays of complex, pyrite‐rich and mineralogically

complex veins (e.g. pyrite, chalcocite, enargite, tetrahedrite‐tennantite, barite, sphalerite and dickite/pyrophyllite). Individual veins may vary from several centimetres to half a metre width, but structurally‐controlled arrays of these veins can be up to 5‐10m wide (true width) or 30m in apparent width in vertical holes (e.g. GTD‐56).

Further detailed studies of arsenic distribution and of intrusive phases are required to improve the level of geological understanding of the deposit. As a late mineralization event, the high‐sulfidation epithermal mineralization might be correlated to a particular generation of intrusions. 11.4.6 Porphyry Mineralization – Copper Character and Distribution Copper sulfides that are evident in the Tumpangpitu deposit at porphyry levels include an inner bornite zone and an outer chalcopyrite zone, however much of the hypogene disseminated chalcopyrite may have been converted to bornite and pyrite during multiple intermediate to high‐sulfidation overprints. 5CuFeS2 + 0.5SO4

3‐ + H+ + 1.5H2S → Cu5FeS4 + 4FeS2 + 2H2O Examples of where this process may have occurred is in the lower parts of hole GTD‐09‐112 where an intersection of 166m @ 0.45% Cu and 0.45 g/t Au (654‐820m, open at end of hole) is associated with porphyry quartz stockwork veins that have been strongly overprinted and bleached by high‐sulfidation mineralization, and sulfide mineralization is dominated by bornite. Similar relationships are observed in GTD‐09‐35 and GTD‐10‐163 (Figure 42 and Figure 43).

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Figure 42 : Core from the porphyry zone in GTD-09-112 (731.20m depth).

A, B and C-veins from the porphyry stage are overprinted by strong advanced argillic alteration resulting in a pervasive bleaching of the rock and very fine-grained disseminated bornite mineralization.

Figure 43 : Core from the porphyry zone in GTD-10-163

which is strongly overprinted by advanced argillic alteration. Porphyry B-veins are bleached to a grey colouration by the acid overprint, and mineralization is dominated by very fine grained disseminated bornite throughout the rock mass. Areas of very high Cu (and Au) grades occur where the porphyry stockworks in the potassic zone are strongly overprinted by high‐sulfidation alteration. In these areas of exceptional grade, such as in the high‐grade Cu‐Au zone in GTD‐10‐139 (30m @ 1.86% Cu, 6.25 g/t Au from 558‐588m) the rock texture may contain complex ductile fabrics. A‐vein relics are

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sometimes present, and suggest that they were part of a former potassic alteration zone that has been overprinted by advanced argillic alteration which penetrated deep into the porphyry system. 11.4.7 Porphyry Mineralization – Gold Character and Distribution Zones of significant gold enrichment also occur in the porphyry system where HS mineralization (massive pyrite ± tetrahedrite/tennantite ± enargite ± bornite ± covellite) overprints the early porphyry stockwork mineralization in the potassic zone. In these areas, relict magnetite is oxidized to hematite due to acidic and oxidized fluids associated with the retrograde phyllic overprint (e.g. GTD‐10‐129/139 and GTD‐10‐167).

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12. EXPLORATION

Historical exploration on the Tumpangpitu prospect in 1999‐2000 is presented in Section 8.0 of this report. Since involvement of IMN in the Tujuh Bukit project (2006‐2011) and the involvement of Intrepid Mining Ltd (formerly Emperor Mines Ltd) in 2007‐2011, the following exploration programs have been undertaken over the Tumpangpitu prospect: 1) Re‐establishment of the Tumpangpitu grid (initially established by Placer). 2) Completion of 475 soil grid samples at a density of 200m x 25m over the Tumpangpitu

prospect (Figure 44). The soil samples were acquired along 17 cross‐lines oriented at 050°‐230° magnetic. Soil samples were analysed for Au, Cu, Pb, Zn, Ag, As, Sb, Mo and Ba.

3) Regional rock‐chip sampling: A total of 1553 rockchip samples were collected by IMN or

Intrepid during the period 2006‐2011 from the Tujuh Bukit project. These includes suites of rockchip samples collected at Tumpangpitu, Salakan, Katak, Gunung Manis and other regional areas in between these main prospects.

4) Reconnaissance lithological and alteration mapping at Salakan. Field reconnaissance

visits to areas on the Tujuh Bukit property. 5) Preparation for and completion of five main phases of diamond drilling at Tumpangpitu

that extended from September 2007 to May 2011:

I. Zone C Oxide delineation drilling (34 drill holes: 8,953.90m; 2007‐2011). II. Zone A Oxide delineation drilling (25 drill holes: 8,287.95m, 2007‐2010). III. Zone B Oxide delineation drilling (56 drill holes: 13,047.05m, 2008‐2011). IV. Zones E and F + Regional drilling (31 drill holes: 4,961.00m, 2009‐2011). V. Porphyry Cu‐Au drilling (ongoing) (34 drill holes: 30,330.35m, 2008‐2011).

Note: The total meterage of 30,330.35m for the Tumpangpitu porphyry drilling program (all holes greater than 500m depth except GTD‐08‐32) is based on drilled and assayed metres, and includes the lowermost part of drill hole GTD‐11‐194 which was not available at the time of the current porphyry resource estimation. In addition to the Tumpangpitu drilling listed above, the following drilling has also been completed:

I. Five diamond drill holes were completed at the Katak porphyry prospect (1835.5 drill metres), where a new porphyry Cu‐Au system was discovered in early 2010.

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II. Five diamond drill holes were completed at the Candrian porphyry prospect as of the 3rd June 2011 (2507.76 drill metres), where another new porphyry Cu‐Au system was discovered in 2011.

III. Eight regional Geotech drill holes, designed to test the stability of the bedrock beneath a potential heap leach pad locality, were drilled for 421.6 drill metres.

The total number of holes and drill meterage completed by Intrepid on all areas of the Tujuh Bukit property at the time of the current resource estimation, together with historical holes by Golden Valley Mines and Placer, is 215 for a total of 74,517.61m. The diamond drilling work involved drill site targeting, drill site surveying, preparation of drill pads, developing logistic supply lines and procedures, organising accounting procedures and designing a database to process the data sets associated with the drill programs. The drill support work involved IMN professional personnel (geologists, logistic managers and accountants) as well as local labour employed on a daily basis.

6) Two Inferred Resource estimations were generated by H&S in 2008 and 2009 for the

Zone C and Zone A oxide areas respectively. On the basis of the early drilling at Zone C and Zone A, inaugural Inferred Resources were estimated for Zones C and A by H&S (NI43‐101 technical reports dated September 2008 & February 2009). In January 2011, a further Inferred oxide resource estimate was reported by H&S, and is summarized Table 1. It incorporates resources from several zones of oxide mineralization that were previously referred to as Zones, A, B, C, D and F.

The Inferred Resource for the gold‐silver oxide deposits at Tumpangpitu is 130 million tonnes (M/T) at 0.55 grams‐per‐tonne (g/t) gold (Au) and 18 g/t silver (Ag) above a 0.2 g/t gold cut‐off. The entire resource is classified in the Inferred category. This represents a total of 2.4 million ounces of contained gold and 80 million ounces of contained silver.

Table 1 : Inferred Oxide Resource at Tumpangpitu as reported in January 2011

Summary of Inferred Resources (Oxide)

Cut‐Off Tonnage GradeContained Metal

Au g/t Mt

Aug/t

Agg/t

AuMoz

AgMoz

0.20 130 0.55 18 2.4 80

0.30 85 0.74 21 2.0 55

0.40 60 0.91 23 1.7 45

0.50 45 1.06 24 1.5 35

0.75 25 1.39 27 1.1 20

1.00 15 1.69 29 0.9 15

7) Reprocessing and 3‐D inversion modelling of existing aeromagnetic data over the

property (400m‐spaced flight‐line data), plus acquisition and processing of ground

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magnetic data over the southern portion of the Tumpangpitu prospect was undertaken in 2008. The aeromagnetic data and the ground magnetic data were levelled and merged into a single image over the Tumpangpitu magnetic batholith. Reprocessing of existing IP data that was acquired by Placer in 2000 was also undertaken and is ongoing.

8) Extensive regional ‐80 mesh soil sampling was undertaken in 2008 at Salakan and in

2009‐2011 at Tumpangpitu and east of Tumpangpitu. Soil samples were collected by both hand‐operated manual auger for the Salakan program and by both hand‐operated auger and petrol‐driven mechanical auger for the Tumpangpitu program. Soil samples were taken from the C‐horizon in most cases, though in areas of deep saprolite clay development samples were taken from the B soil horizon. For the initial soil sampling programs, the samples were analysed for Au, Cu, Pb, Zn, Ag, As, Sb, Mo and Ba at the Intertek Laboratory in Jakarta. For the more recent soil programs, a 38 multi‐element was analysed. Two types of duplicate soil samples were routinely acquired, a within hole duplicate and a duplicate located ~1 metre from the auger hole as part of the procedure to assess anomaly reproducibility. Several orientation surveys were also done whereby some auger holes were sampled at 20cm intervals from surface to ~1.4m depth to assess the behaviour of metal depletion or enrichment through the soil profile.

Sampling at Salakan was conducted on a 400m x 50m GPS‐located grid whilst soil sampling in the broader Tumpangpitu region was conducted on a series of grids at variable sample spacings (400m x 50m, 200m x 50m and local 50m x 50m infill over selected anomalies of initial interest). A total of 6936 soil samples have been collected to date on the Tujuh Bukit project, including those collected by Placer prior to Intrepid and IMN’s involvement in the project.

Figure 44 and Figure 45 show the results of regional soil sampling for Cu and Au on the Tujuh Bukit property, and key results are discussed in the figure captions.

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Figure 44: Distribution of Au anomalies in -80 mesh soil samples at Tumpangpitu,

(Southern gridded area) and Salakan (northern gridded area) (Nov. 2010). The principal prospects at Tumpangpitu and east of Tumpangpitu are shown by the black dotted outlines. Labels A‐F refer to the naming of mineralized oxide zones at Tumpangpitu. The Katak porphyry system and the Gunung Manis low‐sulfidation epithermal system are shown northeast and east of Tumpangpitu respectively. The Au‐Ag mineralized oxide zones at Tumpangpitu are clearly delineated by Au soil anomalism. Au anomalies are also defined at Katak , Gunung Manis, northwest of Zone A and in several areas at Salakan. A northwest‐trending zone of Au anomalism running through Zone B lies parallel to the district‐scale structural grain.

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Figure 45 : Distribution of Cu anomalies in -80 mesh soil samples at Tumpangpitu,

(Southern gridded area) and Salakan (northern gridded area) (Nov.2010). The principal prospects at Tumpangpitu and east of Tumpangpitu are shown by the black dotted outlines. Labels A‐F refer to the naming of mineralized oxide zones at Tumpangpitu. The Katak porphyry system and the Gunung Manis low‐sulfidation epithermal system are shown northeast and east of Tumpangpitu respectively. Cu anomalism in soils at Tumpagpitu is very extensive, covering an area of ~6 km2. NW‐trending linear zones of Cu anomalism are also observed trending through Zone B, trending south of Katak and also possibly at Gunung Manis. These again support the inference that there are several NW‐trending structures that were active at the time of mineralization and acted as controls on emplacement of mineralising magmas. Several Cu anomalies are also present at Salakan, including a major Cu anomaly that is open to the northwest.

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9) Spectral analysis (by TerraSpec spectrometer) of 741 soil samples from the Candrian

prospect area was conducted in 2010. In January 2011 maps were produced of the identified mineral distributions. Analysis of the spectra of soil samples over the main Tumpangpitu deposit is ongoing in conjunction with the current 50m x 50m soil sampling program over the prospect.

10) In September 2009, Intrepid and their partner PT Indo Multi Niaga conducted a heliborne aeromagnetic survey cover the entire Tujuh Bukit property. The aerial survey was flown by GPX Surveys Pty Ltd (Perth). The survey was flown along 100m‐spaced north‐south flight lines (2530 line kilometers). Radiometric and DTM data were also acquired together with the magnetic data. The magnetic data were processed by Moore Geophysics, the data processing yielding Raw TMI, 1st‐Vertical Derivative, Analytical Signal and Reduced‐to‐Pole imagery as well as U‐count, Th‐count, K‐count and Total Count images for the radiometric data.

Survey equipment used by GPX Surveys Pty Ltd is listed below:

Aircraft Bell 206 (C20R) with app. stinger Navigation System Pico Envirotec AGIS PC104 Data Acquisition System Pico Envirotec AGIS PC104 Magnetometer Processor Pico Envirotec MMS‐4 Magnetometer Sensor Geometrics G822A(stinger mounted) Fluxgate Magnetometer Billingsley TFM 100G2 Base Magnetometer GEM 19 or Geometrics G 856 Spectrometer Pico GRS 10 (256 channel) Spectrometer Sensors Pico DET 1024 (16 liters) Temp & Humidity Vaisala HMP233 Barometric Pressure Sensor Vaisala PTB220 DGPS Receiver CSI DGPS Max or similar Radar Altimeter Collins Alt 50 or similar Field Computer Toshiba Notebook & printer

The survey specifications were: Line Kilometres 2,530 Km (minimum) Line Spacing 100 metre Tie Line Spacing 1000 metre Line Direction 000‐180 deg Tie Line Direction 090‐270 deg Sensor Height 30 metre Magnetometer Sample Rate 10Hz Spectrometer Sample Rate 1 Hz GPS Sample Rate 1Hz Altimeter Sample Rate 1Hz Base Magnetometer Sample Rate 5 seconds

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1st‐pass interpretation (Figure 46) of the aeromagnetic data was conducted by Chris Moore of Moore Geophysics (Section 9). The data were also used as a basis for regional target generation by integration with soil geochemical data in an in‐house GIS project. The result of this work has been the generation of a series of additional regional targets in addition to the currently known prospects. Ongoing soil sampling programs are progressively being undertaken to screen these new regional targets. A number of magnetic anomalies in the southern portion of this survey have undergone 3D inversion modelling.

Figure 46 : Left – Aeromagnetic data flown by Golden Valley Mines (circa 1999)

with interpretation conducted by C.Moore for Intrepid. Right ‐ Aeromagnetic data (helimagnetics) flown by GPX Surveys Pty Ltd for Intrepid and IMN in September 2009. This recent helimagnetic survey yields far more detailed magnetic data that has allowed more definitive 3D modeling of magnetic anomalies and more robust interpretation of regional structure, as well as confident definition of the loci of intrusive centers within the district.

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13. DRILLING

Intrepid and their Joint Venture partner PT Indo Multi Niaga (IMN) have conducted an ongoing diamond drilling program at the Tumpangpitu prospect since September 2007. Drilling has progressively expanded from one drill‐rig to the current seven operating drill rigs. At the time of the current resource estimation, a total of 180 drill holes on the Tumpangpitu prospect were either completed or in progress by Intrepid. Of these 180 holes, 146 were drilled as shallower oxide holes (mostly less than 450 metres depth), whilst the remaining 34 holes were deeper holes sited to test the Tumpangpitu porphyry system (mostly more than 600m depth). The total drill meterage by Intrepid‐IMN at Tumpangpitu for these 180 drill holes (upon completion) was 65,580.25m. The location of these drill holes is shown in Figure 47. This drilling at Tumpangpitu covers an area of approximately 3 km2.

The drill holes were designed to test a range of target environments at Tumpangpitu:

i) Surface Au, Ag and As soil anomalies from Placer and IMN soil surveys, and Placer IP resisitivity data, for oxide Au‐Ag high‐sulfidation mineralization.

ii) IP chargeability anomalies for sulfide Au‐Ag‐Cu high‐sulfidation mineralization.

iii) Magnetic anomalies for deep underlying porphyry Cu‐Au‐Mo mineralization.

In positioning the drill holes, Intrepid‐IMN reviewed all existing data, including surface alteration data from prior mapping by Placer, previous drilling results of Golden Valley Mines and Placer, chargeability and resistivity anomalies from a prospect‐scale IP survey conducted by Placer, and the results of repeat and follow‐up soil sampling over the Tumpangpitu prospect conducted by IMN in early 2007 and by Intrepid‐IMN in 2009‐2010. Au‐Ag oxide delineation drilling at Zones A and C was conducted at a drill spacing of approximately 80m x 80m, with section lines oriented at 050°‐230°. In both area, drill holes were mostly drilled at ‐60° dip towards 230° magnetic azimuth, although some several holes were drilled with the reverse azimuth at some at differing dips. Au‐Ag oxide delineation drilling at Zone B was conducted at an average drill spacing close to 60m x 60m, with most holes drilled at ‐60° towards UTM azimuth 270°. Subsequent drilling at oxide Zones E and F were drilled towards 270° and 230° respectively. The deep porphyry drill holes were drilled on the old Placer grid at azimuths of 050° and 230°. The holes were sited to maximise the number of drill holes that could be drilled from each drill pad, and yield intersections in the porphyry environment that approximate a 200m x 200m intersection grid at depth.

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Surveyed drill hole collar co‐ordinates are tabulated in Appendix 1 (UTM coordinates) together with drill hole azimuths, dips, total lengths plus end date for each drill hole.

Figure 47 : Distribution of drill holes at Tumpangpitu as of 9th May 2011.

Figure 47 illustrates the spatial distribution of all drill hole collars at Tumpangpitu, including historical holes, oxide holes and deep sulfide holes, and portrays the density of drilling in plan view. At the current broad drill spacing, the intersected widths of mineralization are considered approximately equivalent to true thickness, since the style of mineralization is largely widespread disseminations and broad networks/stockworks of veins.

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The sample length has been dominated by 2m samples whilst the typical intersection lengths, although variable, are typically of the order of several hundred metres in the deep porphyry zone and tens of metres to locally greater than 100 metres in the oxide zones. 13.1 Drilling Contractor and Drilling Statistics

The drilling contractor used during all phases of the drilling program conducted by Intrepid‐IMN was PT. Maxidrill which is based in Jakarta, Indonesia. The company address of the drilling contractor is:

PT. Maxidrill Indonesia. Jl. Gatot Subroto Km. 8. Jatake, Tangerang, Banten 15137 Telephone: 62‐21 5913583‐6 Facsimile: 62‐21 5918780 e‐mail: [email protected] website: www.maxidrill.net

The total depth of diamond holes drilled at Tumpangpitu (up to drill hole number GTD‐11‐195) ranged between 90.4m to 1102.8m. The average depth of all deep holes designed to test for porphyry Cu‐Au mineralization was 886.18m at the time of this current porphyry Cu‐Au resource estimation. The average depth of all other holes that were targeting Au‐Ag oxide mineralization, but which often ended in sulfide mineralization below the base of semi‐oxidation, was 241.16m. 13.2 Drilling Equipment

PT. Maxidrill used two drill‐rigs during the Zone A drilling program in 2008. They are the MD‐400 rig and the MD‐420 drill rig which were manufactured by Maxidrill in Indonesia. Both drill rigs are skid‐mounted and man‐portable, breaking down into pieces that can be hauled manually between drill sites. The drill rigs are moved by a team of around 80‐100 haulers, taking around a day or two to move site, depending on the distance to the next drill site. The MD‐400 drill‐rig has been able to drill to between 400‐450m consistently at Tumpangpitu using NQ after reducing from PQ and HQ higher in the holes. The MD‐420 drill‐rig is rated by PT Maxidrill as being capable to drill to 0‐150m (PQ), 0‐450m (HQ) and 0‐700m (NQ). The MD‐420 drill‐rig has recently drilled to 849.20m depth (after reducing to BQ) on a drill‐hole outside of the Zone A drill‐grid area. In more recent times larger drill rigs owned by Maxidrill have drilled at Tumpangpitu, and include the MD‐430 and MD‐440 drill rig configurations. The deepest drill hole completed to date was 1102.8m (GTD‐10‐166) using an MD‐440 drill rig. The current set of drill‐rigs that are used on the Tujuh Bukit Project are: 1 x MD‐420, 1 x MD‐430 and 5 x MD‐440 rigs. The cores were retrieved using triple‐tube sampling and core sizes drilled were PQ‐3 (83 mm diameter) from surface, with reduction to HQ‐3 (61.7 mm) and NQ‐3 (45 mm) at depth.

