Monday, 5 November 2012

Minera IRL says Q3 output beat expectations

Minera IRL (LON:MIRL, TSE:MIRL) said that production from the Corihuarmi gold mine beat expectations in the third quarter.
That said, production from the maturing mine declined as anticipated as grades are lower.
A total of 7,660 ounces of gold were produced during the three month period, versus 9,718 ounces last year, and as a result cash costs per ounce increased to US$552 from US$356.
Gold sales totalled 7,520 ounces at a price of US$1,667 per ounce.
"The Corihuarmi Gold Mine in Peru continues to perform above our expectations and underpins the financial strength of the company as we continue to invest in the development of our substantial pipeline of projects,” said chairman Courtney Chamberlain.
“It is a great credit to the operating efficiency of our production team to treat ore with a grade below 0.5g/t at a site cash operating cost well under $600 per ounce."
Elsewhere it has been a quarter of progress with the Don Nicolas project in Argentina being signed-off by the authorities. The mine could potentially start producing gold next year. Once up and running the mine would add annual production of 55,000 ounces of gold and 56,000 ounces of silver.
"In Patagonia, Argentina, the company has received approval of its Environmental Impact Assessment and been granted a Development Permit in less than 5 months,” Chamberlain added.
“This is unprecedented turn-around of this process and management is very pleased with the support and assistance provided by the Santa Cruz government.  We are now in a position to take the final steps towards the development of Don Nicolas."
Also the feasibility study for the flagship Ollachea project in Peru is on track for completion in the fourth quarter.
Chamberlain says the study is almost complete. Separately the underground exploration drive, which will allow the company to access a large part of the orebody, is progressing exceptionally well and has surpassed the half-way point reaching 669 meters. 
"Drilling from underground to explore the eastern strike of the deposit is scheduled to commence shortly,” he said.

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