IRL sees $200 mln investments in Peru, Argentina

LIMA, May 19 (BestGrowthStock) – IRL, a small and growing gold
producer, expects to raise some $200 million in the capital
markets to bring new projects online in Peru and Argentina,
company President Diego Benavides said on Wednesday.

IRL (MIRL.L: )(IRL.LM: ) plans to start the Don Nicolas project
in Patagonia, Argentina, in 2012, while its Ollachea project in
southern Peru is expected to start operations in 2014.

“We’d have to invest about $40 million to start production
at Don Nicolas … and at Ollachea, the investment would be
$156 million. We are talking about a project that is above 1.3
million ounces,” he said at an industry conference in Peru.

Benavides said the company would raise the cash in two
separate financings.

The two projects would raise IRL’s gold output to 200,000
ounces a year by 2014, from 33,000 ounces last year.

Don Nicolas holds reserves totaling 360,000 ounces. Average
output at Ollachea, which is in the pre-feasibility phase with
a life expectancy of nine years, is expected to be 117,000
ounces per year.

The miner is also exploring for gold at other sites,
including Bethania and Quilavira in Peru and La Falda in
Chile.

Peru, a leading metals exporter, is the world’s sixth
largest gold producer.

Stock Market News

(Reporting by Patricia Velez; Editing by Sofina Mirza-Reid)

IRL sees $200 mln investments in Peru, Argentina