A Opportunity in Latin America TSX: IRL AIM: MIRL BVL: - - PowerPoint PPT Presentation

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A Opportunity in Latin America TSX: IRL AIM: MIRL BVL: - - PowerPoint PPT Presentation

A Opportunity in Latin America TSX: IRL AIM: MIRL BVL: MIRL Mines & Money 2013 Investor Presentation Forward Looking Statements This presentation is for informational purposes only and may not be reproduced or distributed to


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Mines & Money 2013 Investor Presentation TSX: IRL AIM: MIRL BVL: MIRL

A Opportunity in Latin America

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Forward Looking Statements

This presentation is for informational purposes only and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. This presentation does not constitute an admission document, listing particulars, prospectus, offering memorandum or an offer to sell or a solicitation to buy securities of Minera IRL Limited (the “Company”) and should not be relied on in connection with a decision to purchase or subscribe for any such securities. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or

  • n behalf of the Company nor advisors including, but not limited to, Canaccord Genuity Limited (“Canaccord Genuity”) and Royal Bank of Canada Europe Limited (“RBC”) nor their

respective shareholders, directors, officers or employees nor any other person as to the accuracy or completeness of the information or opinions contained in the presentation. None

  • f the Company or advisors shall be liable for any claims, expenses, damages (including direct, indirect, special or consequential damages), loss of profits, or opportunities arising from

the use of or reliance on the information contained in this presentation. The shares of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (“Securities Act”) or state securities laws and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such terms are defined in Regulation S under the Securities Act) except pursuant to certain exemptions. The distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdiction. In particular, this presentation should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be distributed to persons with an address in the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. Accordingly, subject to certain exceptions, the shares of the Company may not, directly or indirectly, be

  • ffered or sold within Australia, Canada, Japan, South Africa or the Republic of Ireland or offered or sold to a resident of Australia, Japan, South Africa or the Republic of Ireland.

This presentation is distributed in the United Kingdom only to persons who are approved persons or exempted persons within the meaning of the Financial Services and Markets Act 2000, or any Order made there under (including, without limitation, persons falling within either article 19 (Investment Professionals) or article 49 (High Net Worth Companies) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005) and, if permitted by applicable law, for distribution outside the United Kingdom to professionals or institutions whose ordinary business involves them engaging in investment activities. It is not intended to be distributed or passed on, directly or indirectly, to any other class or persons in the United Kingdom and persons of any description other than as described in this paragraph should not rely or act upon this presentation and the accompanying verbal presentation. This presentation and its contents and accompanying verbal presentation are confidential and are being supplied to you solely for your information and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose. This Presentation may contain forward-looking statements relating to the business and financial outlook of the Company which are based on the current expectations, estimates and projections of the Company. When used in this Presentation, the words “anticipate”, “expect”, “will”, “intend”, “estimate”, “forecast”, “planned” and similar expressions are intended to identify forward-looking statements or information. Forward-looking statements include, but are not limited to, the estimate of mineral reserves and resources, the timing and amount of estimated future production, costs and timing of development of new deposits, permitting time lines and expectations regarding metal recovery rates. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the Company to be materially different from its estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. The Company does not intend and does not assume any obligation, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such

  • statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.

Canaccord Genuity, which is authorised and regulated by the Financial Services Authority, is advising the Company and will not be responsible to anyone other than the Company for providing the protections afforded to customers of Canaccord Genuity. Any other person should seek their own independent legal, investment and tax advice as they see

  • fit. Canaccord Genuity’s responsibilities as the Company’s Nominated Adviser under the AIM Rules will be owed solely to the London Stock Exchange plc and not to the Company, to

any of its directors or any other person in respect of a decision to subscribe for or acquire shares or other securities in the Company. Canaccord Genuity has not authorised the contents of, or any part of, the Presentation and no representation or warranty, express or implied, is made by it as to any of its contents.