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13.3 Down hole Surveys

A total of 1471 down‐hole surveys points (that include set‐up collar positions at the surface) were acquired from drill holes GT‐001A through to GTD‐11‐195 (i.e. all holes available for the porphyry resource estimate). Down‐hole survey data existed for the historical holes GT‐001A through to GT014 although it is not known what type of survey tool was used for these old GVM and Placer holes (it is assumed that the survey data were recorded using the widely used Eastman single‐shot system). All drill holes drilled by Intrepid from 2007‐2011 were surveyed using a REFLEX EZ‐ShotTM down‐hole survey instrument which recorded azimuth, inclination, roll‐face angle, magnetic field strength and bore‐hole temperature. 13.4 Drill Hole Collar Survey and Topographic Survey

The collar position of drill holes at Tumpangpitu were picked up by two separate survey companies, PT. GEOINDO GIRI JAYA and PT SURTECH UTAMA INDONESIA. Contact details for these two companies are listed below:

PT. GEOINDO GIRI JAYA Jl. Batununggal Indah IV No.83 Bandung 40266 – Indonesia Telp : +62 22 7513168, 7538775, Fax : +62 22 7513776 Contacts : Mr. Robert Bacciarelli and Mr. Darwis Legawa. P.T. SURTECH UTAMA INDONESIA ‐ Specialised Surveying Solutions Satmarindo Building, 2nd Fl – Jl. Ampera Raya No. 5 Jakarta 12560 Telp : +62 21 7883 4813 Fax : +62 21 7883 4913 Mob : +62 811187806 Contact : jim.walsh@surtech‐group.com www.surtech‐group.com

Details of drill hole collar survey procedures conducted by PT Geoindo were reported by Hellman (2008, 2009). All drill holes used in this current resource estimation were surveyed by ground‐based geodetic surveying. Surface topographic data were also surveyed on the ground during a series of ongoing survey campaigns contracted initially to PT Geoindo and subsequently to PT Surtech. These data were used to construct a digital elevation model for resource estimates. 13.5 Summary Results of Drilling

The results of drilling to date have defined a shallow Au‐Ag oxide resource that has been reported previously (Hellman 2008, 2009 and 2011), and a deeper Cu‐Au‐Mo porphyry porphyry resource which was previously reported in 9 May 2011 and is the subject of the current porphyry resource update that is reported in this NI43‐101 report.

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14. SAMPLING METHOD AND APPROACH

All drill holes on the Tujuh Bukit project area conducted to date have been drilled by the diamond drilling method. Consequently two types of samples are collected for assay during the drill program at Tumpangpitu, half‐core samples of PQ, HQ, NQ and BQ core and three‐metre composite sludge samples. During 2010, critical independent reviews of data collection procedures and storage took place which has improved sampling methods and approach. In February 2010, independent data management consultant, Graham Wearing (Perth, Australia) was contracted to make recommendations for improvement of the data management processes and systems for the Tujuh Bukit project. This included recommendations for improvements that take into account an expanding number of drill rigs and therefore increased data generation and storage requirements. In June 2010, Snowden Mining Industry Consultants (Perth, Australia) were contracted to undertake an independent review of the sampling procedures and data management at the Tujuh Bukit project. The scope of work included:

Assess the security of the sample handling process from drill rig to delivery of samples to the Intertek laboratory in Jakarta.

Assess the sampling procedures of drill core at site (including reference to the different styles of mineralization; oxide and sulfide; high sulfidation and porphyry; disseminated and stockwork).

Assess the QAQC procedures in place (blanks, standards, replicates etc).

Assess the data management procedures from the logging and sampling of drill core, through to receipt of assay results from the laboratory. Compilation of geological (and related) logs, to the organising and archiving of drill hole database.

Evaluate the photographic record and additional data that is generated such as drillers logs and water table information.

From February to September 2010 various recommendations have been implemented from these two reviews and in conjunction with subsequent internal reviews of procedures. The most significant changes resulting from the reviews have been:

Outsourcing data management to an independent data system specialist company ‐ ioGlobal Pty Ltd (Perth, Australia). The cost of data management through ioGlobal is approximately 40% of the cost of a full time data administrator with significantly increased confidence in data integrity.

With the outsourcing to IoGlobal comes – o improved data collection systems and processes, o Vastly improved handling of QAQC data, o Rationalisation of all data collection to uniform forms (hardcopy and digital) with

field names consistent with the database, o Review and rationalization of dataflow procedures including increased validation.

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o Rationalisation of data export and processing, leading to more efficient processing and interpretation and more robust datasets.

Implementation of drill core orientation

Transport of drill core from the drill site to the coreyard and from coreyard to storage yard by helicopter.

Improved boxing of core – eliminating core loss during transport. Further detail of any change in procedures will be discussed in Sections 14 and 15 where relevant. 14.1 Core Processing Protocols

The drill core is acquired in a triple‐tube assembly which is utilised by all drill rig models on site (MD195, MD350, MD400, MD420, MD430 and MD440 drill rigs). Prior to sampling of the drill core, trained local core technicians measure the core recovery at the drill site (per drill run) and mark up the core trays before placing the core trays in sealed wooden boxes for transport to the core processing facility located on the prospect. The drill‐rig core technicians, trained by IMN, fill out a Field Geotech Form at the drill rig. This form records run depths and core recovery data. The drill‐rig‐based core technicians accompany and rotate in tandem with the three daily drill shifts. The data recorded on the Field Geotech Form is oriented primarily to capture core recovery as soon as possible after core is drilled. Columns in the Field Geotech Form include the drill shift (I, II or III), the Run No. (sequential numbers 1→X), WSL, S/U, From, To, Recovery Drilled (= advancement meterage), Recovery (Actual), % Recovery and Comments. The Field Geotech forms for each drill rig are delivered daily to the core shed supervisor by the rig‐based core technician who has been rostered at the drill rig on the night shift (shift III). The forms are held at the core shed until drilling, sampling and processing of the drill hole has been completed, and then are dispatched to the site office at Pulau Merah for filing together with other relevant drill hole data at the site office. Prior to transport of core from the drill rig to the core shed, the core trays are packed with plastic bag inserts to prevent core movement during transport. Prior to June 2010, core trays were manually carried from the drill site to the core shed. Core from some holes is carried up to a kilometre in distance. Since June 2010, core is transported by helicopter. When the core boxes arrive at the core shed, a core technician fills out a Tray List. This form records the Hole ID, the Tray number (1→X), From, To, Core Size (PQ, HQ, NQ, BQ) and a column to indicate if the core tray has been photographed. Following entry of details into the Tray Form, the core is carefully washed in situ and then each core tray is digitally photographed on a wooden frame. Typically two boxes are photographed in a single photographic frame. A label across the core box records the hole number, date and the from and to intervals for each core box.

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Once the core box photos have been taken, the photo column in the Tray List is marked to indicate completion of core photography. The Tray List is held on site at the core shed until sampling of the drill hole has been completed, after which it is dispatched to the site office for data entry into IMN’s digital database. Digital core photographs are transferred to a USB memory module and also dispatched to the site office in Pulau Merah for archiving. Each photograph is given a file name that reflects the hole ID and the from‐to interval of the photographed core in each image (e.g. GTD‐08‐27‐39.50‐45.03.jpg). Following core photography, a Geotech Log is filled in by several trained core technicians (under guidance from IMN geologists) at the core sampling facility. The Geotech Log in current use records the Hole ID, From and To intervals (per run), Drill_Int (= From minus To, or length of run), Recovery (m), RQD, Hardness (1‐5), Fractures (fractures per run), CFA (core fracture angle), CFO, Fracture Style, Core Size and Comments. Fracture style is rarely recorded however is recorded in the detailed geology logs. The Geotech Logs are also held on site at the core shed until the drill hole has been completely sampled. The Geotech Logs are then sent down to the site office at Pulau Merah and are key‐punched into hole‐specific Excel spreadsheets and also into a composite Access database called “GeotechLog” by a data‐entry clerk. Following completion of the Geotech Log, IMN geologists conduct detailed geological logging of the drillcore. Following completion of logging, the geologists mark up the core for sampling in conjunction with the core technicians. During this process the core is visually assessed to ensure that the half of the core marked for sampling is representative of the contained mineralization. A Sample Number Form is then filled in by the core shed supervisor. The form is used primarily to record the sample intervals and assigned sample numbers and is used for both drill core and sludge samples. The form records Hole ID, SNO (sample number), From, To, Interval (typically 2m), sample type (core or sludge), size core (PQ, HQ, NQ, BQ) and reason (e.g. GCA – geochemical analysis; Met – metallurgy and Dup – duplicate). IMN‐designed sample ticket books are used. The position for insertion of analytical standards in the sample string is recorded by the core shed supervisor on the Sample Number Form. Typically two standards are placed every 60m of core (i.e. approx every 30 samples). Geologists assign standards according to expected anomalism (of Au, Cu or Ag). A variety of standard types should be included with the batch. The Sample Number Form is held at the core shed until the entire hole has been sampled, then the forms are sent to the site office at Pulau Merah where the data are key‐punched into a hole‐specific Excel spreadsheet and also into a composite Access database called “SampleDrilling” for drill core samples and “Sludge_Sample_Numbers” for sludge samples. In August 2010, core shed procedures were modified to improve data integrity. New data entry templates were introduced to the core shed staff including Geotech, Magsus, SG and Sampling. New Geological Log templates were also introduced to geologists. All templates are in hardcopy and digital, are in one consistent format with field names which more accurately represent database fields. From August 2010, core‐farm staff now data enter Geotech, Magsus, SG and Sampling data directly into the digital templates. Geologists data

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enter geology information directly into a geological log template. These templates contain automatic lookup tables, data rules acting as first pass data validation which assists data entry, increases data integrity and improves data flow efficiency. 14.2 Measurement of Specific Gravity

Prior to sampling, segments of core were measured for specific gravity (SG) at the prospect site core shed. The specific gravity data were typically acquired on 10cm‐long segments of whole core prior to splitting. These drill core density measurements were made on site at Tumpangpitu by trained Indonesian geotechnicians employed by IMN. A total of 6592 SG determinations have been acquired to date from holes subject to the resource calculation. The SG measurements were taken at near regular intervals of every 5 metres down‐hole, equating to roughly one SG determination per tray of drill core. Where the rock interval was fractured and friable, the spacing of SG measurements was locally extended beyond 5 metre intervals. All measurements of SG on drill core from Tumpangpitu were made by Intrepid‐IMN using the waxed core method. Samples were first dried in a 1600‐watt (220‐240V) Kris Electric Oven with a 30 litre capacity for 4 hours at 100°C. SG data acquired by IMN were recorded on a Specific Gravity Form which recorded Hole ID, From (m), To (m), Interval (m; = From‐To; typically 0.1m), Wt_Air (weight of unwaxed core in air), Wt_Waxed _Air (weight of waxed core in air), Wt_Waxed_Water (weight of waxed core in water), SG and Comments. The completed forms for each drill hole were dispatched to the site office where the data were keypunched into hole‐specific Excel databases. 14.3 Sampling Intervals

The drillholes for Tumpangpitu comprise of two zones (Zone A & C) drilled on an approximate 80 x 80m grid and Zone B on a 60 x 60m grid. Additional shallow oxide holes at Tumpangpitu occur on no fixed spacing. Further deep porphyry holes are drilled on 200m sections designed to intersect deeper porphyry mineralization approximating 200 x 200m spacing (at depth). Drill core samples range from 0.03m to 4m in length but are predominantly 2m samples (Table 2).

Table 2 : Number of core samples assayed per sampling interval (Tumpangpitu)

Sampling Length No. of Samples % of Samples

< 0.5m 87 0.26%

>0.5 and < 1m 70 0.21%

1m 876 2.65%

> 1m and < 2m 192 0.58%

2m 31577 95.58%

> 2m and < 3m 102 0.31%

3m 131 0.40%

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Sampling Length No. of Samples % of Samples

> 3m and < 4m 2 0.01%

4m 1 0.003%

TOTAL 33038 100.00%

The core marked for splitting was cut lengthways down the middle (irrespective of size; PQ, HQ, NQ) using a diamond core saw, and half of the core was placed into a calico bag with respective sample number tag placed inside with the core and the sample number written on the outside of the calico bag. The other half of the cut core was left in the core box (also with a sample number tag stapled to the side of the box) as a permanent physical record of the drill core. 14.4 Core Recovery Data

Core recoveries during the diamond drilling program at Tumpangpitu are shown in Table 3. The average core recovery of the measured Tumpangpitu drill holes (183), from 48994 measurements was 94.2%, with 86.6% of the sample interval recorded core recoveries greater than 90% (Figure 48).

Table 3 : Summary of core recovery for the diamond drilling programs at Tumpangpitu

Recovery (%) No. of Recovery Measurements % of Measurements

0 ‐ 10% 1382 2.82%

10 ‐ 20% 10 0.02%

20 ‐ 30% 13 0.03%

30 ‐ 40% 26 0.05%

40 ‐ 50% 59 0.12%

50 ‐ 60% 76 0.16%

60 ‐ 70% 1908 3.89%

70 ‐ 80% 1431 2.92%

80 ‐ 90% 1652 3.37%

90 ‐ 100% 42437 86.62%

TOTAL 48994 100.00%

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Figure 48 : Summary of core recovery for the diamond drilling programs at Tumpangpitu.

14.5 Comparison of Sludge Samples versus Core Samples

Comparison of assays from core versus sludge assays was undertake to check for any bias that might be induced in the assays due to circulation of drilling fluids through porous, leached, friable and oxidized rock that might preferentially flush components of the core that have a higher or lower average grade. In an attempt to gain some measure of this, samples of the sludges were collected in a sump that was designed to capture drill cuttings from the water return. Samples were collected at 3 metre intervals, coinciding with the drilling of each drill rod. This procedure is only effective as a measure of grade in the sludge material if constant water return is achieved during the drilling of the mineralised zone – a difficult task given the highly porous and fractured nature of the rock. Hence plots (Figure 49 and Figure 50) of sludge assays versus core assays for the same intervals can be expected to have significant variance. This scatter is also partly created by the unequal sampling intervals (3m for sludges and 1‐2m for cores). Due to the unequal sampling, 6m composites were created and plotted Au and Cu in Figures below. Each plot is log‐log with a linear 1:1 trendline (red dotted) and a regression of the data (as solid black trendline). Figure 49 and Figure 50 provide some indication as to whether grade is being over‐estimated or underestimated in the core. The figures show a bias to higher Au and Cu grades in sludge samples at lower concentrations. The black regression line deviates from the red 1:1 trendline <0.1ppm Au & <200ppm Cu which suggests that the “insitu” drill core may be slightly higher grade than is indicated by assaying in the laboratory once the core has been drilled and sampled.

1382

10

13

26

59

76

1908

1431

1652

42437

0 10000 20000 30000 40000 50000

0 ‐ 10%

10 ‐ 20%

20 ‐ 30%

30 ‐ 40%

40 ‐ 50%

50 ‐ 60%

60 ‐ 70%

70 ‐ 80%

80 ‐ 90%

90 ‐ 100%Recovery (%)

No. of Recovery Measurements

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Figure 49 : Plots of Au in core and in corresponding sludge samples for Tumpangpitu.

Figure 50 : Plots of Cu in core and in corresponding sludge samples for Tumpangpitu.

However, bias to higher Au and Cu grades in sludge samples appears to be occurring below cutoff levels impacting on the resource, so whilst interesting and should be further investigated, it may not be materially significant with respect to the resource estimates. At higher concentrations there is a slight enrichment in Au and Cu in the residual core but the effect is minimal (i.e. 1ppm Au ± 0.15ppm, 1% Cu ± 0.15%). Further investigation is required classifying Au and Cu concentrations across various weathering, lithological and structural parameters (i.e. core loss, fracturing, clay mineralogy, etc.)

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15. SAMPLE PREPARATION AND SECURITY

15.1 Sample Splitting, Packaging and Labelling

During the sampling procedure, the diamond drill core is initially cut using an electric‐powered, water‐cooled diamond‐bladed core cutter located at the core storage facility at the Tumpangpitu prospect. All core was halved for assay. During the cutting of core, intervals of significantly broken core were initially wrapped in plastic and sealed with tape prior to cutting on the core saw to minimize breakage and to prevent parts of the sample being washed away during core cutting. Intervals of core which were extremely clay‐rich and broken or friable were sampled by a spatula and spoon. Split core was sampled into calico sample bags, the sample number was written with permanent marker on the outside of the sample bag and the sample number ticket‐stubs were inserted into the calico bags used for sampling. The sample numbers were recorded on the Sample Number Form for core (or sludges). The bagged split‐core samples were subsequently packed into rice‐sacks and manually hauled (or transported by helicopter after June 2010) to the Pulau Merah site office at the end of each day. The beginning and end of each 2‐metre sample interval in the core trays are recorded by stapling one of the three ticket stubs against the intervening partitions in the core tray, and were labeled according to sample number and depth. This is from the prospect site to the core sample receiving and dispatch area at the Pulau Merah site office. Before June 2010, core samples were transported manually, after June 2010 by helicopter. 15.2 Procedures Employed to Ensure Sample Integrity

The following are some of the procedures employed by Intrepid‐IMN to ensure sample integrity during the diamond drilling program:

Drill‐rig core geotechnicians were assigned to each coring rig, on every shift, to record core recoveries and to ensure that core was appropriately handled and packed into the core boxers after each core run, and to ensure that the core boxes were appropriately labelled. They oversaw the retrieval of drill core from the core tubes, placement of core in core boxes, security strapping of the core boxes and they organised manual transport of the core to the core yard.

Diamond core boxes were packed with plastic inserts during manual transport from the drill rig to the core yard to minimize breakage of the core prior to logging and sampling.

All diamond core trays were photographed as routine documentation of the core samples. In the most recent drill holes, the core is photographed both in the dry state and after it has been wetted.

Diamond drill core that was broken or friable was cut only when the core had been wrapped tightly in plastic and tape to ensure fragments were not lost during core splitting.

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Drill cores were stored in sturdy black polyurethane core boxes marked with permanent markers.

IMN sample number stubs were used to label each drill sample.

The core yard on the prospect site has 24 hour security, with two local employees assigned to secure the core yard from 5pm to 7am each day. Core samples that were not on the core racks were stored in a lockable building in the core storage facility.

Internal sample dispatch log books were used to track samples that were sent from the core yard on the prospect site to the Pulau Merah site office.

Prior to sending samples to the Intertek Laboratory, all sample bags and number strings are checked for continuity and sample bag integrity.

The use of new digital data entry templates from August 2010 utilised data rules during data entry preventing simple keypunching errors (i.e. To must be greater than From). Use of automatic lookup tables in data entry also prevent simple keypunching errors such as spelling mistakes and incorrect format of codes.

15.3 Use of IMN Employees in Sampling Procedure

Trained IMN employees were involved at all stages of the sampling, sample packaging and sample transportation process. During the diamond drilling program, an IMN employee was based full‐time at the drill rig site to supervise the core handling procedures and to document core recoveries. During the diamond drilling program one IMN geologist would visit each drill rig approximately once per day during the course of the Zone A drilling program. A number of haulers were employed to assist with transporting drill core from the drill rig to the core yard. All core handling procedures in the core yard were undertaken by trained geotechnicians employed by IMN and supervised by IMN geologists. No aspect of sample preparation within the third party analytical laboratory process (as described in Analytical Methods below) is conducted by an employee, officer, director or associate of Intrepid or IMN. In the opinion of the author, sample preparation, security and analytical procedures are adequate and appropriate.

15.4 Sample Security and Transport

Split core samples that are transported from the prospect, manually to June 2010 or by helicopter after June 2010 were received at the sample storage and dispatch area at the site office in Pulau Merah and were signed into a log‐book by IMN employees to ensure complete transfer.

1 The core sample receiving and dispatch area at Pulau Merah was kept under lock during evening hours and there were always IMN staff present during daylight hours.

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2 When an entire set of samples from a single drill hole had accumulated in the storage area and the drilling contractors supply truck was due to backload samples to Jakarta, the samples in storage were sorted and checked for completeness. The rice sacks, used to transport the calico bags of split core from the core yard on the prospect area to the sample receiving area at Pulau Merah, were opened and the calico bags (labeled with sample numbers) were laid out in numerical order. The samples were checked for completeness and integrity of the sample number labeling and calico bag condition. Sets of 4‐6 adjacent samples were weighed and then repacked in new empty rice sacks. The total weight of the re‐packed sacks, the sack number, and the sample numbers of samples within each sack were recorded in a sample dispatch log. Certified reference standards and analytical blanks were inserted where appropriate. The rice sacks were sealed with heavy gauge wire twists as security. The rice sacks that contain the core samples were pre‐labeled with the sack number as well as the To and From interval and the address of the laboratory.

3 Samples, either drill core samples or sludge samples, were sent as whole drill‐hole batches to Intertek with an Intertek Sample Submission Form.

4 Sealed samples were then transported to Jakarta in a Mitsubishi truck owned by the drill contractor, PT. Maxidrill, at approximately 2 week intervals as the truck was routinely back‐loaded to Jakarta after delivering drilling consumables to site. A IMN employee accompanies the samples on each trip from Pulau Merah to the Intertek Laboratory to ensure security of the samples en‐route to the laboratory

5 Intertek routinely email IMN‐Intrepid a Sample Receipt Confirmation note for every Sample Submission Batch that they receive at their laboratory in Jakarta, confirming receipt of samples and noting any irregularities in the received samples.

