Minera IRL extends Bethania mining project in Peru

Latin American mining company Minera IRL has renegotiated an agreement on its Bethania project in Peru after discovering higher exploration potential of gold-copper porphyry.

A contract between the gold mining organisation and Minera Monterrico Peru SAC, initially signed in 2009, has been re-jigged and extended a further five years at the Bethania property, it was reported Thursday.

Bethania has a total 3,352 hectares with three exploration licences held by Minera and a 1,000 hectare lease, El Alcatraz 12, under contract with Monterrico.

Courtney Chamberlain, Executive Chairman of Minera IRL, said: "We are delighted to have renegotiated the Agreement with Monterrico. Bethania is a very large porphyry system in which two drilling campaigns by Minera IRL have returned long intersections of gold-copper-molybdenum mineralisation. Our objective is a major porphyry discovery by building upon our past exploration success and knowledge of the system."

The operation kicked off in 2009 with a 12-hole 4,856 meter reverse circulation drilling programme followed by a 13-hole 2,822 metre diamond drilling programme in 2011.

The work revealed wide zones of gold copper molybdenum mineralization from a number of holes, characteristic of the targeted porphyry system.

Minera IRL will pay Monterrico $1m at the end of the third year of the operation, $10m per ounce of gold, and annual payments of $1m if the five year term is extended for an additional five years.

RD