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A Portfolio of Golden Opportunities

Corihuarmi Mine

2012A: 27k oz Au 2013E: 24k oz Au Open pit mining Heap leach M&I:4.6m tonnes @ 0.38g/t Inf: 3.5m tonnes @ 0.45 g/t

Production Developing Mines Exploration The Cash Generator Flagship Project Additional Upside

Ollachea Project

Estimate 100k oz pa over first 9 years of production Underground mining CIL 10.6m tonnes @ 4.0g/t Feasibility Complete Exploration

Don Nicolas JV

Estimate 26k oz Au pa (net) Open pit mining CIL 1.2m tonnes @ 5.1g/t Fully Permitted Project Exploration Upside

Portfolio

Escondido Michelle Chispas Bethania Quilavira Cecilia Paula Andrea Goleta Microondas Frontera JV Huaquirca JV

Deseado Massif

Study underway to extend mine life Construction Permit expected in Q1-2014 100% of construction funds in place

Our Next Mine

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* Resident of Perú + Resident of South America

Diego Benavides* President Minera IRL SA Corporate lawyer with Peruvian mining experience in legal and business transactions Courtney Chamberlain* Executive Chairman Metallurgical Engineer with more than 45 years

  • f worldwide mining

experience in senior executive positions Donald McIver* VP Exploration Geologist with 28 years experience in Africa and Latin America Trish Kent* VP Corporate Relations International experience in public, investor and community relations Francis O’Kelly+ Internal Consultant Mining engineer with more than 40 years experience in mining and banking in the Americas Bill Hogg VP Project Development Mechanical engineer and project manager with more than 36 years professional experience, specializing in gold leach projects John Velásquez* General Manager Corihuarmi Gold Mine Process engineer, 22 years experience in Peru’s mining industry Stuart Smith Technical Manager Metallurgical engineer, specializing in gold extractive technologies, with more than 24 years

  • f worldwide experience

Brad Boland Chief Financial Officer More than 16 years of international financial experience in resource industries

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An Experienced Management Team

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Increasing Reserves & Resources

= Measured + Indicated Resources1 = Inferred Resources = Proven + Probable Reserves 2008 2009 2010 0.5 1.0 1.5 2.0 Ounces of Gold (millions) 2011 2012

1 - Mineral reserves are included in measured and indicated mineral resources.

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Latin American Countries with a History of Mining

Ollachea Development Project (95%) (Definitive Feasibility Study complete) Don Nicolas Development Project (51%) (“construction ready” and 100% financed) Corihuarmi Gold Mine (100%)

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Open pit, heap leach gold operation

 More than five years of profitable operations  History of extending mine life  Initial reserves 145k oz, >180k oz produced

2013 production forecast of 24,000 oz

 YTD Q3-2013: 18,777 oz produced  2014 production guidance of 20,000 oz

Engineering studies underway to extend mine life to 2016

 Feasibility Study underway at Cayhua deposit  High recoveries (83%), low waste-to-ore ratio, adjacent to existing operations

Other exploration projects could extend mine life again

 2012 exploration program identified several potentially economic zones  2013 exploration program continues to assess exploration targets

Peru: Corihuarmi Gold Mine (100%)

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CAYHUA ELY LAURA SUSAN PIT DIANA PIT DIANA EAST CAYHUA SOUTH

N

2012 Exploration Areas 2013 Exploration Areas Current Production Areas

SCREE SLOPE CAYHUA NORTH DIANA PIT EXTENSION

Corihuarmi: Production and Exploration Areas

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Current production

Production Expansion Exploration

Corihuarmi: Classic High Sulphidation Epithermal System

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The Company’s flagship project and next mine in Peru

 Government approval of ESIA received in Q3 2013  Definitive Feasibility Study for underground mine completed in late 2012  Construction Permit expected near the end of Q1 2014

Robust Project Economics

 Average annual production of more than 100,000 ounces during the first 9 years  First quartile low cash costs and manageable capex of $178 million

Key Infrastructure In-place

 Paved highways, grid power, ports, airports, and a skilled workforce

Strong Community Support

 30-year surface rights agreement in place

Significant Exploration Upside

 DFS only considers the Minapampa Zone  Concurayoc Zone hosts an inferred mineral resource of 0.9 million ounces  Recent 320m drilling step-out confirmed on-strike and down dip potential

Peru: Ollachea Gold Project

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Ollachea: Key Infrastructure in Place

 Interoceanic Highway  Grid power ($0.067 kW/h)  Abundant water supply  Skilled local workforce  Modern telecommunications  Comfortable altitude  Established camp  Matarani deep water port  Lima’s Callao Bay deep water port  Juliaca’s domestic airport  Lima’s international airport

