MIRL.L Regulatory News (MIRL)

5 Dec 2007 09:22

Minera IRL Limited05 December 2007 Minera IRL Ltd Second Payment to Rio Tinto for Ollachea Project London: Minera IRL Limited ('MIRL' or 'the Company') is pleased to announce thaton 4 December 2007, the second payment of US$500,000 was made to Rio Tinto forthe Ollachea project. The project was initially explored by Peruvian Gold Limited, who drilled 5diamond holes over a 400m strike length during 1998 and 1999. That companyreported significant gold intersections in each hole of potentially economicgrade. As reported in the Company's Admission Document, better intersectionsincluded 73.5m at 1.04g/t au (including 24m at 3.02 g/t au), 43.75m at 0.90 g/tau and 129.05m at 0.74 g/t au (including 18m at 2.08 g/t au). Rio Tinto acquired the leases over 8,999 hectares in 2003. As part of itsexploration programme Rio Tinto collected 39 samples, averaging 6.36 g/t au,from an area of 1km by 1.2kms. The mineralized area was reported by consultantsRSG Global as having a strike length of at least 1.5kms and a minimum aggregatewidth in the order of 400m. The mineralized zone is hosted in a broad shear zoneassociated with a slate and shale regional setting. The area has been worked byartisanal miners since the 18th century focused on high grade veins. However thecompany is seeking to confirm a bulk tonnage deposit as indicated by the recentlimited exploration. Minera IRL has the right to earn 100% equity by paying Rio Tinto US$6,250,000 instaged payments over 4 years. The Ollachea Project in Southern Peru represents a cornerstone gold project forMinera IRL Limited. The leases were transferred by Rio Tinto to Minera KuriKullu S.A., a fully owned subsidiary of Minera IRL Limited, on 23 February 2007.This recent payment to Rio Tinto became due 10 days after the signing of asurface rights agreement with the local Ollachea community, as was announced on26 November 2007. This agreement, which was reached after 15 months ofnegotiations with the community, fulfills the other prerequisite to commenceexploration on the property. The exploration programme is scheduled to commenceearly in 2008. Minera IRL Limited also reports good progress on the construction of theCorihuarmi gold project. Plastic lining of pads and ponds is well advanced, thecrusher has been delivered to site and tankage in the plant area is beinginstalled. The mining contractor is currently mobilizing to site in anticipationof commencement of mining. Gold production remains on schedule for the firstquarter of 2008. For more information contact: Minera IRLCourtney Chamberlain, Executive Chairman or +61 (0) 408 888 803Trish Kent, Manager, Corporate Relations +51 1 446 5384 Arbuthnot Securities + 44 (0)207012 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