Intermin Resources Limited provides update on Teal Gold Mine
Tuesday, Sep 05, 2017
Intermin Resources Limited (ASX:IRC) ("Intermin" or the "Company") provides the following operational update from Intermin's 100% owned Teal Gold Mine, located 11km north west of Kalgoorlie-Boulder in Western Australia.


- Mining, ore haulage and processing continues successfully at the Teal open pit

- Ore mined to date totals 98,900t grading 3.20g/t for 10,160 ounces

- Gold recoveries remain at 94% for an estimated 9,550 ounces recovered to date

- Repayment of Intermin's capital investment of $2.1m complete

- Return of Intermin's asset recovery charge of $2.15m expected this Quarter under the terms of the Mining Alliance

- Teal on track to produce 15,000 - 16,000 ounces at All In Cost (AIC) of A$1,030 - A$1,090 per ounce generating total net cash flow to Intermin of $7m - $8m at a $1,600/oz gold price

- Cash and investments to date rise to more than $6m with mining completion of Stage 1 expected in the December Quarter 2017

Commenting on progress at Teal, Intermin's Managing Director, Mr Jon Price said:

"As Stage 1 at Teal continues to generate significant cash flow to the business, the Company is in an exciting growth phase as we complete Feasibility Studies on the Goongarrie Lady gold project and further stages at Teal to expand the production pipeline.

"The Company also expects ongoing drilling results from the self-funded 32,000m exploration program in coming months as we continue our Resource expansion efforts and the search for the next WA Goldfields discovery."


Mining continues in the southern section of the pit with supergene oxide ore now exposed across the entire pit floor for load and haul through to completion in the December Quarter. The strip ratio for the remaining life of the project is 3:1 with total movement to date of 1.66MBCM. Ore mined to date from the project totals 98,900 dry tonne at an average grade to 3.20g/t, in line with Reserve model estimates.

Ore haulage to the third party mill for processing will occur at 10 - 15,000t per week with plant recoveries of 94% to date continuing to outperform the Feasibility Study estimates of 90% for the oxide ore component.

Contained metal mined to date totals 10,161 ounces and the project remains on track to meet guidance of 15,000 -16,000 ounces at an All in Cost (AIC) estimated at $1,030 - $1,090 per ounce.

Initial capital investment repayments of $2.1m have now been made to both RM Contracting and Intermin. The Company is expecting payment of the $2.15m asset recovery charge this Quarter prior to the profit share component in accordance with the Mining Alliance Contract.

Cash at bank as of 5 September totals $4.9m and tradeable securities held total $1.14m.

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