Minera IRL Reports Year-End 2016 Financial Results

LIMA, PERU–(Marketwired – March 31, 2017) – Minera IRL Limited (“Minera IRL” or the “Company”), (BVLAC:MIRL)(CSE:MIRL)(CSE:MIRL.CN), the Latin America gold mining company, has reported its financial results for the year ended 31 December 2016. The Company has also provided an update on its outlook for 2017.

2016 Highlights:


  • Gold sales of 23,343 ounces (2015: 24,056 ounces) at an average realized gold price of $1,245 per ounce (2015: $1,143 per ounce).
  • Revenue of $29.1 million, (2015: $27.6 million).
  • Gross profit of $7.2 million (2015: $6.5 million).
  • Loss before tax of $10.4 million (2015: 14.7 million).
  • After tax loss of $10.4 million (2015: 15.1 million).
  • Cash balance of $6.8 million at the end of the quarter (December 2015: $15.6 million).
  • Debt of $69.2 million at 31 December 2016, up from $65.7 million at 31 December 2015 (including amounts due to Rio Tinto).

Operational Performance

Corihuarmi, Peru

  • Gold production from the Corihuarmi Gold Mine of 23,399 ounces (2015: 23,917 ounces).
  • Ore mined and staked of 3,040,331 tonnes (2015: 2,965,576 tonnes).
  • Waste of 1,430,311 tones (2015: 825,985 tonnes).
  • Total cash costs were $806 per ounce produced (2015: $793).
  • Total all-in sustaining costs (AISC) were $1,074 per ounce produced (2015: $1,047)

Ollachea, Peru

  • Results of the 2016 Minapampa East zone drill program outline an exploration target of 370,000 to 550,000 ounces of gold contained within 3.1 to 4.6 million tonnes, grading 2.9 to 4.3 g/t gold

Commenting on the annual results, Gerardo Perez, Minera IRL Limited’s Chairman, said, “”I have the honor to Chair the Board of Directors, which has received the mandate from our shareholders to pursue opportunities which generate value for the Company. Thus, in these few months we have made good progress in the company. The two most important milestones that we achieved last year were”

  • The revocation of the cease trade orders issued by the Canada and Peru securities regulators and subsequent recommencement of trading on the Lima Stock Exchange (BVL) and Canadian Securities Exchange (CSE) earlier this year.
  • The successful drilling campaign carried out at Ollachea during the second half of 2016, proving the continuation of the Minapampa mineralization over 500m to the east. The results outline an exploration target of 370,000 to 550,000 ounces of gold contained within 3.1 to 4.6 million tonnes. The mineralization at Ollachea remains open to the east and at depth.

“Our Corihuarmi Gold Mine continued to exceed expectations and provided strong cash contributions in 2016. The exploration campaign the Company carried out between December 2016 and March 2017 allows us to extend Corihuarmi’s life of mine well into 2019. Whereas we have recorded a gross profit of US$7.2 million, we incurred an after-tax loss of US$10.4. The gold price is, at the date of this report above the US$1,200 level which compared to the price at the end of 2016 of US$1,159 per ounce, and US$1,062 at the end of 2015, shows a moderate upwards trend.

Regarding the Ollachea Project we are currently evaluating to optimize the CAPEX, the processing plant size, cutoff ore grade and mine development strategy.

The cash flow from the Corihuarmi mine covers our general, administrative and social costs.

Regarding the mandate for the U$240m structured financing subscribed with COFIDE dated June 2015; the agreement was revoked by COFIDE due to a strategy change of the organization by the government of Peru. Once the exclusivity clause of the mandate lapses on April 1st 2017, the company’s objective is to secure financing for the Ollachea project during the second quarter of 2017.

Community relations at Ollachea remain strong. The Company supports important programs in health and welfare, nutrition, education and sustainable development.

I wish to convey my sincere appreciation to our current Board of Directors, management team and all employees for their loyalty, dedication and hard work. I would also like to thank our shareholders for their continuing support. I feel confident that continuing potential at our Corihuarmi gold mine and our Ollachea gold project places Minera IRL Limited in a good position to continue building a successful Gold Producer Company

A summary of the key financial measures for the three- and twelve-month periods ended 31 December 2016.

