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Intermin Resources Ltd To Expand Drilling After Gold Hits At Menzies

Intermin Resources Ltd (ASX:IRC) has intersected high grade gold at the Aspacia West prospect within the 100% owned Menzies Gold Project, 130 kilometres northwest of Kalgoorlie.

A three hole reverse circulation program has confirmed and extended shallow high grade gold mineralisation up dip from a historic diamond hole that intercepted multiple zones up to 240 g/t gold.

Results from the completed program included 1 metre at 20.25 g/t gold from 105 metres and 6 metres at 1.44 g/t gold from 61 metres.

With all three holes intersecting mineralisation, Intermin will undertake further drilling to determine potential to define an underground Resource in the September and December quarters.

Intermin's strategy is to define sufficient resources within the historically producing Menzies project to underpin construction of a stand-alone gold processing facility.

Current drill results

Assays returned from the Aspacia West prospect include:

- 1 metre at 20.25 g/t gold from 105 metres;
- 2 metres at 2.80 g/t gold from 110 metres;
- 4 metres at 1.99 g/t gold from 56 metres including 1 metre at 5.48 g/t gold; and
- 6 metres at 1.44 g/t gold from 61 metres including 1 metre at 2.87 g/t gold.

Mineralisation occurs within structurally controlled quartz/sulphide and shear hosted lodes exhibiting a high nugget effect typical of high grade deposits at Menzies.

Planning and approvals are underway for follow up drill programs to test Aspacia West and other adjacent prospects in the September quarter.

Menzies Gold Project

Intermin holds 20 kilometres of strike over 65 square kilometres of granted mining leases at Menzies.

Priority underground targets within Menzies include the Selkirk, Aspacia, Pericles and Yunndaga prospects.

Intermin has a Mineral Resource at Menzies of 2.42 million tonnes at 2.20 g/t gold for 171,310 ounces (>1.0 g/t gold lower grade cut-off).

This resource will form part of the mine optimisation studies for incorporation into the Menzies pre feasibility study.

Recent Menzies drill results

Intermin recently drilled eight holes for 758 metres and intersected follow up high grade gold at the Selkirk prospect within the Menzies project.

The Selkirk prospect is a historic open pit gold mine and drilling is showing the potential for economic mineralisation beneath the pit.

The drill program was designed to extend high grade mineralisation previously intersected measuring 3 metres at 88.6 g/t gold.

Assays included:

- 2 metres at 9.12 g/t gold from 63 metres including 1 metre at 17.81 g/t gold;
- 1 metre at 4.81 g/t gold from 80 metres;
- 2 metres at 4.18 g/t gold from 102 metres including 1 metre at 6.15 g/t gold; and
- 4 metres at 6.67 g/t gold from 76 metres including 1 metres at 17.08 g/t gold.

Teal Gold Project

Intermin is in the process of making the transition to gold producer through the proposed development of the Stage 1 open pit at the 100% owned Teal Gold Project in Kalgoorlie.

Recently, Intermin moved closer to potential gold production at Teal by bringing the project's resource up to JORC 2012 standard.

Teal is located in an infrastructure rich area just 12 kilometres from Kalgoorlie.

Discussions are well advanced with mining contractors and toll treatment processing facilities ahead of a decision in the September quarter to develop an open pit gold mine.

Grade has improved markedly and it is envisaged that the new Stage 1 design targeting the soft oxide and transitional material will include the majority of the new Measured Resource.

Mine optimisation work has commenced to potentially deliver an improved economic outcome for Stage 1.

Analysis

The drill results from Aspacia West provide another potential high grade underground resource to add to the 171,310 ounces of gold already defined at Menzies.

Similar to the recent Selkirk prospect drill results at Menzies, high grade gold was intercepted in a number of holes.

Menzies contains many historic pits and workings that have not been drill tested in the last 20-30 years.

Intermin shares have appreciated strongly in 2016 up over 100% year to date trading currently at circa $0.11 per share.

The company is highly leveraged to the strongly performing AUD gold price, currently trading at A$1,750 per ounce.

Menzies is one of the last remaining unconsolidated gold provinces in Western Australia with over 1 million ounces of historic production grading 22 g/t gold.

Upcoming news flow for Intermin includes:

Menzies:

- Follow up drill programs at Menzies in the September quarter.

Teal:

- Pit optimisation study results for Teal Stage 1 open pit mine and production schedule; and
- Metallurgical results from Teal oxide, transitional and primary ore zones.

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