TIDMMIRL
RNS Number : 9229S
Minera IRL Limited
29 November 2011
Minera IRL Makes Final Staged Payment to Rio Tinto and Provides
Project Update for Ollachea
London and Toronto, 29 November 2011: Minera IRL Limited
("Minera IRL" or the "Company"), (TSX:IRL) (AIM:MIRL) (BVL:MIRL)
the Latin America gold mining company, is pleased to announce that
it has made the final staged payment to Rio Tinto to purchase the
Ollachea Gold Project in Peru and also provide an update on other
aspects of the Project.
Highlights are:
-- The final $2 million has been paid to Rio Tinto Mining and
Exploration S.A.C. ("Rio Tinto") thus fulfilling a key condition of
staged payments totaling $6.25 million over four years for the
purchase of the Ollachea Gold Project
-- Contracts have been signed with AMEC ("AMEC") and Coffey
Mining Pty Ltd ("Coffey Mining") to complete a Bankable Feasibility
Study by the third quarter of 2012
-- Progress is being made on establishing the access to the
portal site for a 1.2km long exploration drive to the orebody
-- Results from recent in-fill drilling continue to confirm
excellent gold intersections in Minapampa East including 11 meters
grading 9.50g/t gold in DDH11-175 and 24 meters grading 4.44g/t
gold in DDH11-183.
-- A technical paper has been presented at the prestigious
NewGenGold Conference in Perth, Australia which globally recognizes
Ollachea as one of the top international gold discoveries during
the past two years
"The final stage payment to Rio Tinto is an important milestone
in perfecting Minera IRL's purchase of the Ollachea leases." said
Courtney Chamberlain, Executive Chairman of Minera IRL. "All
aspects of the project are progressing well including the
feasibility study, preparing to drive the exploration tunnel and
final in-fill drilling. It is also very pleasing that Ollachea is
now recognized by the international exploration community as a
major gold discovery."
As reported during the third quarter, the Indicated Mineral
Resource thus far defined at Ollachea stands at 10.7 million tonnes
grading 4.0g/t gold containing 1.4 million ounces plus an Inferred
Mineral Resource of 13.7 million tonnes grading 2.8g/t containing
1.2 million ounces of gold. The deposit remains open ended along
strike in both directions as well as down dip.
The $2 million payment to Rio Tinto fulfils the requirement to
pay $6.25 million over a four year period. A further $3.8 million
was paid in May 2010 which was a one-time payment based upon the
ounces in the maiden Inferred Resource estimate and had the effect
of reducing the future production royalty from 3% to 1%. The only
other remaining commitment to Rio Tinto is a NPV related payment
due 6 months following the public release of a Bankable Feasibility
Study.
Following the positive results of the pre-feasibility by AMEC
and Coffey Mining announced in July 2011, full feasibility studies
commenced. Contracts have been awarded to both AMEC and Coffey
Mining for the Bankable Feasibility Study with a target completion
during the third quarter of 2012.
Part of the feasibility study includes limited final resource
"de-risking" in-fill drilling which is well underway. Results have
been positive to date from infill drill holes located toward the
eastern limits of the Minapampa resource. Drill hole DDH11-175
intersected 11 meters grading 9.50g/t gold, DDH11-177 intersected 6
meters grading 5.37g/t gold, DDH11-181 intersected 6 meters grading
3.37g/t gold, and DDH11-183, located only 13 meters inside the
open-ended eastern limit of the published resource, intersected 24
meters grading 4.44g/t as well as 6 meters grading 8.34g/t gold.
True widths are estimated to range between 71% to 97%, with the
majority of all drill holes reporting around 92 to 93% true width.
The detailed assay logs of the most recent holes can be found on
the Company's website.
Following the award of a contract to JJC Contratistas Generales
SA in August 2011 to drive a slightly inclined 1.2km exploration
tunnel into the orebody, mobilization has commenced and the access
road to the portal site is well advanced. Actual driving of the
tunnel is scheduled to commence early in the New Year.
Ollachea was selected by NewGenGold (www.newgengold.com) as one
of the top 16 gold discoveries to emerge globally during the past 2
years. This is a prestigious recognition of Ollachea in the
international gold exploration community providing the opportunity
for the Company to publish a technical paper and present at the
bi-annual NewGenGold Conference in Perth Australia which was held
on 22 and 23 November. A copy of the presentation 'Ollachea
Orogenic gold deposit, Peru: Discovery and Advancement' can be
found at
http://www.minera-irl.com/Portals/1/pdfs/-nwgn11-confBook-Minera.pdf
Minera IRL continues to have an excellent relationship with the
Ollachea community with many health, education and sustainable
programs in progress.
More information is available on the Company's website
www.minera-irl.com and from SEDAR.
For more information please contact:
Minera IRL
Trish Kent, Vice President, Corporate Relations +511 4181230
Collins Stewart (Nominated Adviser & Broker,
London)
John Prior + 44 (0)20 7523
Adam Miller 8350
finnCap (Co-broker, London)
Geoff Nash (Corporate Finance)
Matthew Robinson (Corporate Finance) + 44 (0)20 7600
Joanna Weaving (Corporate Broking) 1658
RBC Europe Ltd (Co-broker, London)
Stephen Foss
Martin Eales +44 (0)20 7653 4000
Buchanan (Financial PR, London)
Bobby Morse
James Strong +44 (0)20 7466 5000
Minera IRL Limited is the AIM traded, 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 advanced gold projects Ollachea in Peru and Don
Nicolas in Argentina. For more information, please visit
www.minera-irl.com.
The Toronto Stock Exchange neither approves nor disapproves the
information contained in this News Release.
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.
Competent Persons Statement
The preparation of the technical information contained herein
was supervised and reviewed by Courtney Chamberlain, Executive
Chairman of the Company, BSc and MSc Metallurgical Engineering, a
Fellow of the Australian Institute of Mining and Metallurgy
(AUSIMM) and Donald McIver, VP Exploration of the Company, MSc
Exploration and Economic Geology, a Fellow of the Australian
Institute of Mining and Metallurgy (AUSIMM), who are 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.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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