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Minera IRL Reports Results of Scout Drilling from Pan De Azucar Prospect in Argentina

Minera IRL Limited, (TSX:IRL) (AIM:MIRL) (BVLAC:MIRL) the Latin American focused gold mining, development and exploration company, announces the results of scout drilling at the Pan de Azucar prospect in Patagonia, Argentina.

Highlights:

  • Twenty seven scout holes drilled over a strike length of 950 meters

  • Best holes into the vein structure include PDA-D10-005 with 3.25 meters grading 5.81g/t gold and 5.55g/t silver, including 0.7 meters of 15.5g/t gold and 21.4g/t silver, PDA-D10-021 with 5.0 meters grading 3.48g/t gold and 7.98g/t silver, and PDA-10-019 with 1.98 meters grading 3.51g/t gold and 8.28g/t silver

  • Splays and associated mineralization included PDA-D10-001 with 1.1 meters of 5.10g/t gold and 650g/t silver and PDA-10-19 with 15.66 meters grading 3.37g/t gold and 11.2g/t silver

  • Pan de Azucar is only one prospect within the Chispas Vein Field where more than 8 kilometres of outcropping epithermal veins remain to be explored

Assay results have been received from the first pass diamond drilling program at Pan de Azucar, one of many prospects within Minera IRL's 2,700 square kilometres of exploration licences in the Deseado Massif in Patagonia. Twenty seven holes were drilled for a total of 3,976 meters. This program probed a 950 meter strike length with staggered holes which targeted the vein structure between 30 and 160 meters below surface. This drilling was the first step in a much larger program to explore more than 8 kilometres of other outcropping epithermal veins within the Chispas Vein Field.

"Drilling at Pan de Azucar has been the first step of a major program to explore the Chispas Vein Field and we have learned a great deal." said Courtney Chamberlain, Executive Chairman of Minera IRL. "It is now quite clear from the geochemistry and vein textures observed in the drill samples, that the Pan de Azucar vein has been more deeply eroded than the other Chispas area veins which outcrop within a few kilometres. These veins have many occurrences of lattice bladed textures characteristic of the upper zones of a low sulphidation epithermal system. As a result, there is every indication that these veins are largely preserved and, supported by many elevated gold values from surface sampling, up to 22g/t, provide excellent targets for drilling during 2011."

The Minera IRL Patagonia project area was visited by an international authority on epithermal deposits, Dr Noel White, at the end of January 2011. In his report, Dr White states "With only two exceptions, the many prospects and veins that I visited showed clear evidence for exposure at shallow level. Whilst the vein is largely preserved, gold grades this high in the system are typically depressed. The implication is that drilling below outcrop has a good chance of finding better results."

Additional information on Pan de Azucar, including cross and long sections, as well as overall impressions by Dr White, can be found on the Minera IRL website.

A second round of scout drilling was also carried out on the Escondido project in December and these results will be reported in early March. Drilling is scheduled to recommence on 1 March and will progress through a range of targets.

Competent Persons Statement

The preparation of the technical information contained herein was supervised by Donald McIver, VP Exploration of the Company, MSc Exploration and Economic Geology, a Fellow of the Australian Institute of Mining and Metallurgy (AUSIMM), who is recognized as a Qualified Person for the purposes of National Instrument 43-101, and who has reviewed and approved the technical information in this press release.

Source:

Minera IRL Limited

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