Vale-Intrepid deal on Tujuh Bukit collapsed

Intrepid Mines Limited said that negotiations with Vale SA in respect of the option to acquire rights in the Tujuh Bukit project in Indonesia, have been terminated, as the parties have been unable to reach agreement on several key elements of the formal option documentation.
Under the original plan, Vale, the second largest mining company in the world would control 60% shares in the gold and copper project in Banyuwangi, East Java.
Intrepid signed a heads of agreement with Vale Exploration Pty Ltd, a subsidiary of Vale, granting Vale an option to acquire rights to Intrepid's Tujuh Bukit sulphide copper-gold project in Indonesia in July 2009.
Under the terms of the HoA, Vale could earn a 60% shareholding in a JV holding the rights to the Tujuh Bukit project by, among other terms, spending a total of US$40 million.
Intrepid and its Indonesian alliance partner, PT Indo Multi Niaga, would retain the remaining 40% interest in the project, and would be free carried by Vale through the completion of a bankable feasibility study.
Intrepid and Indo Multi Niaga would continue to retain sole rights to the oxide gold-silver deposit which sits above the sulphide copper-gold deposit.
Preliminary work undertaken by Intrepid at Tujuh Bukit has identified the scope of two distinct projects: (1) an oxide gold-silver project, at which 2.57 million ounces of gold equivalent resources have been estimated, and (2) a sulphide copper-gold porphyry and high-sulphidation ore body.
Tujuh Bukit is located in East Java, covers an area of approximately 11,600 hectares, about 205 km southeast of Surabaya. But the project's future is pending a review about forest land status of the location.

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Higher gold-silver zones in Tujuh Bukit

Intrepid Mines Limited (ASX: IAU) claimed that ongoing drilling in Zone B of the Tumpangpitu prospect, Tujuh Bukit, Banyuwangi, East Java has continued to define some higher grade gold-silver zones within a broad lower grade envelope. 

Intrepid secured US$40 million financing from Vale, the world's giant mining company, last week. Brad Gordon, Intrepid Mines CEO said, "Zone B is developing as the largest area of mineralization and has returned some of the highest grade defined to date in the upper oxide zone and separately from Zones A and C where we have already defined a combined resource of 2.57 million ounces of gold-equivalent."

Intrepid said its local partner, PT Indo Multi Niaga, is working with relevant Indonesian authorities to allow for a review of forest land status. Forestry Law restricts non forestry activities within protection forests and prohibits mining using an open pit method in the area.

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Vale joins Tujuh Bukit gold & copper project

Giant mining company Vale S.A. (New York-listed), the world's second largest mining company, has decided to join forces with Intrepid Mines (IAU) Ltd, Australia to develop Tujuh Bukit gold and copper project in East Java. 

Intrepid Mines told Australia Stock Exchange (ASX) today that it has signed a heads of agreement with Vale Exploration Pty Ltd, a subsidiary of Vale, granting Vale an option to acquire rights to Intrepid's Tujuh Bukit sulphide copper-gold project in Indonesia.

Under the terms of the HoA, Vale could earn a 60% shareholding in a JV holding the rights to the Tujuh Bukit project by, among other terms, spending a total of US$40 million.

Intrepid and its Indonesian alliance partner, PT Indo Multi Niaga, would retain the remaining 40% interest in the project, and would be free carried by Vale through the completion of a bankable feasibility study.

Intrepid and Indo Multi Niaga would continue to retain sole rights to the oxide gold-silver deposit which sits above the sulphide copper-gold deposit.

Preliminary work undertaken by Intrepid at Tujuh Bukit has identified the scope of two distinct projects: (1) an oxide gold-silver project, at which 2.57 million ounces of gold equivalent resources have been estimated, and (2) a sulphide copper-gold porphyry and high-sulphidation ore body. 

Tujuh Bukit is located in East Java, covers an area of approximately 11,600 hectares, about 205 km southeast of Surabaya. But the project's future is pending a review about forest land status of the location. 

READ MORE!!!