15.5 Analytical Laboratories

Two analytical laboratories are used for analysis of samples generated by the drilling programs at Tumpangpitu. The principal laboratory is PT. Intertek Utama Services (Jakarta). The Intertek laboratory generated all of the primary assay data pertinent to the drill programs that are the subject of this report. The address of the Intertek laboratory in Jakarta is: PT. Intertek IUtama Services. Cilandak Commercial Estate 103E, JI Cilandak KKO, Jakarta 12560. Tel: (632) 819‐5841 to 48. Contact – Ms Becky Torre. PT. Intertek Utama Services is accredited for chemical testing under ISO 17025:2005 (General requirements for the competence of testing and calibration laboraties) by the Komite

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Akreditasi National (KAN). Their Accreditation Number is LP‐130‐IDN (renewed on 30 April 2007) and is equivalent to the NATA certification in Australia. A secondary laboratory is used as an independent check on the Intertek laboratory for the diamond drilling program. The independent check laboratory is ALS Chemex (ABN 84009936029). Batches of check assays have been sent to ALS Chemex in Perth in May 2008, September 2008, August 2009, February 2010, August 2010 and March 2011. The address of ALS Chemex laboratory is: ALS Chemex (Perth). 32 Oxleigh Drive Malaga WA 6090 Australia Tel: 08‐93473222 Fx: 08‐93473232

15.6 Analytical Methods

Samples received at the Intertek laboratory are checked by laboratory staff against the accompanying Sample Dispatch Sheet. Any discrepancy that is noted in sample numbers is brought to the attention of the company via an emailed Sample Receipt Notification prior to preparing the batch for sample preparation. Samples are submitted to Intertek with Sample Preparation Code PB01. Samples are initially dried (105°C) for as long as it takes to achieve constant weight, and then jaw crushed to minus 5mm. The samples are then riffle split with part stored as a coarse reject. A split of 1‐1.5kg was pulverized with 95% passing 75um. A 250g grab sample is taken from the pulverized pulp and used for the analysis while the remainder is stored as spare pulp. This sequence is described as Procedure PB01: PB01 ‐ Dry (105°C), Crush (95% <5mm), Riffle Split, Pulverize (95% <75um). Table 4 summarises the elements that were assayed for each sample, the method of analysis and the detection limit for each method.

Table 4 : Method and detection limits for elements analysed in the Tumpangpitu drilling program.

Method Code

Method Description

FA30 Fire Assay (30g) with Atomic Absorption Spectroscopy (AAS) finish

GA02 Double Acid: HCl/HCl04 with Atomic Absorption Spectroscopy (AAS) finish

GA30 Triple Acid: HCl/HNO3/HCl04 with Atomic Absorption Spectroscopy (AAS) finish

XR01 X‐Ray Fluorescence (XRF) (10g Pressed Pellet)

XR02 X‐Ray Fluorescence (XRF) (10g Pressed Pellet)

ST01 Total Sulfur by Leco

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The analytical schemes used are summarised below for drill core and sludge samples. DRILL CORE SAMPLES

Au

Method Code Det. Limit Samples %Samples

FA30 0.01 30707 93.0%

FA50 0.01 2304 7.0%

Cu Ag

Method Code Det. Limit Samples %Samples Det. Limit Samples %Samples

GA02 2 32439 98.4% 1 32734 99.3%

GA30 0.01% 538 1.6% 5 243 0.7%

Pb Zn


GA02 4 32905 99.8% 1 32916 99.8%

GA30 0.01% 71 0.2% 0.01% 61 0.2%

As Mo


XR01 1 32829 99.8% 1 32951 100%

XR02 0.01% 80 0.2%

Ba Sb


XR01 10 32703 99.8% 1 32950 100%

XR02 0.01% 75 0.2%

S


ST01 0.01% 32590 100%

DRILL SLUDGE SAMPLES

Au


FA30 0.01 7663 97.5%

FA50 0.01 198 2.5%

Cu Ag


GA02 2 7741 99.2% 1 7773 99.6%

GA30 0.01% 61 0.8% 5 29 0.4%

Pb Zn


GA02 4 7793 99.9% 1 7725 99.0%

GA30 0.01% 9 0.1% 0.01% 77 1.0%

As Mo


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XR01 1 7773 100.0% 1 7773 100%

XR02 0.01% 0 0.0%

Ba Sb


XR01 10 7769 100.0% 1 7773 100%

XR02 0.01% 2 0.0%

S


ST01 0.01% 420 100%

The Fire Assay schemes involve fusing the sample with a litharge based flux and collecting the precious metals in a lead button. After cupellation the resulting prill is dissolved in aqua regia and the gold is determined by AAS for routine samples. Samples for Ag assay as well as the base metals Cu, Pb and Zn were digested in a Hydrochloric/perchloric digestion (HCL/HCLO4) followed by an atomic absorption spectroscopy (AAS). This is generally used as a first pass geochemical analysis of the samples. Silicates are only slightly digested during this procedure. For samples that exceeded upper limits, the samples were re‐assayed by GA30. Triple acid digestion (HCl/HNO3/HClO4) is used for ‘ore‐grade’ digestions and is followed by an accurate volumetric finish to enable high concentrations of elements to be analysed. Limitations may still exist with silicates. Analyses of As, Sb, Mo and Ba were conducted by X‐ray fluorescence on 10g pressed pellets. The laboratory code for this procedure is XR01. The recommended ranges for the XR01 method are As, 1‐10,000 ppm; Sb, 1‐10,000 ppm; Mo, 1‐10,000 ppm and Ba, 10‐10,000 ppm. Detection limits are 1 ppm for As, Sb and Mo and 10 ppm for Ba. Elements that assayed over‐range were automatically assayed by the XR02 procedure. The detection limits for the XR02 method for As and Ba are 100 ppm. Sulfur (S) was analysed using a Leco analyser with detection limits of 0.01%.

15.7 QAQC Procedures Employed

A total of 33038 drill core intervals and 8242 sludge sample intervals were assayed by Intertek from the Tumpangpitu drilling conducted by Intrepid‐IMN. An appropriate QAQC program was first implemented for the Tujuh Bukit resource during 2008. The principal QA‐QC procedures undertaken by Intrepid‐IMN and the external laboratories during analysis of these samples comprise:

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Standards

Standards (or certified reference materials [CRM’s]) assess accuracy

Standards have predetermined measurements for selected chemical species and assay methods ‐ commercially purchased (OREAS).

Standards are inserted at a rate of ~1% of total samples.

The standards were purchased as pulps that were pre‐sealed in air‐tight foil packets labelled with the standard name/number. Prior to insertion of the standards into the IMN‐Intrepid sample stream, the label of the CRM was erased from the foil packet using turpentine, and the CRM was then assigned a sample number consistent with the IMN sample string. The assigned sample number was also written on the calico bag in which the foil standard was inserted. These calico bags, as well as the calico bags containing the submitted blanks, were packed with the core samples into rice sacks for transport to the Intertek laboratory. A range of standards was used in order to reflect the range of mineralization types and grades associated with the Tumpangpitu prospect.

Eight different standards have been used and are detailed below. OREAS standards sourced from Ore Research & Exploration PL, 6‐8 Gatwick Road, Bayswater North, Victoria 3153, Australia. Certificates of Analysis for these 8 Certified Reference Materials are available.

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Table 5 : List of OREAS standards (CRM’s) used in the Tujuh Bukit Project

Standard ID Au Cu Ag As Description

OREAS 2Pd 0.885 36 <0.05 827 Blackwood (Vic, Aust) - mineralised shear zone in medium-grained greywackes

OREAS 50Pb 0.841 7440 2.5 12.5

Lachlan Fold Belt (NSW, Aust) – Cu-Au porphyry in volcanics, intrusives and sediments within Bogan Gate Synclinorial Zone.

OREAS 52Pb 0.307 3338 1.3 3.6


OREAS 53Pb 0.38 5550 Gold-copper ore (quartz monzonite porphyry, -30μ)

OREAS 54Pa 2.9 15500 5.3 8.5


OREAS 61d 4.76 110 10 Gold ore (epithermal meta-andesite, -75μ)

OREAS 6Pc 1.52 36 <0.5 1320 Blackwood (Vic, Aust) - mineralised shear zone in medium-grained greywackes

OREAS 7Pb 2.77 111 0.5 2240 Blackwood (Vic, Aust) - mineralised shear zone in medium-grained greywackes

Blanks

Blanks assess CONTAMINATION

Blanks have predetermined values of zero ‐ commercially purchased (OREAS).

Blanks are inserted at a rate of ~1% of total samples.

Blanks are generally inserted for every 60 core samples and after a change in core diameter.

Table 6 : List of OREAS standards (CRM’s) used in the Tujuh Bukit Project

Standard ID Au Cu Ag As Description

OREAS 22b <0.002 9 Quartz multi‐element blank (‐75μ)

Check assays/Umpires

Check assays/Umpires assess ACCURACY

Check assays are pulps (same sample number) resubmitted to a second or third lab.

Check Assays are collected at a rate of ~5% of total samples. Field Duplicates

Field Duplicates assess FIELD REPEATABILITY

Field Duplicates are 2 separate quarter core samples as different sample numbers for same analysis at same lab.

Field Duplicates are collected at a rate of ~1% of total samples.

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Laboratory Replicates

Laboratory Replicates assess LAB REPEATABILITY

Laboratory Replicates are a second to fifth split of pulp for same analysis, same lab.

Laboratory Replicates are collected at a rate of ~8% of total samples. Routine quality control procedures used by Intertek for sample preparation include:

1 A 1 in 15 re‐split at the sample preparation stage, 2 1 in 20 samples undergo sieve analysis to monitor grind size and the use of a barren

wash is standard in both crushing and pulverising procedures, 3 Use of a CCLAS LIMS system which provides built in sample tracking and quality

control as well as automatic data capture from the instruments, reducing the risk of data entry errors. This is complimented by a bar‐coding system in the Jakarta Laboratory,

4 Routine QC generated by the LIMS includes 2nd splits at the sample preparation stage, as well as 2 replicates, 2 reference standards and one blank per batch of 50 samples,

5 Laboratory supervisors select additional QC depending on first‐pass results.

15.8 QAQC Results

A review of QAQC results for the Tumpangpitu diamond drilling program was made by Mr Damien Lulofs, a geochemist from Lulofs Management Services. The executive summary of Mr Lulofs report is inserted in Section 16 and as the check assays (Umpires) form an important part of data verification. The full original QAQC assessment report is included as Appendix 2.

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16. DATA VERIFICATION

The Qualified Person has relied upon the database supplied by iOglobal and the analysis of QA/QC by D Lulofs. He has made spot checks of the assay results received directly from the laboratory and has verified via split core re‐sampling and assaying that the data may be to or relied upon. Qualified person (P.Hellman) visited the Property on four occasions, for three days from 20 to 22 November, 2007, and again for three days in October 2008 and four several days in October and December, 2010. Results for re‐sampling exercise were reported in Table 10 of NI43‐101 report (Hellman, 2008). As part of QAQC protocols (described in Section15), check assays were collected. These form a critical part of data verification. Check assays provide a means to monitor consistency between laboratories. Check assays are the result of pulps being assayed a second time by the SAME method but DIFFERENT laboratory. Check assays have the same point source as the parent sample and have the same sample number as their parent. Check assays do not go through the sample preparation stage thus do not monitor contamination at the second laboratory. The re‐assay of standards (CRM’s) can also measure consistency between laboratories but as the same standard appears several times within the batch there is a chance the laboratory can detect them. Check assays are completely blind to the second laboratory and all have different concentrations so there is no chance of the dataset being compromised. A review of QAQC results for the Tumpangpitu diamond drilling program was made by Mr Damien Lulofs, a geochemist from Lulofs Management Services. The executive summary of Mr Lulofs report is inserted below. This discusses the check assays and also all other QAQC samples. The full original QAQC assessment report is included as Appendix 2.

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17. ADJACENT PROPERTIES

There are no mineral exploration tenements or mining properties that lie adjacent to this project at the time of the writing of this report.

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18. MINERAL PROCESSING AND METALLURGICAL TESTING

18.1 Porphyry Testwork

Testwork to conduct a preliminary evaluation of the floatability of the Tujuh Bukit porphyry resource has commenced. The flotation tests will focus on rougher response in relation to the different mineralogical domains to assist in the development of a conceptual flow sheet for the Tujuh Bukit porphyry resource. As at the date of this report, no finalised results are available.

18.2 Summary of Oxide Testwork

Intrepid commissioned Kappes, Cassiday & Associates (KCA) to prepare a Preliminary Economic Assessment (PEA) study for the Tujuh Bukit Oxide Project. This project contemplated only the mining and processing of oxide and minor transition material by heap leaching and did not consider the ongoing exploration of the deeper sulfide material or the processing of sulfide material. This section is a summary of the metallurgical testwork conducted as part of that report. The complete study is titled “Preliminary Economic Assessment Tujuh Bukit Oxide Project, Located in East Java, Indonesia, Technical Report for Intrepid Mines Limited”, by Daniel Kappes, dated 1 June 2011, and is filed on SEDAR. Metallurgical test work was completed on what appears to be spatially representative samples of both oxide (types A, B, and C) and transition ores. There are two bodies of work, namely a preliminary program conducted by Metcon from 2008 to 2010 with a focus on grinding, leaching, CCD, and Merrill Crowe testing, and more recently a program by Kappes Cassiday and Associates (KCA) during 2010, dedicated to heap leach test work which included bottle roll and column tests, crushing size determination, agglomeration requirements, and compacted permeability tests.

18.2.1 Metcon Grinding Program The earlier Metcon work was conducted on a sample set of 12 samples, with two oxide samples and two transition samples from each respective ore zone (A, B, C). A global summary of this work is shown below.

Table 7 : Summary Results of Metcon Test Program

Item Unit Oxide Transition Remarks

Au head g/t 0.57- 1.28 0.46 - 1.27 Grade representative Ag head g/t 20-37 25-38 Grade representative Hg head ppm 2.6-8.2 1.6-3.3 Oxide higher As head ppm 1265-3390 917-2820 Oxide higher Cu (CN soluble) head ppm 0-200 400-3000 Oxide much lower

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Ball Mill Work Index (BMWI) kWh/t 11.9-16.3 13.5-17.1 Oxide lower

Abrasion Index (AI) 0.262-0.663 0.276-1.120 Some transition extremely high

CN consumption kg/t 0.53-0.74 0.84-3.11 Some transition very high Lime consumption kg/t 0.52-0.78 0.77-0.85 Oxide lower Au recovery P80 75 micron, 24

hrs % 89.2 (87 to 96) 74.5 (46 to 89)

Wide range Au recovery in

transition Ag recovery P80 75 micron, 24

hrs % 80.0 (69 to 89) 66.6 (15 to 90)

Wide range Ag recovery, especially transition

Some other conclusions from the Metcon test results were:

In the transition ore, cyanide consumption is directly proportional to the amount of cyanide soluble copper.

Grind versus recovery: both gold and silver are relatively insensitive to grind size although recovery is slightly higher at finer grinds.

Zone C oxide and transition ore: relatively little grade versus recovery relation (recovery was the same at both high and low grade ore). Same assumption may be valid for all ore types.

Oxide thickener tests: achieved an underflow density equal to 62.2% w/w solids at a solids loading equal to 1.6 t/m2h and a flocculent dosage equal to 30 g/t.

Zinc cementation: 2 g/L in solutions yields 99.6% to 99.8% gold and silver precipitated from solution. Although there are some deleterious other metals present (namely arsenic), results are acceptable to use zinc cementation.

18.2.2 KCA Heap Leach Program Metallurgical test work including head analyses, coarse, fine, and milled bottle roll leach test work, agglomeration and percolation test work, compacted permeability test work, and column leach test work was performed by KCA. A summary of the head grades, bottle roll test recoveries, and column tests from the KCA metallurgical test work is presented in the table below.

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Table 8 : Summary of KCA Test Work

KCA determined the field recoveries and cyanide consumption for all four ore types. Based on field experience, KCA determined these values by reducing the column test recoveries by 3% for gold and 5% for silver for the field recoveries and by taking 33% of the column cyanide consumption for the expected field cyanide consumption. The table below shows the column test recoveries and projected field recoveries, as well as the cyanide consumptions, for the ores as determined by KCA.

Test Type TransitionHead Analysis Comparison A B C Avg AComposite - FA (g/t Au) 0.404 0.544 0.530 0.493 0.485Screen Analysis FA (g/t Au) 0.419 0.543 0.463 0.475 0.494Average All Tests FA (g/t Au) 0.370 0.486 0.433 0.430 0.431Composite FA (g/t) Ag 9.3 14.9 16.5 13.6 39.0Screen Analysis FA (g/t Ag) 11.0 14.3 16.3 13.9 40.6Average All Tests FA (g/t Ag) 10.5 14.2 16.5 13.7 40.3Cu CN Soluble (mg/kg) 7.8 16.6 9.8 11.4 7.4Total Mercury (mg/kg) <0.05 <0.05 <0.05 <0.05 <0.05

TransitionBottle Roll Tests A B C Avg Ap80%-0.075 mm Au recovery 96% 94% 95% 95% 80%-9.5mm crush Au Recovery 84% 81% 78% 81% 64%-25mm crush Au Recovery 76% 78% 73% 76% 58%p80% -0.075 mm Ag Recovery 84% 66% 85% 78% 88%-9.5mm crush Ag Recovery 27% 22% 26% 25% 39%-25mm crush Ag Recovery 16% 14% 17% 16% 21%

TransitionColumn Test - 82 day A B C Avg A-9.5mm crush Au Recovery 90% 86% 87% 88% 80%-25mm crush Au Recovery 89% 89% 88% 89% 75%-9.5mm crush Ag Recovery 33% 29% 26% 29% 64%-25mm crush Ag Recovery 26% 21% 19% 22% 36%-9.5mm crush Cyanide Consumption (kg/MT) 1.16 1.29 1.11 1.19 2.23-25mm crush Cyanide Consumption (kg/MT) 1.27 1.11 1.11 1.16 1.74

Oxide

Oxide

Oxide

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Table 9 : Summary of KCA Column and Projected Field Recoveries

* Field recovery for gold is discounted by 3%; Field recovery for silver is discounted by 5%

** Cyanide consumption is discounted by 33% (column cyanide consumption x 0.33)

NaCN Consumption

Projected Field NaCN

NaCN Consumption

Projected Field NaCN

Au Ag kg/t Au Ag kg/t Au Ag kg/t Au Ag kg/tOxide Zone A 89% 26% 1.27 86% 21% 0.42 90% 33% 1.16 87% 28% 0.38Oxide Zone B 89% 21% 1.11 86% 16% 0.37 86% 29% 1.29 83% 24% 0.43Oxide Zone C 88% 19% 1.11 85% 14% 0.37 87% 26% 1.11 84% 21% 0.37

Oxide Zone Average 89% 22% 1.16 86% 17% 0.38 88% 29% 1.19 85% 28% 0.39

Transition Zone A 75% 36% 1.74 72% 31% 0.57 80% 64% 2.23 77% 59% 0.74

-9.5 mm Crush SizeColumn Test Recoveries

Projected Field Recovery *

-25 mm Crush SizeOre zones Column Test

RecoveriesProjected Field

Recovery *

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In addition to the laboratory tests, KCA also performed a subjective photographic analysis of several thousand metre of drill core samples for the Tujuh Bukit project (all core to date). In the analysis, photographs of the boxed core samples were categorized into one of four categories: clay, hard rock, medium broken rock, and very broken rock. The samples were also categorized as either oxides or non‐oxides as evidenced by obvious reddish iron oxidation. The table below shows a summary of these results.

Table 10 : KCA Core Photograph Category Summary

Classification Count Percent

Clay 1801 9.8%

Hard Rock 7125 38.9%

Medium Broken Rock 6457 35.2%

Very Broken Rock 2958 16.1%

Oxide 4707 25.6%

Total 18341 100.0%

The results showed that of the pictures viewed, 9.8% were classified as clays, 38.9% were classified as hard rock, 35.2% were classified as medium broken rock, 16.1% were classified as very broken rock, and 25.6% were classified as oxides. It is noted that the ores classified as oxides are just those that are obviously oxides from a photograph and should not be interpreted in any other way. Some of the conclusions from the KCA test work were:

Agglomeration with cement for solution flow control was indicated for only the Zone A oxide material when crushed to minus 9.5 mm, although flow was reduced for all minus 9.5 mm crushed composites tested without cement agglomeration. The solution from all of the composites tested without cement additions had a low pH, indicated the need for protective alkalinity. Based on KCA experience, cement addition of 4.5 kg/t has been assumed to be applied to all ore in this study for flow and pH control, but additional studies should be conducted to determine if lime could be substituted for a portion of the cement.

The samples used for the KCA test work were not grade representative of the mineable resource as currently defined. The samples are in the 0.4 g/t to 0.5 g/t gold range compared to 0.95 g/t LOM grade. Metcon noted very little grade versus recovery relation in the grind test work and this may not be important for Tujuh Bukit. It is preferable however to conduct metallurgical test work with samples close to the grade of the overall deposit and effort should be taken to ensure this requirement is met on all future recovery test work.

Although some recovery improvements were observed at a finer crush size of 9.5 mm, the gold recovery improvement was insignificant, but the silver recovery improvement was more pronounced, particularly in the Zone A transition ore. The transition ore is a relatively small component (9%) of the overall ore body. As such, finer crushing is not required as the additional silver revenue does not justify the additional operating cost. Based upon the column tests to date, an

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assumed crush size of 25 mm should be sufficient and if a slightly finer product can be easily and practically achieved through normal means a small silver bonus will be achieved.

