Minera IRL Limited (Minera IRL or the "Company") (TSX:IRL)
(AIM:MIRL) (BVL:MIRL), the Latin American gold mining company, is
pleased to announce an upgraded resource estimate following
step-out, extension and infill drilling at the Martinetas Vein
Field, Don Nicolas Project, Santa Cruz Province, Argentina. The Don
Nicolas Project has been permitted and is advancing toward
development.
Highlights:
-- Highly successful resource upgrade at Martinetas in which gold-silver
quartz vein envelopes surrounding the three main sub-parallel vein
zones, Cerro Oro, Coyote and Lucia have now merged into one mineralized
domain.
-- Measured and Indicated Resources have increased by 23% to 468,000 ounces
of gold, an increase of 87,000 ounces compared to the resource published
in 2011.
-- Inferred Resource has increased 14% to 165,000 ounces of gold, an
increase of 20,000 ounces.
-- The increase in Measured and Indicated Resource is expected to extend
the mine life of the Don Nicolas Project, which continues to move toward
development. In addition, a substantial increase in the low grade
category provides the catalyst for completing a heap leach feasibility
study in 2013.
-- High potential for further resource additions.
"We are delighted with the results of our 2012 resource drilling
programme which not only extended the Martinetas vein field but has
demonstrated significant potential for future growth." said
Courtney Chamberlain, Executive Chairman of Minera IRL. "The
increased resource and merging of the three principal vein zones
has important economic implications. These include extending the
mine life of Don Nicolas and providing a strong incentive to
complete a heap leach feasibility study in 2013 aimed at treating
the lower grade material. This lower grade will be mined in
conjunction with the high grade mill feed and a successful parallel
heap leach circuit has the potential to significantly increase low
cost gold and silver production with modest additional capital
requirement."
The latest resource estimate supersedes the previous
announcement in 2011. The 2012 resource drilling has added to the
database 173 new drill holes and 16 extension drill holes with a
combined total of 18,640 meters. Estimation techniques and
parameters have not altered and the same 0.3g/t lower gold cut-off
grade has been applied.
Two large epithermal vein field districts, La Paloma and
Martinetas located approximately 40km apart, make up the Don
Nicolas Project. The 2012 Martinetas drill programme expanded the
gold-silver quartz vein envelopes surrounding the three main
sub-parallel vein zones, Cerro Oro, Coyote and Lucia demonstrating
high potential for mining these zones from one large open pit.
These vein systems are open-ended to the south-west and at depth.
Also at Martinetas, in September 2012 a new discovery was announced
at Choique located only 1.6km from the proposed Don Nicolas plant
site. Whilst the resource, at this stage, is modest the setting
along the flanks of a rhyolite dome indicates excellent potential
to expand this resource with further drilling.
Although no drilling was conducted at La Paloma in 2012, recent
target generation studies have identified several highly
prospective areas where brownfields drilling is now planned for
2013.
The following table summarizes the 2012 Don Nicolas resource
estimate.
--------------------------------------
Measured + Indicated Resource
----------------------------------------------------------------------------
District Deposit Lower Tonnes Au Au Ag Ag
Au (kT) (g/t) (kOz) (g/t) (kOz)
Cutoff
(g/t)
----------------------------------------------------------------------------
La Paloma Sulfuro(1) 0.3 1,192.3 4.5 171.9 16.1 617.3
---------------------------------------------
1.6 498.4 9.2 147.2 28.1 450.2
----------------------------------------------------------------
Ramal Sulfuro(3) 0.3
---------------------------------------------
1.6
----------------------------------------------------------------
Rocio(3) 0.3
---------------------------------------------
1.6
----------------------------------------------------------------
Arco Iris(1) 0.3 36.8 1.7 2.1 2.2 2.6
---------------------------------------------
1.6 18.0 2.4 1.4 2.8 1.6
----------------------------------------------------------------------------
Martinetas Cerro Oro, Coyote, 0.3 7,002.0 1.2 270.6 3.6 812.9
Lucia(2)
---------------------------------------------
1.6 1,090.8 3.7 131.0 5.8 201.4
----------------------------------------------------------------
Armadillo(1) 0.3 271.7 2.2 19.2 3.8 33.1
---------------------------------------------
1.6 111.8 4.6 16.4 5.9 21.0
----------------------------------------------------------------
Choique(1) 0.3 84.3 1.6 4.4 17.7 48.0
---------------------------------------------
1.6 40.5 2.9 3.8 17.9 23.2
----------------------------------------------------------------
Calafate(1) 0.3 4.0 3.2 0.4 10.8 1.4
---------------------------------------------
1.6 4.0 3.2 0.4 10.8 1.4
----------------------------------------------------------------------------
TOTAL All Resource 0.3 8,591.1 1.7 468.6 5.51,515.3
----------------------------------------------------------------
Plus 1.6g/t Cut-off 1.6 1,763.5 5.3 300.2 12.3 698.9
----------------------------------------------------------------------------
--------------------------------------
Inferred Resource
---------------------------------------------------------------------
District Deposit Tonnes Au Au Ag Ag
(kT) (g/t) (kOz) (g/t) (kOz)
---------------------------------------------------------------------
La Paloma Sulfuro(1) 535.0 1.2 20.6 5.4 92.5
--------------------------------------