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Ollachea: Infrastructure in Place

Existing 138 kV power line

View overlooking the Minapampa outcrop and the location of future upper mine facilities

Minapampa

  • re body outcrop

Future plant location behind ridge

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Ollachea: Excellent Facilities

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Ollachea: Strong Community Support

Community of Ollachea is our

partner:

 Strong community support  30-year surface rights agreement  5% participating interest in the

mine upon commercial production

Ollachea is the only community

within the “area of direct influence” :

 Streamlines the permitting process

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Ollachea: A Large Open-ended Orogenic Gold System

Community of Ollachea Future Plant Facilities

Historical and recent exploration results continue to demonstrate on-strike and down-dip potential

Mineralized Trend Ore-grade Intercepts 1.2 km Exploration Tunnel Mineral Resources LEGEND Regional Fault trace

? ?

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Ollachea: Drilling Demonstrates Exploration Upside

5.45 g/t Au over 9m

N

5.47 g/t Au over 11m

S

4.48 g/t Au over 20m

Minapampa Zone Concurayoc Zone 1.2km “exploration” tunnel

320 m step out

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Ollachea: Definitive Feasibility Study Highlights

Completed in November 2012 by AMEC and Coffey Mining Total gold production: 920,800 ounces

 Average annual production over 100,000 ounces for first 9 years  Significant mine life extension potential identified

Average total cash operating cost of $583 per ounce1

 A low-cost producer  Pay back period of 3.7 years (after tax)

Sustaining total cash operating cost of $632 per ounce2

 Sustaining and closure costs of $46 million over life of mine ($49 per ounce)

Low initial capital cost of $178 million ($193 per ounce)

 Financeable for a junior due to rapid pay back period

Significant exploration upside

 Recent exploration results continue to demonstrate on-strike and down dip

mineral resource expansion potential

1 – Based upon the November 29, 2012 Technical Report utilizing a gold price of $1,300 per ounce and assuming a 100% equity basis. 2 –Sustaining Total Cash Costs Per Ounce are defined as Total Cash Costs plus Sustaining Capital and Mine Closure costs.

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Ollachea: First 9 Years Production Profile

$0/oz $200/oz $400/oz $600/oz $800/oz $1,000/oz $1,200/oz $1,400/oz koz 20koz 40koz 60koz 80koz 100koz 120koz 140koz 1 2 3 4 5 6 7 8 9 Per Ounce Costs Annual Gold Production Gold Production (oz Au, 000) Total Cash Costs ($/oz Au) Sustaining Total Cash Costs ($/oz Au)

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Ollachea: A Highly Profitable Operation

$0 $500 $1,000 $1,500

Ollachea FS @ $1,300/oz Au

Profit Margin Sustaining Total Cash Costs Total Cash Costs

1 – Profit margin per ounce is defined as the realized sale price of the gold less Sustaining Total Cash Costs per ounce. 2 – Sustaining Total Cash Costs Per Ounce are defined as Total Cash Costs plus per ounce Sustaining Capital and Mine Closure costs. 3 – Total Cash Costs per ounce represent represent the mine site operating costs such as mining, processing, metal transport, refining, administration, government imposed royalties and government imposed 8% worker’s profit sharing, net of silver by-product sales revenue and are exclusive of corporate G&A, depreciation, community, capital, and exploration and development costs. 4 – Average LOM sustaining total cash cost per ounce for Ollachea Project based upon findings of the November 29, 2012 Feasibility Study at $1,300/oz Au.

106% Profit Margin Cash costs at Ollachea to produce an ounce

  • f gold4

1 2 3

Gold Price ($/oz) Total Sustaining Cash Costs ($/oz) Profit Margi n ($/oz) Profit Margi n (%) $1,200 $617 $583 95% $1,300 $632 $668 106% $1,400 $649 $751 116% $1,500 $666 $834 125%

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Ollachea: After-Tax NPV1 (millions)

Discount Gold Price ($/oz) Rate $1,200 $1,300 $1,400 $1,500 $1,600 $2,000 0% $271 $325 $379 $433 $486 $696 5% $154 $193 $233 $271 $310 $462 7% $120 $155 $189 $224 $258 $392 .10% $78.3 $108 $137 $166 $194 $308 IRR 19% 22% 25% 28% 30% 40%

1 – Based upon the November 29, 2012 Technical Report. Assumes a 100% equity basis and no consideration has been provided for the Community of Ollachea’s 5% equity interest, further project optimization opportunities, or for mineral resources outside of the Minapampa Zone.

