Minera IRL Ltd Initiates Underground Exploration Drilling at Ollachea
LONDON, UNITED KINGDOM, Dec 03, 2012 (Menafn - MARKETWIRE via COMTEX) --Minera IRL Limited (Minera IRL or the "Company") (aim:MIRL) (bvlac:MIRL), the Latin American gold mining company, ispleased to announce that a diamond drilling contract has been awardedto begin drilling the eastern extensions of the Ollachea ore bodiesfrom underground.
Highlights:
--Underground diamond drilling contract for a minimum of 4,000m awarded to
Ingetrol Peru SAC. Mobilization to site and set up will enable drilling
to commence on 2 January 2013
--The 1,200m exploration drive is scheduled to reach 1,000m by early
January providing excellent positioning for exploration drilling of the
eastern extension of the Minapampa ore body
--Good progress is being achieved in the drive with ground conditions
significantly better than predicted and low water in-flow
"The coming months will be most interesting as we are now in an idealposition to explore the eastern strike extension of the Minapampaorebody where we have just completed our feasibility study." saidCourtney Chamberlain, Executive Chairman of Minera IRL. "The tunnel,which is approximately 250 meters below the outcrop at Minapampa,will also place us in an ideal position to explore the down-dipextension of Minapampa as the tunnel advances. The definedmineralization remains open ended and untested along strike anddown-dip."
The portal of the exploration drive was collared earlier in 2012 froman adjacent, deeper valley at the site of the future ore processingplant. The rate of progress by the contractor has increasedsignificantly with 370 meters of advance during October and November.Mining has passed through a major regional lineament, the Ollacheathrust fault, and is now within the slate rock package that hosts thegold mineralization. Ground conditions have been better than expectedand much less water is seeping into the tunnel than anticipated.
Exploration diamond drilling operations will take place from bays, or"cuddies" excavated at regular intervals along the sidewalls of theexploration drive. Initially, drilling will be directed towardsexploring for gold bearing extensions east of the Minapampa orebody.Deeper, down-dip probing can also take place from these same cuddies.As the tunnel access drive reaches the eastern limits of theMinapampa deposit, drilling of depth extensions will become a majorfocus.
Ingetrol Peru SAC has been selected and is a well established,international drilling company who is also a provider of surfacedrilling services to Minera IRL. Mobilization to Ollachea will takeplace during December to enable drilling to commence on 2 January2013.
At Ollachea, Minera IRL has completed a Definitive Feasibility Study(DFS) which confirmed a robust project. The Company is investigatingfinancing options and detailed engineering is planned to commence inearly 2013. The objective is to commence production at the beginningof 2015. The life of the mine as defined in the DFS is nine years.This does not include over 0.9 million ounces of Inferred MineralResource (10.4 million tonnes grading 2.8 g/t Au) at the ConcurayocZone, only 400 meters west of Minapampa. Extensions of the knownmineralization have the potential to further extend the mine life.
Competent Persons Statement
The preparation of the technical information contained herein wassupervised by Donald McIver, VP Exploration of the Company, MScExploration and Economic Geology, a Fellow of the AustralianInstitute of Mining and Metallurgy (FAusIMM), as well as the Societyof Economic Geologists (FSEG), who is recognized as a QualifiedPerson for the purposes of National Instrument 43-101, and who hasreviewed and approved the technical information in this pressrelease.
To view the Ollachea Project: 3-D cross-section map :http://media3.marketwire.com/docs/OllacheaProject.pdf
Minera IRL Limited is the AIM traded, TSX and BVL listed holdingcompany of precious metals mining and exploration companies focusedin Latin America. Minera IRL is led by an experienced seniormanagement team with extensive industry experience, particularlyoperating in South America. The Group operates the Corihuarmi GoldMine and the advanced gold projects Ollachea in Peru and Don Nicolasin Argentina. For more information, please visit www.minera-irl.com.
The Toronto Stock Exchange neither approves nor disapproves theinformation contained in this News Release.
Some of the statements contained in this release are forward-lookingstatements, such as estimates and statements that describe theCompany's future plans, objectives or goals, including words to theeffect that the Company or management expects a stated condition orresult to occur. Since forward-looking statements address futureevents and conditions, by their very nature, they involve inherentrisks and uncertainties.
While these forward-looking statements, and any assumptions uponwhich they are based, are made in good faith and reflect our currentjudgment regarding the direction of our business, actual results willalmost always vary, sometimes materially, from any estimates,predictions, projections, assumptions or other future performancesuggestions herein. Except as required by applicable law orregulation, Minera IRL Limited does not intend to update anyforward-looking statements to conform these statements to actualresults.
Quality Assurance and Quality Control Procedures Disclosure
The Company has implemented and maintains a Minera IRL qualityassurance/quality control (QA/QC) protocol on the Ollachea Project toensure best industry practice in sampling and analysis of explorationand resource drill core samples. The insertion of field duplicates,certified standards and blank samples into the sample stream formpart of the MIRL procedure (these act as an independent check oncontamination, precision and accuracy in the analytical laboratory).
Assay results are reported once rigorous QAQC procedures have beenapproved.
Independent Audit Programs
Towards maintaining compliancy with international standards as theypertain to the minerals industry resource evaluation and estimationprocedure, MIRL regularly contracts the services of industry expertsto conduct detailed audits of established QAQC procedures.
Contacts:
Minera IRL
Trish Kent, Vice President, Corporate Relations
511 418 1230
Canaccord Genuity Limited
(Nominated Adviser & Broker, London)
Adam Miller
44 (0)20 7523 8350
finnCap (Co-broker, London)
Geoff Nash (Corporate Finance)
Matthew Robinson (Corporate Finance)
Joanna Weaving (Corporate Broking)
44 (0)20 7600 1658
RBC Europe Ltd (Co-broker, London)
Stephen Foss
Martin Eales
44 (0)20 7653 4000
Buchanan (Financial PR, London)
Bobby Morse
Gordon Poole
Louise Mason
44 (0)20 7466 5000
HillKnowlton Strategies (PR, Toronto)
Rick Harari
1 416 413 4766
SOURCE: Minera IRL Limited
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