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

Minera IRL Limited

August 15, 2011 02:00 ET

Minera IRL Announces Second Quarter 2011 Financial Results

LONDON, UNITED KINGDOM and TORONTO, ONTARIO--(Marketwire - Aug. 15, 2011) - Minera IRL Limited ("Minera IRL" or the "Company"), (TSX:IRL)(AIM:MIRL)(BVLAC:MIRL) the Latin America gold mining company, is pleased to announce its unaudited interim results for the 3 month period ended 30 June 2011. All amounts are reported in US dollars.

Highlights for the quarter ended 30 June 2011 included:

Financial

  • Gold production for second quarter ended 30 June 2011 ("2Q 2011") above budget at 8,775 ounces, up 8.4% from 8,098 ounces in the same period in 2010

  • Corihuarmi site cash operating cost of US$392 per ounce, up 7.3% from $365 per ounce in the same period in 2010

  • Gold sales of 8,688 ounces, up 5.3% from 8,253 ounces in the same period in 2010, and realised gold price of $1,513 per ounce, up 26.0% from $1,201 per ounce in the same period in 2010

  • Sales revenue of $13.1 million for Q2 2011, up 32.1% from $10.0 million in the same period in 2010

  • EBITDA of $6.7 million, up 73.7% from $3.9 million in the same period in 2010

  • Profit before tax of $4.5 million, up 48.9% from $3.0 million in the same period in 2010

  • Profit after tax $2.7 million, up 74.1% from $1.6 million in the same period in 2010

  • Cash balance of US$24.6 million at 30 June 2011 (30 June 2010: US$ 6.6 million)

Operational

  • Updated Ollachea Indicated Resource of 10.4 million tonnes at 4.0 g/t for 1.4 million and Inferred Resource of 3.3 million tonnes at 3.0 g/t for 0.3 million ounces

  • The Pre-feasibility Study at Ollachea completed and indicates a robust project that will produce over 1 million ounces over a 9 year mine life. Using a gold price assumption of US$1,100 per ounce, the project generates an after tax NPV (7%) of US$133 million, an IRR of 20.5% and a payback period of 3.8 years

  • Don Nicolas Feasibility Study progressing well for completion in Q4 2011

  • Positive exploration results at the Escondido Project in Argentina, including high grade intersections

Summary table:
Quarter to
30 June 2011
Quarter to
30 June 2010
Half year to
30 June 2011
Half year to
30 June 2010
Gold production 8,775 oz 8,098 oz 16,728 oz 15,169 oz
Gold sold 8,688 oz 8,253 oz 16,570 oz 15,794 oz
Sales revenue $ 13.1M US$10.0M $ 24.3M $ 18.3M
Average sales price $ 1,513 per oz $ 1,201 per oz $ 1,454 per oz $ 1,157 per oz
Corihuami site cash operating costs $ 392 per oz $ 365 per oz $ 396 per oz $ 396 per oz
Gross Profit $ 6.5M $ 5.3M $ 11.0M $ 7.9M
EBITDA $ 6.7M $ 3.9M $ 11.5M $ 6.2M
Profit before tax $ 4.5M $ 3.0M $ 7.0M $ 3.6M
Profit after tax $ 2.7M $ 1.6M $ 4.0M $ 1.8M
Total Income/(Loss) $ 2.6M $ 1.6M $ 3.7M $ 1.8M

"Minera IRL has continued its strong financial performance in the 2011 year, with an above expectation financial result for the three months to 30 June 2011. This was again driven by above budget gold production at our Corihuarmi Gold Mine and an increasing gold price." said Courtney Chamberlain, Minera IRL Limited Executive Chairman. "The Company also recently achieved an important milestone with the completion of a positive Pre-Feasibility Study at Ollachea Project in Peru. At the Don Nicolas Project in Argentina, the Feasibility Study progressed well during the quarter with targeted completion by late 2011. On the exploration front, the Company continues to receive positive results at the Escondido Project in Argentina, which include, for the first time, high grade intersections."

The full Report & Accounts, including the Management Discussion and Analysis for the quarter ended 30 June, 2011 are available from the Company's website www.minera-irl.com and from SEDAR.

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 advanced Don Nicolas Project 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.

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.

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

Contact Information

  • Minera IRL
    Trish Kent
    Vice President, Corporate Relations
    +511 4181230
    www.minera-irl.com

    Collins Stewart (Nominated Adviser & Broker, London)
    John Prior
    + 44 (0)20 7523 8350

    Collins Stewart (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 Capital Markets (Co-broker, London)
    Stephen Foss
    +44 (0)20 7653 4000

    RBC Capital Markets (Co-broker, London)
    Martin Eales
    +44 (0)20 7653 4000

    Bankside Consultants (Financial PR, London)
    Simon Rothschild
    + 44 (0)20 7367 8888