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FINANCE
-- Exploration expenditure for the Project for the three and twelve month periods to 31 December 2012 was $3.1 million and $29.5 million respectively (on a 100% basis), for a Project total to $105.8 million.-- Expenditure principally relates to development studies since the 19 July 2012 shutdown. No further payments have been made to PT IMN since that date.-- Directors are cognisant of media reports that suggest the IUPs may have been transferred by PT IMN to another Indonesian entity. Material uncertainty may be assumed to exist as a consequence with respect to the Company's ability to recover the carrying value of its mining property assets relating to Tujuh Bukit, which total $16.6 million. Accordingly in the December 2012 quarter, a provision for impairment was raised against the mining properties.-- Treasury cash and term deposits - $108.9 million at 31 December 2012.
On 20 April 2011, the Company announced the results of a Preliminary Economic Assessment on the Oxide component of the Tujuh Bukit Project. This announcement was supported by a technical report prepared in accordance with National Instrument 43-101, dated 1 June 2011 (the "PEA Report"). Subsequent to the filing of the PEA Report, the Company continued to undertake infill drilling on the Oxide Inferred Resource. On 10 September 2012, the Company announced a new calculation for the Oxide Resource, which included recategorisation of a significant portion of the Inferred Resource to the Measured and Indicated category. On 9 October 2012, the Company announced an updated Porphyry Resource and, as required by the National Instrument, updated the project technical report, which was lodged on SEDAR on 22 November 2012 (the "2012 Report"). The 2012 Report included the updated Oxide Resource and reported that, as a result of the updated Oxide resource calculation, the PEA Report is no longer considered current and should no longer be relied upon. The Company continues technical work at a level of definition commensurate with that required for a prefeasibility study on the Oxide resource.
Forward-Looking Statements
This announcement contains certain forward-looking statements, relating to, but not limited to Intrepid's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.
