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 AIM; MIRL
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Company Statement
Minera IRL Limited together with its subsidiaries (the "Group") is a Latin American precious metals mining, development and exploration company. Managed by a team of experienced mining executives, the Group's business was privately funded from inception in 2000 until listing on the London AIM Market in April 2007. Minera IRL Limited is currently quoted on both the London AIM and Lima, Peru stock exchanges.
The Group operates the Corihuarmi Gold Mine and is exploring the Ollachea Project, both in Peru.
Strategy
Goal: Our goal is to build a diversified gold mining company in Latin America through development and operation of projects advanced in-house or acquired by Merger and Acquisition.
Mission Statement: To create shareholder value by building a network of profitable precious metal mines in Latin America through acquisition, exploration and development, applying modern technology, proactive social development policy and international environmental standards.
The Corihuarmi Gold Mine provides the cash flow and experience to underpin the discovery and acquisition of new precious metal projects throughout the Latin American region.
To create shareholder value by building a network of profitable precious metal mines in Latin America through acquisition, exploration and development, applying modern technology, proactive social development policy and international environmental standards.
The Corihuarmi Gold Mine provides the cash flow and experience to underpin the discovery and acquisition of new precious metal projects throughout the Latin American region.
A Company Moving Forward
In 2 years, Minera IRL has:
- Listed on the AIM and Lima Stock Exchanges
- IPO raised £11.4 million
- Applied funds to construct the Corihuarmi Gold Mine
- In 2008, produced over 50,000 ounces, 40% above budget at
$161/oz - Consolidated a strong cash balance
- Significant new discovery at Ollachea, provides basis for
expanded program - Assessing new projects and sensible corporate transactions
Current Operations
OPERATIONS:
Corihuarmi Gold Mine, Peru
The Corihuarmi Gold Mine commenced production in March 2008 following 9 months of construction. The mine has performed at above expected levels with 51,691 fine ounces produced through the end of December 2008, at a cash operating cost of US$161 per ounce. The capital cost of US$20 million as well as approximately US$7 million of pre-development cost was recovered from mine pre-tax cash operating surplus in the first 7 months.
The Corihuarmi Mine is located 160km south east of Lima (the capital of Peru), at an elevation of approximately 4,900 meters above sea level. Access is via a main artery paved road to the regional city of Huancayo followed by a gravel road to site.
Corihuarmi was acquired as an exploration project in October 2002. Drilling was carried out in 2003, 2004 and 2005 on two significant amorphous vuggy silica outcrops known as Susan and Diana. This established a Measured and Indicated Resource of 145,000 ounces of gold and a Proven and Probable Minable Reserve of approximately 144,000 ounces of gold.
Construction commenced in June 2007 with the first gold pour on 15 March 2008. The 2008 budget of 36,979 ounces was exceeded during September 2008 largely as a result of higher grades than expected.
Current Highlights
- Large magnetic anomaly
- Very broad slate package, +400m thick
- Dipping, ±65º
- Drilled 27 diamond holes for 9,000m
- Excellent wide intersections, 16 holes into Central Zone, 450m strike length
- High grade intervals within gold envelopes, example, DDH09-26 included 28m at +6gm/t, DDH09-25 includes 8m at 23gm/t
- Good strike potential, westernmost hole, 1 km from Central Zone, intersected 92m at 1.1gm/t Au
Operations and Production
The project was predicated as a conventional open pit mining and heap leach operation at a rate of 1 million tonnes per annum giving a 4.5 year mine life based upon the established minable reserves. Contract mining is being employed with the contractor also being responsible for operating the single stage crusher and stacking on the heap approximately 2 km from the mine. The life-of-mine waste to ore ratio is low at 0.7 to 1.
Ore crushed to minus 100mm (4 inches) is stacked on an impervious pad in 5 meter lifts and irrigated with dilute cyanide solution. Test work indicated that recoveries are approximately 84% for the Diana zone and 75% for the Susan zone over a leach cycle of 90 days. Multiple lifts optimize the area being used and provide additional leach time for the lower lifts. Gold in solution is collected in a “pregnant” solution pond and pumped through carbon columns where the gold is absorbed. Loaded carbon is stripped of the gold content and recovered in an electrolytic cell before being smelted into Doré bars.
Mine infrastructure includes a camp that houses over 200 employees, a 44km power line from the nearest grid substation, a water supply scheme and all other facilities to operate a self contained gold mine.
Most of the production in 2008 was from the higher grade Diana orebody which has over performed with the average gold content well above the predicted tenors published in the ore reserves. This higher gold production is not decreasing the mine life more quickly than expected since the increased gold is a result of higher grades within the originally conceived mineral envelope.