47.3 7.0 10.7 18.7 28.4
---------------------------------------------------------
Ramal Sulfuro(3) 134.8 1.9 8.3
--------------------------------------
58.5 2.7 5.1
---------------------------------------------------------
Rocio(3) 89.2 4.1 11.9
--------------------------------------
89.2 4.1 11.9
---------------------------------------------------------
Arco Iris(1) 262.4 2.3 19.4 2.1 17.5
--------------------------------------
164.0 3.0 15.7 2.5 13.2
---------------------------------------------------------------------
Martinetas Cerro Oro, Coyote, 2,416.8 1.1 83.4 3.8 293.1
Lucia(2)
--------------------------------------
308.7 3.6 35.7 6.3 62.6
---------------------------------------------------------
Armadillo(1) 186.9 1.4 8.3 3.3 19.7
--------------------------------------
45.7 4.1 6.1 5.7 8.4
---------------------------------------------------------
Choique(1) 389.2 1.0 11.9 6.6 82.6
--------------------------------------
85.0 2.8 7.7 9.3 25.5
---------------------------------------------------------
Calafate(1) 3.4 5.8 0.6 11.7 1.3
--------------------------------------
3.4 5.8 0.6 11.7 1.3
---------------------------------------------------------------------
TOTAL All Resource 4,017.8 1.3 164.5 3.9 505.3
---------------------------------------------------------
Plus 1.6g/t Cut-off 713.4 4.2 96.0 6.8 155.2
---------------------------------------------------------------------
(1) Ordinary Kriged Estimate
(2) Multiple Indicator Kriged Estimate -with a Change of Support to an SMU
block (5mE x 2mN x 2.5mRL)
(3) Rocio and Ramal were not estimated by Coffey Mining. This Inferred
Resource (gold only) is as previously reported by Hidefield in 2009 as
estimated by Runge. Ramal was estimated by Runge but not included in the
Hidefield estimate.
The resource estimation methodology applied to each vein system
was appropriate for the particular mineralized deposit. Ordinary
Kriging (OK) was used for the La Paloma deposits, as well as
Armadillo, Choique and Calafate at Martinetas. No mine dilution was
included in the resource estimate for these deposits. For Coyote,
Cerro Oro and Lucia, the Multiple Indicator Kriging (MIK) method
was considered more appropriate. This method includes dilution for
an assumed mining scenario and Selective Mining Unit (SMU).
The new resource estimate at Martinetas is compared with the
2011 estimate in the following table. Of particular note is the
increase in the potentially heap leachable resource to over 6
million tonnes at a grade of 0.7g/t Au.
--------------------------------------
Measured + Indicated Resource
----------------------------------------------------------------------------
District Resource Lower Au Tonnes Au Au Ag Ag
Cutoff (g/t) (kT) (g/t) (kOz) (g/t) (kOz)
----------------------------------------------------------------------------
Martinetas 2012 1.6 1,247.1 3.8 151.6 6.2 247.0
----------------------------------------------------------------
2011 1.6 944.1 4.3 131.2 5.9 178.5
----------------------------------------------------------------
Difference 303.0 2.1 20.4 7.0 68.5
----------------------------------------------------------------
----------------------------------------------------------------
2012 0.3 - 1.6 6,114.9 0.7 143.1 3.3 648.4
----------------------------------------------------------------
2011 0.3 - 1.6 3,464.9 0.7 76.3 3.1 348.1
----------------------------------------------------------------
Difference 2,650.0 0.8 66.8 3.5 300.3
----------------------------------------------------------------
----------------------------------------------------------------
2012 0.3 7,362.0 1.2 294.7 3.8 895.4
----------------------------------------------------------------
2011 0.3 4,409.0 1.5 207.5 3.7 526.6
----------------------------------------------------------------
Difference 2,853.0 1.0 87.2 4.0 368.8
----------------------------------------------------------------------------
---------------------------------------
Inferred Resource
----------------------------------------------------------------
District Resource Tonnes Au Au Ag Ag
(kT) (g/t) (kOz) (g/t) (kOz)
----------------------------------------------------------------
Martinetas 2012 443.0 3.5 50.1 6.9 97.8
----------------------------------------------------
2011 384.5 4.2 51.4 6.3 77.8
----------------------------------------------------
Difference 58.5 - (1.3) 10.7 20.0
----------------------------------------------------
----------------------------------------------------
2012 2,553.4 0.7 54.2 3.6 298.8
----------------------------------------------------
2011 1,662.5 0.6 33.3 3.0 158.8
----------------------------------------------------
Difference 890.9 0.7 20.9 4.9 140.0
----------------------------------------------------
----------------------------------------------------
2012 2,996.3 1.1 104.3 4.1 396.6
----------------------------------------------------
2011 2,047.0 1.3 84.7 3.6 236.7
----------------------------------------------------
Difference 949.3 0.6 19.6 5.2 160.0
----------------------------------------------------------------
Preliminary metallurgical testing at the Ammtec Metallurgical
Laboratory in Perth, Western Australia on low grade trench
composites from Martinetas is encouraging and confirms that the
ores are amenable to heap leaching techniques. Column leach tests
have yielded gold extractions up to 73%. Whereas fairly fine
crushing appears to be required, agglomeration has not been needed
and reagent consumption is modest. Planning is progressing for an
expanded test programme during early 2013 with the objective of
completing a feasibility study on heap leaching during the second
half of 2013.
