New Peruvian gold project for Minera IRL

Growing Peruvan gold miner, Minera IRL, is to acquire an ex-Newcrest gold exploration project in the south of the country.

LONDON - 

Minera IRL Limited (AIM: MIRL) has signed an option to purchase the Quilavira gold exploration project in the Tacna district of southern Peru from Ingerieria y Tecnologia Minero-Metalurgica SA (ITMM). The tenements were previously explored by Newcrest Mining (ASX: NCM). The proposed US$50,000 deal is subject to approvals in Peru.

"Quilavira represents a strategic, longer term exploration opportunity in a highly prospective area.  We are already well established in southern Peru, where our Ollachea Project is located, and Quilavira is consistent with building our business interests in selected districts", Minera IRL Executive Chairman, Courtney Chamberlain said.

ITMM previously acquired the Quilavira property from Newcrest in a competitive tendering process. On the 5,100 hectare tenement package, the main exploration target is an alteration area approximately 1,200x300m. Newcrest's previous exploration work identified a 200x200m zone of anomalous gold mineralization, sampling on the western part of the zone returned more than 1 gram per tonne gold.

Under the terms of the deal, Minera IRL has the option to purchase 100% with a US$50,000 payment, the acquisition is also subject to the grant of the required supreme decree by the Peruvian government. Additionally, a surface rights agreement will be negotiated with the local community before exploration activities can commence.

In January, the company reported that its Corihuarmi gold mine in Peru achieved its best production in 2009 in the final quarter,the Peruvian operation also achieved significant cost cuts and benefited from all time record gold prices.

The company said total gold production for the year reached 33,012 ounces at a cash cost of US$341 per ounce, while Q4 production amounted to 10,259oz exceeding targets by 18%. Quarterly cash operating costs were 23% below budget at US$248/oz compared to the average sales price of US$1,107/oz during the quarter.

At Corihuarmi, mining blocks in the Susan Pit that were originally defined as waste were found to be mineralized, and no waste was mined, which led to lower operating costs. The company intends to use the resulting cash flow to advance the development of its other projects.

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