Vale Acquires Option for Indonesian Copper-Gold Prospect

Intrepid Mines, an Australian junior company headquartered in Brisbane, and Brazil’s Vale Exploration have signed a non-binding heads of agreement granting Vale an option to acquire rights to Intrepid’s Tujuh Bukit sulphide copper-gold project in Indonesia. Under the terms of the agreement, Vale could earn a 60% shareholding in a jointventure company holding the rights to the project by, amongst other terms, investing a total of $40 million in the project. Intrepid and its Indonesian alliance partner, PT Indo Multi Niaga (PT IMN) would retain the remaining 40% interest in the project and would be free carried by Vale through to completion of a bankable feasibility study. Intrepid and PT IMN would retain sole rights to the oxide gold-silver deposit that sits above the sulphide copper-gold deposit.

Tujuh Bukit is located in the province of East Java, Indonesia and covers an area of approximately 11,600 ha, about 205 km southeast of Surabaya, the provincial capital. Intrepid will remain as manager of the project during a three-year option period, operating under the direction of a technical committee comprising representatives of Intrepid and Vale. A minimum expenditure program of $10 million is planned for the sulphide copper-gold deposit over the three-year option period.

As featured in Womp 2009 Vol 06 -