Big picture - Why invest in Minera IRL Limited
Minera IRL Limited Snapshot
We believe that in order to know where you are going, you need to set goals. Our goal is to build a diversified precious metals mining company in Latin America.
We also believe that a mission statement explains how you are going to achieve your goals. Our mission statement is to create value for our stakeholders by building a network of profitable precious metal mines in Latin America through acquisition, exploration and development. An important aspect of achieving our goals involves proactive social development initiatives, building meaningful community partnerships, while exceeding environmental standards. We want our shareholders, our neighbouring communities, and our employees to share in our continued success.
Corihuarmi Gold Mine, Peru
The origins of the Minera IRL story began within the high Andes mountain range of central Peru. Located within this scenic mountain range, at an altitude of nearly 5,000 metres, you will find our Corihuarmi Gold Mine.
We began producing gold at our Corihuarmi Gold Mine in first quarter of 2008 and since then the mine has produced more than 175,000 ounces of gold. The Corihuarmi Gold Mine was built for $20 million and we recovered this capital investment during its first year of production.
We are very proud of our Corihuarmi Gold Mine and it is one of the foundations for our future success: It demonstrates our ability to permit, build, and operate a mine, even in a challenging region, like the high Andes of Peru.
The mine is also a testament to our on going commitment to understanding the needs our neighbouring communities. We work closely with community leaders to develop programs that have made noticeable improvements in the quality of life. Our strong relationships with these communities helps to develop programs that provide specialized training for employment opportunities at our projects.
We have also helped local entrepreneurs create new businesses that now provide most of the goods and services that we use at our projects. These cooperative initiatives have also provided improved access to education and health care, often in areas where it did not previously exist.
We believe that our success at Corihuarmi speaks volumes on how we do business. It also tells stakeholders that we will do things the right way, every time.
In addition to our Corihuarmi Gold Mine, we have two other very robust gold development projects that we have recently completed Feasibility Studies for that we are advancing towards production: Ollachea and Don Nicolás.
Ollachea is our flagship project and the next mine that we plan to build in Peru.
In late 2012, we completed a Definitive Feasibility Study (“DFS”) for Ollachea that demonstrated the presence of a low-cost underground mining operation containing gold reserves of approximately 1 million ounces within the Minapampa Zone.It is worth noting that the DFS excludes 1.3-million ounces of inferred resources that the Company has defined at Ollachea, representing significant potential upside for the project. There is also significant exploration upside at Ollachea, as the zone of mineralization remains open-ended along strike and to depth, suggesting that there is signification potential to discover new mineral resources.
Following the completion of the DFS, we submitted our Environmental and Social Impact Assessment (“ESIA”) for the project to the Community of Ollachea and the Government of Peru for approval. In May 2013, the Community of Ollachea overwhelming endorsed the ESIA. In September 2013, the Government of Peru also approved the ESIA. The endorsement of the ESIA is the key approval required from the Government of Peru to advance a mining project towards the construction phase.
With the ESIA approved, we are completing the work necessary to obtain the Construction Permit required to build a mine at Ollachea. We expect to receive the Construction Permit in the second quarter of 2014.
We believe that with the strong community support, an approved ESIA, a robust DFS, and construction permits, we will be well positioned to arrange traditional mine construction financing for Ollachea. Subject to the timely receipt of these permits and mine financing, we expect to start mine construction in 2014 and to commence gold production in late 2015.
Don Nicolas is a gold and silver development project on the Deseado Massif in the Province of Santa Cruz, one of the most mining friendly jurisdictions in Argentina.
In August 2013, Minera IRL entered into a definitive agreement with Compañía Inversora en Minas (“CIMINAS”) for 100% of the financing required to build the Don Nicolas Mine. CIMINAS has agreed to invest $45 million in common and preferred equity into the project and to provide $35 million in debt facilities to the Minera IRL Pantagonia SA, the holding company for the Don Nicolas project. As a result of these arrangements, Minera IRL retains a 51% interest in Minera IRL Pantagonia SA
In addition to the financing for Don Nicolas having been secured, construction of the mine commenced in the first quarter of 2014. Gold production, estimated to be in excess of 50,000 ounces of gold per year (25,000 net to Minera IRL) is expected to commence in the first quarter of 2015.
In addition to the existing mineral reserves and resources base contained in the Don Nicolas Project, there is also excellent exploration potential at the project and elsewhere with Minera IRL Pantagonia SA’s extensive land package on the Deseado Massif.
The Company’s officers and senior managers are a multi-disciplinary group of seasoned international and South American mining executives. The team posses the experience and skills that a growing mining company needs, from exploration through development to financing, building and operating mines.
Mr. Daryl Hodges, Executive Chairman
Mr. Daryl John Hodges more than 25 years experience in the mining sector, having worked on exploration and development projects in Canada, Russia, Scandinavia, and southeast Asia covering precious and base metal deposits. Prior to joining Minera IRL, Mr Hodges was a founding partner of Jennings Capital Inc., co-founder of the capital markets operations of Jennings Capital Inc. Daryl was responsible for growing the successful mining franchise of the firm, originally as an Analyst and subsequently as Executive Director of Investment Banking. Most recently, Mr Hodges served as Chief Executive Officer and President of Jennings Capital Inc., until September 2013. Mr Hodges worked as both a Mining Corporate Finance executive, and Mining Research Analyst at HSBC Securities prior to joining Jennings Capital in 1999. Prior roles also included positions of increased responsibility at Falconbridge Limited, which Mr Hodges left in 1996 after almost 10 years. Mr. Hodges was appointed Executive Chairman in 2015.
Dr. Diego Benavides, Interim CEO
Diego is a founding executive of the Company and is responsible for the Company’s corporate, legal and community activities. He is a lawyer by training with extensive experience in the Latin American mining industry. Previous experience includes positions with Minera Mount ISA Peru SA, Minera Newcrest Peru SA and as a consultant to Minera Phelps Dodge Del Peru SA.
Mr. Brad Boland, Chief Financial Officer
Brad is a Certified Management Accountant (CMA) and has over 15 years of experience in the mining industry. He has held executive positions at a number of companies in the resource sector, including Kinross Gold Corp., Goldcorp Inc., and more recently, at Consolidated Thompson Iron Mines Ltd., Crocodile Gold Inc. and Azul Ventures Inc. Brad has extensive experience in mine development, operations and finance. Brad joined Minera IRL as CFO in April 2013.
Mr. Donald McIver, Vice President Exploration
Don is responsible for managing and leading the Company’s exploration activities. He is a geologist by training with extensive corporate and consulting experience in mineral exploration, mine development, and mine geology. His experience includes over ten years in South Africa, two years in Ecuador and over ten years in Peru. Don is also a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM).
Mr. John Velasquez Palacios, General Manager Corihuarmi Gold Mine
John is responsible for managing the Corihuarmi Gold Mine. John is a chemical engineer and has gained a wide range mining and metallurgical experience in Peru. John specializes in optimizing mining operations to extend mine life and increase mine
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Minera IRL Limited
Contact: Jeremy Link or Brad Boland
Tel: (416) 907-7363
Toronto, Ontario CANADA
Canaccord Genuity Limited
Contact: Andrew Chubb/Sebastian Jones
Tel: 44 (0) 20 75238300
88 Wood Street
London EC2V 7QR
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Fasken Martineau LLP
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BDO (UK) LLP
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