Multi‐element analyses indicated the material was relatively “clean” and did not contain any elements detrimental to cyanide leaching.

Soluble copper in the oxide samples tested does not appear to be high enough to cause any problems in the precious metals extraction circuits.

Subjective photographic analysis shows that nearly 10% of the ore requires cement agglomeration, and an additional 16% more with a high probability of requiring cement agglomeration. This analysis is in general agreement with KCA laboratory test work.

18.3 Metcon Metallurgical Program

Metallurgical test work was performed by Metcon in 2008, 2009 and 2010. The scope of the test work performed included grinding, leaching CCD and thickening on oxide and transition ores.

18.3.1 Samples In the Metcon test work, 12 composite samples representing the four types of ore found in the exploration zones of the Tujuh Bukit project were tested. The table below presents the sample composites received by Metcon. The key results of this test work are presented in the following section.

Table 11 : Metcon Composite Samples

Composite Lithology Oxidation Zone Exploration

Zone

SIOXA Vuggy silica Oxide A

SITRA Vuggy silica Transition A

CYOXA Clay/silica Oxide A

CYTRA Clay/silica Transition A

SIOXB Vuggy silica Oxide B

SITRB Vuggy silica Transition B

CYOXB Clay/silica Oxide B

CYTRB Clay/silica Transition B

SIOXC Vuggy silica Oxide C

SITRC Vuggy silica Transition C

CYOXC Clay/silica Oxide C

CYTRC Clay/silica Transition C

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In the study the oxide zone is defined as the zone lying above the base of complete oxidation, and the transition zone as the zone lying below the base of complete oxidation but above the completely fresh sulfide zone.

18.3.2 Head Assays A head assay was performed on each sample and are summarized in the table below.

Table 12 : Head Assays

Two important notes from the head assays are that some of the samples contained high mercury concentrations, as well some areas of high cyanide soluble copper. Because of the high mercury levels in some of the samples the use of a mercury retort or other mercury removal method may need to be considered. It is noted that the cyanide consumption was directly proportional to the levels of cyanide soluble copper. A comparison of expected, assayed, and calculated head grades are shown in the table below.

Table 13 : Comparison of Expected, Assayed, & Average Calculated Head Grades

Au Ag Total CNsol Organic Total Sulphide Hg As Cu Cu C S S

g/t g/t ppm ppm % % % ppm ppm SIOXA 0.87 30 340 <100 0.03 0.92 0.26 5.69 1265 SITRA 0.91 34 430 100 0.02 1.07 0.18 1.96 2820 CYOXA 0.88 33 340 <100 0.02 1.42 0.10 2.69 2360 CYTRA 0.86 38 900 400 0.02 2.15 0.83 2.43 2110 SIOXB 1.17 22 580 <100 0.02 1.49 0.05 6.23 2760 SITRB 1.19 28 870 500 0.02 2.20 0.38 1.58 1095 CYOXB 1.28 20 540 <100 0.03 2.06 0.03 8.17 2870 CYTRB 1.27 26 3540 3000 0.03 7.08 4.93 2.38 1405 SIOXC 0.57 37 510 200 <0.02 1.14 0.12 2.21 3390 SITRC 0.53 25 1400 900 0.03 6.22 5.72 3.12 1050 CYOXC 0.68 37 310 <100 <0.02 0.75 0.06 3.83 1950 CYTRC 0.46 30 2610 1900 0.02 6.16 5.54 3.26 917

Composite

Expected Assayed Calculated Expected Assayed CalculatedSIOXA 0.9 0.87 0.86 35.2 30 30.2SITRA 0.9 0.91 0.92 35 34 31.1CYOXA 0.91 0.88 0.89 35.3 33 30.5CYTRA 0.9 0.86 0.87 35.1 38 34.8SIOXB 1.3 1.17 1.07 25.1 22 20.6SITRB 1.3 1.19 1.24 25 28 22.9CYOXB 1.32 1.28 1.18 24.8 20 18.9CYTRB 1.3 1.27 1.24 25.8 26 23.1SIOXC 0.69 0.57 0.62 37 37 32.7SITRC 0.72 0.53 0.53 36.5 25 23.5CYOXC 0.7 0.68 0.66 35.7 37 34.3CYTRC 0.7 0.46 0.5 32.7 30 28

Gold (g/t) Silver (g/t) Composite

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Agreement with expected, assayed and calculated head assays is fair. 18.3.3 Cyanidation Tests A baseline cyanidation test was performed under non‐CIL conditions and is summarized below.

Table 14 : Metcon Baseline Cyanidation Test Summary

The performed test work revealed several potential concerns due to cyanide soluble copper. These concerns include:

A strong correlation between cyanide soluble copper and the consumption of cyanide.

Samples with high cyanide soluble copper also had lower extractions for both gold and silver.

High levels of copper present in Merrill Crowe process feed solutions could have severe adverse effects, including the prevention of zinc cementation occurring.

Intrepid elected not to include transition Zones B and C in the scoping study due to the high cyanide soluble copper present. Performing these tests at different grind sizes showed only small improvements in recovery at finer grind sizes and slightly increased reagent consumption. Residue grades at higher cyanide concentrations were studied. The table below summarizes these results.

CyanideAu (g/t) Ag (g/t) CNsol Cu Gold Silver (kg/t)

SIOXA 0.82 30.5 <100 90.2 82 0.57SITRA 0.92 30.8 100 88.6 81.3 0.79CYOXA 0.86 29.9 <100 87.2 79.1 0.6CYTRA 0.87 33.9 400 87.4 69 0.79SIOXB 1.07 20.7 <100 87.4 71 0.56SITRB 1.22 24.3 500 85.2 72.2 1.22CYOXB 1.19 19.7 <100 84.2 67 0.57CYTRB 1.28 22.4 3000 60.5 15.3 4.21SIOXC 0.56 32.2 200 89.2 82.1 0.73SITRC 0.55 23 900 51.1 50 2.04CYOXC 0.66 33.4 <100 89.4 85 0.55CYTRC 0.48 25.3 1900 51.4 30.8 3.11

Head assays Composite

% Extraction

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Table 15 : Effect of Higher Cyanide Concentration on Residue Grades

Based on average values from these tests, there is no change in gold residue grades, but a definite drop in silver residue grade occurs at higher cyanide concentrations. Increases in cyanide concentration also resulted in higher cyanide consumptions and slightly decreased lime consumption due to the presence of more alkaline cyanide.

18.3.4 Comminution Tests Comminution tests performed are summarized below. The results showed that the abrasion indices in the three transition zones were extremely high with the other zones being moderately high. From the high abrasion indices it is expected that liner and grinding media consumption will be high in a future mill.

Table 16 : Metcon Comminution Test Summary

No Crushing Work Index was performed.

18.3.5 Leach Solutions The summary of the final leach solutions analysis from the Metcon lab work is shown in the table below.

0.100% CN 0.125% CN 0.100% CN 0.125% CNSIOXA 0.08 0.065 5.5 6SITRA 0.105 0.1 5.8 4.5CYOXA 0.11 0.1 6.3 7.5CYTRA* 0.11 0.132 10.5 6.5SIOXB* 0.135 0.128 6 3.5CYOXB* 0.188 0.192 6.5 5.5SIOXC 0.06 0.068 5.8 5.5CYOXC 0.07 0.065 5 5Average 0.107 0.106 6.4 5.5

Residue grades g/t Au Residue grades g/t Ag Composite

Composite Ball Mill Work Index (kWh/t)

Abrasion Index

SIOXA 13.9 0.6632SITRA 16 0.9671CYOXA 11.9 0.2616CYTRA 13.5 0.4759SIOXB 13.6 0.558SITRB 17.1 1.1226CYOXB 14.5 0.3333CYTRB 15.9 0.2762SIOXC 16.3 0.4241SITRC 16.4 0.8526CYOXC 16.3 0.3971CYTRC 15.7 0.3957

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Table 17 : Metcon Analyses of Final Leach Solutions

* The copper cyanide assays are calculated from the copper assays assuming copper cyanide occurs as Cu(CN)2-1

These results show the presence of some metals that may cause some issues in the zinc cementation process. The most prominent of these metals is arsenic. Zinc cementation test work was completed by Ammtec, Perth on the Metcon final leach solutions. This test work showed that zinc cementation at 2 g/L solution resulted in 99.6% to 99.8% gold and silver precipitation. Some metals present, namely arsenic, in the leach solutions are known to be potentially detrimental to the zinc cementation process. Although arsenic is present, the results obtained in the test work were acceptable.

18.4 KCA Metallurgical Test Program

Heap leach metallurgical test work for the Tujuh Bukit project was performed by KCA in 2010. The scope of this work included head analyses, coarse, fine and milled bottle roll leach, agglomeration and percolation, compacted permeability, and column leach test work. 18.4.1 Samples KCA received 100 boxes of ¼ split PQ, HQ, and NQ core samples. The core samples were identified as four different ore zones. The core intervals specific to an ore zone were then combined to generate four composites to be used in the metallurgical test work. 18.4.2 Agglomeration, Percolation, and Compacted Permeability Tests Agglomeration and percolation tests were performed for both material crush sizes of 9.5 mm and 25 mm. In these tests the non‐agglomerated Zone A Oxide material crushed to 9.5 mm failed. All other agglomerated and non‐agglomerated tests passed, which indicates that no agglomeration was required for heaps of one lift with an average height of 6 m to 8 m. Notable increases in solution flow rates were seen in the agglomerated samples. All composites at both crush sizes with no cement passed the compacted permeability test at effective heap heights of 20 m and 60 m.

Composite CYOXA CYTRA SIOXA SITRA CYOXB SIOXB CYOXC SIOXCTest No. TA22 TA23 TA24 TA25 TB24 TB25 TC21 TC22 Assays in mg/l Total sulphur 48 86 77.1 74.8 69 38.5 30 57.5Sulphide sulphur <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Copper 10.45 66.7 8.76 27.9 13.2 6.99 13.7 44.6Copper cyanide* 19 121 16 51 24 13 25 81Antimony 0.3 0.23 0.04 0.06 <0.04 0.05 0.04 0.12Arsenic 0.92 2.04 0.43 13.3 1.4 3.22 3.95 23.9Nickel 0.68 0.74 0.91 0.7 1.03 0.51 0.98 0.8Cobalt 0.08 0.07 0.07 0.08 0.13 0.08 0.33 0.28

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18.4.3 Laboratory Column Leach Tests A total of eight column leach tests were completed using material from each of the four composites stage crushed to minus 25 mm and 9.5 mm. Cyanide solution was applied to the columns at a rate of 10 to 12 liters per hour per square meter of column surface. The Zone A Oxide material crushed to 9.5 mm was agglomerated with 4 kg of Portland Type II cement per tonne of material prior to column leach testing. Recoveries for the columns were calculated and expected field recoveries were determined based on these data. Expected field recoveries were estimated by reducing the column recoveries by 3% for gold and 5% for silver. The table below shows the column and expected field recoveries. It is noted that the average sample grade was less than the average resource grade used in the model. The gold and silver extractions versus days of leaching time are shown in the figures below. The cumulative percent recoveries versus the cumulative tonnes of solution per tonne of ore for gold and silver are shown in the figures following.

Table 18 : Column Leach Test and Expected Field Recoveries

The testwork indicated that most of the gold has finished leaching for all material types around day 70. The leaching time for the silver was slightly longer with extraction rates continuing to climb gradually through the end of the testing cycle. These column tests show that there was no appreciable gain in recovery due to fine crushing, except in the transition ore, which has a slight gain in silver recovery. Because the transition material only represents a small percent of the ore deposit it is easily demonstrated that there will be little or no advantage to finer crushing at current silver prices. The cyanide consumption for the column tests and for expected field cyanide consumptions are summarized below. From KCA’s experience cyanide consumption in production heaps is usually only 25% to 33% of the laboratory column test consumptions.

Au Ag Au Ag Au Ag Au AgOxide Zone A 89% 26% 86% 21% 90% 33% 87% 28%Oxide Zone B 89% 21% 86% 16% 86% 29% 83% 24%Oxide Zone C 88% 19% 85% 14% 87% 26% 84% 21%Transition Zone A 75% 36% 72% 31% 80% 64% 77% 59%

Ore Zones-25 mm Crush Size -9.5 mm Crush Size

Column Test Recoveries

Projected Field Recovery

Column Test Recoveries

Projected Field Recovery

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Table 19 : Cyanide Consumption

18.5 Ore and Waste Acid Neutralization Potential

Work on ANP has been planned and will be performed by Golder. Results are pending and no report was available at the time of preparing this report.

18.6 Future Work

In addition to the ANP work, several areas of future laboratory work are recommended. The scope of this work includes more column test work, especially column tests with an ore grade more representative of the predicted LOM grade. Additional test work and mercury analysis should also be performed to determine if a mercury retort or other mercury removal method will be required. The use of lime for protective alkalinity should be tested. It has been seen in some cases that the addition of strong cyanide during agglomeration resulted in faster recovery rates; for this reason it is recommended that some test work be performed to confirm if this is the case for this deposit. Additional studies on zinc cementation using sea water should also be performed to assess the potential effects on filtration and precious metals precipitation for the process. Column tests should be conducted to verify gold and silver extractions using sea water as solution makeup.

18.7 Ore Processing

No ore processing study work has been undertaken on the porphyry resource.

18.7.1 Process Design of the Oxide Resource Test work developed by KCA has indicated that the Tujuh Bukit oxide and Zone A transition material are both amenable to heap leaching. Based on an assumed heap leach feed of approximately 57M tonnes and an eight to nine year mine life, the processing rate was established at 20,000 tonnes per day.

Column Test Cyanide

Consumption (kg/t)

Projected Field Cyanide

Consumption (33% ) (kg/t)

Column Test Cyanide

Consumption (kg/t)

Projected Field Cyanide

Consumption (33% ) (kg/t)

Oxide Zone A 1.27 0.42 1.16 0.38

Oxide Zone B 1.11 0.37 1.29 0.43

Oxide Zone C 1.11 0.37 1.11 0.37

Transition Zone A 1.74 0.57 2.23 0.74

‐25 mm Crush Size ‐9.5 mm Crush Size

Ore zone

TUJUH BUKIT PAGE 98


The metallurgical test work has shown very little gold recovery improvement through finer crushing. There is however a significant improvement in silver recovery by finer crushing with respect to the Zone A transition material. The transition material is a relatively small component (9%) of the overall feed and it is not of economic benefit to treat at higher capital and operating cost to recover more silver on the transition ores. Test work shows field gold recovery of 86% for oxide and 72% for transition, and silver recovery of 17% for oxide and 31% for transition at a crush size of ‐25 mm. A three stage plant has been selected that will nominally produce a ‐20 mm product at the desired throughput. Column tests from core samples supplied to date only show the need for cement agglomeration on fine crushed samples. However, a photographic analysis of thousands of metre of cores from the oxide zones indicates that 10% of all the oxide ore is high in clay and will require cement agglomeration. Another class of highly broken feed identified constitutes another 16% that will likely require cement addition to some degree. For this reason the plant has been designed with two agglomeration drums to accommodate cement addition as required. Because of the high silver content, metals recovery from the pregnant solution will be accomplished using a Merrill Crowe circuit located near the pregnant solution pond. The barren solution leaving the circuit will be recycled to the heap leach system. Tests work thus far has shown only small amounts of soluble copper are present in the feed material, mostly associated with the transition material, and it is not expected to be a problem with extraction.

18.7.2 Process Description Summary of the Oxide Resource The Project will be designed as a crushing and heap leach operation utilizing a multiple‐lift, single‐use leach pad. Crushing will be accomplished by a three‐stage, closed‐circuit crushing system operating seven days per week, 12 hours per day at a rate of 20,000 tonnes per day. Feed to the main crushing circuit is by direct truck dumping, with additional front‐end loader support as required to maintain continuous feed. The crushing circuit will be located between the open pits and the heap leach pad. The plant will also have a small gravel circuit to produce and stockpile sized product for use as leach pad drainage material. The final product from the crusher circuit will discharge to a small conical stockpile. The ore will be reclaimed from beneath the stockpile and cement will be added to the ore before passing through agglomeration drums. A small stream of dilute cyanide solution will be added to the agglomeration drums with drum discharge conveyed to mobile portable field conveyors, and ultimately a portable radial stacker, where it will be discharged onto the heap at the active stacking face.

TUJUH BUKIT PAGE 99


The stacked ore will be leached using a sprinkler irrigation system for solution application. After percolating through the ore the gold and silver bearing solution drains to a pregnant pond where it will be collected and pumped to a Merrill Crowe recovery plant which utilizes zinc dust to precipitate the gold and silver from solution. The precipitate will be filtered, dried, and smelted directly into doré bars using a diesel fired smelting furnace. At this time no mercury retort has been planned, however it may be required if it is found that the ore contains more mercury than is presently believed to be the case based on the limited assays to date. After metals removal the solution will be returned to the barren pond and then pumped back to the irrigation system on top of the heap. An excess solution (storm water) pond will contain leach solution in excess of that required for normal operations. Excess solution will ultimately return to the barren tank as make‐up solution. Make‐up water will be from a combination of reservoir stored water, wells, and sea water if required. It should be noted that additional metallurgical testing should be conducted to verify that sea water does not interfere with the Merrill Crowe process if it is determined that it is actually required. KCA is aware of at least one operation using hypersaline water in a heap leach using a carbon plant with no ill effects, however it does not utilize Merrill Crowe. Back‐up generator power will be provided, capable of supplying sufficient electrical power to keep all solution circuits operating during interruptions to line power.

TUJUH BUKIT PAGE 100


19. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATE

Topography Topographic data were received from Intrepid in February 2010 (topofeb10pt.dm & topofeb10tr.dm) and triangulated to produce a gridded elevation model (Figure 51) covering the limit of the porphyry block model.

Figure 51 : Contoured elevation model showing block model limits

Data The cut‐off date for assay and geological data was 9 May 2011. New assays received since the September 2010 resource announcement are from holes GTD‐10‐162, 165, 166, GTD‐11‐190, 193‐195 (plotted in Figure 52). GTD‐11‐193 & GTD‐11‐196 intervals do not fall within the porphyry reporting shell though GTD‐11‐193 intersected a wide interval of copper

2

50

0

52 25 0

25 0

250

052

0

52

2

50

0

52 25 0

25 0

250

052

0

52

BLOCK MODEL BOUNDARY

173000E 174000E 175000E 176000E

904

5 000

N

904

6 000

N

904

700

0N

90

4800

0N



mineralization (106m of 0.63% Cu, 0.08 g/t Au) that is presently hard to interpret though may represent a supergene zone of Cu enrichment above the main porphyry zone.

Figure 52 : Location of new mineralised intercepts (red)

6m length‐weighted composites of assayed intervals were created with a minimum length of one metre and maximum of six metres. Techbase software was the primary software used for data manipulation, compositing and resource estimation with H&S's proprietary software GS3 used for estimation of As, Mo and SG. Sectional interpretations of the broad zone of copper mineralization were supplied by Intrepid (see example of Local Grid section 10830 in Figure 53). These were used to construct a limiting shell of copper mineralization depicted in Figure 54. The shell was defined on the basis of an approximate 0.05 to 0.1% Cu grade.



Figure 53 : Example of sectional interpretation of Cu mineralised zone

Figure 54 : Relationship of elevation to Cu mineralization shell and elevated Cu drill hole intercepts Elevation is grey surface, top of porphyry is blue, looking north The modeled top of the shell was used to tag all the assayed intervals and the 6m composites. The assayed intervals are summarised in Table 20. The average assayed interval



length is 2.00m. The intervals shown in the Figure 55 are color‐coded by Cu% (lower levels set at 0.5%, 0.3%, 0.2%, 0.1% and 0.05%, corresponding colors are purple, red, orange, green and blue. The porphyry resource is only reported from below the shell and only for sulfide blocks. Composites are summarised in Table 21.

Table 20 : Summary of assayed intervals within interpreted copper mineralised zone Includes oxide, transition as well as sulfide intervals

Cu% Au Ag Mo As S% Number 12161 12161 12161 11909 11939 11840 Mean 0.27 0.28 3.04 52.22 329.67 6.19 Std Dev 0.41 0.52 14.14 182.49 850.45 4.75 Maximum 9.68 13.90 710 5180 25500 41.80 Minimum 0.00 0.00 0.50 0.50 0.50 0.01 Coef Var 151 187 465 349 258 77

Table 21 : Summary of 6m composites within interpreted copper mineralised zone (only sulfide intervals)

Cu% Au Ag Mo As S% Number 4065 4065 4065 3976 3987 3958 Mean 0.27 0.27 3.03 52.09 329.30 6.18 Std Dev 0.33 0.44 11.91 157.36 626.43 4.28 Maximum 3.88 9.98 373 3113 11291 34.57 Minimum 0.00 0.00 0.50 0.50 0.50 0.03 Coef Var 121 159 393 302 190 69

6m composited densities are summarised for the sulfide zone in the Table 22.

