MIRL.L Regulatory News (MIRL)

8 Oct 2007 07:00

Minera IRL Limited08 October 2007 Minera IRL Limited Mining Contract Signed, Corihuarmi Project, Peru London: 8 October 2007. Minera IRL Limited ("MIRL" or "the Company") is pleasedto announce the signing of a long term mining contract with Constructores yMineros (CyM) for the Corihuarmi mine located in Central Peru. The contract isfor the mining, crushing and stacking on heap leach pads of 1,000,000 metrictons per annum of gold ore. Mobilization of heavy mining equipment will commenceshortly in anticipation of ore processing by the end of the year. CyM is a well established Peruvian owned contract mining and civil constructioncompany. They have had extensive experience in gold heap leach construction andpad preparation including major contracts at the Yanacocha Gold Mine. Staffing for the project has also been significantly advanced with theappointment of Mr. William Hogg as Project Manager. Mr Hogg brings a career ofinternational experience in the management of mine construction including heapleaching. Key executive management for the operations have also been recruitedand assembling of the production workforce is about to commence. Much of theessential infrastructure at the mine is now in place with the exception of thepower hook-up and crusher delivery which remain on schedule for later in theyear. MIRL Chairman, Courtney Chamberlain, comments "We are proud that we will shortlybe inaugurating the only gold mine currently under construction in Peru and areimmensely encouraged by the high gold prices that will generate significantlygreater financial returns than originally anticipated from our fully unhedgedgold production. We have also recommenced the exploration program which willfollow up encouraging drill intersections along strike from the existingorebodies with the objective of extending the mine life." Corihuarmi was acquired in 2002, drilled out over the ensuing 3 field seasonsand followed by a bankable feasibility study. The Environmental Impact Study wasapproved earlier in 2007 and construction commenced in May. The project is fullyequity financed from funds raised during the AIM listing. MIRL is an emerging gold producer in the Andean region. The company is alsocurrently negotiating a surface rights agreement over a large mineralized systemin the south of Peru that it acquired from Rio Tinto and has a number of otherprecious metal projects at various stages of assessment. For more information contact: Minera IRL +61 (0)408 888 803Courtney Chamberlain, Executive Chairman orTrish Kent, Manager, Corporate Relations +51 1 446 5384 Arbuthnot Securities + 44 (0)20 7012 2000John McGloinPaul Vanstone Bankside Consultants + 44 (0)20 7367 8888Simon RothschildLouise Mason This information is provided by RNS The company news service from the London Stock Exchange