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Ollachea: Expected Timeline to Production

2010 2011 2012 2013 2014 2015 In-fill & Extension Drilling Pre-Feasibility Study 30-year Surface Agreement Definitive Feasibility Study “Exploration” Drive (1.2km) ESIA Report Preparation Final Public Review of ESIA ESIA Review Period ESIA Approval Construction Financing Construction Permitting Mine Construction Production

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

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Santa Cruz has always been a mining-friendly jurisdiction

 Several precious metals mines in operation, others under development

The project is “construction ready”

 Definitive Feasibility Study completed in February 2012  Major permits for construction are in-place  Construction to commence in Q1 2014

The project is fully financed by joint venture partner

 $45 million in common and preferred equity, $35 million bridge loan facility

Strong community support

 10-year Social License Agreement with the communities of Jaramillo and Fitzroy

Robust project economics

 Simple open-pit mining with low operating costs and mine capex

Key infrastructure in place

 Paved roads, airports, gas pipeline, and water

Large 2,583 km2 exploration package on Deseado Massif

Argentina: Don Nicolas Gold Project (51% ownership)

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24 2 5 km

TRES CERROS

DON NICOLAS PROJECT AREA

MICHELLE PROJECT CHISPAS PROJECT ALBERTO PROJECT MANHATTAN PROJECT

Pinguino Argentex Las Calandrias Mariana Resources 5 1 9 ,0 0 0 oz AuEq Cerro Vanguardia AngloGold Ashanti 8 .6 M oz Au 1 2 1 M oz Ag

La Paloma Martinetas Cecilia Paula Andrea Proposed Plant Facility Location LEGEND National Highway Mill Trucking Radius (50 km) Rhyolites & Related Volcanics Mineral Title Boundary Surface Rights Boundary Development Project Exploration Prospects Proposed Plant Facilities Escondido Goleta Microondas

Cerro Morro Yam ana Gold 2 M oz AuEq

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Don Nicolas: Definitive Feasibility Study Highlights

Completed in February 2012 by Tetra Tech Total gold production: 181,000 ounces (90,500 net)

 Average gold production of 52,400 ounces (26,200 net ounces to Minera IRL)  After-tax IRR of 23% and NPV1 of $22 million  Initial mine life of 3.6 years, significant mine life extension potential  Reserves represent only 42% of measured and indicated resources

Average total cash operating cost of $578 per ounce1

 A low-cost producer, rapid 2-year payback period

Sustaining total cash operating cost of $640 per ounce2

 Sustaining capital cost of $7.3 million over life of mine ($40 per ounce)  Closure costs of of $4.0 million ($22 per ounce)

Low initial capital cost of $56 million ($306 per ounce)

 Construction capital provided by joint venture partner

Substantial upside through engineering and exploration

 Evaluating the economics of an accompanying heap leach operation  2,583 km2 prospective land package with several high-priority drill targets

1 – Based upon February 14, 2012 Technical Report utilizing a gold price of $1,250 per ounce and a silver price of $25 per ounce. Assumes 100% ownership and 100% equity financing. 2 – Total Sustaining Cash Costs Per Ounce are defined as Total Cash Costs plus Sustaining Capital and Mine Closure costs.

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Don Nicolas: Expected Timeline to Production

Milestones 2010 2011 2012 2013 2014 2015 Definitive Feasibility Study EIA Preparation Brownfield Drilling EIA Approval Period In-fill & Extension Drilling Social License Agreement EIA Approval Mine Development Permit Updated Resource Statement Construction Financing Mine Development Expected Production

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

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Financial Position and Capital Structure

Shares Outstanding1 182,824,225 Stock Option Plan2 Debt Facility Options3 12,360,000 18,786,525 Fully Diluted 213,970,750 Recent Share Price C$0.21 Market Capitalization C$38 million Cash & Equivalents4 ~US$5 million Undrawn Portion of Debt Facility4,5 US$5 million

1 – As at November 15, 2013 2 – The weighted-average strike price is £0.6707 per share purchase option 3 – The weighted-average strike price is US$1.06 per share purchase option 4 – As at November 15, 2013 5 – US$25 million of the US$30 million Macquarie Debt Facility is currently drawn and matures on June 30 2014.

