Minera IRL has reported the prefeasibility study results of the Ollachea Project in Peru.
This project is possessed by Minera Kuri Kullu, a subsidiary of Minera IRL. AMEC, a global engineering firm, has performed this study.
The Executive Chairman of Minera IRL has stated that the pre-feasibility study results have given strong confidence to an extensive and permanent gold project at Ollachea. This Orogenic type structure may possibly be open ended along the strike in both directions and down dip after constant drilling of 2 ½ years and above provides excellent potential to expand the mine life. Final deliberation is in progress to start an exploration at the orebody.
AMEC has supervised this study along with Coffey Mining, which has provided the underground mining aspects and resource estimation.
This project depends on a Canadian NI 43-101 compliant report having indicated resource of 10.6 Mt with grades 4.0 g/t gold including 1.4 Moz. The plan of the mine design and production has lead to a probable mineral reserve of 9.5 Mt grading 3.65 g/t gold including 1.1 Moz.
A treatment rate and underground mining of 1.1 Mt per year has given nine years to the mine life. The orebody will be operated from a contiguous valley through a 1.3 km slightly inclined tunnel. Mining of the sharply dipping lenses will employ the technique of sub-level open stoping with cemented paste fill. The ore is metallurgically reactive to the typical treatment methods with a projected mining of more than 90%. Processing will be through grind, conventional crush and carbon-in-pulp (CIL) technology.
Minera is embarking on a bankable feasibility study, depending on these encouraging results. The beginning of a 1.3 km long exploration tunnel at the orebody will ease the underground exploration of around 1 km of mineralization’s eastern strike not favorable for the drilling program from the surface owing to the steep mountain landscape. The main easterly holes that were drilled from the surface have cut excellent gold mineralization. The Concurayoc zone’s maiden Inferred Resource estimate is planned for the third quarter of 2011.