Table 22 : Summary of 6m composited densities within interpreted copper mineralised zone

Sulfide Number 1892 Mean 2.64 Std Dev 0.21 Maximum 4.49 Minimum 1.94 Coef Var 8.0

Table 23 lists average 6m composited data by drill hole for composites that fall below the copper shell. Lengths listed are summed lengths of 6m intervals.



Table 23: Summary, by hole, of 6m composites within interpreted porphyry zone(sulfide intercepts only)

Hole Cu% Au Mo Ag As Length

GT004 0.0557 1.1782 8.1 42.06 6421.8 17

GT007 0.0778 0.0583 11.48 273.1 68.5

GTD‐07‐15 0.1768 0.0968 0.9 3.58 426.4 225.35

GTD‐07‐17 0.1249 0.1813 2.3 2.6 334.4 15.35

GTD‐07‐18 0.209 0.0635 1.7 2.63 554.5 270

GTD‐07‐19 0.2171 0.112 1.1 1.31 565.4 151

GTD‐07‐20 0.2415 0.2601 1.2 2.5 795.2 92

GTD‐08‐21 0.1979 0.2258 1.3 1.51 397.3 183.35

GTD‐08‐22 0.2398 0.1449 1 3.74 769.5 206.8

GTD‐08‐23 0.8483 0.1994 2 11.41 814.4 32

GTD‐08‐24 0.1592 0.0365 3.2 2.1 141 40

GTD‐08‐25 0.3186 0.1766 1.6 3.71 779.7 267.35

GTD‐08‐26 0.0331 0.1314 1.3 2.1 114.9 78

GTD‐08‐27 0.081 0.1933 1.3 0.96 148.4 24

GTD‐08‐28 0.0928 0.1019 1.3 1.72 309.3 151.5

GTD‐08‐29 0.2212 0.3561 13.3 1.01 247.4 543

GTD‐08‐30 0.1019 0.0295 2.4 1.76 85.5 20.95

GTD‐08‐31 0.2094 0.106 5 3.5 420.3 300

GTD‐08‐32 0.1383 0.1053 1.8 3.12 404.3 452.9

GTD‐08‐35 0.4393 0.4485 79.7 2.41 371.5 627.2

GTD‐08‐37 0.3986 0.197 1.1 2.26 970.1 58.85

GTD‐08‐38 0.1518 0.1662 1.6 3.87 343.1 65.85

GTD‐08‐39 0.1975 0.0995 0.7 3.03 455.9 13.65

GTD‐08‐42 0.1614 0.1752 28.6 1.03 42.1 589.4

GTD‐08‐46 0.0706 0.111 17.5 0.54 55 177.15

GTD‐08‐47 0.0369 0.2671 8.2 116.11 603 15.15

GTD‐08‐53 0.0366 0.0479 3.8 0.61 21 133.15

GTD‐08‐54 0.1569 0.0429 0.6 2.08 161.9 57.55

GTD‐08‐55 0.059 0.0224 0.7 1.69 46.1 86.25

GTD‐08‐56 0.2373 0.3177 26.7 3.57 344.8 711.65

GTD‐08‐57 0.2292 0.0648 2.1 2.96 248.7 31.7

GTD‐08‐58 0.0799 0.0324 1.2 0.76 170.5 88.5

GTD‐09‐104 0.0606 0.3002 2.9 29.95 1252.2 21.5

GTD‐09‐110 0.3892 0.1414 0.6 4.49 491.3 47.05

GTD‐09‐112 0.195 0.2328 26.9 2.19 280.3 693.9

GTD‐09‐113 0.2655 0.12 3 1.57 307.9 14

GTD‐09‐115 0.2223 0.1811 1.4 3.52 491 43.75

GTD‐09‐122 0.4495 0.2581 0.7 3.9 1143.2 90

GTD‐09‐125 0.1189 0.0433 0.5 7 278 6



Hole Cu% Au Mo Ag As Length

GTD‐09‐127 0.2554 0.0405 0.6 1.53 176.5 60

GTD‐09‐128 0.0566 0.0714 0.5 0.5 191.1 3.5

GTD‐09‐132 0.0685 0.0125 0.5 0.75 10.6 12

GTD‐09‐59 0.1332 0.037 1.2 0.64 145 130

GTD‐09‐60 0.0365 0.0147 0.5 0.61 73.3 47.45

GTD‐09‐61 0.2997 0.0757 0.6 2.67 264 127.4

GTD‐09‐65 0.5274 0.3157 1.9 10.93 485.5 17.35

GTD‐09‐66 0.0958 0.0581 0.7 0.81 240.3 58

GTD‐09‐68 0.0326 0.0129 0.5 0.5 45.6 48

GTD‐09‐75 0.5606 0.1867 3 1.78 605.6 36

GTD‐09‐79 0.1182 0.0105 1 0.83 21.4 33

GTD‐09‐80 0.2067 0.08 0.9 0.64 370.8 29

GTD‐09‐84 0.0644 0.005 0.5 0.5 21.8 10

GTD‐09‐94 0.0155 0.0521 1.8 3.79 22.5 14

GTD‐09‐96 0.0009 0.005 0.5 0.5 2.7 3.2

GTD‐10‐137 0.3187 0.6132 4.9 1.94 247 167.85

GTD‐10‐138 0.2671 0.3009 46.8 1.37 285.1 809

GTD‐10‐139 0.3782 0.7408 135 1.58 450.8 542

GTD‐10‐146 0.4254 0.5251 94.1 1.54 330.8 674

GTD‐10‐160 0.1832 0.2261 4.9 0.79 395.7 204

GTD‐10‐161 0.2393 0.2664 1.5 13.25 776 57.1

GTD‐10‐162 0.3362 0.3239 88.5 1.24 169.2 811.55

GTD‐10‐163 0.6049 0.5306 112 0.98 605.6 645.5

GTD‐10‐164 0.114 0.21 15 7 3270 1.7

GTD‐10‐165 0.3765 0.5929 12.7 0.8 117.8 196.05

GTD‐10‐166 0.2894 0.3434 79.6 1.75 240.5 640.8

GTD‐10‐167 0.4855 0.6918 242.5 2.28 687 441.65

GTD‐10‐168 0.4631 0.3239 75.2 0.76 332.3 536.65

GTD‐10‐169 0.2863 0.3034 103.2 1.55 144.6 885.75

GTD‐10‐170 0.3682 0.3702 124.8 1.42 133 811.95

GTD‐10‐172 0.2989 0.155 89.2 7.89 304.6 768

GTD‐10‐176 0.0549 0.0857 1.1 0.56 129.7 105.2

GTD‐10‐178 0.1105 0.1039 12.8 1.85 212.2 892.25

GTD‐10‐181 0.35 0.0756 1.1 1.32 371.5 66

GTD‐10‐182 0.2484 0.3027 38.4 1.24 129.2 964.45

GTD‐10‐183 0.082 0.038 10.3 0.76 122.6 803.55

GTD‐10‐184 0.0929 0.0486 0.8 0.68 123.9 302.65

GTD‐11‐189 0.0957 0.088 1.7 14.01 149.8 9.4

GTD‐11‐190 0.4538 0.6634 133.2 1.38 348.8 706.85

GTD‐11‐192 0.289 0.3763 133.1 2.21 525.1 833.15

GTD‐11‐194 0.367 0.3167 86.5 1.33 207.2 792

GTD‐11‐195 0.1744 0.0869 39.8 0.55 569.9 391.6

Total 0.2778 0.2916 58.6 2.15 316 21400.85



88%, 11% and 1% of the 6m composites below the copper shell occur within zones modelled as sulfide, transition and oxide, respectively. Sulfur averages 6.3%, 5.5% and 4.9%, respectively in the three oxidation zones. This suggests that the composites that occur below the copper shell but within the transition zone are likely to be dominantly sulfidic with a small amount of oxidation restricted to joint and fracture planes rather than disseminated through the rock matrix. Spatial Distribution of Mineralization Cross sections (east‐west) and long sections (north‐south) for 6m composites of Cu, Au, Mo & As are provided in Figure 55 to Figure 62. 6m composites from transition and sulfide mineralization are selected for these figures. Zoning of Mo and As is evident with the high sulfidation upper part of the copper zone showing elevated As values. Mo appears to be concentrated in a carapace overlying the porphyry alteration mineralization rather than evenly disseminated throughout the deposit.

Figure 55 : Deposit-wide cross section, Cu in 6m composites (transition and sulfide zone)



Figure 56 : Deposit-wide long section, Cu in 6m composites (sulfide zone)



Figure 57 : Deposit-wide cross section, Au in 6m composites (transition and sulfide zone)



Figure 58 : Deposit-wide long section, Au in 6m composites (transition and sulfide zone)



Figure 59 : Deposit-wide cross section, Mo in 6m composites (transition and sulfide zone)



Figure 60 : Deposit-wide long section, Mo in 6m composites (transition and sulfide zone)



Figure 61 : Deposit-wide cross section, As in 6m composites (transition and sulfide zone)



Figure 62 : Deposit-wide long section, As in 6m composites (transition and sulfide zone)

Element Correlations Scatter plots for Cu:Au, Cu:Mo, Cu:As and Au:As are provided in Figure 63 to Figure 66. Moderate correlations can be observed for Cu:Au, Cu:As and Cu:Mo.

Figure 63 : Cu:Au relationship, 6m composites, sulfide mineralization



Figure 64 : Cu:Mo relationship, 6m composites, sulfide mineralization

Figure 65 : Cu:As relationship, 6m composites, sulfide mineralization

Figure 66 : Au:As relationship, 6m composites, sulfide mineralization



Variography Variography was completed for Cu, Au, As & Mo. Examples of variograms and models are provided in Figure 67 to Figure 70. Reasonable variograms were achieved in the vertical to steep direction (ie down‐hole) for Cu, Au, As and Mo. Well structured variograms in the horizontal direction were difficult to achieve. This is probably due to a combination of the relative paucity of closely spaced data and limited application of geological domaining, apart from oxidation, resulting from the early stage of geological understanding. H&S's proprietary software, GS3, was used for variography.



Figure 67 : Modelled variograms for Cu (from top: down hole, 040 and 130 directions, UTM)



Figure 68 : Modelled down-hole variogram for Au

Figure 69 : Modelled down-hole variogram for As

Figure 70 : Modelled down-hole variogram for Mo



Block model A 40m x 40m x 15m (east x north x elevation) block model was constructed with extents summarised in the Table 24.

Table 24 : Block model extents

East North RL

Maximum 176360 9047760 494

Minimum 173000 9045000 ‐991

Range (m) 3360 2760 1485

Size (m) 40 40 15

A 15m bench height was chosen in keeping with typical large bulk‐tonnage porphyry operations. The block model limits are illustrated in the Figure 71 along with drill hole collars, intervals that occur within the interpreted zone of Cu mineralization and the +0.2% Cu Inferred Resource.

Figure 71 : Location of resource in relation to Cu mineralization



Resource estimation search strategy Estimation was completed in three passes with a maximum of 32 data used for each pass and a minimum of 12, 10 and 8 for passes 1, 2 & 3. Search distances for the three passes are 120m x 120m x 80m; 180m x 180m x 120m and 240m x 240m x 160m, respectively. Pass 1 was categorised as Inferred and the results from passes 2 & 3 were used to discuss potential tonnes. Transition and sulfide zone data points were used. Top cuts were not used. Results The updated Inferred Resource is estimated at 990 million tonnes at 0.40% copper and 0.45 g/t gold, at a cut‐off grade of 0.2% copper or 0.2 g/t gold. This Resource estimate does not include the oxide gold‐silver zone of 130Mt at 0.55 g/t gold and 18 g/t silver for 2.4 million ounces of contained gold and 80 million ounces of contained silver. Table 25 summarises the porphyry resource estimate at different cut‐off grades.

Table 25 : Summary of Inferred Resources, sulfide zone Significant figures quoted do not imply precision and are used to minimize round-off errors.

Summary of Inferred Resource Estimates, by Copper or Gold cut-offs

Cu or Au Cut Offs Grade Contained Metal

Cut-Off Tonnes Cu Au Mo As Copper

lbs Gold

Ounces

Cu(%) or Au(g/t) (Mt) % g/t ppm ppm (billion) (million)

0.2 990 0.40 0.45 98 305 8.8 14

0.3 750 0.46 0.53 117 301 7.7 13

0.4 570 0.52 0.60 132 305 6.5 11

0.5 410 0.56 0.69 142 330 5.1 9

0.6 280 0.61 0.78 156 353 3.8 7



Summary of Inferred Resource Estimates, by Copper (Cu) Cut-offs

Cu Cut Offs Grade Contained Metal

Cut-Off Tonnes Cu Au Mo As Copper lbs

Gold Ounces

Cu (%) (Mt) % g/t ppm ppm (billion) (million)

0.2 880 0.44 0.47 108 311 8.4 13

0.3 640 0.51 0.54 129 319 7.1 11

0.4 440 0.58 0.62 150 346 5.6 9

0.5 270 0.66 0.70 176 394 3.9 6

0.6 150 0.74 0.79 220 447 2.4 4

Summary of Inferred Resource Estimates, by Gold (Au) Cut-offs

Au Cut Offs Grade Contained Metal

Cut-Off Tonnes Cu Au Mo As Copper lbs

Gold Ounces

Au (g/t) (Mt) % g/t ppm ppm (billion) (million)

0.2 850 0.42 0.50 106 295 7.8 14

0.3 630 0.47 0.59 125 287 6.6 12

0.4 470 0.52 0.67 137 285 5.4 10

0.5 340 0.55 0.76 141 301 4.2 8

0.6 220 0.59 0.86 152 316 2.8 6

Approximately 45% of the resource reports within a shell based on a preliminary pit optimisation of the September 2010 resource model (significantly smaller than the current estimates). At depths below the conceptual pit, the possibility of bulk underground mining techniques (eg block caving) remains. The resource falling above a conceptual pit shell in no way should be understood to represent "Ore Reserves". There are no Ore Reserves reportable for the Tujuh Bukit Project. “High confidence” geological potential material (shown schematically in Figure 72), arising from the second search and based on cut off grades comparable to those applied for the Inferred resource estimate, suggests potential for an additional 800 – 850Mt at grades of 0.3 – 0.4% copper and 0.35 – 0.45 g/t gold within the interpreted porphyry zone. Another 600 ‐ 700Mt at similar grades are obtained from the third estimation pass. Overall, this suggests that the exploration potential within, and surrounding, the existing drilled area is roughly of



an additional 150% of the tonnage reported above for the Inferred Resources at grades approximately 90% of the grade. This potential is conceptual in nature as there has been insufficient exploration to define a Mineral Resource and it is uncertain whether further exploration will result in the determination of a Mineral Resource.

Figure 72 : Location of Exploration Potential in relation to Inferred Resource

A check estimate was completed by using different software. Check estimates by the author, using different assumptions and different software, also produced results close to those reported. At this stage there is insufficient drilling to produce a meaningful geological model, apart from oxidation, that would impact on the resource estimates. As recent results demonstrate,



the resource model is performing though in the future it is anticipated that geological modelling will improve the resource estimation outcome. Sections A series of sections are provided in the Figure 73 to Figure 80, showing the distribution of drill hole copper grades (6m composites) in juxtaposition with estimated block grades (Inferred).

Figure 73 : Combined drill holes and block model (oblique section)



Figure 74 : Legend for sections

Figure 75 : Oblique section 3, drill hole GTD-08-42 and block model

> 0 & < 0.05%

>= 0.05 & < 0.10%

>= 0.1 & < 0.2%

>= 0.2 & < 0.3%

>= 0.3 & 0.5%

Colour codes

LEGEND

>= 0.5%

Interpreted top of copper mineralisation

Inferred resource blocks only plotted

6m composites Blocks

Elevation



Figure 76 : Oblique section 6, drill holes and block model




Figure 81 : Location of oblique sections in relation to drill holes and block model Sections plotted above are marked, see Figure 71 for legend

A series of composite sections are provided in Figure 82 to Figure 84, showing the distribution of drill hole gold, molybdenum and arsenic grades (6m composites) in juxtaposition with estimated block grades (Inferred).



Figure 82 : Combined drill holes and block model (oblique section) -gold

Figure 83 : Combined drill holes and block model (oblique section) - molybdenum



Figure 84 : Combined drill holes and block model (oblique section) - arsenic

Figure 85 : Legend for composite sections for Au, Mo & As



20. OTHER RELEVANT DATA AND INFORMATION

It should be noted that previous exploration companies referred to the project that included the Tumpangpitu prospect as the Bukit Hijau Project. However, this name is considered to be too similar to that of the near‐by Batu Hijau copper mine. Baseline hydrological studies of water quality in local streams, wells and sea water are ongoing on an approximately quarterly basis. Samples are collected from identical locations by Intertek Caleb Brett and IMN local personnel and submitted to Intertek in Jakarta for analysis. Fieldwork for baseline Flora and Fauna studies have been completed. No environmental or social baseline studies were compiled by previous workers in the area.

20.1 Porphyry Resource

New partial and incomplete assays have been received since release of the second resource estimate for porphyry copper mineralisation. Results relevant to the porphyry resource are from GTD‐11‐194, 201, 203, 205 & 206.

An examination of the new assays indicates that they will contribute to an upgrading of the confidence of the current estimates. No negative results that down‐grade the current resource are apparent. Results from GTD‐11‐194 are from the base of the hole and are consistent with the estimates and are likely to add to the Inferred Resource (Figure 86). Partial and incomplete results from only the top part of GTD‐11‐201 are available and are higher grade than expected. These are likely to add to the Inferred Resource (Figure 87). Partial and incomplete results from only the top section of GTD‐11‐203 are available. These come from a part of the model that is currently classified as exploration potential (Figure 88) and will add to the Inferred Resource. Results from GTD‐11‐205 (Figure 89) are almost entirely within a part of the model that is currently classified as exploration potential and are expected to add a significant amount of resource to the east of hole GTD‐08‐42.



A small number of results from hole GTD‐11‐206 are available (Figure 90). At this stage these are consistent with the current model. Results for these holes will be released once complete and final assays are received.

Figure 86 : Oblique oxide section 9, new results from GTD-11-194



Figure 87 : Oblique section 16, new results from GTD-11-201



Figure 88 : Oblique section 18, new results from GTD-11-203



Figure 89 : Oblique oxide section 6, new results from GTD-11-205



Figure 90 : Oblique porphyry section 10, new results from GTD-11-206

Dr Bruce Rohrlach’s contribution to the geological discussion in this report continues to be acknowledged. His work has been extensively quoted and any original thinking on the genesis of the Tujuh Bukit mineralization is from Dr Rohrlach. Mr Damien Lulofs has made a major contribution to the QA/QC of this report. Mr Malcolm Norris also made a substantial contribution to the document. 20.2 Summary Of Preliminary Economic Assessment For The Tujuh Bukit Oxide Project

Intrepid commissioned Kappes, Cassiday & Associates (KCA) to prepare a Preliminary Economic Assessment (PEA) study for the Tujuh Bukit Oxide Project. This project contemplated only the mining and processing of oxide and minor transition material by heap



leaching and did not consider the ongoing exploration of the deeper sulfide material or the processing of sulfide material. This section is a summary of that report. The complete study is titled “Preliminary Economic Assessment Tujuh Bukit Oxide Project, Located in East Java, Indonesia, Technical Report for Intrepid Mines Limited”, by Daniel Kappes, dated 1 June 2011, and is filed on SEDAR. 20.2.1 Cautionary Notes The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Actual results may differ significantly. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of economic viability worthy of public disclosure, except in the case of the preliminary economic assessment. Inferred Mineral Resources are excluded from estimates forming the basis of a feasibility study. 20.2.2 Mining and Optimized Mine Plan from Inferred Resource The PEA study contemplates Life of Mine production in the order of 1.29 million ounces of gold and 10.5 million ounces of silver in 57 million tonnes of heap feed material. The 63 million tonnes of waste to be mined results in a heap feed to waste ratio of 1:1.1. Metallurgical testing has demonstrated the project is amenable to cyanidation using heap leaching with projected field recoveries of 86% for gold and 17% for silver for the oxide zones and 72% of the gold and 31% of the silver for the transition Zone A. The Tujuh Bukit Heap Leach Project is planned as an open‐pit gold operation processing 20,000 t/d of oxide material. A total of up to 17.4 million tonnes of material (heap feed and waste) are scheduled to be mined per year with an average strip ratio of 1:1.1. Use of industry‐proven mining practices and equipment are planned. The capital costs are developed assuming contractor mining with all new equipment maintained under maintenance and repair contracts (MARC) with the vendors. It is assumed that management of explosives will be performed by a sub‐contractor.