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Appendix: Equity Research and Major Shareholders

Mineral IRL is formally covered by the equity research analysts listed above. Any opinions, estimates, or forecasts regarding Minera IRL’s performance made by these analysts are theirs alone and do not represent opinions, forecasts, or predictions of Minera IRL or its management. Minera IRL does not by its reference above, or distribution, imply its endorsement of or concurrence with such information, conclusions, or recommendations.

10.9% 7.4% 4.7% 4.5% 3.8% 3.6% 2.5%

Miton Asset Management Fratelli Investments JP Morgan Asset Management Black Rock Investment Management RBC Global Asset Management MIRL Directors & Management Macquarie Group

Dmitry Kalachev Adam Melnyk Martin Potts Peter Rose HumbertoLeón Cailey Barker

Stephen W alker

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A Portfolio of Golden Opportunities

Corihuarmi Mine

2012A: 27k oz Au 2013E: 24k oz Au Open pit mining Heap leach M&I:4.6m tonnes @ 0.38g/t Inf: 3.5m tonnes @ 0.45 g/t

Production Developing Mines Exploration The Cash Generator Flagship Project Additional Upside

Ollachea Project

Estimate 100k oz pa over first 9 years of production Underground mining CIL 10.6m tonnes @ 4.0g/t Feasibility Complete Exploration Upside

Don Nicolas JV

Estimate 26k oz Au pa (net) Open pit mining CIL 1.2m tonnes @ 5.1g/t Fully Permitted Project Exploration Upside

Portfolio

Escondido Michelle Chispas Bethania Quilavira Cecilia Paula Andrea Goleta Microondas Frontera JV Huaquirca JV

Deseado Massif

Study underway to extend mine life Construction Permit expected in Q1 2014 100% of construction funds in place

Our Next Mine

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Corporate Strategy

Permit and finance the Ollachea Mine

 ESIA is approved, Construction Permit expected in Q1 2014  Goal of arranging project debt facility by the end of Q1 2014

Start development activities for the Don Nicolas Mine joint venture

 $80 million of construction financing in place  All permits in place to start construction  Mine construction to start in early 2014, commission in late 2014

Extend the life of the Corihuarmi Mine again

 Cayhua deposit expected to extend mine life beyond mid-2015  Other near-mine exploration opportunities

Continue to explore

 Focus on generative exploration adjacent to existing operations

Maintain financial discipline while pursuing mine financing

 Limit discretionary spending during permitting and financing phases

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Appendix: Ollachea DFS Breakdown ($1,300 Au)

Item $M1 Mining Site Development Process Plant Ancillary Buildings Tailings System Indirect and Owners Cost Contingency 55.4 3.9 58.4 3.9 5.7 31.4 19.0 Project Capital 177.5 Sustaining Capital Closure Costs 41.6 4.2 Total LOM Capital Cost 223.3

Capital Cost Breakdown

Item $/t Ore1 $/oz1,2 Mining Processing Site G&A $23.4/t $21.5/t $4.3/t Site Cash Operating Costs $49.2/t $499/oz Royalties and Profit Sharing $85/oz Total Cash Costs3 $583/oz Sustaining and Closure Costs $49/oz Sustaining Total Cash Costs $632/oz Project Capital $193/oz Total Project Cash Costs $825/oz

Operating Cost Breakdown

1 - Costs are in Q3 2012 millions of US dollars, except for unit costs which are in US dollars. Assumes US$1,300 per ounce gold price. 2 - Some amounts may not compute due to the effects of rounding or truncation. 3 - Total Cash Costs per ounce represent the mine site operating costs such as mining, processing, metal transport, refining, administration, government imposed royalties and government imposed 8% worker’s profit sharing, net of silver by-product sales revenue and are exclusive of amortization, reclamation, capital, and exploration and development costs.

