Name and Location
Ollachea gold project, Peru.

Client
Minera Kuri Kullu, a subsidiary of Mineral IRL.

Project Description
The Ollachea project hosts a Canadian National Instrument 43-101-compliant indicated resource of 10.6-million tonnes, grading 4 g/t gold for 1.4-million ounces of gold. Probable mineral reserves are indicated at 9.3-million tonnes, grading 3.4 g/t gold for one-million ounces of gold.

A definitive feasibility study (DFS) on Ollachea has confirmed an economically and technically robust, long-life project, producing 113 000 oz/y of gold at full capacity.  The main access to the orebody will be through a 1.2-km-long exploration access drive from the plant site, in the adjacent valley.

A conventional metallurgical processing plant will extract 91% of the gold and will have a capacity of 1.1-million tonnes a year. Tailings will be filtered and split between underground cemented fill and dry stacking on the surface.

Value
The project has an upfront capital cost estimate of $177.5-million.

Duration
Ore-stoping production is scheduled to begin in early 2015, ramping up to the full 1.1-million-tonne-a-year rate by mid-2016.

Latest Developments
The Peruvian Mines and Energy Ministry (MEM) has approved the environmental- and social-impact assessment (ESIA) for the Ollachea gold project, paving the way for Mineral IRL to start construction of the project.

Minera IRL submitted the ESIA for project to the MEM in December 2012, which was the result of more than three years of environmental baseline studies, the DFS, archaeological studies, the water management plan, flora and fauna studies, social baseline studies and comprehensive community public consultations.

The Ollachea community “overwhelmingly” endorsed the ESIA, which was supported by a 30-year surface rights agreement with the community.

With government approval of the ESIA, the company will now focus its efforts on obtaining the construction permit, which management expects to receive in the first quarter of 2014. The company will also continue to advance project-financing negotiations, which are expected to be substantially complete toward the end of the year.

The company expects to start construction activities in 2014 and mine production in 2015.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Minera IRL VP: corporate relations, Trish Kent, tel +511 418 1230, fax + 511 4181270 or email minera@irl.com.pe.