Minera IRL discovers significant presence of gold and copper at the Bethania project near Corihuarmi

Minera IRL (LON:MIRL, TSX:IRL, BVL:MIRL) has identified a substantial hydrothermal alteration system, with a significant presence of gold and copper, at the Bethania project, just 10km away from its operational Corihuarmi gold mine in Peru.

The system was identified through the Phase 1 drilling program at Bethania with six holes, of a twelve hole program, intersecting broad zones of gold copper molybdenum mineralization. "Our initial exploration drilling indicates a potentially widely disseminated gold and copper system ... There is plenty of space for a large mineralized body within the system and we are looking forward to further exploration,”  Minera IRL chairman Courtney Chamberlain commented.

The project’s first drilling program encountered substantial intersections of low grade gold, copper and molybdenum in a porphyry setting. The highlight, hole RC10-BET10, intersected 276m grading 0.38grams per tonne (g/t) gold, 0.09% copper and 30ppm molybdenum, including 72m from surface of 0.66g/t gold, 0.13% copper and 40ppm molybdenum
The program’s other highlights include: RC10-BET07 averaged 0.32g/t gold, 0.09% copper and 32ppm molybdenum over the entire 426m of the hole, with a higher grade  zone of 124m at 0.39g/t gold, 0.10% copper and 22ppm molybdenum from 260m down hole;  RC10-BET09 recorded two intersections, 90m from surface at 0.46g/t gold, 0.15% copper and 54ppm molybdenum, and 64m from 216m down hole grading 0.41g/t gold, 0.11% copper and 25ppm molybdenum; And RC10-BET11 averaged 0.29g/t gold, 0.10% copper and 30ppm molybdenum for 424m from surface.

The Bethania project comprises three exploration licenses, owned by the company, as well as an additional 942 hectares (Ha) which are leased under option from Minera Monterrico Peru SAC. Minera IRL has the option to acquire 100% ownership of the leased are, to take the project area to a total of 3,294Ha. 

The company began exploring the consolidated project area in October 2009, with the 4,856m twelve hole program being completed in February 2010. 

Drilling targeted a large porphyry gold or gold/copper deposit, which the company describe as “an extensive alteration zone, measuring approximately 3.5km by 1.2km, associated with an Induced Polarization chargeability/resistivity anomaly indicating the presence of extensive disseminated sulphide mineralization”. 

The company added that “coincident ground magnetic anomalies, extending beyond the recently explored area, are interpreted to be associated with near-surface potassic-altered mineralized centres”.  

Minera IRL is the Toronto, London and Lima listed holding company of precious metals mining and exploration companies focused on Latin America.  It operates the Corihuarmi gold mine and the emerging Ollachea gold project in Peru as well as the Don Nicolas project in Argentina.

At the Corihuarmi gold mine, the company produced 7,071 ounces of gold in the first quarter, ahead of budgeted projections, realising sales revenue of US$8.4m, an average sales price of US$1,110/oz and a cash operating cost of US$432/oz.

This morning in an update to investors, London-based stockbroker Fox-Davies said it believes “there will be the opportunity to bring a large amount of low grade material into the ore reserves” at Coruhami, noting higher gold price trends as the impetus.

In the company’s Q1 results, announced last week, Chamberlain said “The company's financial performance for the three months to 31 March 2010 was in line with management's expectations, with our Corihuarmi gold mine continuing to perform well”.

Elsewhere, Minera highlighted that the in-fill drilling for the Ollachea project pre-feasibility study has commenced, whilst also noting the new discovery at Concurayoc. “The new Concurayoc discovery at Ollachea ... has identified potentially economic grade gold mineralization over a strike length of some 500 meters.”

Elsewhere at the Don Nicolas project, the Feasibility Study began during the first quarter.  The company also noted  nearby discoveries, by other explorers. “In Patagonia, a large breccia body named Escondido has been identified immediately adjacent to the Dos Calandrias discovery announced by Mariana Resources. Surface sampling on Escondido has returned anomalous gold values over a strike length of some 700 meters.” 

The Don Nicolas feasibility study is due for completion in 2011.

On a corporate level, the company moved up to the main board of the Toronto Stock Exchange (TSX), and sealed a US$20 million debt finance facility, with Macquarie Bank, to fund the development and exploration push at the “rapidly evolving” Ollachea and Don Nicolas projects.