The Martinetas and La Paloma districts are contained within a
very large tenement holding of approximately 260,000 ha which host
numerous precious metal occurrences, such as Microondas and
Escondido, which provide further targets. For example, Escondido,
discovered in 2010 by Minera IRL Patagonia approximately 35km to
the north - west of Martinetas, hosts both high grade veins and
bulk tonnage mineralization. Microondas, only 10km west of
Martinetas, is hosted in a rhyolite dome and has historical good
grade gold drill intersections. These and other deposits will be
assessed for future feed to the Don Nicolas processing
facilities.
With the recent approval of the Don Nicolas Environmental Impact
Assessment and the granting of the Development Permit, the Company
is investigating financing options and also completing plans to
commence detailed engineering early in 2013. The objective is to
commence production by early 2014 at Don Nicolas to produce an
average of 52,000 ounces of gold and 56,000 ounces of silver per
year from open pit mining and treatment by conventional processing
techniques.
Resource Estimate Authorship and Methodology
The resource estimate was prepared by Mr Doug Corley, Member of
the Australian Institute of Geoscientists, Associate Resource
Geologist in Resource Modelling with Coffey Mining Pty Ltd. Doug
Corley is recognized as a Qualified Person for the purposes of
National Instrument 43-101.
On the basis of the confidence levels of the key criteria that
were considered during the resource estimation, the mineral
resource estimates provided in this press release have been
classified and reported in accordance with CIM guidelines and
National Instrument NI.43-101.
Including the 2012 drilling, the database used in this
re-estimate now totals 545 drill holes for 44,620 meters plus 104
trenches for 7,807 meters. The resource estimates apply a 0.3g/t
gold bottom cut for the global resource and a 1.6g/t bottom cut to
provide the high grade component. Top cutting was applied as
appropriate for each of the vein systems.
Mr Doug Corley conducted two field visits to the project site
where he had the opportunity to interact with project geologists
and related staff and to study the geology and associated
mineralization in order to become familiar with the geological
demeanour as well as continuity of grade distribution inherent to
the Don Nicolas deposits.
Resource estimation methodology included completion using
Ordinary Kriging or the Multiple Indicator Kriging method,
whichever was the most appropriate.
Competent Persons Statement
The preparation of the technical information contained herein
was supervised by Donald McIver, VP Exploration of the Company, MSc
Exploration and Economic Geology, a Fellow of the Australian
Institute of Mining and Metallurgy (FAUSIMM), as well as the
Society of Economic Geologists (FSEG), who is 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.
Conference Call
Following the release, Minera IRL plans to host a conference
call at 10:00 am Toronto (EDT), 3:00 pm UK (BST), 10:00 am Lima
(PET) on November 21, 2012. To participate in the call please
dial:
Toll Free (North America): 866-696-5910
Local Toronto and International: 416-340-2217
Global: 800-8989-6336
Participant passcode: 3309410
A live webcast and archive will be available at:
http://www.gowebcasting.com/4020
REPLAY:
Dial-in numbers: 905-694-9451 / 800-408-3053
The replay is available till November 28th, 2012
Passcode: 6727232
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
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.
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.
Quality Assurance and Quality Control Procedures Disclosure
The Company has implemented and maintains a Minera IRL quality
assurance/quality control (QA/QC) protocol on the Ollachea Project
to ensure best industry practice in sampling and analysis of
exploration and resource drill core 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.
The Toronto Stock Exchange neither approves nor disapproves the
information contained in this News Release.
Contacts: Minera IRL Limited 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
+ 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 or Martin Eales +44 (0)20 7653
4000 Buchanan (Financial PR, London) Bobby Morse or Gordon Poole or
Louise Mason +44 (0)20 7466 5000 Hill+Knowlton Strategies (PR,
Toronto) Rick Harari +1 416 413 4766