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July 21, 2010
Minera IRL Develops Strength In Depth In The Business Of Mining And Exploration In South America
If ever there was an advertisement for the success of the model for junior miners favoured by the London investment community, then Minera IRL is surely it. On the back of one tiny little mine, producing, albeit at very good margin, a mere 8,000 or so ounces of gold a quarter, Minera IRL has become one of the most established of the junior gold companies listed on London’s Aim market. London likes a bit of cash flow to support a company while it dreams big, and Minera’s Corihuarmi mine in Peru has consistently delivered, both the cash flow, and the ability to dream big. Since Coribuarmi first came into production in March 2008, the company has been able to get going with exploration on what has now become a major new development property at Ollachea, also in Peru. It’s also been able to pick up additional exploration ground in the neighbourhood of Corihuarmi itself at Bethania, as well as new exploration ground in Chile at La Falda. And it’s acquired a whole other company too, Hidefield Gold, in a friendly deal which was completed at the end of last year, and which brought in a development project and some exploration ground contiguous with the Las Calandrias discovery that has done so much to drive shares in Mariana Resources upwards this year.
You can do a lot with a little. Sooner or later, though, Corihuarmi will be mined out. On current projections, and based on existing reserves, it’ll be in 2013, but don’t bet on that date, because Corihuarmi has continuously surprised on the upside, and may do so again. “It’s a little gem”, says Courtney Chamberlain, Minera IRL’s executive chairman on one of his regular visits to London to update investors. “It continues to do better than we expect.” The current thinking is that mining
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