20th Nov 2007 07:01
Minera IRL Limited20 November 2007 Minera IRL Limited Signing of Contract on Oxapampa Project, Peru London: 20 November 2007. Minera IRL Limited ("MIRL" or "the Company") ispleased to announce the signing of a contract to acquire a 100% interest in theOxapampa Project in Peru. Oxapampa is located approximately 240 km north-east of Cerro de Pasco in centralPeru at an elevation of approximately 3,700 meters. Minera IRL can acquire a100% interest in the property by paying US$400,000 in a series of stagedpayments over the next 3 years. During that period the Company is committed to aminimum work expenditure of $900,000. Oxapampa is a recently discovered auriferous system that appears to offer asignificant opportunity for the discovery and development of medium-sized goldmining operations. Field inspection by Company geologists confirmed the presenceof fault-related, gold bearing shear structures. The gold-bearing structures,mesothermal in nature, are hosted within the weakly eroded granodioritic todioritic, porphyritic intrusive bodies that are widely distributed throughoutthis region. MIRL Chairman, Courtney Chamberlain, comments "We are delighted with thistransaction in a relatively unexplored district along the eastern escarpment ofthe Andes. Known gold occurrence and attractive geology combine to make this anattractive exploration project. The acquisition complements our existingportfolio of six projects and we will be commencing exploration at Oxapampa inearly 2008." The Company also reports that Corihuarmi, its project currently underconstruction in Peru, remains on course to commence gold production in Q1 2008.There is no hedging in place giving strong leverage to a rising gold price. Thefeasibility study was modelled at a gold price of $550/oz giving approximately$11.0 million of pre-tax mine life contribution for every $100/oz rise in goldprice above this level. During site construction two new breccia zones wereuncovered, one grading 4.6g/t over 10m, further increasing the explorationpotential of this site. Courtney Chamberlain will be presenting at the Mines & Money Conference to beheld in London at the Business Design Centre, 52 Upper Street, Islington on 22November at 15:25. A full version of the presentation will be available forreview at www.minera-irl.com. For more information contact: Minera IRL +61 (0)408 888 803Courtney Chamberlain, Executive Chairman orTrish Kent, Manager, Corporate Relations +51 1 446 5384 Arbuthnot Securities + 44 (0)20 7012 2000Paul Vanstone Bankside Consultants + 44 (0)20 7367 8888Simon RothschildLouise Mason This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MIRL.L