Minera IRL says its flagship mine in Peru producing more gold than expected

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LIMA, Peru – Minera IRL Ltd (TSX:IRL) says its Corihuarmi gold mine in Peru produced more gold last year than originally expected and its 2014 output will also be slightly ahead of previous guidance.

However, one of IRL’s growth projects is now forecast to come into production about one-quarter behind the previous forecast and another is taking longer than anticipated to receive a construction permit.

IRL said Monday that its Corihuarmi mine produced 25,223 ounces of gold in 2013, five per cent above its guidance of 24,000 ounces.

The company said it continues to expect the mine’s output will fall this year but now estimates it will produce 21,000 ounces in 2014 — 1,000 ounces more than its previous guidance.

IRL’s Don Nicolas joint venture in Argentina’s Santa Cruz province, which secured $80 million in funding from Companía Inversora de Minas SA last year, won’t be ready as soon as expected.

The company says Don Nicolas is now expected to begin production in the first quarter of 2015 rather than the fourth quarter of 2014.

IRL’s share of the Don Nicolas production is forecast to be about 25,000 ounces in 2015.

The company, which is registered on the Channel island of Jersey but listed on the Toronto and Australian stock Exchanges, is also working to bring the Ollachea gold project in Peru into production.

IRL said Monday it now expects to receive a construction permit for Ollachea in the second quarter of 2014, rather than in the first quarter. It’s still aiming to begin production in the fourth quarter of 2015.

It’s also working to negotiate debt financing for Ollachea, and now expects to complete that in the second quarter of 2014, rather than in the first quarter.

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