MIRL.L Regulatory News (MIRL)

17 Jan 2008 07:00

Minera IRL Limited17 January 2008 Minera IRL Limited Mining and Crushing Commences, Corihuarmi Project, Peru London: 17 January 2008. Minera IRL Limited ("MIRL" or "the Company") is pleasedto announce that mining and crushing operations have commenced at the CorihuarmiMine located in central Peru. This is consistent with the Company's schedule tobegin gold production during the first quarter of 2008. Mobilization of the mining fleet by contractors Constructores y Mineros (CyM)commenced during December and open pit mining operations are gearing up to theplanned rate of 1 million tones per annum of ore. Initial production will befrom the higher grade Diana ore zone. The installation of the single stage crushing circuit has been completed underthe supervision of EPCM contractors Buenaventura Ingenieros S.A. and crushingcommenced on 9 January 2008. Crushing is the first stage in the heap leachprocess being used at Corihuami to recover gold. The Company is scheduled toproduce over 35,000 ounces in 2008 at a cash operating cost of approximately$300 per ounce. Other aspects of the project are proceeding on track and recruitment of theoperating workforce is well advanced. MIRL Chairman, Courtney Chamberlain, comments "Commencement of mining andcrushing are major milestones in coming on stream. We are well placed to takeadvantage of the gold price, currently at record levels, from our fully unhedgedgold production. The exploration programme at Corihuarmi has also recommenced.The objective will be to extend the mine life by following up significantencouragement along strike from the existing orebodies." MIRL is an emerging gold producer in the Andean region. The company alsorecently signed a surface rights agreement with the community for the OllacheaProject (acquired from Rio Tinto) in the south of Peru and is about to commencea large exploration programme on this project. 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 (Nomad & Broker, London) + 44 (0)20 7012 2000Paul VanstoneInna Vassina Bankside Consultants (Financial PR, London) + 44 (0)20 7367 8888Simon RothschildLouise Mason Credibolsa (Broker, Lima) + 55 13132900Christian Chocano Synergy Asociados (Public Relations, Lima) + 511 446 2055/446 1832Magaly Villena + 511 9400 8101/98552232Jorge Leon + 551 9837 5186 This information is provided by RNS The company news service from the London Stock Exchange