LONDON, UNITED KINGDOM and TORONTO, ONTARIO — (Marketwire) — 07/18/11 — Minera IRL Limited („Minera IRL“ or the „Company“), (TSX: IRL)(AIM: MIRL)(BVLAC: MIRL) the Latin American focused gold mining, development and exploration company, announces the results of its Prefeasibility Study for the Ollachea Project, Peru. The Ollachea Project is 100% owned by Minera IRL SA subsidiary Minera Kuri Kullu SA. The study was carried out by international engineering firm AMEC.
Highlights:
„We are delighted with the results of the Prefeasibility Study which gives strong credence to a substantial, economically robust, long-life gold project at Ollachea,“ said Courtney Chamberlain, Executive Chairman of Minera IRL. „We believe that this Orogenic type system, still open ended along strike in both directions and down dip after more than 2 1/2 years of continuous drilling, offers outstanding exploration potential to extend the mine life. We are now embarking upon a Bankable Feasibility Study and final consideration is underway to commence an exploration drive into the orebody.“
International engineering firm AMEC have managed the Ollachea Prefeasibility Study in conjunction with Coffey Mining who has contributed the resource estimation and underground mining aspects.
The project is based on a Canadian National Instrument 43-101 compliant Indicated Resource of 10.6 million tonnes grading 4.0g/t gold containing 1.4 million ounces. From this mine design and production scheduling has resulted in a Probable Mineral Reserve of 9.5 million tonnes grading 3.65g/t gold containing 1.1 million ounces.
An underground mining and treatment rate of 1.1 million tonnes per annum has been established giving a mine life of nine years. The orebody will be accessed through a 1.3 kilometre slightly inclined tunnel from an adjacent valley. Mining of the steeply dipping lenses will utilize the sub-level open stoping method with cemented paste fill. The ore is metallurgically responsive to standard treatment techniques with a projected extraction of over 90%. Processing will be by way of conventional crush, grind and carbon-in-pulp (CIL) technology.
Key performance and economic indicators are shown in the table below.
The Canadian National Instrument 43-101 documentation will be filed within the 45 day compliance period.
Based upon these positive results, the Company is embarking upon a Bankable Feasibility Study. This is expected to be completed during the second half of 2012. Consideration is currently being given to commencing a 1.3 kilometre long exploration tunnel into the orebody. This will facilitate underground exploration drilling of approximately one kilometre of eastern strike of the mineralization not conducive to drilling from surface due to steep mountain terrain. The most easterly holes drilled from surface intersected high grade gold mineralization giving the Company strong encouragement for drilling success from underground in this eastern zone. A maiden Inferred Resource at the Concurayoc Zone, approximately 500 meters west of Minapampa, is scheduled to be released to the market later in the third quarter.
Competent Persons Statement
The preparation of the technical information contained herein was supervised by Courtney Chamberlain, Executive Chairman, BSc and MSc Metallurgical Engineering, a Fellow of the Australian Institute of Mining and Metallurgy (AUSIMM), who is recognized as a Qualified Person for the purposes of National Instrument 43-101, and who has reviewed and approved the technical information in this press release. Also by Donald McIver, VP Exploration of the Company, MSc Exploration and Economic Geology, a Fellow of the Australian Institute of Mining and Metallurgy (AUSIMM), who is recognized as a Qualified Person for the purposes of National Instrument 43-101, and who has reviewed and approved the resource information in this press release.
Minera IRL Limited is the AIM traded and TSX and BVL listed holding company of precious metals mining and exploration companies focused in Latin America. Minera IRL is led by an experienced senior management team with extensive industry experience, particularly in operating in South America. The Group operates the Corihuarmi Gold Mine and the emerging Ollachea Gold Project in Peru as well as the advanced Don Nicolas Project in Argentina. For more information, please visit .
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company-s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law or regulation, Minera IRL Limited does not intend to update any forward-looking statements to conform these statements to actual results.
Quality Assurance and Quality Control Procedures Disclosure
The Company has implemented and maintains a Minera IRL quality assurance/quality control (QA/QC) protocol on its projects to ensure best industry practice in sampling and analysis of exploration and resource definition samples. The insertion of field duplicates, certified standards and blank samples into the sample stream form part of the MIRL procedure (these act as an independent check on contamination, precision and accuracy in the analytical laboratory).
Assay results are reported once rigorous QAQC procedures have been approved.
Independent Audit Programs
Towards maintaining compliancy with international standards as they pertain to the minerals industry resource evaluation and estimation procedure, MIRL regularly contracts the services of industry experts to conduct detailed audits of established QAQC procedures.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contacts: Minera IRL Trish Kent Vice President, Corporate Relations +511 4181230
Collins Stewart (Nominated Adviser & Broker, London) John Prior + 44 (0)20 7523 8350
Collins Stewart (Nominated Adviser & Broker, London) Adam Miller + 44 (0)20 7523 8350
finnCap (Co-broker, London) Geoff Nash (Corporate Finance) + 44 (0)20 7600 1658
finnCap (Co-broker, London) Matthew Robinson (Corporate Finance) + 44 (0)20 7600 1658
finnCap (Co-broker, London) Joanna Weaving (Corporate Broking) + 44 (0)20 7600 1658
RBC Capital Markets (Co-broker, London) Stephen Foss +44 (0)20 7653 4000
RBC Capital Markets (Co-broker, London) Martin Eales +44 (0)20 7653 4000
Bankside Consultants (Financial PR, London) Simon Rothschild + 44 (0)20 7367 8888
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