Intermin Resources Ltd (ASX:IRC) is about to commence a 5,000 metre drill program at its 100% owned Teal Gold Project, 12 kilometres from Kalgoorlie in Western Australia.

Intermin is in the process of making the transition to gold producer through the proposed development of the Stage 1 open pit at Teal.

Drilling at Teal will test targets immediately adjacent to the recently updated Teal open pit design ahead of a maiden Ore Reserve.

The Peyes Farm prospect, located 600 metres along strike from the proposed Teal pit, will also be targeted in the drilling to potentially extend mineralisation.

Jon Price, managing director, commented: "The original discovery of outcropping mineralisation in the early 1900’s at Peyes Farm lead to the discovery of the Teal deposit under cover along strike.

"We are looking forward to the next round of drilling and potentially the definition of a maiden Resource at Peyes in the near future."


Drilling details

A 5,000 metre reverse circulation and aircore drill program is expected to commence in early July at Teal and Peyes Farm.

Drilling at Teal will comprise up to 30 aircore holes to a maximum depth of 50 metres and up to 10 reverse circulation holes to a maximum depth of 120 metres.

Most holes will target mineralisation that will be included within the current Teal pit design and maiden Teal Ore Reserve.

At the Peyes Farm prospect a total of 35 holes for 2,500 metres is planned to confirm historic mineralisation located 600 metres south along strike from the Teal gold deposit.

Results from the drilling are expected in the September quarter.


Teal Gold Project

Intermin recently moved closer to potential gold production at Teal by bringing the project''s 71,747 ounce gold 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.

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


Analysis

The Teal gold project represents a near term opportunity for gold production and this drilling will take the company one step closer as it aims to deliver a maiden Ore Reserve.

Furthermore, previous drilling at Teal and Peyes Farm has indicated there is substantial mineralisation located outside the current Teal Resource.

Intermin recently appointed Peter Bilbe as non-executive director. Bilbe is a mining engineer with 40 years experience and will help Intermin with mine development, exploration and acquisitions.

The location of the Teal project gives Intermin many valuable options for future milling and treatment as there are 5 processing facilities within a 40 kilometre radius of the project.

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

As a near term gold producer, the company is leveraged to the strongly performing AUD gold price, currently trading at A$1,775 per ounce.

Upcoming news includes:

- Teal feasibility study results for Stage 1 open pit mine;

- Gold production schedule;

- Metallurgical results from Teal oxide, transitional and primary ore zones;

- Decision to mine; and

- Teal and Peyes Farm drilling results.

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