Intrepid Mines Limited ABN 11 060 156 452
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Intrepid Mines Limited ABN 11 060 156 452 RENEWAL ANNUAL INFORMATION FORM FOR THE TWELVE MONTH FISCAL YEAR ENDED 31 DECEMBER 2009 (DATED 22 MARCH 2010) FORWARD-LOOKING STATEMENTS QUALITY CONTROL This annual information form contains certain forward-looking The Company exercises a strict chain of sample custody in its drilling statements, relating to, but not limited to the Company's expectations, program at Tujuh Bukit, Indonesia. Joint Venture personnel remove the core intentions, plans and beliefs. Forward-looking information can often be from the drill rig and deliver it to a project geologist who logs the core and identified by forward-looking words such as 'anticipate', 'believe', marks the core into two metre sample intervals. The Company and Joint 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words Venture personnel supervise the immediate splitting, sawing and bagging of suggesting future outcomes, or other expectations, beliefs, plans, samples, and packaging of groups of samples for dispatch to the laboratory. objectives, assumptions, intentions or statements about future The remainder of the split core remains on site. outcomes, or statements about future events or performance. Forward- Samples are securely packaged, batched, and then transported under looking information may include reserve and resource estimates, supervision to Intertek’s laboratory facility in Jakarta. At the laboratory, the estimates of future production, unit costs, costs of capital projects, and samples are prepared by crushing and pulverising and a 30 gram charge is timing of commencement of operations and is based on current assayed for gold by conventional fire assay and/or atomic absorption expectations that involve a number of business risks and uncertainties. methods. Multi-element ICP analysis is carried out using a multi-acid Factors that could cause actual results to differ materially from any digestion process. All samples that contain silver and/or copper, lead, and forward-looking statement include, but are not limited to, failure to zinc values that exceed the upper detection limits for ICP are re-analysed by establish estimated resources and reserves, the grade and recovery of conventional atomic absorption methods to determine the absolute values of ore which is mined varying from estimates, capital and operating costs these metals. varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project At Paulsens all core is logged and whole core samples (if LTK48 size, NQ2 approvals, inflation, changes in exchange rates, fluctuations in sized core is cut and half cored) are marked and prepared for shipping at the commodity prices, delays in the development of projects and other Paulsens Mine Property and sent to an independent laboratory (Australian factors. Forward-looking statements are subject to a variety of known Laboratory Services Pty Limited “ALS Chemex”) for assay. The remaining and unknown risks, uncertainties and other factors that could cause half core is stored on site. All samples from which information in this actual events or results to differ materially from those expressed or document is derived were received by ALS Chemex in Karratha, Western implied. Australia. Samples are weighed and crushed to 70% passing -6mm mesh. The crushed material is split and a portion is pulverised. A 100-gram pulp is Shareholders and potential investors are cautioned not to place undue sent to ALS Perth, Western Australia for assay. A 30-gram portion of the pulp reliance on forward-looking information. By its nature, forward-looking is treated by fire assay method with atomic absorption finish (Au-AA25). A information involves numerous assumptions, inherent risks and second pulp sample split (150-200g) is kept in Karratha. Sample rejects are uncertainties, both general and specific, that contribute to the possibility discarded after 90 days. that the predictions, forecasts, projections and various future events will not occur. The Company undertakes no obligation to update publicly or Limited samples (>100ppm Au) are re-analysed using ALS’ dilution method otherwise revise any forward-looking information whether as a result of (Au-DIL). The Company inserts one standard in each hole, and recently new information, future events or other such factors which affect this began inserting one blank in each ore zone as well. Laboratory standards information, except as required by law. and blanks are inserted by ALS and several pulp duplicates are also assayed as a determinant of mineralisation variability. Statements relating to gold reserve and resource estimates are expressions of judgment, based on knowledge and experience and ALS