MIRL.L Regulatory News (MIRL)

25 Jun 2007 08:49

Minera IRL Limited25 June 2007 Minera IRL Limited - Press Release, 25 June, 2007 Jaguelito Project, Argentina, Updated Resource Estimate London: 25 June, 2007. Minera IRL Limited ("MIRL" or "the Company") continues toadvance its project portfolio, having just completed a resource estimate on theJaguelito project located in San Juan Province, Argentina. Mining consultantsRSG Global carried out the resource estimate of the oxide zone whichincorporated the data from a MIRL in-fill drilling programme of 52 holes (5,762meters) conducted in early 2007. This resource estimate is summarized in Tables1 to 3 at gold equivalent cut-off grades of 0.3 gm/t, 0.5 gm/t and 0.7 gm/trespectively. Table 1 - Jaguelito resource estimate using a 0.3 gm/t gold equivalent cut-off* Measured Indicated Inferred TotalTonnes 1,996,247 3,458,625 1,035,325 6,490,197Grade Au, g/t 0.48 0.87 1.12 0.79Grade Ag, g/t 47 64 23 52Au ounces 31,057 97,297 37,367 165,722Ag ounces 3,005,410 7,132,959 750,882 10,889,251 *gold equivalent uses a gold silver ratio of 50 to 1 Table 2 - Jaguelito resource estimate using a 0.5 gm/t gold equivalent cut-off Measured Indicated Inferred TotalTonnes 1,726,426 3,040,259 789,433 5,556,118Grade Au, g/t 0.53 0.96 1.38 0.88Grade Ag, g/t 51 71 25 58Au ounces 29,180 93,521 35,143 157,844Ag ounces 2,828,475 6,891,713 634,725 10,354,913 Table 3 - Jaguelito resource estimate using a 0.7 gm/t gold equivalent cut-off Measured Indicated Inferred TotalTonnes 1,267,622 2,379,948 661,787 4,309,357Grade Au, g/t 0.60 1.10 1.57 1.03Grade Ag, g/t 58 84 25 67Au ounces 24,563 84,399 33,404 142,366Ag ounces 2,365,198 6,402,760 540,915 9,308,874 A key objective of the in-fill drilling programme for the pre-feasibility studywas to verify the work previously conducted by Minera Penoles SA (Penoles).Penoles, a large Mexico based diversified mining company, explored the projectarea between 1996 and 2002. During this period, Penoles drilled over 23,000meters which included the two known mineralized zones, Capote and Alcatraz.Penoles also completed an internal Scoping Study on the project in 2002. Basedon the Penoles block model (including sulphide mineralization), RSG Globalreported in the AIM Admission Document an Inferred Mineral Resource totalling9.34 million tonnes grading 0.71 gm/t gold and 89.2 gm/t silver containing214,200 ounces of gold and 26.8 million ounces of silver. The new JORC-compliant resource estimate represents only the oxidized zone. TheMIRL drilling and modelling has demonstrated improved gold grades which are morehomogenously distributed than previously thought. An analysis by RSG Globalconfirms that the closer drill spacing in this latest resource estimate hasresulted in the lowering of the average silver grade and contained silver ouncesprojected by Penoles, largely due to a more constrained high grade feeder zone.As a result of the increased confidence in the geological model provided by thein-fill drilling, MIRL has upgraded 123,000 ounces of gold and 9.7 millionounces of silver resources into the Measured and Indicated category at a 0.5 g/tgold equivalent cut off grade. Courtney Chamberlain, Executive Chairman of MIRL, commented:"The Capote zone at Jaguelito is now reasonably well defined but the highergrade gold zone in Alcatraz remains open in a number of directions. We arecontinuing to advance the pre-feasibility study which is scheduled forcompletion in September. The Company is also developing an exploration strategyto expand the known mineralized zones and make new discoveries on this highlyprospective, 11,700 hectare tenement package." MIRL also report that construction on the Corihuarmi project is progressing welland the project is scheduled to be producing gold in the first quarter of 2008.The Jaguelito and Ollachea projects additionally represent significantopportunities for expanding Minera IRL resources and future production. The Competent Person that has signed off on the contents of this release is MrDonald McIver, Vice President, Exploration, Minera IRL Limited, who is a memberof the AusIMM. For more information contact: Minera IRL +61 (0)408 888 803Courtney Chamberlain, Executive Chairman Arbuthnot Securities + 44 (0)20 7012 2000Graham SwindellsPaul 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