MIRL.L Regulatory News (MIRL)

28 Aug 2009 07:00



Minera IRL Limited

("Minera" or "the Company")

Interim Results for the six month period ended 30 June 2009

London, 28 August, 2009 Minera IRL Ltd (AIM: MIRL), the South American mining company, is pleased to announce its interim results for the six months ended 30 June 2009.

Highlights in the year to date:

Gold produced to 30 June 2009 was14,903 ounces

Sales revenue US$13.3 million

Corihuarmi cash operating cost was $388 per ounce

EBITDA was $4.1 million

Profit before tax US$1.2 million, after tax US$0.5 million

Cash balance of US$5 million at 30 June 2009 after repayment of US$2.5 million of bank loans 

New equity fund raising US$14.2 million increases cash to US$19 million at end of July 2009

New Life-of-Mine plan extended mine life at Corihuarmi

Drilling continued to define the new gold discovery at the Ollachea Project

New project at La Falda, Chile

Executive Chairman Courtney Chamberlain commented: "We are satisfied with the half yearly results and the progress we have made. Gold sales of US$13.3 million were on the back of a continuing strong gold price where our spot sales averaged US$917 per ounce for the period. Gross profit was US$4.2 million, EBITDA US$4.1 million, profit before tax US$1.2 million and profit after tax US$0.5 million.

A major fund raising, which netted us US$14.2 million was completed in July, bringing our cash balance to approximately $19 million. This places us in a strong position to grow through both our own projects and corporate opportunities.

Our Corihuarmi Gold Mine continues to perform well with cash operating costs below $400 per ounce providing the cash flow needed to support our basic corporate business plan. This was achieved in spite of the anticipated reduced production as mining moved to the lower grade Susan deposit.

I am very pleased with the progress that we continue to make and anticipate a number of new initiatives coming to fruition in coming months."

For more information contact:

Minera IRL Limited ("MIRL") is the AIM and Lima, Peru listed holding company of precious metals mining and exploration companies focused in Latin America. MIRL 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.

www.minera-irl.com

Chairman's Statement

The first half of 2009 has been another good period for Minera IRL with progress on many fronts placing your Company in an ever stronger position to grow and prosper.

The financial performance of Minera IRL for the first half was in line with our expectations. On the back of gold sales of US$13.3 million, we generated a gross profit of US$4.2 million, an EBITDA of US$4.1 million, a profit before tax of US$1.2 million and an after tax profit of US$0.5 million. Cash at 30 June 2009 was US$5.1 million despite the repayment of US$2.5 million of bank loans during the period.

Whilst Corihuarmi continues to admirably support our corporate business plan, production is not sufficient to fund our ambitious growth aspirations. Due to the growing importance of our Ollachea Project and upcoming demands of new projects, we undertook an equity raising which netted the Company US$14.2 million. This brought us to a very strong cash position of approximately US$19 million at the end of July.

Following an exceptional inaugural year, our Corihuarmi Gold Mine has settled into a consistent operation managed by an excellent team supported by a dedicated workforce. A major effort was the successful transition of mining to the Susan outcrop which included the difficult establishment of access and the removal of an overlying waste capping. As expected, grade was lower than from the Diana ore zone mined in 2008 but production of 14,903 ounces for the 6 months was on target for achieving over 30,000 ounces for the year. The average spot price obtained from sales was US$917 per ounce, a good margin over the cash operating cost of US$388 per ounce.

A new Corihuarmi Life-of-Mine Plan was completed during the period. The gold added to reserves more than offset depletion in 2008 resulting in the mine life being extended until mid 2013. The pending inclusion of other resources is expected to further add to mine life. The acquisition of a core exploration licence at Bethania, only 10km from Corihuarmi, provides immediate drill targets which has the potential to add further reserves to the mine.

Much progress has been made at our Ollachea Project which has emerged as a significant new gold discovery. At the time of writing over 19,000 meters has been drilled and 55 holes completed. The major focus has been to drill the Minapampa Zone, where the strike length has been extended to over 600 meters, in order to establish an Inferred Resource which will form the foundations for a Scoping Study which has recently been commissioned. The results of this study will be released later in the year. A third drill rig was added to the program in early August and this has commenced further exploration of the broader mineralized package of rocks.

In March, a Letter-of-Intent was signed with Catalina Resources on the La Falda Project in the Maricunga District of Chile. It is expected that this will be converted into a Definitive Agreement and Management Contract very soon. Minera IRL will have the right to earn a 75% equity. La Falda represents an early stage, but high quality, large gold porphyry exploration target supported by good surface samples and an excellent geophysical signature. Drilling with 2 rigs is planned as soon as the winter weather abates, probably in early October.

Gold price has continued strong in 2009, above US$900 per ounce, and, whilst somewhat volatile, has not shown the wide fluctuations of 2008. We are of the view that gold price will remain solid and have no plans to deviate from our policy of spot gold sales.

Peru remains a very attractive country for mining. The economy remains strong and Peru is the only country in Latin America that experienced a positive growth rate in the first half of 2009. The geology is excellent with the potential for many more discoveries. Peru has an excellent mining culture and sound mining law. We continue to build our reputation and cement our sound working relationship with the mining authorities. We greatly appreciate the assistance and support these government departments have given us.

Our success would not have been possible without our experienced Board of Directors and our excellent management team. Terry Streeter resigned from the Board on 15 July after 4 years of dedicated contributions as a Director as well as financial support, and I wish to extend my very special appreciation to Terry. I also wish to thank our ever growing list of shareholders for their ongoing support. I never lose sight of the fact that our shareholders are the owners of Minera IRL and all of our efforts in growing the Company are on their behalf.

Courtney Chamberlain

Executive Chairman

Minera IRL Limited 

27 August 2009

Minera IRL Limited

Consolidated Income Statement

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Consolidated Balance Sheet

Minera IRL Limited

Consolidated Statement of Changes in Equity

Minera IRL Limited

Consolidated Cash Flow Statement