Table 1: Summary of Key Financial and Operational Measures

Operating Parameters Three Month Period
Ended 31 December
Ended 31 December
2016 2015 2016 2015
Waste (tonnes) 426,499 143,187 1,430,312 825,985
Ore mined & stacked on heaps (tonnes) 729,904 778,038 3,040,331 2,965,576
Ore grade, mined and stacked (g/t) 0.40 0.30 0.32 0.33
Gold produced (ounces) 6,149 6,036 23,399 23,917
Total cash costs ($ per ounce) 1 824 892 806 793
Total all-in sustaining costs ($ per ounce) 1 1,110 1,304 1,074 1,047
Financial Three Month Period Ended
31 December
Year Ended
31 December
2016 2015 2016 2015
Revenue ($’000) 7,454 7,669 29,163 27,584
Gold sold (ounces) 6,206 6,987 23,343 24,056
Realized gold price ($ per ounce ) 1,196 1,098 1,245 1,143
Gross profit ($’000) 1,660 2,041 7,244 6,527
Loss after-tax ($’000) (2,322) (4,630) (10,413) (15,085)
Comprehensive loss ($’000) (2,322) (4,630) (10,413) (15,085)
Loss per share – (cents) (1.0) (2.0) (4.5) (6.5)

1 – Refer to the Cautionary Non-GAAP and Non-IFRS Statements at the end of this release


In 2017, the Company is forecasting gold production of 22,000 ounces from Corihuarmi. Production is expected to come mainly from the Cayhua zone, along with continued production from zones Susan, Laura, Tambo Nuevo, Diana extension, plus nearby Scree Slope material.

The 2017 Corihuarmi capital budget is $2.0 million for the construction of a heap leach pad. This expansion is to accommodate all of the material that is scheduled to be mined and stacked until the second quarter of 2018.

Between December 2016 and March 2017, the Company completed 7,291 metres of exploration drilling in 86 drill holes at the Corihuarmi mine. The exploration program defined additional material at the Cayhua, Tambo Nuevo and Laura zones. As a result of the exploration activities and evaluation, the Corihuarmi life of mine has been extended until mid-2019.

This press release should be read in conjunction with the Company’s full Report & Accounts, including the Management’s Discussion and Analysis (“MD&A”) for the year ended 31 December 2016, which are available from the Company’s website (www.minera-irl.com) and on SEDAR (www.sedar.com).

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 news release, including information about the Company’s financial or operating performance, information about the legislative regime to which the Company is subject, and other statements expressing management’s expectations or estimates of future events, performance and exploration and development programs or plans constitute “forward-looking statements”. Forward-looking statements in this press release include our plans for establishment of updated resource estimates and the expected timing to accomplish each of them. Forward-looking statements are, necessarily, based upon a number of estimates and assumptions. While considered by management to be reasonable in the context in which they are made, forward-looking statements are inherently subject to political, legal, regulatory, business 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 financial results, legislative environment, future performance and results of exploration and development programs and plans 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, any failure to obtain or complete project financing for the Ollachea Gold Project (including the Senior Debt Facility), availability of labour and equipment and financial resources, delays in development or in receiving reports on our development, changes in the price of precious metals and commodities, changes in the relative exchange rates of the US dollar against the Peruvian nuevo sol, interest rates, legislative, political, social or economic developments both within the countries in which the Company operates and in general, contests over title to property, the speculative nature of mineral exploration and development, operating or technical difficulties in connection with the Company’s development or exploration programs, increasing costs as a result of inflation or scarcity of human resources and input materials or equipment. Known and unknown risks inherent in the mining business include potential uncertainties related to the title of mineral claims, the accuracy of mineral reserve and resource estimates, metallurgical recoveries, capital and operating costs and the future demand for minerals. For additional information, please consult the Company’s most recently filed MD&A and Annual Information Form.

Minera IRL Limited
Diego Benavides Norlander
Chief Executive Officer
+51 1 418 1230

Minera IRL Limited
Carlos Ruiz de Castilla
Chief Financial Officer
+1 778 387 5434

Minera IRL S.A
Marco Arevalo
General Counsel
+51 1 418 1230