Geology and exploration potential
Minera IRL has an active exploration program at Corihuarmi. This entails two different focuses. The near mine exploration has the objective of discovering extensions to the existing orebodies or deposits close to the existing infrastructure. District exploration entails exploration to discover new deposits within the greater tenement holding of some 9,318ha.
The Corihuarmi high sulphidation epithermal gold deposit is located within a typically Andean-trending tectonic corridor. The oxidized, disseminated gold mineralization is hosted within a permeable, acid-leached, shallowly-dipping volcanic layer. The mineralized dacitic volcanic rocks have been hydrothermally altered to massive- and vuggy-silica altered rock, which in turn is surrounded by advanced argillic (silica-alunite), silica clay and advanced argillic (pyrophyllite-alunite-silica) alteration halos.
The Corihuarmi precious metal mineralized system has been severely eroded, resulting in two prominent remnant outcrops, the Diana and Susan deposits. Other minor remnants of mineralized rock occur on surface as strongly silicified high relief outcrops.
Efforts to extend the mineralisation in the immediate mine area include structures associated with the Diana deposit, discrete sheer targets along the adjacent ridge, including the Ely, Cayhua, Laura, Coyllor and Elena prospects as well as low grade, bulk tonnage targets such as the newly identified West Cayhua South zone. Diamond drilling of 5,431m in 46 holes was completed between September 2008 and February 2009. Results are still being evaluated.
District exploration projects include Bethania, some 10km from Corihuarmi, where interesting early stage values have been encountered. A follow-up program is planned for 2009.
PROJECTS
- Ollachea Gold Project, Puno District, Peru
Minera IRL fully owned subsidiary Minera Kuri Kullu has the right to acquire 100% of the Ollachea Gold Project, with a tenement package of 8,999ha, from Rio Tinto pursuant to an option agreement dated 1 September 2006. This project is located in the Puno region of south-eastern Peru.
Minera IRL commenced exploration in January 2008 with four field teams. Drilling with 2 diamond rigs commenced in October 2008.
Drill Results
Gold assay results were reported in late November 2008 from the nine holes in the initial widely spaced scout drilling program. Eight holes encountered significant gold grades over extended widths. The five holes in the central zone, spaced over a strike length of 400m (east to west), included 70m at 2.00g/t (DDH08-05), 122m at 2.95g/t (DDH08-01), 126m at 2.30g/t (DDH08-04), 102m at 1.83g/t (DDH08-02) and 94m at 3.02g/t (DDH08-22). Within these broad zones were better grade intersections including 31m at 6.04g/t in hole DDH08-22 and 44m at 4.28g/t in DDH08-04. A more detailed tabulation of results for all nine holes is included below. Geological plans and sections as well as full assay logs can be found on the Company website.
Although drilling continues, only very broadly spaced scout drilling has been reported thus far. The westernmost hole, DDH08-15, approximately 1km along strike from the central zone, intersected 92m grading 1.09g/t including 44m at 1.40g/t.
The drilling has intersected suites of sheeted quartz-sulphide veins and veinlets which intersect the core-axis at angles of approximately 60-65°. Thus the true widths intersected are approximately 90% of the above-reported mineralized widths. The reported drill intersections occur down-dip from outcropping structures where local artisanal miners are actively working the near surface mineralization.
Ollachea - Program
- Continuing to drill with 2 rigs
- Expanded drill program being formulated
- Intend splitting project into Central drillout and exploration for new gold zones
- Preliminary metallurgical testing commencing
- Scoping study commencing
- Gear up community program
- Ananea Project; Puno, Peru
The Ananea Project is a 5,400 ha exploration initiative located in Puno District, Southern Peru.
Initial field observations on the property confirm the presence of prospective quartz veins, including evidence of thrust-hosted “stacked” quartz vein systems, parallel to bedding, similar to those which play host to the gold mineralization at the substantial Rinconada Gold Mine, located some 8 km along strike towards the east-south-east of the Ananea properties.
- Huaquirca Joint Venture, Peru (formerly Chama)
The Joint Venture will see the combination of the contiguous MIRL Chapi-Chapi (formerly “Chama”) and MALT Utupara projects. The JV properties, totaling 9934 ha, are situated approximately 125km south west of the Andean city of Cuzco at an average elevation of approximately 4,000 m. MALT will have the opportunity to earn an 80% equity interest by drilling 20,000 m and completing a scoping study.
Three important mineralized gold and/or copper-gold exploration targets have been identified. Gold and copper skarn mineralization has been encountered both on and near to surface. This has been interpreted to represent the upper extension of a possible “Las Bambas” style copper-gold porphyry stock within the host intrusive body, the monzonitic Chicorone stock. At Las Bambas, located some 55 km towards the north east of the Huaquirca JV property, mineralized copper-gold skarn is also identified on surface, overlying important copper-gold porphyry style mineralization.
