Intrepid Minerals Corp (IAU-T C$1.19; C$58.9MM Mkt Cap)Intrepid...

Intrepid Minerals Corp (IAU-T C$1.19; C$58.9MM Mkt Cap)
Intrepid released Kamila deposit deep drilling results today, and finally, caught the market’s attention as
the true value story we’ve known about for quite some time. The graph illustrates this quite nicely, and
the arrows show published Intrepid research you
can find on the website. With this release, two
things come to mind. First, too bad the name
“MineFinders” is already taken. Second, at the
recent World Money Show in Orlando, a mining
personage in attendance remarked to me that
‘since Intrepid didn’t double or triple reserves with
the NuStar deal, there doesn’t seem to be a lot of
upside in the company’. Right.
For more proof of deposit veracity, see page six of
the MININGINSIGHTS™ NOVEMBER 2005 report on
Intrepid Minerals. You’ll note that I found tasty
intersections on the Maya vein at 135m below
surface; could deep intersections on the rest of
the vein systems be so surprising?
Intrepid in the MiningInsights™ Global Gold Comparative Model
You’ll remember that the last published mention of Intrepid Minerals in MININGINSIGHTS JANUARY 2006
was an impassioned plea for a valuation reality check in the case of high-margin shorter mine life
underground operations. Updating the MI GLOBAL GOLD COMPARATIVE MODEL for Intrepid at the
current gold and silver prices suggests a target valuation upgrade to C$2.10/share.
That is at a 0% discount rate. Using the specific compounded discount factor for the Paulsen’s mine life
at a 10% discount rate yields a target price of C$1.74/share. We’ve already dealt with how reserve
replacement at Paulsen’s should maintain consistent mine life, and now it is time for these MineBuilders
to be rewarded for it.
Intrepid in the MiningInsights™ Resource Visualisation Model
I’m not going to repeat the news release here; find it at http://www.intrepidminerals.com. It is only used
for the inputs necessary to true understanding.
Well, that was a fun 15 minutes of resource modeling! The drill holes reported today occur in an area
123m by 65m over a vertical depth of 133m. Eight vein structures were hit in four holes, a nice
discovery ratio. Holes 140,143, and 144 line up nicely with good structural continuity both horizontally
and vertically; hole 145 is a bit further away but with stonkingly good values deserving a more detailed
look.
The following table shows block sizes and
values at current metals prices. As you can
see, these values define the MININGINSIGHTS™
NEW MINING PARADIGM – fewer tonnes than
the big producers, but with much better
margins and concomitant shareholder returns.
Jim Steel MBA P.Geo.
Metric!