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25/07/2011

Minera IRL CEO says the economics at $1600 gold price are ‘fantastic’ for the company

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Additional Information
Market: AIM
Sector: General Mining - Gold
EPIC: MIRL
Latest Price: 50.00p  (8.11% Ascending)
52-week High: 84.50p
52-week Low: 42.00p
Market Cap: 75.95M
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Minera IRL
www.minera-irl.com

Minera IRL Limited together with its subsidiaries (the "Group") is a Latin American precious metals mining, development and exploration company.  Managed by a team of experienced mining executives, the Group's business was privately funded from inception in 2000 until listing on the London AIM Market in April 2007.  Minera IRL Limited is currently quoted on the Toronto Stock Exchange (TSX:IRL), AIM London (AIM:MIRL) and the BVL, Lima, Peru (BVL:MIRL) stock exchanges.

The Group operates the Corihuarmi Gold Mine, is exploring the Ollachea Project, both of which are in Peru, and is also undertaking a feasibility study at the Don Nicolas gold project in Patagonia, Argentina.

Full Minera IRL profile here
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Minera IRL: Fox-Davies repeats 'buy' after Q3 results

15th Nov 2011, 2:06 pm by Jamie Ashcroft Gold production in the three months to September 30 2011 rose to 9,718 ounces, an 11 pct improvement

City stockbroker Fox-Davies Capital today repeated a ‘buy’ recommendation on Minera IRL (LON:MIRL) following yesterday’s strong third quarter results.

Fox-Davies has a 126p price target for Minera, some 80 per cent higher than the current price of 69p.

On Monday Minera’s chief financial officer Tim Miller told investors that costs were ‘pretty consistent’ with the previous quarter at the Corihuarmi gold mine, while production and sales had improved.

Gold production in the three months to September 30 2011 rose to 9,718 ounces. This represents an 11 percent improvement from the 8,748 ounces it produced in the same period in 2010.

Gold sales rose 7.6 percent year-on-year to 9,740 ounce. And at US$1,683 an ounce the average realised gold sales price was 36.1 percent higher than in the previous third quarter. Sales revenue was up 47 percent to US$16.4 million.

“We are very pleased with the results,” said chief executive Courtney Chamberlain. “They are above our expectations.

“The results were buoyed by production at Corihuarmi which was well above our expectations. This was mainly down to higher grades and increased throughput.”

Gold production began at Corihuarmi in 2008, and the mine is running at an annualised plus 30,000 ounces a year.

In a note to clients today Fox-Davies analyst Peter Rose said that Minera processed more tonnage than the broker had expected and as a result production was higher than forecast.

Rose also said that the mine’s costs have fallen in every quarter of this year. However the analyst reckons this streak may be broken in the current quarter as the mine is expected to process lower grade ore.

While relatively modest in size compared to South America’s larger mines, Corihuarmi is the cash machine that drives Minera IRL’s more substantial ambitions.

The firm has two mine development projects that are currently being advanced through the feasibility stages. 

In Peru full feasibility work is currently underway at the Ollachea project, following a successful pre-feasibility study earlier this year. 

Meanwhile Don Nicholas is the other key development project.  It is located in the Santa Cruz region of Patagonia, Argentina. This area is fast becoming an exploration hot spot with several significant mines currently being built.

The Argentine project is more advanced than Ollachea. Here Minera hopes to have the feasibility study completed by the end of this year. The mine is expected to be commissioned in 2013.

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