has AS/NZS ISO 9001:2000 certification in Perth. This does not cover may require revision based on actual production experience. Such the sample preparation facilities; however the preparation laboratories follow estimates are necessarily imprecise and depend to some extent on the same quality management system. They are not audited by NCSI but are statistical inferences and other assumptions, such as gold prices, cut- audited internally. off grades and operating costs, which may prove to be inaccurate. Information provided relating to projected costs, capital expenditure, At the Taviche project samples are prepared and sent to the SGS Minerales production profiles and timelines are expressions of judgment only and facility in Durango, Mexico. The drill core samples are dried, crushed to 75% no assurances can be given that actual costs, production profiles or passing 2mm mesh and a 250-gram split is pulverised to 85% passing 75µm timelines will not differ materially from the estimates contained in this mesh. Prepared pulps were analysed for gold and silver by Fire assay with a document. gravimetric finish (SGS method FAG323) in Durango. Pulps are shipped to SGS Minerals Services in Toronto, Canada for multi-element analysis using an ICP40 element package. For both the surface and drilling programs, blanks and certified reference standards were inserted into the sample stream to control the quality of sample preparation and analysis. 2010 Annual Information Form, Intrepid Mines Limited TABLE OF CONTENTS 1. Important Notice About Information In This Annual Information Form 3 2. Interpretation 3 2.1 Definitions 3 2.2 Mineral Resource And Mineral Reserves 4 2.3 Gold Prices 4 2.4 Financial Information 4 2.5 Conversion Table And Technical Abbreviations 4 2.6 Reporting Currency 4 3. Corporate Structure 5 4. General Development of The Business 6 4.1 Three Year History 6 4.2 Significant Tansactions 7 5. Description of Business 8 5.1 General 8 5.2 Risk Factors 9 5.3 Principal Properties of The Company 13 Paulsens Gold Mine, Australia 13 The Tujuh Bukit Project , Indonesia 14 6. Dividends 15 7. Description of Capital Structure 15 7.1 Ordinary Shares 15 7.2 Exchangeable Shares 16 8. Market for Securities 16 9. Directors And Officers 17 9.1 Details 17 9.2 Corporate Cease Trade Orders, Bankruptcies, Penalties or Sanctions 18 9.3 Conflicts Of Interest 18 10. Legal Proceedings And Regulatory Actions 18 11. Interest Of Management and others in Material Transactions 18 11.1 Loans to Directors and Executives 19 11.2 Other Transactions with Directors and other Executives 19 12. Transfer Agents and Registrars 19 13. Material Contracts 19 14. Interests of Experts 19 15. Additional Information 19 16. Audit and Risk Committee Disclosure 20 2010 Annual Information Form, Intrepid Mines Limited 2 of 24 1. IMPORTANT NOTICE ABOUT INFORMATION IN THIS ANNUAL INFORMATION FORM On 11 March 2008 the Company completed a merger with Emperor Mines Limited (“Emperor”). For details of this transaction, please see heading “4.1 Three Year History” or please see the Company’s AIF for the year ended 31 December 2008. On 6 May 2009 the Company completed the sale of its shares in Intrepid Minerals Corporation (“IMC”) (see heading “4.2 Significant Transactions”). In certain parts of this Annual Information Form (“AIF”), the Company has included historical information relating to Emperor and IMC and information regarding the Company subsequent to the merger with Emperor and sale of IMC. These sections have been clearly marked. The information may be subject to different risks and uncertainties than the historical information relating to the Company set forth in this AIF (see heading 5.2 “Risk Factors”). 2. INTERPRETATION 2.1 Definitions The following is a glossary of terms used in this Annual Information Form: AIF means this Annual Information Form; ASX means the Australian Securities Exchange; A$ means Australian dollars; AuEq means Gold Equivalent; Board of Directors means the Directors appointed to the Board of Intrepid Mines Limited; C$ means Canadian dollars; Callco means 6554636 Canada Ltd which was a wholly-owned subsidiary of the Company until it was amalgamated with INEC on 30 April 2009; Company means, collectively, Intrepid Mines Limited and its subsidiaries; Emperor means Emperor Mines Limited (ACN 007 508 787), a wholly-owned subsidiary of the Company since 25 March 2008; grams or g means the metric measure of mass or weight equivalent to 0.03215 troy ounces; IMC means Intrepid Minerals Corporation, a wholly-owned subsidiary of the Company until 6 May 2009; IML means Intrepid Mines Limited (ACN 060 156 452); INEC means Intrepid NuStar Exchange Corporation, a wholly-owned subsidiary of IML formed on 4 May 2009 on the amalgamation of Callco and Original