Minera IRL Ltd Announces Successful Completion of Exploration Driveat Ollachea Project, Peru
LONDON, UNITED KINGDOM AND TORONTO, ONTARIO, Feb 13, 2013 (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 the exploration drive at its OllacheaProject (the "Project"), Peru, has been completed beyond its 1,200meter goal ahead of schedule and under budget.
Highlights:
--Exploration drive has been successfully completed reaching 1,234 meters
--Best monthly advance of 216.5 meters achieved in January
--Completion more than one month ahead of schedule
--Project completion cost estimated at 13.8 million, approximately 1.1
million below budget
--Better than expected ground conditions within the slates that host the
orebody
--Very little water inflow, contrary to hydrogeological model
--Exploration drilling of the eastern strike of the deposit from
underground has commenced
"The production-size exploration drive at Ollachea has been anoutstanding success," said Courtney Chamberlain, Executive Chairmanof Minera IRL. "Our Peruvian mining contractor, JJC ContratistasGenerales S.A. (JJC) has done an excellent job supported by ourconsultants TWP Sudamerica S. A. and our team of engineers. The speedand reduced cost associated with the completion of the drive as wellas the practical experience gained indicates that assumptions used inthe Definitive Feasibility Study (DFS), completed in November 2012,are conservative. This particularly relates to better groundconditions, a much higher advance rate and minimal waterinfiltration. The focus now turns to the exploration drilling fromunderground, which commenced early in January."
The exploration drive has a cross sectional size of 5 meters by 5meters which will become the main haulage route when the mine isdeveloped. The portal is at the future plant site location. Advancewas completed on 31 January 2013, at 1,234 meters slightly more thanthe planned 1,200 meters. The final 200 meters of the tunnel is inthe hanging wall parallel to the Minapampa orebody.
The development rate in the slate rock type, host to themineralization, has been better than predicted with a record 216.5meters achieved in January 2013. In penetrating the slates, exceptwhen developing through the Ollachea Fault Zone, the tunnel has beenwell supported by rock bolts and shotcrete.
The hydrogeological model predicted that a large amount of waterwould infiltrate into the exploration drive, indicating a wet mine.This has not occured and, based upon the experience thus far, themine should be relatively dry. This is expected to reflect in reducedcapital and operating costs for ponds and water treatment.
The budget approved in August 2011 for 14.9 million includedmobilization, demobilization, access from the highway to the portalsite, establishment of the portal, driving of the tunnel, otherconsultant and owner's costs and a contingency of 10%. The forecastcompletion cost is now 13.8 million, a significant reduction of 1.1million compared to the budget.
Exploration drilling has begun probing the eastern strike extensionof the Minapampa Zone from cuddies to the east of the nearestdrilling from surface. Drilling of this zone from surface was notpossible due to very steep terrain.
In addition to providing access for underground exploration drilling,the completed drive will facilitate rapid mine development whenproject permitting and project financing is in place, expected in thesecond half of 2013.
The DFS indicated an economically robust project with a steady-stateaverage gold production of 113,000 ounces per annum coming on streamin early 2015. The Environmental Impact Assessment has been submittedto the Peruvian authorities, thus commencing the developmentpermitting process.
Competent Persons Statement
The preparation of the technical information contained herein wassupervised by Courtney Chamberlain, Executive Chairman, BSc and MScMetallurgical Engineering, a Fellow of the Australian Institute ofMining and Metallurgy (FAusIMM), 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. Also 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 resource information in this press release.
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.
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 QA/QC procedures have beenapproved.
Independent Audit Programmes
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.
To view the photo associated with this release, please visit thefollowing link:http://media3.marketwire.com/docs/MineraOllacheaTunnel.jpg.
The Toronto Stock Exchange neither approves nor disapproves theinformation contained in this News Release.
Contacts:
Minera IRL
Trish Kent
Vice President, Corporate Relations
511 418 1230
www.minera-irl.com
Canaccord Genuity Limited
(Nominated Adviser & Broker, London)
Andrew Chubb
44 (0)20 7523 8000
Canaccord Genuity Limited
(Nominated Adviser & Broker, London)
Sebastian Jones
44 (0)20 7523 8000
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 Europe Ltd (Co-broker, London)
Stephen Foss
44 (0)20 7653 4000
RBC Europe Ltd (Co-broker, London)
Martin Eales
44 (0)20 7653 4000
Buchanan (Financial PR, London)
Bobby Morse
44 (0)20 7466 5000
Buchanan (Financial PR, London)
Gordon Poole
44 (0)20 7466 5000
Buchanan (Financial PR, London)
Louise Mason
44 (0)20 7466 5000
HillKnowlton Strategies (PR, Toronto)
Rick Harari
1 416 413 4766
SOURCE: Minera IRL Limited
http://www.minera-irl.com
Copyright 2013 Marketwire, Inc., All rights reserved.
