Minera IRL Provides Corporate Update
Minera IRL Limited (
“Minera”, the
“Company” or
“we”) (BVL:MIRL)
(CSE:MIRL) (FWB:DZX) (OTCQB: MRLLF) is pleased to provide a summary
updating its objectives and achievements for the year, and its
expectations for 2023.
Management’s primary objective and commitment
over this past year has been to secure the financing for the
flagship Ollachea Gold Project (“Ollachea”). As
part of our strategy, we have expanded our marketing and outreach
efforts with the intention of increasing the public’s awareness of
Minera, having the potential to improve liquidity, and placing the
company in a better position to complete a transaction that enables
the construction of Ollachea.
STRATEGIC MARKETING PLAN
The focus of the Company during 2021 was to
achieve a solid foundation on which to build Ollachea, which
included the National Instrument 43-101 compliant Preliminary
Economic Assessment with an optimized startup CAPEX and mining
project design. This year, we have focused our effort on increasing
public awareness of our Company and our projects with particular
emphasis on the potential and opportunity for foreign investment in
Peru, as it continues to be one of the fastest growing economies in
Latin America and the outlook for the mining industry remains
positive.
In April, we participated as a keynote speaker
at the 3rd International Conference and Exhibition Mining Peru
2022, held in Lima. This conference brought together more than two
hundred decision-making executives from national and international
companies, as well as project owners and investors. During the same
month, we also had a technical article published in the Global
Mining Review, as part of an Exploration and Development feature.
The article entitled “A Golden Opportunity in South America”
provided subscribers with the prospects of the Ollachea Gold
Project. We have had a second article published by Global Mining
Review in its November/December issue. During the year, we have had
interviews published in both MINPER 2022 (distributed at PDAC and
PERUMIN 35), and LatAm Investor, where the challenges of financing
gold development projects in Latin America were analyzed.
Our marketing efforts for 2022 included two
roadshows in Europe, which is something we have not undertaken
since 2014. The first roadshow was completed in June followed by
another in September. Our Investor Relations team delivered a
series of group and one-on-one presentations focusing on the sound
results obtained at Corihuarmi during the past 14 years, and the
significant opportunity that we see in bringing our Ollachea Gold
Project into production. Interest shown by attendees was very
encouraging, despite the level of global economic uncertainty.
ALTERNATIVE FINANCING FOR OLLACHEA
We remain in discussions with potential parties
as a result of the roadshows, where it is recognized that Ollachea
is one of the few shovel-ready projects in South America.
While we remain open to traditional financing or
a strategic alliance, we have also begun to consider the
possibility of gold streaming as a potential alternative or
‘add-on’. A streaming deal could provide the company with some
significant portion of the required finance, reducing the debt
required to a level that might prove easier to obtain.
Our relationship with COFIDE is open and robust
and we have maintained regular and positive dialogue, and they
remain committed to supporting a transaction that would advance
Ollachea.
COMMUNITY ENGAGEMENT
The support and contribution to the development
and quality of life of our local communities has continued to be a
priority for the Company throughout 2022. We have ensured local
participation in the provision of labor and skills at both our
projects and have implemented social programs that are not only
impactful but boost local economies while supporting sustainability
and the preservation of cultural heritage.
This year AMARE, a group of women artisans from
Ollachea, supported by our Peruvian subsidiary, Minera Kuri Kullu
S.A., was selected as a finalist at the Kunan Challenge. This is an
important annual award that recognizes social entrepreneurship with
the aim of providing greater visibility of the wide array of
projects that address social and environmental challenges in Peru,
supported by the United Nations and various domestic corporate
entities. This is not the first time that Minera’s community
projects have been recognized at a national level both by private
and government entities, and we believe that this is another
validation of the success of our initiatives.
Minera remains a leader in community engagement
and our social programs have already been reviewed and confirmed
for 2023, in consultation and alignment with community
interests.
OTCQB VENTURE MARKET
(“OTCQB”)
With the aim to further increase visibility and
tradability of Minera’s shares in the marketplace, the decision was
made to uplist to the OTCQB Venture Market in the United States,
along with obtaining Depository Trust Company
(“DTC”) eligibility.
As a result of meeting the required reporting
standards and management certification process, our Company’s
ordinary shares have been uplisted to the OTCQB Venture Market,
under the symbol “MRLLF.” In addition, our ordinary shares are now
eligible for electronic deposit at DTC, which simplifies trading in
the United States and should attract more interest in trading by a
larger population of brokerage firms.
CORIHUARMI GOLD MINE
(“Corihuarmi”)
The total gold production from Minera’s
Corihuarmi mine during the third quarter of 2022 was 9% lower than
the second quarter of 2022. This is primarily a consequence of
prolonged transportation strikes and road blockages, plus
disruptions triggered by the community at our operation.