The overall mineral resource, as described by Hellman and Schofield, is the basis for the pit optimization, mine design and production schedule developed by Australian Mine Design & Development Pty Ltd, which is discussed in detail in the mining chapters of Section 18. Mining costs include management, supervisory and mining technical staff salaries and overheads and the costs of drilling, blasting, loading, hauling, ancillary and support activities. Contractor mining is assumed, where the cost estimation for the contractor mining has been derived by AMDAD using the following methodology: Mining equipment costs include ownership costs and hourly operating costs. Ownership costs are modelled by assuming rolling leases for each item, with the capital cost repaid quarterly, plus a lease rate of 10%. An additional margin of 20% is applied to the total operating and ownership costs to arrive at an estimate of total contract mining costs. 20.2.3 Metallurgy Metallurgical testing of the potentially economic material from the Tujuh Bukit project has been conducted by Metcon and KCA. Testing has demonstrated that metallurgical recovery is amenable to heap leach recovery techniques with gold estimated field recovery of 86% on oxide material and 72% on transition material. Silver recovery is lower, with estimated field recovery of 17% on the oxide and 31% on transition material.

Table 26: Production Statistics

Item Recovery Recoverable Ounces Metal Oxide Heap Feed (Mt) 52 Mt Oxide Gold Grade 0.84 g/t 86% 1.2 M oz Au Oxide Silver Grade 22.8 g/t 17% 7.2 M oz Ag Transition Heap Feed (Mt) 5 Mt Transition Gold Grade 0.70 g/t 72% 0.1 M oz Au Transition Silver Grade 28.1 g/t 31% 1.4 M oz Ag Total Heap Feed Tonnes 57 Mt Total Gold Grade 0.83 g/t 84% 1.3 M oz Au Total Silver Grade 23.5 g/t 18% 8.6 M oz Ag

Cyanide consumption is estimated to be 0.49 kg/t, and cement for agglomeration is estimated to be 4.5 kg/t. The cement is conservatively estimated as many tests show little or no cement required depending on clay content. Metallurgy is discussed in detail in “Preliminary Economic Assessment Tujuh Bukit Oxide Project, Located in East Java,



Indonesia, Technical Report for Intrepid Mines Limited”, by Daniel Kappes, dated 1 June 2011, and is filed on SEDAR. 20.2.4 Process Description Mining will take place at a rate of 20,000 heap feed tonnes per day. Material for processing will be delivered and direct dumped to a modular‐style 3‐stage crushing plant nearby the pit. The targeted product size will be 100% passing 20 mm. The crushed material will be transported three kilometre via an overland conveying system to the two agglomeration drums. Cement and barren solution will be added to the material at the drums. The agglomeration drums discharge to a mobile stacking system (grass‐hopper field conveyors and a mobile radial stacker). The material will be stacked on the leach pad in 10 meter lifts and irrigated for 90 days with dilute cyanide solution using sprinklers on top and dripper tubes on the side‐slopes. A total of ten 10 meter lifts are planned for a maximum heap height of 100 metre in the deepest part of the heap. After percolation through the material, gold and silver bearing solutions collect on an HDPE plastic liner and are channeled to a pregnant solution collection pond and pumped to a Merrill Crowe plant. Zinc dust is used to precipitate the gold and silver as precious metals sludge. The precipitate is dried and smelted into dore bars onsite. 20.2.5 Infrastructure Power for the project will be supplied via a new installation of a 31 km long, 20 kV powerline. This line connects to an existing 150 kV line to the North. It is assumed that sufficient capacity will continue to exist to support the project as the project progresses. Back‐up generators will provide power to only the solution circuits in the event of power outages. Process water will be supplied with a combination of stored rainfall, groundwater wells, and seawater as required. Dedicated fire water will be stored in reserve for emergencies. Waste water treatment facilities, diesel fuel, and gasoline storage facilities will be constructed. External voice and data communications will be supplied through a dedicated satellite system. Site buildings will include:

Administration Building

Mine Shop

Refinery

Process Warehouse and Workshop

Process Offices

Locker Rooms

Crusher Maintenance Workshop

Merrill‐Crowe – Shed roof only

Reagent Storage Area Shed roof only



A man camp is also included, for first use as a construction camp, and later portions of it can be maintained as a permanent camp. 20.2.6 Environmental and Permitting The operation is designed to comply with Indonesian environmental requirements, Intrepid corporate environmental policy, and industry “best practice” standards. Golder and URS have documented most environmental conditions and permit requirements for the project. In general, regarding mining and large heap leach projects, there are four negative environmental aspects that have a high relevance to public perception:

1. The use of cyanide and the perceived potential to contaminate water resources. 2. The overall impact on the landscape created by the mine and leach facilities. 3. The generation of dust from the mine and process. 4. The potential for acid generation from the pits, waste dumps, and leach pad capable

of contaminating surface or groundwater. Conversely, there are three potentially positive aspects to perception, which are:

1. The generation of employment. 2. The generation of improved services to the communities. 3. The overall economic benefits to the communities.

With due care in the design, construction, operation, monitoring, and closure of the project, as well as judicious management of community expectations it is believed that all of the identified environmental and social risks can be mitigated. 20.2.7 Reclamation and Closure Reclamation and closure will include removing the buildings, power lines, pipe lines and process components, securing the pit and waste dumps, assuring the spent leach pad and tailings storage facility are chemically and structurally stabilized, and returning the area to its previous land use. Portions of the reclamation and closure work will be completed concurrently with operations. 20.2.8 Capital Costs Pre‐production capital cost details are presented in Section 18 and are summarized below. All costs are in fourth quarter 2010 US dollars. Capital costs based on the design outlined in this report are considered to have accuracy of +/‐ 30%. The capital costs include a contingency of 20%.

Table 27: Summary of Pre-Production Capital Costs



Plant Totals Direct Costs Total Supply Cost ($M)

Install ($M)

Grand Total ($M)

Area 00 ‐ Site & Utilities General 1.2 1.2 2.4

Area 03 – Camp 1.9 0.2 2.1

Area 05 ‐ Water Supply & Distribution 0.7 0.1 0.8

Area 06 ‐ Process Area General 0.2 0.1 0.3

Area 08 ‐ Mobile Equipment 1.5 0.1 1.5

Area 10 ‐ Crushing 13.9 2.8 16.6

Area 15 – Heap Feed Reclaim and Stacking 23.4 1.9 25.3

Area 20 ‐ Heap Leach and Solution Handling 3.5 28.2 31.6

Area 25 ‐ Merrill Crowe 5.4 1.0 6.4

Area 35 ‐ Refining 1.4 0.1 1.6

Area 45 ‐ Detoxification 0.7 0.1 0.8

Area 50 ‐ Electrical 1.7 0.2 1.9

Area 70 ‐ Reagents 0.5 0.1 0.5

Area 75 ‐ Laboratory 1.2 0.1 1.4

Area 80 ‐ Ancillaries 6.3 1.0 7.3

Plant Total Direct Costs 63.5 44.9 100.5

Spare Parts 2.5 2.5

Contingency 21.7 21.7

Plant Total Direct Costs with Contingency 124.8

Indirect Field Costs 3.5

Indirect Field Costs Contingency 0.7

Plant Total Indirect Costs 4.2

Initial Fills 1.0

Owner’s Costs 20.0

EPCM 16.4

Sub Total Plant Cost 166.4

Working Capital 60 Days 13.0

Pre‐Production Mining Provision 6.5

Contractor Mobilization Provision 1.0

Total Pre‐Production Capital Costs 186.9

VAT (Pre‐Production Capital Costs) 16.7

Total (Pre‐Production Capital Costs inc VAT) 203.6



20.2.9 Operating Costs Operating costs details are provided in Section 18. The table below summarizes the estimated project operating costs. Operating costs are estimated to have an accuracy of +/‐ 30%.

Table 28 : Operating Costs

Area Unit Cost ($/heap feed tonne)

Labor 0.499 Crushing and Stacking 1.237 Leaching 0.165 Merrill-Crowe Plant 0.177 Refinery 0.075 Reagents 1.938 Water Distribution 0.028 Laboratory 0.088 Support 0.072 Total Processing 4.279 G&A 0.800 Mining Cost (Contractor Mining) 5.76 Total 10.84

20.2.10 Financial Analysis The Table below is a summary of financial results.

Table 29 : Summary of Financial Results

Financial Summary

Long‐term gold price per ounce $1,050 $1,450

Long‐term silver price per ounce $16.50 $38.00

NPV ‐ after tax @ 0% (Million) $445 $942

NPV ‐ after tax @ 10% (Million) $180 $446

Payback (years) 3.03 2.70

Mine Life (years) 9 9



20.2.11 Project Development Schedule Project development is expected to require 17 months for engineering and construction. During the construction period, modular tent‐style housing will be provided for the estimated 456 construction workers. A jetty/receiving port will be constructed to receive equipment and construction components. The power line will be constructed. Pioneering work on the pits and pre‐production haul roads will be constructed. The administration, mine shop and other ancillary buildings will be constructed. The first phase of the leach pad and process ponds will be built. The crushing and recovery plant will be installed. It is estimated that once the mining operation begins delivering material to the operating crusher, dore’ metal production could be within four months. 20.2.12 Recommendations, Risks and Opportunities No fatal flaws have been discovered in the project evaluation to date. Recommendations primarily involve additional detail with respect to resources, operations, permitting and Indonesian business protocols and regulations. A number of opportunities have been identified for further evaluation during the next stage of feasibility. 20.2.13 Recommendations After completing this PEA and the associated technical and economic review of the project, recommendations are made for additional review of the following topics:

Complete drilling sufficient to convert Inferred Resources to measured and indicated resources;

Column testing on materials that are near average mine grades;

Metallurgical testing and process testing using seawater;

The need for agglomeration;

Determine the crushing index;

Testing for mercury in the heap feed material;

Collect additional site information for the water balance;

Design a solution neutralization system;

Full review of permit requirements;

Tsunami studies;

Detailed closure plan;

Review and augmentation of baseline environmental studies;

Continued exploration for groundwater;



Additional geotechnical drilling;

Earthwork contractor costs;

Cyanide delivery systems;

Project consumables specifics;

Seaport scale and timing of construction review. 20.2.14 Risks At the present stage of evaluation of the Tujuh Bukit Project a number of risks have been identified. It is believed that most of these can be mitigated through additional metallurgical testing, further design work and advancing negotiations regarding power, water and permits. The primary risks include:

Power availability and cost;

Water balance;

Tsunami design;

Solution containment;

Acid rock drainage;

Permitting risks;

Community relations. 20.2.15 Opportunities The Tujuh Bukit Project has numerous opportunities to evaluate. These include:

Potential to increase overall processing rate and refinement of operating costs;

Earthworks optimizations, considering mine scheduling and owner vs. contractor mining costs;

Value engineering of facilities, and consideration of regenerative motors on the downhill conveyors.

The results of the PEA indicate that at a gold price of $1,050 per ounce the Tujuh Bukit heap leach concept is a robust project worthy of investment and warrants continued studies to a feasibility level.



21. INTERPRETATIONS AND CONCLUSIONS

21.1 Interpretations and Conclusion of the Porphyry Resource

The drilling program has met its objective with the definition of an Inferred Resource. There are no areas of material uncertainty in relation to the technical results that are not covered by the meaning of "Inferred". An increased density of drilling will be required to upgrade the resource to Measured and Indicated.

21.2 Interpretations and Conclusion of the Oxide Resource

A preliminary economic assessment of the Tujuh Bukit Oxide Project was completed in April 2011 and the results are summarized in this report. Pit optimizations were undertaken on the Inferred Mineral Resources from which mining schedules were estimated. Results from metallurgical testwork of the various ore types were used to determine metallurgical recoveries and determine the heap leach Merrill‐Crowe processing flow sheet. Infrastructural and site services were estimated for the Project. An economic model and financial analysis was undertaken. The purpose of the preliminary economic assessment was to determine the viability of progressing the Tujuh Bukit Oxide Project to the pre‐feasibility study stage. The results of the preliminary economic assessment of the Project are encouraging and warrant the progression of the Tujuh Bukit Oxide Project to the pre‐feasibility study stage.

22. RECOMMENDATIONS

22.1 Recommendations for the Porphyry resource

In the Qualified Person’s opinion, the character of the property is of sufficient merit to justify continued drilling until the boundaries of the mineralized system have been defined. A program of resource limits' definition followed by infill drilling should continue. This would benefit from internal scoping studies designed at identifying the most likely areas of early production that may be a combination of open pit or bulk underground techniques.



Interaction with consulting metallurgists has been initiated and will benefit from ongoing planning meetings in order to ensure gathering of assay and other information that may be relevant as feasibility‐type studies proceed. The application of cold‐H2SO4 and “Leachwell”‐type CN assays (or similar) on physical composites in progress for the oxide mineralization may benefit the definition of ore‐types in the upper parts of the High Sulfidation mineralization and to refine the nature of the variation in oxidation. Discussions of the application of mineralogy and/or sequential Cu‐assays to help discriminate between chalcopyrite and chalcocite and other Cu‐species have commenced and initiation of testwork is planned. It is recommended that preliminary pit optimization be continued and block cave scoping studies be initiated to help constrain drilling patterns and provide guidance for geotechnical logging and other work programs. These studies are likely to cost approximately $50,000 to $200,000. The production of matrix‐matched standard reference materials is in progress from residue samples of the copper mineralization. This may cost approximately $50,000 ‐ $100,000.

22.2 Recommendations for the Preliminary Economic Assessment of the Oxide Resource

After completing the PEA and the associated technical and economic reviews of the project, the following areas of studies will strengthen future studies to the next level of accuracy:

Geology, resources and reserves;

Metallurgical testing;

Site/Environmental;

Capital and Operating Costs. These recommendations for the areas of study are more fully discussed in the following sections. 22.2.1 Geology, Resources and Reserves The character of the project is of sufficient merit to justify continued drilling until the boundaries of the mineralised system have been defined. A program of infill drilling would logically follow after internal scoping studies designed at identifying the most likely areas of early production. It is recommended that the geometry of the various near‐surface mineralised zones be better defined to aid resource estimation and domaining in preparation for future resource updates.



Completion of “Leachwell”‐type CN assays on physical composites should be completed to help define ore‐types and to refine the nature of the variation in oxidation. The relationship of the LW CN assays to more formal heap leach recoveries may assist future modelling of metallurgical recoveries and CN consumption by Cu. Matrix‐matched standard reference materials should be generated from residue samples of the copper mineralization. A detailed examination of assay results from sludge samples should be carried out using sub‐sets of data defined by parameters such as fracture density, RQD and oxidation. A retrospective assessment of assay batches that have standards with results that fall outside+/‐ 5‐10% warning limits or +/‐ 10% failure limits should be undertaken. Assays of samples from these batches that have been subsequently re‐assayed by an independent laboratory should be checked in order to determine whether a re‐assay of the entire assay batch is warranted. Currently, no active examination of QA/QC results is undertaken at, or near, the time of receipt of assay results. This needs to be rectified. It is recommended that warning and failure limits for standards be based on 5% and 10% levels rather than multiples of standard deviations that may have little practical relevance. A retrospective assessment of assay batches that have poor agreement with check assays needs to be undertaken. This should include an assessment of each batch's performance with respect to included "Internal Standards" in order to determine whether batch errors are present or whether disagreements have resulted from simple typographical mix‐ups. Results from approximately 30% of samples sent for check assaying are excluded from statistical analysis because their results are too low for meaningful comparisons. Samples chosen for external check assaying should mainly represent mineralised samples over a range of grades. It is recommended that a drill program be initiated to convert the Inferred Resources to indicated and measured resources. The drill holes should be located so that the drill information will satisfy the spatial and variography requirements of the deposits as well as provide additional spatially representative metallurgical samples. 22.2.2 Metallurgy It is recommended that additional metallurgical tests be performed both to clarify and confirm current results, as well as to fill gaps in the existing metallurgical results. The specific areas of further study recommended are discussed more fully in the following sections. Grade Representative Testing Metallurgical testing at the KCA laboratory has been on material with lower than average grades than those published in the most recent report on mineral resources. Evaluating the



metallurgical characteristics of the material closer to the average grade may influence metal recovery inputs. Seawater Although seawater has been used in some metallurgical processes elsewhere, metallurgical tests that simulate actual field conditions with the use of seawater should be conducted to investigate the effect on the process parameters such as zinc cementation and filtration. Acquiring this information will allow better prediction of operating and capital costs, and provide solid assurance that the process will work efficiently with seawater. Agglomeration Agglomeration testing indicates that a portion of the ore body requires agglomeration with cement at finer crushing sizes. Other tests show that cement is not required. Analysis of the core samples suggests that approximately 25% of the ore will require agglomeration at the specified crush size. All of the ore tested requires a pH control agent to provide protective alkalinity during the leaching process. While cement will provide the protective alkalinity required for the ore, it may be possible to use lime, a possibly less expensive pH control agent for a portion of the ore treated. Additional agglomeration testing is recommended to further optimize the operation costs. Only one column test (fine crushed to minus 9.5 mm) actually required cement agglomeration. Photo analysis of drill core to date show 10% of the core with clay content that almost certainly requires cement agglomeration, and an additional 16% with a high probability of requiring cement agglomeration. For this study 4.5 kg/t of cement was assumed for all ore. Significant opportunity exists for lowering the operating cost in actual practice by adding less cement when it is not required, or replacing some of the cement with lime. The effect of strong cyanide added at agglomeration should also be tested. In some cases the addition of strong cyanide at agglomeration significantly improves the recovery rate of precious metals in the heap. Mercury Testing Test work performed by KCA showed almost no mercury present in samples received, whereas test work performed by Metcon showed small quantities of mercury. Additional test work should be performed to determine how much mercury is present, and if a mercury retort or other method of mercury removal is necessary for the operation. Crushing Index The crushing costs were derived using the assumed power demands for the crushing components. Although Bond ball mill work index tests have been performed, Crushing Work Index tests have not been completed to date. Samples should be submitted and tested to for this determination. This information will be used to optimize the crushing capital and operating costs.



Specific Gravity and Bulk Density Additional SG as well as bulk density determinations are recommended. The work to date may overstate the specific gravity in some of the friable clay zones of the core samples. A more refined knowledge of these parameters will allow for more precision in detailed design of the circuits and equipment. Compacted Permeability Testing Additional compacted permeability tests are recommended to confirm that stacking to 100 meter pad height is acceptable, or to what maximum height is acceptable. Tests to date simulated up to 60 metre stacking height. It is not believed at this time that the 100 meter height will be a problem, but the confirmation work should be done. 22.2.3 Site/Environmental The initial environmental reviews have revealed several areas that warrant additional review. Water Balance / Rainfall Data It is recommended that additional rain data be collected for the water balance calculations, which determines the quantity of annual excess solution accumulation. The current data used for design is considered insufficient for accurate forecasting in a tropical climate. Additional information may be obtainable from the local agricultural community, which may have unofficial but useful rain data. It is also recommended that a rain gauge and daily monitoring be set up at the project site as soon as possible. A trade‐off study should be conducted to determine the mechanical equipment and operating cost required to evaporate the required amounts of excess solution. Solution Neutralization (Detoxification) / Discharge A solution neutralization process should be engineered for the project. Provisionally an emergency system is included and costed in this study. In future, a trade‐off study should be performed on different discharge methods to determine which is the most appropriate for this project. These methods include different chemical neutralization processes and membrane filtration. Discharge Permits A full review of the discharge permits process, time required to obtain a permit, and other relevant regulations, concerns, etc., should be conducted. Tsunami Studies In this project, design respects the highest reported wave on this coast (14 m). All facilities sited are above this elevation. However, tsunamis of much greater magnitude have been recorded in other areas of Indonesia (up to 80m). It is recommended that studies be



performed to thoroughly assess the risks and consequences of a large tsunami. Tsunami insurance should also be investigated for cost and availability. Closure Plan A more detailed closure plan should be developed so that a more definitive cost model can be prepared. More investigation of Indonesian closure requirements with regards to the pits, waste dumps, pads, revegetation requirements, etc. is warranted to ensure that any proposed closure plan is compatible with government and legal requirements. The exact closure requirements will ensure costs are accurately considered in cost models. Environmental Studies Rescoping of existing environmental studies is warranted. The project’s scope has changed since the release of previous environmental studies. Ground Water It is recommended that sources of ground water, especially for process uses, be searched for within the project site. Geotechnical Drilling The first pass proposed leach pad site was rejected due to large quantities of unsuitable material requiring removal. The proposed new site will require additional drilling to more closely estimate earthworks quantities. 22.2.4 Capital and Operating Costs Several areas have been noted in the capital and operating costs in which improvements could be made to the economics, as well as areas of concern for the project. The areas are discussed in the following sections. Earthworks It is recommended that more competitive bids from multiple other contractors be sought to improve earthworks cost estimates. Cyanide Solid Liquid System (SLS) The use of a cyanide SLS system should be explored to see if this might have lower costs than those associated with onsite cyanide mixing, which is currently assumed for this project. The convenience of this type of system, where cyanide briquettes are delivered by the vendor in ISO containers to the project site, and the briquettes dissolved and transferred to a cyanide storage tank, is much preferred to daily mixing from boxed cyanide briquettes. Further, disposal of the cyanide shipping boxes is eliminated. The SLS system is not available in all areas and in many off‐shore sites can cost more. In any case, further investigation is warranted.



