Short drive to Ollachea gold

25 July 2011

Minera IRL has announced plans for a 1.3km tunnel to develop the Ollachea gold mining project in Peru.

The tunnel is part of a prefeasibility study undertaken by Amec into developing the prospect. The Ollachea Project, 100 per cent owned by Minera IRL subsidiary Minera Kuri Kullu, will be developed initially from the slightly inclined tunnel from an adjacent valley after which the steeply dipping ore lenses will be mined by sub-level open stoping with cement paste fill. The geology of the location is a sedimentary belt that extends northwards from Bolvia through south-central Peru. The deposits are deformed slates and sandstones close to surrounding intrusive bodies. Coffey Mining of Australia worked with Amec on resource aspects and underground mining design. The current plan is for a 20014 start up and a rate of mining at 1.1 million tones per annum to produce 117 000 ounces of gold per year, giving a mine life of nine years, with potential for further development according to the geological indications. Project investment is estimated at USD 170M. Final consideration is underway to commence and exploration drive into the orebody. The Minera IRL group already operates the Corihuarmi gold mine in Peru and the advanced Don Nicholas Project in Patagonia, Argentina.