Performance has also been impacted by rising
prices of fuel and other consumables used in the mining industry.
Diesel prices in Peru between November 2020 and October 2022 have
risen by 60%1. Our fuel expense over the same period had an actual
increase of 80%, rising from $3.69 to $6.67 per gallon. Explosives,
which are an integral part of the drill and blast operations, have
almost doubled in their cost from $22.70 to $44.46 per bag. This
has resulted in significant production cost increases like many
other large and medium operators and producers worldwide.
We have implemented different initiatives
designed to mitigate this situation and ultimately revert it. These
efforts have included the execution of a diamond drill program and
in-house and third-party planning studies, which are already
yielding positive operational savings.
The diamond drill program was initiated in July
2022 with encouraging preliminary results announced in a Press
Release dated September 14, 2022. Gold mineralization at Corihuarmi
is mined by open pit methods with an average grade of 0.21 grams Au
per tonne, but these results suggest that production can be
improved due to the higher defined grades. The results also support
the possibility that operations at Corihuarmi can be extended past
the current Life of Mine, which is something we are reviewing at
this time.
October production results are already
reflecting the strategy that the Company has implemented.
Corihuarmi shipped 1,728 ounces of gold in October, a 45%increase
as compared to the September 2022 shipment of 1,190 ounces of gold.
As at the end of October 2022, a total of 17,250 ounces of gold
have been shipped and as we approach the end of the year our
priority and focus are on achieving the revised production target
of 20,000 ounces for 2022.
Diego Benavides, our CEO, said “Each year comes
with its own challenges, but we remain unwavering in our commitment
to get Ollachea financed, leveraging on the fact that it is one of
the few shovel-ready projects in South America. The gold market has
come under pressure this year, but given the present global
economic uncertainty, and as a long-term hedge against inflation,
we believe that the value of gold is positioned to strengthen. We
are confident that Ollachea will be recognized as a significant
opportunity, and that our efforts will result in a transaction that
enables the beginning of construction in 2023.”
About Minera IRL Limited
Minera IRL Limited is the CSE, BVL, FWB and
OTCQB listed holding company of Minera IRL S.A. and Compañía Minera
Kuri Kullu S.A., two precious metal mining companies engaged in
mining exploration, development, and operations in Peru, with a
primary focus on gold. Minera is led by an agile and experienced
senior management team with extensive mining industry experience,
particularly in South America. Minera operates the Corihuarmi Gold
Mine located 5,000 meters above sea level in Central Peru while
assessing opportunities to advance its Ollachea Gold Project
located in the Department of Puno, Southern Peru. For more
information, please visit www.minera-irl.com.
On behalf of the Board of Directors of
Minera IRL Limited
Gerardo PerezExecutive Chairman
Diego BenavidesCEO and Director
FOR FURTHER INFORMATION, PLEASE CONTACT:
Minera IRL Limited
Pedro ValdezHead of Investor Relations+51 1 418
- 1230
Susan GabbieManager, Communications+51 1 418 -
1230
No stock exchange, securities commission or
other regulatory authority has approved or disapproved the
information contained in this news release.
Cautionary Statement on Forward-Looking
Information
Certain information in this press release
constitutes “forward-looking statements.” Forward-looking
statements are based on assumptions. Forward-looking statements in
this press release include management’s belief that the development
of Ollachea represents a significant opportunity, its belief that
gold streaming could provide a significant portion of the capital
required to develop Ollachea and that a streaming deal might reduce
debt to a level easier to obtain, the Company’s expectation that
DTC eligibility should attract more trading interest in the United
States, its belief that the value of gold is positioned to
strengthen and that its efforts will result in a transaction that
enables the beginning of construction in 2023. While management
believes these assumptions and statements are reasonable in
context, forward-looking statements are inherently subject to
political, legal, regulatory, business, environmental and economic
risks and competitive uncertainties and contingencies. The Company
cautions readers that forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause
Minera IRL’s actual results and future performance to be materially
different than those expected or estimated future results,
performance or achievements and that forward-looking statements are
not guarantees of future performance, results, or achievements.
Minera IRL assumes no obligation, except as may
be required by law, to update or revise them to reflect new events
or circumstances. Risks, uncertainties and contingencies and other
factors that might cause actual performance to differ from
forward-looking statements include, but are not limited to, Peru’s
ability to continue to contain the COVID-19 crisis, changes in and
access to the capital or precious metals markets, weather, labor
unrest, the uncertainties inherent in mineral exploration and
changes to legislative, political, social, health or economic
developments both within Peru and in general.
1 Source: Fuel price statistics published by the Central Reserve
Bank of Peru (BCRP).
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