- Frontera Joint Venture (Chile)
The Frontera Project consists of a 1,200 ha package of tenements located in region I of northern Chile, on the western border with Peru as well as close to the border with Bolivia.
At the regional scale, the property is located at a major structural intersection. Principal structures include the north-west trending Inca Puquio fault system (said to control mineralization at several large Cu porphyries in southern Peru); and the north-north-west trending West Fisher fault system (known to control mineralization over hundreds of kilometers in northern and central Chile).
- La Falda; La Falda Gold Project, Region III Chile
Minera IRL Limited has signed a Letter of Intent (“LOI”) with Catalina Resources on the La Falda Project in Chile. The intention is to convert this into a formal agreement by 31 August 2009 following final due diligence.
La Falda is a new discovery of two Maricunga-style gold-porphyries. These type of deposits can have multi-million ounce potential, plus associated epithermal gold -typical of the Maricunga Belt
MIRL advanced Catalina Resources US$200,000 upon signing the LOI, to be used for pending vendor and mining lease payments and an immediate follow-up geophysical program to be completed prior to the onset of the winter season. MIRL will also pay Catalina Resources an immediate US$50,000 signing fee.
After signing of a definitive agreement, MIRL will undertake an exploration program including drilling, during the 2009-2010 field season, with a minimum expenditure commitment of US$700,000, prior to an Option exercise date of 31 July 2010. Upon exercising the Option, MIRL will commit another US$2.3 million to be used for the final vendor payment and/or exploration, plus a final payment of US$200,000 to Catalina Resources in order to perfect a 75% interest in the project.
Conclusions
- Well positioned to grow rapidly
- New discovery at Ollachea offers new project opportunity
- Corihuarmi new life of mine plan in preparation, mine operating well
- New La Falda Project offers discovery potential
- Solid cash flow to underwrite exploration, development and M&A initiatives
- Track record in community relations
Geographical Spread
Peru, Chile and Argentina
Board of Directors and Key Management
| Board of Directors | |
| Courtney Charles Chamberlain | Executive Chairman |
| Douglas Alan Jones | Non-executive Director |
| Terence Ernest Streeter | Non-executive Director |
| Graeme David Ross | Non-executive Director |
| Senior Management | |
| Dr. Diego Benavides | President Minera IRL SA |
| Richard Michell | Chief Financial Officer and Minera IRL Limited Company Secretary |
| Donald McIver | Vice President, Exploration |
| Trish Kent | Vice President Corporate Relations |
| Stuart Smith | Technical Manager |
| Bill Hogg | In-house Consultant |
| Frank O’Kelly | In-house Consultant |
Company AddressOrdnance House
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Additional Address/Key ContactMinera IRL Limited: |
Nominated BrokersArbuthnot Securities Limited | Nominated AdvisorsArbuthnot Securities Limited |
Major Shareholders
| Name | Shares | Share Capital |
| - Funds managed by BlackRock Investment Management (UK) Limited | 8,973,933 | 11.89% |
| - Midas Capital Plc | 7,600,000 | 10.07% |
| - JP Morgan | 5,642,300 | 7.5% |
| - Shairco for Trading, Industry and Contracting | 4,705,000 | 6.2% |
| - Sand Cort Investments (Pty) Ltd. | 3,367,332 | 4.5% |
| - Velsberry Pty Ltd | 3,143,000 | 4.2% |
| - Resource Capital Fund III LP | 2,717,676 | 3.6% |
| - Macquarie Bank Limited | 1,790,048 | 2.4% |
Related News
21/01/10 - Minera IRL Could Have Two Projects At The Prefeasibility Stage By The End Of This Year23/11/09 - Minera IRL Plans To Be Producing 200,000 Ounces Of Gold Per Year By 2014
21/10/09 - Minera IRL Swoops On Hidefield, Adding A Potential 70,000 Ounces Per Year Of Long Life Gold Production To Its Offering
26/08/09 - Undeterred By The Intervention Of Armed Bandits, Minera IRL Goes On The Acquisition Trail In Peru
11/06/09 - What Courtney Chamberlain Did Next: Minera IRL Marches On
07/01/09 - Minera IRL Is Riding High After A Stellar Performance In 2008, And Is Now On The Hunt For Deals
Most Recent Statement
26/02/10 - Option to Purchase Exploration Project04/02/10 - Additional Listing
10/12/09 - Director/PDMR Shareholding
16/11/09 - Minera IRL Ltd is delighted to announce positive results from the Scoping Study on the Ollachea Gold Project, located in southern Peru, prepared by independent consultants Coffey Mining.
13/11/09 - Results for the quarter to 30 September 2009
20/10/09 - Correction to Rule 2.5