Minera IRL Limited
AIM : MIRL
BVLAC : MIRL
TSX : IRL

Minera IRL Limited

July 13, 2010 02:00 ET

Minera IRL Announces Acquisition Option on the Killincho Gold Project in Southern Peru

LONDON, UNITED KINGDOM--(Marketwire - July 13, 2010) - Minera IRL Limited ("Minera IRL" or the "Company"), (TSX:IRL)(AIM:MIRL)(BVLAC:MIRL) the Latin American focused gold mining, development and exploration company, announces it has entered into option agreements (the "Agreements") to purchase the Killincho Gold Exploration Project from Ingerieria y Tecnologia Minero-Metalurgica SA ("ITMM").

Highlights:

  • The Agreements consolidates eight properties, totalling 3,317ha, into one high quality gold exploration project in southern Peru
  • Killincho is located within the same gold-bearing Sandia geological formation which hosts Minera IRL's 1.3m oz Ollachea Project (inferred resource)
  • Field reconnaissance and surface sampling commenced
  • History of local artisanal gold production

"The addition of Killincho to Minera IRL's inventory of exploration projects is a further step toward consolidation of a highly prospective land position associated within the gold-bearing Sandia formation in southern Peru." said Courtney Chamberlain, Executive Chairman of Minera IRL. "This is the same slate belt formation which hosts our flagship one–million-plus ounce resource at Ollachea 150 kilometres north west of Killincho. The Sandia Formation is emerging as a major new district which hosts a number of impressive gold deposits including Untuca, La Rinconada, Winchomayo and Santa Domingo."

Following field evaluations and negotiations spanning more than 12 months, on 12 July 2010 Minera IRL SA, a subsidiary of Minera IRL Limited, signed agreements with Ingerieria y Tecnologia Minero-Metalurgica SA ("ITMM") to purchase 8 properties. The acquisition consolidates a strategic position, known as the Killincho Gold Project in southern Peru.

The Agreements includes progressive staged payments to ITMM, who have underlying agreements with two property owners, which will allow for progressive exploration funded by Minera IRL. In the event that exploration is not successful, the Company can terminate the Agreements without obligation at any time in the future. In addition, ITMM has been granted an exploration license in its own right, which constitutes the third property component of the transaction, over an adjoining block with geologically prospective, and apparently contiguous, exploration features.

Three principal gold mineralization styles have been recognized to date. These include gold mineralization in breccia and/or shear zones, intrusive sedimentary rock contacts and quartz veins that are being selectively mined by artisanal miners on a modest, but high grade basis. 

Exploration activities have commenced. 

This press release was reviewed by Donald McIver, VP Exploration of the Company, MSc Exploration and Economic Geology, a Fellow of the Australian Institute of Mining and Metallurgy (AUSIMM), who is the designated Qualified Person for the purposes of National Instrument 43-101 and has approved the technical information in this press release.

The Company website is www.minera-irl.com.

Minera IRL Limited is the AIM traded, and 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 emerging Ollachea Gold Project in Peru as well as the Don Nicolas Project in Argentina.

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, Minera IRL Limited does not intend to update any forward-looking statements to conform these statements to actual results.

The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.

Contact Information

  • Minera IRL Limited
    Trish Kent
    Vice President, Corporate Relations
    +511 4181230
    www.minera-irl.com
    or
    Arbuthnot Securities (Nominated Adviser & Broker, London)
    Hugh Field/Richard Johnson
    + 44 (0)20 7012 2000
    or
    Bankside Consultants (Financial PR, London)
    Simon Rothschild
    + 44 (0)20 7367 8888
    or
    Bankside Consultants (Financial PR, London)
    Louise Mason
    + 44 (0)20 7367 8888
    or
    The Equicom Group Inc. (Investor Relations, Canada)
    James Kitchen
    Account Executive
    + 1 416 815 0700 (ext 267)