Intrepid Mines is preparing a vigorous defence after the first statement of claim by IndoAust Mining and Paul Michael Willis was received at the company’s Jakarta office, almost six months after operations were suspended.
The lawsuit has also been instituted against Intrepid’s wholly-owned subsidiary Emperor Mines, two company executives and the company’s Indonesian joint venture partners, PT Indo Multi Niaga (PT IMN), Andreas Reza Nazaruddin (Reza) and Maya Miranda Ambarsari (Maya). The lawsuit has been filed in the South Jakarta District Court in Indonesia.
The plaintiffs are seeking Aus$2.5 million compensation for alleged expenditure incurred in respect of the flagship Tujuh Bukit project, an additional Aus$250 million for unspecified and unsubstantiated damages, and an order setting aside unspecified agreements allegedly deriving from the expiry and/or termination of the various agreements with the plaintiffs that give rights to Emperor over Tujuh Bukit.
Intrepid says it has met all of its obligations under the agreement entered into with PT IMN, Maya and Reza, including funding beyond the original US$50 million expenditure commitment. Expenditure on the Tujuh Bukit project to July 2012, when PT IMN suspended operations, was about US$105 million.
Intrepid’s chief executive officer Brad Gordon says the action brought is totally without foundation and suffers from material legal deficiencies.
Assay results announced recently have led to significant upgrades of the copper and gold resource at the site’s Tumpangpitu prospect. The new inferred mineral resource is estimated at 1.9 billion tonnes @ 0.45% copper, 0.45 grams/tonne gold and 90ppm molybdenum, for 19 billion pounds of copper, 28 million ounces of gold and 380 million pounds of molybdenum.
The current dispute is delaying development of the project and progress of the mining operation which would employ 400 workers.
Recent technical results from a report which consolidates the oxide and porphyry resources at the Tumpangpitu area of Tujuh Bukit have increased the contained gold by 76% in the measured and indicated categories. The oxide resource now stands at 70 million tonnes @ 0.71 grams/tonne gold and 27 grams/tonnes silver for 1.6 million ounces of contained gold and 60 million ounces of contained silver.
The company says there’s a further inferred 500,000 ounces of contained gold and 13 million ounces of contained silver. The porphyry inferred resource now stands at 1.9 billion tonnes @ 0.45% copper, a 9% increase in copper grade, and 0.45 grams/tonne gold.