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Ollachea: Permitting Process and Progress

Baseline Studies Feasibility Study Impact Analysis & Management Plan Submission of ESIA Report (December 2012) ESIA Approval Received (September 2013) Construction Permit Expected in Q1-2014

Complete ESIA Document Components 1st Official Community Workshop (February 2012) 2nd Official Community Workshop (November 2012) Final Community Workshop (May 2013)

✓ ✓ ✓ ✓ ✓

✓ ✓

Public Participation Plan Executive Summary Completed Document

✓ ✓ ✓

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Mineral Reserves & Resources Statement

Total Proven + Probable Total Measured + Indicated Inferred Resources

Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (millions ) (g/t Au) (millions ) (millions ) (g/t Au) (millions) (millions ) (g/t Au) (millions )

Minapampa 9.3 3.4 1.0 10.6 4.0 1.4 3.3 3.3 0.3 Concurayoc 10.4 2.8 0.9 Ollachea (100%) 9.3 3.4 1.0 10.6 4.0 1.4 13.7 2.9 1.2 Don Nicolas (net 51%) 0.6 5.1 0.1 4.3 1.7 0.2 2.0 1.3 0.1 Corihuarmi (100%) 2.0 0.3 0.02 2.4 0.4 0.03 TOTAL GOLD 11.9 3.0 1.1 17.3 2.9 1.6 15.7 2.7 1.3

Notes on Mineral Reserves and Resources: 1. Total proven and probable mineral reserves are included in total measured and indicated resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral reserves and mineral resources are disclosed on a total project basis (at 100%). Tonnages are metric tonnes and are rounded to the closet million tonnes. Grades are rounded to the closest “0.0” and contained gold is reported as troy ounces. 2. Mineral resources for Ollachea are reported above a cut-off of 2.0 g/t Au. Mineral reserves at Ollachea are based upon a gold price of $1,300 per ounce, LOM project

  • perating costs of $49.2 per tonne of ore. Mineral reserves for Ollachea were estimated under the supervision of John Hearne of Coffey Mining Pty Ltd., who is

recognized as a Qualified Person for the purposes of NI 43-101. 3. Mineral resources for the Don Nicolas are declared with an effective date of 29 November 2012 and are are reported above a cut-off 1.5 g/t Au, except for La Paloma, which is 1.6 g/t Au, due to an increased trucking distance. Mineral reserves at Don Nicolas are based upon August 2011 mineral resources, a gold price of $1,100 per

  • unce, and a silver price of $25 per ounce. LOM mining costs are estimated at $2.80/t of material. La Paloma requires an additional of $5/t for hauling to Martinetas.

Processing Costs are estimated $35/t for all materials milled. Site G&A is estimated at $7.10 per tonne milled. Mineral reserves are associated with an ore:waste ratio of 11.9:1. Mineral reserves were estimated under the supervision of Carlos Guzmán of NCL Ingenieria y Construccion Limitada, Chile, who is recognized as a Qualified Person for the purposes of NI 43-101. Minera IRL has a 51% interest in Minera IRL Pantagonia, the holding company for Don Nicolas. 4. Corihuarmi mineral resources based upon mineral resources as at 1 January 2010 less depletion from 1 January 2010 until 29 November 2012 and a change in cut-off grade to 0.18 g/t Au for the Susan Deposit and 0.16 g/t Au for the Diana Deposit. Corihuarmi Inferred Resource is based on scree deposit as at 28 February 2010 less

  • depletion. Mineral resources at Corihuarmi were prepared under the supervision of Mr. Miguel Zulueta Torres of MZT Consulting and Alex Virisheff, Jean-Francois St-

Onge, and Doug Corley of Coffey Mining Pty Ltd., who are recognized as Qualified Persons for the purposes of NI 43-101. 5. For additional technical information, please refer to the associated NI 43-101 technical reports or the Company’s most recent AIF, which are available on SEDAR.

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For additional information, please contact:

Brad Boland Chief Financial Officer Tel: +1 (416) 907-7363 brad.boland@irl.com.pe Trish Kent VP, Corporate Relations Tel: +51 1 418-1230 trish.kent@irl.com.pe Jeremy Link Business Development Tel: +1 (416) 907-7363 jeremy.link@irl.com.pe