IRL jumping on permit news......,.
Minera IRL receives Don Nicolas EIA, development OK
2012-10-17 06:10 ET - News Release
Mr. Courtney Chamberlain reports
MINERA IRL ANNOUNCES APPROVAL OF EIA AND GRANTING OF DEVELOPMENT PERMIT FOR DON NICOLAS GOLD PROJECT, ARGENTINA
Minera IRL Ltd. has received approval for the environmental impact assessment and the development permit for the Don Nicolas gold project from the Santa Cruz, Argentina, provincial authorities.
Highlights:
- Don Nicolas project environmental impact assessment approved;
- Development permit granted;
- Project financing options being advanced;
- Intention to develop the project during 2013.
"The EIA approval and granting of the development permit for our Don Nicolas gold project, Patagonia, is a significant step towards bringing the mine on stream," said Courtney Chamberlain, executive chairman of Minera IRL. "We have received outstanding support from the authorities in Santa Cruz with the permitting process taking only five months. Don Nicolas is a very attractive, conventional open-pit, carbon-in-leach gold project with a high IRR with much additional upside potential. We continue to advance financing options to allow project development during 2013."
The EIA was submitted to the Santa Cruz provincial authorities in May and after a comprehensive review formal approval of the EIA was granted on Oct. 16, providing the permit to develop the project.
The EIA was based upon the Don Nicolas feasibility study, completed in February, 2012. The feasibility study demonstrated a robust project based on the open-pit mining of high-grade epithermal gold deposits in the La Paloma and Martinetas vein fields. The conventional crush, grind and carbon-in-leach treatment plant at Martinetas will have a processing rate of 350,000 tonnes per year, providing an initial mine life of 3.6 years. Average annual steady-state gold and silver production will be 52,400 ounces and 56,000 ounces, respectively. Capital cost is projected at $56-million (U.S.), and the cash operating cost is estimated at $528 (U.S.) per ounce, after silver credits. Posttax internal rate of return using a base case gold price of $1,250 (U.S.) per ounce is 22.8 per cent rising to 38.1 per cent if a gold price of $1,500 (U.S.) per ounce is assumed. Payback period is projected to be two years or less.
The company has completed a further 18,000-metre extension and infill drilling program at the Martinetas vein field and an updated resource estimate is expected to be announced during November. The objective is to build upon the resource base and extend the mine life. Completion of a study, scheduled for 2013, into treating low-grade material by heap leaching procedures provides further upside potential at Don Nicolas.
The company has been considering a range of project financing options for the Don Nicolas project. The objective is to have financing in place to allow development to commence in 2013 with commissioning expected in late 2013 or early 2014.
We seek Safe Harbor.
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