Project Consumables Specifics A detailed review of the project consumables and the specifics of availability, delivery methods and costs should be initiated. The cost for consumables in this report is based on similar projects, but cost, delivery methods and availability can be site specific. Specific high volume consumables include cyanide, cement, lime, explosives, diesel, and truck tires. Seaport / Jetty A detailed analysis should be made of the timing and size of the seaport to be constructed for receiving equipment and consumables for the project. A port designed to receive heavy equipment would be much larger than one designed to receive smaller shipments of consumables. The capital cost savings could be significant if a smaller port could suffice for the duration of the project. 22.2.5 Approximate Cost for Next Phase of Work The approximate cost to complete the next phase of work, being the in‐fill drilling and all studies required to bring the Oxide Project to pre‐feasibility study level, is US$25 million.



23. REFERENCES

Campbell H.J., 2000. Second phase diamond drilling activities at the Gunung Tumpangpitu prospect (April – July 2000). Golden Valley Mines – Hakman Joint Venture, Bukit Hijau Project, East Java, Indonesia. Carlile, J.C. and Mitchell, A.H.G. 1994. Magmatic arcs and associated gold and copper mineralization in Indonesia. In: T.M. van Leeuwin, J.W. Hedenquist, L.P. James and J.A.S. Dow (Editors), Indonesian Mineral Deposits – Discoveries of the past 25 years. J. Geochem. Explor., 50, 91‐142. Claproth, R. 1989. Magmatic Affinities of Volcanic Rocks From Ungaran, Central Java. Geol. Indones., 12, 511‐562. Daly, M.C., Cooper, M.A., Wilson, I., Smith, DF.G. and Hooper, B.G.D. 1991. Cenozoic plate tectonics and basin evolution in Indonesia. Mar. Petrol. Geol., 8, 2‐21. Harbury N.A. and Kallagher H.J., 1991. The Sunda outer‐arc ridge, North Sumatra, Indonesia, Journal of Southeast Asian Earth Sciences 6, no.3‐4, 463‐476. Hellman, P. L. 2008. Intrepid Mines Limited, Tujuh Bukit Project, Report on Mineral Resources, Located in East Java, Indonesia, Technical Report for Intrepid Mines Limited. NI43‐101 report. Hellman, P. L. 2009. Intrepid Mines Limited, Tujuh Bukit Project, Report on Mineral Resources, Located in East Java, Indonesia, Technical Report for Intrepid Mines Limited. NI43‐101 report. Hellman, P. L. 2010. Intrepid Mines Limited, Tujuh Bukit Project, Report on Mineral Resources, Located in East Java, Indonesia, Technical Report for Intrepid Mines Limited. NI43‐101 report. Hellman, P. L. 2011. Intrepid Mines Limited, Tujuh Bukit Project, Report on Mineral Resources, Located in East Java, Indonesia, Technical Report for Intrepid Mines Limited. NI43‐101 report. Kappes, Cassiday & Associates. 2011. Preliminary Economic Assessment Tujuh Bukit Oxide Project, East Java, Indonesia, NI43‐101 report. Katili, J.A. 1989. Evolution of the Southeast Asian arc Complex. Geol. Indones., 21, 113‐143. Moore, G.F., Curray, J.R. and Moore, D.G. 1980. Variations in Geologic Structure Along the Sunda Fore Arc, Northeastern Indian Ocean. In: D.E. Hayes (Editor), The Tectonic and Geologic Evolution of Southeast Asian Seas and Islands. Geophysical Monograph 23.



Van Bemmelen, R.W. 1970. The Geology of Indonesia. Martinus Nijhoff, The Hague, 2 vols, 732 pp. Whitford, D.J., Nichols, I.A. and Taylor, S.R. 1979. Spatial variations in the geochemistry of Quaternary lavas across the Sunda arc in Java and Bali. Contrib. Mineral. Petrol., 70, 341‐356.



24. DATE AND SIGNATURE PAGE

I, Phillip Hellman, FAIG, do hereby certify that: 1. I am a Director of:

Hellman & Schofield Pty Ltd Suite 6, 3 Trelawney St, EASTWOOD NSW 2119 AUSTRALIA

2. I graduated with a BSc(Hons) degree in geology from University of Sydney in 1973. In addition I have obtained a PhD in geochemistry and petrology from Macquarie University in 1979 and a Diploma of Education from Sydney University in 1974.

3. I am a Fellow of the Australian Institute of Geoscientists.

4. I have worked as a geologist for over 30 years since my graduation from university.

5. I have read the definition of “Qualified Person” set out in National Instrument 43‐101 (“NI 43‐101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43‐101) and past relevant work experience, I fulfill the requirements to be a “Qualified Person” for the purposes of NI 43‐101.

6. I am responsible for the preparation of the technical report Tujuh Bukit Project

Report on Mineral Resources, Located in East Java, Indonesia, Technical Report for Intrepid Mines Limited titled Resource Update of the Project, (the “Technical Report”) and dated 21 June 2011 relating to the Property.

7. I visited the Property for three days from 20 to 22 November, 2007, and again for

three days in October 2008, three days in October 2010 and four days in December 2010.

8. I have had an involvement in the Property since June 2006. The nature of this

involvement includes resource estimation and general consulting in relation to QA/QC, geological logging and database assembly.

9. I am not aware of any material fact or material change with respect to the subject

matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical report misleading.

10. I am independent of the issuer applying all of the tests in section 1.5 of National

Instrument 43‐101.

11. I have read National Instrument 43‐101 and Form 43‐101F1, and the Technical report has been prepared in compliance with that instrument and form.



12. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.

Dated 21st June, 2011

__________________________ Signature of Qualified Person P. Hellman, FAIG PhD Name of Qualified Person

25. ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES

The Tujuh Bukit Project is not a development property, nor is it a property which is under mineral production.

26. ILLUSTRATIONS

All figures of relevance to this report have been inserted into the relevant sections above.



APPENDIX 1. Drill hole collar details.

HoleID Prospect Easting Northing RL Azi Mag Dip

Total Depth

Date Completed

GT001A Zone A 174536.50 9046858.06 336.76 245 -45 72.3 26/03/1999 GT001B Zone A 174536.50 9046858.06 336.76 245 -45 500.5 20/04/1999 GT002 Zone A 174503.40 9046291.63 353.53 150 -45 348 6/05/1999 GT003 Zone F 173106.40 9047573.22 10.335 265 -45 498.5 20/05/1999 GT004 Zone C 173823.20 9045955.96 276.83 325 -51 287 25/05/1999 GT005 Zone B 174670.10 9045451.95 379.48 180 -45 331.3 18/06/1999 GT006 Zone B 175122.40 9045432.57 317.47 230 -45 237 18/05/2000 GT007 Zone B 174315.50 9045681.87 283.85 50 -45 248.5 29/05/2000 GT008 Zone E 174329.80 9045122.56 339.01 50 -45 184.5 5/06/2000 GT009 Zone D 174157.90 9045819.81 261.84 230 -60 163.3 15/06/2000 GT010 Zone A 174314.60 9046734.89 481.64 230 -80 329.5 28/06/2000 GT011 Zone C 173836.60 9046059.84 250.22 230 -45 257.9 11/07/2000 GT012 Zone A 174494.00 9046596.73 441.52 230 -50 318.1 14/07/2000 GT013A Zone B 174313.60 9045547.06 298.07 50 -45 57 17/07/2000 GT013B Zone B 174313.60 9045547.06 298.07 50 -45 175.5 29/07/2000 GT014 Zone A 174495.90 9046107.61 376.76 50 -45 163.6 22/07/2000 GTD-07-15 Zone C 173877.40 9046092.85 228.95 230 -60 411.35 8/10/2007 GTD-07-16 Zone C 173778.50 9046009.64 301.52 230 -60 286.5 28/10/2007 GTD-07-17 Zone C 173879.90 9045988.00 266.63 230 -60 243.35 7/11/2007 GTD-07-18 Zone C 173917.10 9046022.37 256.07 230 -70 450.7 24/11/2007 GTD-07-19 Zone C 173818.20 9045927.06 277.3 230 -60 403 7/12/2007 GTD-07-20 Zone C 173763.70 9046094.17 254.11 230 -60 404 25/12/2007 GTD-08-21 Zone C 173710.80 9046054.15 264.49 230 -60 423.35 14/01/2008 GTD-08-22 Zone C 173814.70 9046152.36 218.08 230 -60 362.8 24/01/2008 GTD-08-23 Zone C 173714.10 9046169.13 203.16 230 -60 206 29/01/2008 GTD-08-24 Zone C 173675.90 9046133.30 223.4 230 -60 250 7/02/2008 GTD-08-25 Zone C 173764.60 9046207.85 191.53 230 -60 435.35 18/02/2008 GTD-08-26 Tumpang Pitu 173577.60 9045840.80 128.04 230 -60 624.55 2/03/2008 GTD-08-27 Zone C 173922.40 9045917.20 280.07 230 -60 252 29/02/2008 GTD-08-28 Zone C 173877.40 9045881.01 267.97 230 -60 421.5 15/03/2008 GTD-08-29 Tumpang Pitu 173573.70 9045837.48 127.65 50 -60 657 1/04/2008 GTD-08-30 Zone C 173971.60 9045964.10 277.13 230 -60 218.95 22/03/2008 GTD-08-31 Zone C 173971.70 9045964.19 276.85 230 -80 450.55 12/04/2008 GTD-08-32 Zone C 173880.50 9046198.75 207.58 230 -60 572.9 1/05/2008 GTD-08-33 Zone A 174361.10 9046765.63 465.716 230 -60 360.1 3/05/2008 GTD-08-34 Zone A 174360.80 9046765.56 465.74 230 -80 274.5 11/05/2008 GTD-08-35 Tumpang Pitu 174080.20 9046550.76 257.02 230 -70 849.2 19/06/2008 GTD-08-36 Zone A 174266.40 9046799.09 429.47 230 -60 433.2 23/05/2008 GTD-08-37 Zone A 174316.60 9046846.40 417.14 230 -60 436.85 6/06/2008 GTD-08-38 Zone A 174214.30 9046857.27 399.13 230 -60 401.85 18/06/2008 GTD-08-39 Zone A 174259.20 9046893.48 390.41 230 -60 373.65 28/06/2008 GTD-08-40 Zone A 174081.00 9046550.24 256.88 50 -60 220.55 9/07/2008 GTD-08-41 Zone A 174365.30 9046670.28 485.24 230 -60 432.3 14/07/2008 GTD-08-42 Tumpang Pitu 173494.50 9046563.72 69.03 50 -65 739.4 21/08/2008 GTD-08-43 Zone A 174414.70 9046708.44 471.48 230 -60 439.7 27/07/2008 GTD-08-44 Zone A 174474.30 9046649.84 454.87 230 -60 443.3 11/08/2008




Total Depth

Date Completed

GTD-08-45 Zone A 174475.40 9046650.20 454.438 50 -60 435.8 29/08/2008 GTD-08-46 Tumpang Pitu 174512.00 9046871.59 338.15 230 -70 843.15 23/09/2008 GTD-08-47 Zone A 174429.00 9046611.39 457.76 230 -60 435.15 13/09/2008 GTD-08-48 Zone A 174314.80 9046846.41 417.116 50 -60 411.75 26/09/2008 GTD-08-49 Zone A 174364.70 9046668.70 485.382 230 -50 487.8 24/10/2008 GTD-08-50 Zone A 174316.20 9046734.48 481.73 230 -50 322.55 12/10/2008 GTD-08-51 Zone A 174372.20 9046767.22 465.16 50 -70 301.4 23/10/2008 GTD-08-52 Zone A 174486.00 9046564.65 435.89 230 -66 274.85 1/11/2008 GTD-08-53 Tumpang Pitu 173737.40 9047279.40 195.49 230 -60 625.15 16/11/2008 GTD-08-54 Zone B 174775.90 9045328.60 391.38 270 -60 333.55 16/11/2008 GTD-08-55 Zone B 174629.40 9045623.07 356.469 270 -60 374.25 3/12/2008 GTD-08-56 Tumpang Pitu 173878.10 9046141.09 214.47 90 -90 819.65 26/12/2008 GTD-08-57 Zone B 174733.40 9045397.20 395.54 270 -60 385.7 17/12/2008 GTD-08-58 Zone B 174668.81 9045454.02 379.552 270 -60 400.5 5/01/2009 GTD-09-59 Zone B 174612.80 9045518.30 360.08 270 -60 400 26/01/2009 GTD-09-60 Zone B 174737.10 9045505.70 382.91 270 -60 383.45 14/02/2009 GTD-09-61 Zone B 174544.50 9045454.84 358.07 270 -60 391.4 15/03/2009 GTD-09-62 Zone B 174779.60 9045441.21 394.14 270 -60 353.5 7/04/2009 GTD-09-63 Zone B 174609.30 9045405.84 394.95 270 -60 200 14/04/2009 GTD-09-64 Zone B 174733.00 9045397.22 395.45 270 -45 250.2 22/04/2009 GTD-09-65 Zone B 174733.10 9045397.28 395.53 270 -80 341.35 5/05/2009 GTD-09-66 Zone B 174829.80 9045497.69 402.74 270 -60 400 19/05/2009 GTD-09-67 Zone B 174664.30 9045331.82 424.09 270 -60 204.2 29/05/2009 GTD-09-68 Zone B 174668.00 9045555.05 370.82 270 -60 300.1 9/06/2009 GTD-09-69 Zone B 174902.50 9045203.89 373.45 270 -60 300.2 21/06/2009 GTD-09-70 Zone B 174572.30 9045410.26 389.22 270 -60 237.8 25/06/2009 GTD-09-71 Zone B 174984.60 9045192.55 323.661 269.5 -60 192.5 26/06/2009 GTD-09-72 Zone B 174922.80 9045125.03 329.69 270 -60 131.1 30/06/2009 GTD-09-73 Zone B 174657.70 9045392.33 403.77 270 -60 240.4 8/07/2009 GTD-09-74 Zone B 174983.20 9045120.09 316.39 270 -60 300.3 8/07/2009 GTD-09-75 Zone B 174565.10 9045355.15 368.828 270 -60 300 22/07/2009 GTD-09-76 Zone B 174902.50 9045047.80 312.9 270 -60 100.5 12/07/2009 GTD-09-77 Zone B 174974.30 9045045.14 302.26 270 -60 90.4 16/07/2009 GTD-09-78 Zone B 174984.40 9045284.45 343.62 270 -60 100 20/07/2009 GTD-09-79 Zone B 175070.70 9045195.98 303.51 270 -60 201 26/07/2009 GTD-09-80 Zone B 174478.60 9045396.99 356.38 274.8 -60 299 10/08/2009 GTD-09-81 Zone B 174804.60 9045203.66 359.5 270.6 -60 250 4/08/2009 GTD-09-82 Zone B 174824.00 9045286.09 380.25 271.8 -60 229.75 10/08/2009 GTD-09-83 Zone B 174899.60 9045285.08 385.41 270 -60 201 15/08/2009 GTD-09-84 Zone B 174660.10 9045543.66 369.95 269.5 -80 250 24/08/2009 GTD-09-85 Zone B 175005.80 9045356.56 361.48 271 -60 275 27/08/2009 GTD-09-86 Zone B 174725.20 9045289.23 391.52 271 -60 200 4/09/2009 GTD-09-87 Zone B 174647.00 9045299.13 412.02 272.7 -70.7 200 5/09/2009 GTD-09-88 Zone B 174492.00 9045507.91 331.35 270.5 -61 232.3 14/09/2009 GTD-09-89 Zone B 174550.50 9045305.35 362.61 271.3 -60 174.4 13/09/2009 GTD-09-90 Zone B 174584.60 9045261.54 379.94 269.8 -60.6 150 18/09/2009 GTD-09-91 Zone B 174453.00 9045647.12 313.11 270 -60 150.3 29/09/2009 GTD-09-92 Zone B 174690.00 9045244.01 392.17 269.8 -61.3 150.3 2/10/2009




Total Depth

Date Completed

GTD-09-93 Zone B 174464.00 9045560.37 321.843 267.6 -63.9 150 4/10/2009 GTD-09-94 Regional 173368.70 9047557.79 60.67 230 -60 200 8/10/2009 GTD-09-95 Zone B 174764.80 9045200.25 366.11 91.4 -59.9 150.2 5/10/2009 GTD-09-96 Zone B 174534.80 9045557.69 340.9 267.1 -61.2 231.2 12/10/2009 GTD-09-97 Zone B 174767.00 9045199.88 365.947 270.5 -61.5 192.2 12/10/2009 GTD-09-98 Zone A 174211.00 9046982.66 360.87 230.4 -61.4 168.5 13/10/2009 GTD-09-99 Zone B 175001.60 9045441.80 377.75 270.2 -60 184.8 18/10/2009 GTD-09-100 Zone B 174435.60 9045445.96 332.39 270 -60.9 171.4 20/10/2009 GTD-09-101 Zone A 174274.50 9047012.63 339.94 232.4 -61.6 186.5 22/10/2009 GTD-09-102 Zone B 174987.10 9045502.31 380.3 270.8 -61.3 151.8 25/10/2009 GTD-09-103 Zone E 174462.00 9046032.92 345.46 270 -60 150.4 26/10/2009 GTD-09-104 Zone A 174184.80 9046808.41 405.35 230 -60 399.5 30/10/2009 GTD-09-105 Zone F 174172.30 9045202.27 289.14 230 -60 165 31/10/2009 GTD-09-106 Zone E 174612.70 9046215.41 412.06 270 -60 256.5 5/11/2009 GTD-09-107 Zone C 174217.60 9045757.00 252.065 230 -60 172.7 5/11/2009 GTD-09-108 Zone C 174147.30 9046089.12 266.1 230 -60 154.9 9/11/2009 GTD-09-109 Zone A 174355.20 9046382.77 315.21 230 -60 150 10/11/2009 GTD-09-110 Zone C 174176.10 9045685.43 244.919 230 -60 179.05 11/11/2009 GTD-09-111 Zone A 174196.40 9046749.52 431.2 230 -60 378.15 22/11/2009 GTD-09-112 Tumpang Pitu 173877.40 9046140.89 214.34 50 -60 820 15/12/2009 GTD-09-113 Zone C 174077.10 9046136.27 247.84 230 -60 140 15/11/2009 GTD-09-114 Zone C 174032.70 9045858.29 280.92 231.4 -60 190.9 17/11/2009 GTD-09-115 Zone C 174006.00 9046375.69 218.58 229.5 -60 157.75 21/11/2009 GTD-09-116 Zone C 174090.40 9045915.30 285.12 230 -60 207.1 24/11/2009 GTD-09-117 Zone C 174003.00 9046482.95 228.89 50 -60 107 25/11/2009 GTD-09-118 Zone D 174623.00 9047312.59 198.4 50 -60 133 28/11/2009 GTD-09-119 Zone C 173739.80 9045763.22 165.63 230 -60 150 29/11/2009 GTD-09-120 Zone C 173803.90 9046440.35 170.02 230 -60 162.5 1/12/2009 GTD-09-121 Zone D 174838.30 9047177.45 196.2 50 -60 155.7 3/12/2009 GTD-09-122 Zone C 173596.10 9046377.31 107 230 -60 150.5 5/12/2009 GTD-09-123 Zone B 174531.20 9045230.09 370.08 270 -60 176.25 8/12/2009 GTD-09-124 Zone D 174715.40 9047091.90 243.38 50 -60 150 9/12/2009 GTD-09-125 Zone C 173662.40 9046242.24 150.41 230 -60 174.6 10/12/2009 GTD-09-126 Zone D 174783.20 9046898.62 269.891 50 -60 150.15 15/12/2009 GTD-09-127 Zone C 173713.10 9046280.64 149.33 230 -60 150 14/12/2009 GTD-09-128 Zone C 173817.40 9046240.87 188.967 230 -60 159.5 19/12/2009 GTD-09-129 Tumpang Pitu 173503.40 9046135.99 203.26 50 -60 200.1 27/12/2009 GTD-09-130 Zone B 174311.10 9045548.83 297.85 270 -60 192 28/12/2009 GTD-09-131 Zone B 174486.20 9045313.44 347.13 270 -60 200.1 31/12/2009 GTD-09-132 Zone B 174436.20 9045507.60 323.96 270 -60 258.35 8/01/2010 GTD-10-133 Zone B 174496.80 9045348.86 353.22 270 -60 220.8 12/01/2010 GTD-10-134 Zone B 174686.40 9045167.12 375.24 270 -60 200 16/01/2010 GTD-10-135 Zone F 174329.00 9045123.48 339.15 270 -60 208.65 21/01/2010 GTD-10-136 Zone B 174658.50 9045091.13 369.35 270 -60 200 23/01/2010 GTD-10-137 Tumpang Pitu 175019.50 9045397.10 363.57 270 -75 875.85 15/03/2010 GTD-10-138 Tumpang Pitu 174148.59 9046089.78 266.234 230 -60 965 11/04/2010 GTD-10-139 Tumpang Pitu 173503.40 9046135.99 203.26 50 -60 782 31/01/2010 GTD-10-140 Zone A 174485.30 9046564.13 435.81 50 -60 204.1 8/03/2010




