MIRL.L Regulatory News (MIRL)

21 Sep 2007 07:01

Minera IRL Limited21 September 2007 Minera IRL Limited - Press Release Submission of Pre-feasibility Study on Jaguelito Project, Argentina London: 21 September 2007 Minera IRL Limited ("MIRL" or "the Company") has completed a Pre-feasibilityStudy on the Jaguelito Silver/Gold Project located in San Juan Province,Argentina. This study was based upon a comprehensive 12 month programme whichincluded 5,762 meters of diamond drilling. The resource estimate carried out bymining consultants RSG Global was announced on 25 June 2007. The resource, inall categories and using a 0.5g/t gold-equivalent cut-off grade, totalled 5.6million tonnes grading 0.88g/t gold and 58g/t silver. The Pre-feasibility Study included mining studies, the results of metallurgicaltesting, processing options, infrastructure requirement and capital andoperating cost estimates. The study concluded that the project is not viablewith the currently defined resource base. Under the terms of the Company's contract with Instituto Provincial deExploraciones y Explotaciones Mineras (IPEEM), the agency that owns the miningleases, the Pre-feasibility Report must be lodged on or before 22 September,2007 and this has taken place today. MIRL has 30 days to advise IPEEM of thedecision to proceed to the next phase of a staged earn-in agreement and theCompany is in discussions with IPEEM as to the possibility of carrying outfurther exploration within the project area. Courtney Chamberlain, Executive Chairman of MIRL, commented:"Whilst the result of the Pre-feasibility study is disappointing, our teamcarried out a very professional evaluation on Jaguelito and we have a thoroughunderstanding of the local geology. Discussions over the next 30 days willinvestigate possible means that may still be open to increase the resource baseof the project through further exploration. In this process we continue toreceive strong encouragement from the San Juan provincial and Argentina nationalmining authorities. " MIRL also reports that construction on the Corihuarmi project is progressingwell and the Project is expected to be producing gold in the first quarter of2008. Important advances are also being made toward signing a Surface RightsAgreement at the Ollachea Project in southern Peru. Once signed, exploration onthis highly prospective tenement package will commence. For more information contact: Minera IRL +61 (0)408 888 803Courtney Chamberlain, Executive Chairman orTrish Kent, Manager, Corporate Relations +511 242 0421 Arbuthnot Securities + 44 (0)20 7012 2000Paul VanstoneInna Vassina Bankside Consultants + 44 (0)20 7367 8888Simon RothschildLouise Mason This information is provided by RNS The company news service from the London Stock Exchange