Total Depth

Date Completed

GTD-10-141 Zone E 174493.30 9046106.63 376.68 270 -60 150.4 13/03/2010 GTD-10-142 Zone F 174238.90 9045133.68 333.38 230 -60 147.6 17/03/2010 GTD-10-143 Zone E 174891.20 9045950.17 391.5 270 -60 150.4 18/03/2010 GTD-10-144 Zone F 174123.60 9045162.56 294.439 230 -60 147.2 22/03/2010 GTD-10-145 Zone E 174693.80 9046265.68 422.53 270 -60 142.9 22/03/2010 GTD-10-146 Tumpang Pitu 173594.50 9046375.89 107.06 50 -70 830 3/05/2010 GTD-10-147 Zone E 174815.70 9046111.30 420.7 275 -60 150.4 27/03/2010 GTD-10-148 Zone F 174062.50 9045336.35 243.76 230 -60 150.1 28/03/2010 GTD-10-149 Zone E 174641.00 9046112.26 400.4 270 -60 150.3 31/03/2010 GTD-10-150 Zone F 173998.40 9045281.94 249.02 230 -60 176.3 4/04/2010 GTD-10-151 Zone E 174539.20 9046192.60 384.65 270 -60 145.8 6/04/2010 GTD-10-152 Zone F 174046.70 9045220.35 267.88 230 -60 150.5 8/04/2010 GTD-10-153 Zone E 174751.50 9046106.27 434.34 270 -60 165.3 9/04/2010 GTD-10-154 Zone F 174237.80 9045246.14 296.844 230 -60 143 13/04/2010 GTD-10-155 Zone E 174539.10 9046192.62 384.745 90 -60 150.3 14/04/2010 GTD-10-156 Zone C 174149.25 9046090.64 266.327 230 -85 251.8 18/04/2010 GTD-10-157 Tumpang Pitu 175076.40 9046397.16 295.44 230 -70 700.25 1/05/2010 GTD-10-158 Zone A 174581.10 9046744.10 382.45 50 -60 150.6 20/04/2010 GTD-10-159 Zone A 174590.40 9046451.22 387.97 230 -60 165.3 26/04/2010 GTD-10-160 Tumpang Pitu 174151.80 9046092.22 266.54 230 -83 510.1 6/08/2010 GTD-10-161 Zone C 173973.70 9045805.73 258.13 50 -60 249.1 1/05/2010 GTD-10-162 Tumpang Pitu 173759.60 9046508.35 163.385 50 -70 997.55 28/09/2010 GTD-10-163 Tumpang Pitu 174080.45 9046548.86 257.06 50 -80 855.5 4/09/2010 GTD-10-164 Zone C 173707.60 9045990.16 278 230 -60 235.7 28/08/2010 GTD-10-165 Tumpang Pitu 174159.50 9046083.72 268.77 50 -60 1000.05 20/09/2010 GTD-10-166 Tumpang Pitu 174155.50 9046095.45 267 50 -85 1102.8 3/10/2010 GTD-10-167 Tumpang Pitu 173889.95 9046413.44 193.901 230 -85 591.65 28/09/2010 GTD-10-168 Tumpang Pitu 174411.21 9045890.16 308.409 50 -60 1070.65 18/11/2010 GTD-10-169 Tumpang Pitu 173503.16 9046134.99 203.384 50 -85 1101.75 27/11/2010 GTD-10-170 Tumpang Pitu 173485.99 9046285.36 158.75 50 -80 997.95 23/11/2010 GTD-10-171 Zone B 174416.55 9045303.46 337.82 270 -60 150.3 12/10/2010 GTD-10-172 Tumpang Pitu 174239.90 9046439.80 289.6 50 -70 1002.6 8/12/2010 GTD-10-173 Zone B 174406.47 9045375.70 332.455 270 -60 150.3 22/10/2010 GTD-10-174 Zone B 174312.12 9045679.66 283.642 230 -60 179.5 4/11/2010 GTD-10-175 Zone F 174161.93 9045104.96 324.846 230 -60 150 14/11/2010 GTD-10-176 Tumpang Pitu 174749.49 9045348.00 395.874 50 -85 567.2 30/11/2010 GTD-10-177 Zone F 174277.17 9045190.53 318.124 230 -60 138.4 21/11/2010 GTD-10-178 Tumpang Pitu 174411.03 9045890.10 308.306 230 -60 1078.25 3/02/2011 GTD-10-179 Zone F 174125.07 9045254.55 269.723 230 -60 153.4 30/11/2010 GTD-10-180 Zone F 174125.07 9045254.55 269.723 50 -60 150 9/12/2010 GTD-10-181 Tumpang Pitu 175025.17 9045172.87 312.327 230 -60 1063.25 4/02/2011 GTD-10-182 Tumpang Pitu 173575.88 9045840.21 127.993 50 -75 1072.45 1/02/2011 GTD-10-183 Tumpang Pitu 174574.57 9045597.44 348.553 230 -60 1049.55 1/02/2011 GTD-10-184 Tumpang Pitu 174747.46 9045346.36 396.151 230 -60 900 15/01/2011 GTD-10-185 Zone E 174565.26 9046112.86 387.119 270 -60 150.1 23/12/2010 GTD-10-186 Zone E 174544.64 9046038.21 356.336 270 -60 207.4 2/01/2011 GTD-11-187 Zone F 174003.10 9045386.46 224.191 230 -60 159.4 19/01/2011 GTD-11-188 Zone E 174605.59 9046273.55 381.572 270 -60 162.4 27/01/2011




Total Depth

Date Completed

GTD-11-189 Zone B 174370.42 9045623.80 297.636 230 -60 213.4 6/02/2011 GTD-11-190 Tumpang Pitu 174411.14 9045891.79 308.403 230 -85 1048.85 17/04/2011 GTD-11-191 Zone C 173599.63 9046183.29 193.123 230 -60 168.5 14/02/2011 GTD-11-192 Tumpang Pitu 174074.03 9046297.52 250.622 50 -70 1031.15 4/04/2011 GTD-11-193 Tumpang Pitu 174747.24 9045341.79 396.478 55 -60 925.35 13/04/2011 GTD-11-194 Tumpang Pitu 173911.57 9046624.53 224.837 50 -70 992.8 1/05/2011 GTD-11-195 Tumpang Pitu 174569.65 9045588.04 348.316 50 -60 1039.6 18/04/2011 KTD-10-001 Katak 176225.50 9047930.49 44.78 320 -60 414.9 9/02/2010 KTD-10-002 Katak 175962.50 9047915.45 38.3 360 -90 350.3 10/02/2010 KTD-10-003 Katak 175733.10 9047752.38 20.8 50 -60 400 21/02/2010 KTD-10-004 Katak 176145.70 9048059.86 43.23 0.5 -60 350 1/03/2010 KTD-10-005 Katak 175578.70 9047953.04 17.719 50 -60 320.3 7/03/2010 CND-11-001 Regional 176303.08 9046570.77 248.371 230 -60 636.96 12/03/2011 CND-11-002 Regional 176723.03 9046371.97 109.786 230 -60 400 4/04/2011 CND-11-003 Regional 176449.41 9046780.20 216 230 -60 446.1 25/04/2011 CND-11-004 Regional 176431.00 9046777.00 216 230 -60 401.75 12/05/2011 CND-11-005 Regional 177094.00 9046070.00 79 230 -60 400 3/06/2011 DH-1 Regional 174044.63 9048251.43 8.984 0 -90 35.6 6/12/2010 DH-2 Regional 174539.04 9048433.44 10.891 0 -90 48.1 13/12/2010 DH-3 Regional 174950.77 9048879.73 9.982 0 -90 51.5 24/12/2010 DH-4 Regional 175288.57 9049220.13 17.861 0 -90 76.1 30/12/2010 DH-5 Regional 175650.99 9048943.39 73.772 0 -90 61.1 6/01/2011 DH-6 Regional 175357.72 9048661.46 29.753 0 -90 62.6 15/01/2011 DH-7 Regional 175069.28 9048259.59 13.497 0 -90 60 21/01/2011 DH-8 Regional 174446.79 9047955.68 33.003 0 -90 26.6 18/12/2010

Grid = WGS84_50 APPENDIX 2. Prepared by D Lulofs. Executive Summary A review of QAQC data for the Tujuh Bukit project (updated Cu resource) was conducted during April 2011. Previous reviews have been completed over the maiden Cu resource in Sept 2010 and over the oxide Au resources of Zones A, B & C in May 2008, Dec 2008, Dec 2009, Mar 2010 and Jan 2011. Samples assessed during this review include:

Standards [assessing ACCURACY] ‐ predetermined measurements for selected chemical species and assay methods ‐ commercially purchased (OREAS).



Blanks [assessing CONTAMINATION] ‐ predetermined values of zero ‐ commercially purchased (OREAS).

Check assays/Umpires [assessing ACCURACY] ‐ pulps (same sample number) resubmitted to a second or third lab.

Field Duplicates [assessing FIELD REPEATABILITY] ‐ 2 separate quarter core samples as different sample numbers for same analysis at same lab.

Laboratory Replicates [assessing LAB REPEATABILITY] ‐ second to fifth split of pulp for same analysis, same lab.

The internal standards (i.e. blind Intrepid introduced) for Au and Cu all fall well within accepted thresholds of +/‐10% of expected values. (This is a tighter constraint than previous reports which used 3 x standard deviation of expected values). Each standard have mean bias’ of expected values less than 3% for Au (except for 52Pb which is 6%) and less than 3% for Cu. Some standards are subtlety positively biased and other subtlety negatively biased. If a consistent bias was evident in the same analyte across many standards, a problem with the laboratory or method exists. This is not the case here. This is supportive of appropriate analysis methodology and machine calibration. Although the variance is low across the standards used, some subtle trends exist (particularly bias) and should be routinely monitored. Bias trends are particularly evident when reviewing CuSum plots, showing the cumulative bias over time. Charts for all elements and standards appear and are discussed in the ‘Accuracy’ section, whilst one example for Au and one for Cu are provided in this executive summary. The subtle bias on individual analytes on individual standards more commonly highlights the appropriateness of the ‘certified’ or ‘accepted’ value for this lab and this method used, rather than bad practice by the laboratory. During the certification process, assays can vary significantly across labs (detailed statistics can be reviewed in standards certificates but are not included here). The certification is basically the average value across labs and ‘may not’ be the best fit for your lab. When a significant dataset has been collected for a particular standard, the mean/median value may vary from the ‘certified/accepted’ value. As the standard is used to monitor the day to day variance of assays, there is merit in using an ‘expected’ value (derived from repeated assays from the same lab by the same method) rather than the ‘certified/accepted’ value. Ag is not included in this section as of the 8 OREAS standards available only 3 have certified Ag level greater than the detection limit of 0.5ppm. Of these remaining three standards, two are within 5 times detection (1.3 and 2.5ppm) and the last (OREAS 54Pa – 5.3ppm) is just over 10 x detection. Unfortunately this is not a standard that has been used routinely; hence a suitable population size does not exist.



Given the advanced nature of the Tujuh Bukit project, Intrepid has followed recommendations in prior QAQC reports to introduce matrix matched standards. This is currently being coordinated with Ore Research & Exploration Pty Ltd (OREAS). By producing matrix matched standards appropriate concentrations of Au, Cu, Mo, Ag are ensured in specific ore matrices and the lack of a Ag standard is being address. These matrix matched standards are expected to be available in mid‐late 2011. Table 30 : Internal Standards - Lab: Intertek; Method: FA30

Standard Ele N Exp Val Limit +/- Mean Res Mean Bias Median Res Median Bias Failed Failed%

OREAS 2Pd Au 37 0.8845 0.088 0.8932 0.9885 0.9000 1.75 0 0.00%

OREAS 50Pb Au 10 0.8410 0.084 0.8640 2.7348 0.8600 2.26 0 0.00%

OREAS 52Pb Au 35 307.0000 30.700 325.7143 6.0959 320.0000 4.23 5 14.29%

OREAS 53Pb Au 80 0.6230 0.062 0.6355 2.0064 0.6400 2.73 0 0.00%

OREAS 54Pa Au 52 2.9000 0.290 2.8937 -0.2188 2.9100 .34 0 0.00%

OREAS 61d Au 73 4.7600 0.476 4.7393 -0.4346 4.7400 -.42 0 0.00%

OREAS 6Pc Au 40 1.5200 0.152 1.5333 0.8717 1.5300 .66 0 0.00%

Table 31: Internal Standards - Lab: Intertek; Method: GA02


OREAS 2Pd Cu 34 36.0000 3.600 35.4706 -1.4706 35.0000 -2.78 0 0.00%

OREAS 50Pb Cu 10 7440.0000 744.000 7490.0000 0.6720 7455.0000 .20 0 0.00%

OREAS 52Pb Cu 35 3371.0000 337.100 3387.4286 0.4874 3370.0000 -.03 0 0.00%

OREAS 53Pb Cu 79 5465.0000 546.500 5529.6203 1.1824 5540.0000 1.37 0 0.00%

OREAS 61d Cu 72 109.0000 10.900 111.6389 2.4210 112.0000 2.75 0 0.00%

OREAS 6Pc Cu 38 36.0000 3.600 35.9474 -0.1462 36.0000 .00 5 13.16%

Table 32: Internal Standards - Lab: Intertek; Method: GA30


OREAS 54Pa Cu 52 1.5500 0.155 1.5306 -1.2531 1.5200 -1.94 0 0.00%

External standards (i.e. laboratory introduced) are not reviewed in this report as it is the view of the writer that laboratories do not release data failing their own in‐house QC. This data is of little benefit to the client or those external to the laboratory.



Figure 91: Summary - Standard Bias Plot Lab: Intertek Method; FA30 Method: Au

Figure 92: Summary - Standard Bias Plot Lab: Intertek Method: GA02 Method: Cu



Method: FA30 Element: Au

Method: GA30 Element: Cu

Figure 93: Charts for Standard: OREAS 53Pb Lab: Intertek



All internal blanks (i.e. blind Intrepid introduced) [CONTAMINATION] for Au, Cu and Ag fall well within accepted limits of 10 x detection limit suggesting good laboratory procedures without contamination. Table 33: Internal Blanks – Lab: Intertek

Element Number of Tests Count Failed Percent Fail

Au 56 0 .00

Cu 63 0 .00

Ag 63 0 .00

Check Assays/Umpires [ACCURACY] ‐ No bias exists between Original and Umpire Au and Ag assays although moderate variance (CV% 7%) is evident. 37% of assays exceed a bias limit of 10% and fail QC. This requires ongoing monitoring. It is worth noting that a fail threshold of 10% for Au and Ag is quite low. Majority of the variance for Au is below 0.1g/t and getting closer to the detection limit, but charts show variance between 0.1 and 2g/t. This requires ongoing monitoring, starting with review of sample preparation in primary and umpire laboratories.

Comparison of Original and Umpire Cu assays (in two techniques) shows minor variance (CV%) <5%. Some further monitoring is required as there is up to 16% of Cu pairs exceed 10% bias limits.



Figure 94: Check Assays - Au (FA30/Au-AA25); Cu (GA02/ME-OG62); Ag (GA02/ME-OG62)

Field duplicates [FIELD REPEATABILITY] commonly show field sampling often represent the biggest source of variance. In this dataset, field variability is 15‐20%. There is little concern over current sample weights/lengths of half core but site duplicates should continue to be collected. Table 34: Field Duplicates - ½ Core and Sludge samples

Chk Description Method Ele Total N N RMS CV% Robust CV Limit Failed %Failed

1/2 Core - Field Duplicate

FA30 Au 428 171 19.2162 16.1286 45.00% 6 3.51%

1/2 Core - Field Duplicate

GA02 Cu 478 421 23.7613 14.4031 45.00% 23 5.46%

Sludge - Field Duplicate

FA30 Au 61 27 15.7430 11.3336 45.00% 0 0.00%

Sludge - Field Duplicate

GA02 Cu 60 59 10.8016 4.1042 45.00% 1 1.69%



Figure 95: Field Duplicate Charts (Au, Cu, Ag)

The laboratory replicates [LAB REPEATABILITY] for Au and Cu all fall within accepted limits. Initial pulp duplicates and in second split pulps have Robust CV% of <2% for Cu, <4% for Au and <5% for Ag, indicating a high level of reproducibility at the laboratory level (and hence probably adequate sample preparation). This is a good result, although further monitoring should continue on the 2% of Au replicates returning results outside two standard deviations. Majority of the variance is occurring <0.1g/t below the zone of interest, getting closer to detection limit therefore is of less concern. However, there are some samples between 0.1 and 1 g/t which should be monitored, paying particular attention to sizing fractions in sample preparation.



Some Cu second splits failed QAQC and whilst it is a very small percentage of samples, it should not be dismissed.

Chk Description Method Ele Total N N RMS CV% Robust CV Limit Failed %Failed

Pulp Duplicate FA30 Au 2487 1330 7.8717 3.8122 30.00% 19 1.43%

Pulp Duplicate FA50 Au 342 258 7.7581 3.7849 30.00% 2 0.78%

Pulp Duplicate GA02 Ag 3153 689 4.4275 4.2790 30.00% 0 0.00%

Pulp Duplicate GA02 Cu 2935 2763 2.5251 1.9780 15.00% 0 0.00%

Pulp Duplicate GA30 Ag 29 29 2.9077 1.8044 30.00% 0 0.00%

Pulp Duplicate GA30 Cu 8 8 2.4516 1.8413 15.00% 0 0.00%

Second Split FA30 Au 1563 667 9.3066 3.6784 30.00% 6 0.90%

Second Split FA50 Au 151 102 4.2780 3.5621 30.00% 0 0.00%

Second Split GA02 Ag 1912 262 7.0979 2.7782 30.00% 1 0.38%

Second Split GA02 Cu 1830 1667 5.2828 1.9969 15.00% 4 0.24%

Second Split GA30 Ag 13 13 2.3032 1.3412 30.00% 0 0.00%

Second Split GA30 Cu 16 16 0.8392 0.7919 15.00% 0 0.00%

Figure 96: Laboratory Repeatability Summary Report (Lab: Intertek)

The raw data for Umpire samples for Cu contains problematic data. Twenty‐five original (Intertek) assays by method GA02 have been reported as greater than upper detection (>10,000) but have been uploaded to Intrepid’s database as 10,000ppm. Umpire assays of these samples return a more realistic assay but cannot be compared with the original assay. These were unable to be removed from the QAQC report at the time of compilation. Similar data problems exist for Ag. When removing these from the dataset, the variance is low and data quality high. In Conclusion, the QAQC review of the Au resource over the Tujuh Bukit project (April 2011) demonstrates good sample preparation, good reproducibility of assays between batches and laboratories, no/low contamination and precise assays values leading to a high quality assay database for resource calculations. There are some aspects which require improvement or further investigation.



Action on QAQC failures ‐ The current QAQC program for routine exploration drilling includes all the components of a good QAQC program (standards, blanks, field duplicates, laboratory replicates and umpire/check assays). Whilst the program exhibits all the ingredients of an excellent monitoring program, additional attention could be given to the pass/fails of QC data at the time assays are received. Currently QAQC data is reviewed retrospectively on a 3 or 6 month timeframe. QAQC failures are identified and addressed on an informal basis. This is not ideal as problems are not identified immediately and re‐assays run immediately. It is difficult to implement a ‘live’ QAQC program that pass/fails batches as they are received and only loads data which passes QAQC. It is not as simple as passing for failing batches. Protocols have to be determined for criteria to fail batches, then do you re‐assay only the failed samples, a range either side or the entire batch. Which elements are subject to pass/ fail? In addition, implementing this system can cause delays on results being loaded to the database. This places extreme pressure on a rapidly developing project such as Tujuh Bukit. As a forward step toward a ‘live’ QAQC program, more regular QAQC reports should be produced. Instead of formal reporting restricted to times of resource estimations, monthly QAQC reports should be introduced. This would allow more regular assessment and the opportunity for re‐assay within a reasonable timeframe, without the risk of holding up the loading of data. Recommendations: Formalise a monthly QAQC report Act on QAQC failures from monthly QAQC report. Standards – using ‘Expected’ values instead of ‘Certified/Accepted’ values ‐ As discussed in the Accuracy section, during the certification process, assays can vary significantly across labs as demonstrated in certificates of standards. Now the Tujuh Bukit project has a dataset of assays for each standard (by method and element) over several years, there is merit in using an ‘expected’ value rather than the ‘certified/accepted’ value. Recommendations: Determine ‘expected’ values for each standard and element. Include these values with the ‘certified/accepted’ during interpretation and determination of pass/fail of batches. Section below submitted by P L Hellman. Over‐range Cu assays for the samples listed below need to be retrieved.

tumpengan tumpang pitu

Design

hakman platina

preliminary

golden valley

iup production

tujuh bukit

coarse grained

grained volcanic

wide long