Ollachea Scoping Study

Executive Summary

Ollachea Prefeasibility Study

	Executive Summary
	Ollachea NI 43-101 Technical Report Dated 17 July 2011

OLLACHEA GOLD PROJECT

The Ollachea Project is located in southern Peru, approximately 250 km north of Lake Titicaca, on the eastern escarpment of the Andes Mountains.  The project is well positioned with respect to local infrastructure.  It is very close to the new Atlantic-Pacific transcontinental highway and a major high tension power line passes directly over the property.

Ollachea is located towards the northern extremity of a northwestwards-trending auriferous sedimentary belt that extends northwards from Bolivia through southern Peru.   The geological setting is bedded slates and sandstones, structurally deformed, in close proximity to surrounding intrusive bodies.

Ollachea is a historical mining district with evidence of small scale mining going back to the colonial period.  Minera IRL, under the banner of its 100% owned subsidiary Minera Kuri Kullu S.A. acquired the property from Rio Tinto by competitive tender in 2006. A comprehensive Surface Rights Agreement was signed with the local community in late 2007, and exploration commenced in early 2008.

Diamond drilling with 2 rigs commenced in October 2008 and to date almost 64,000 meters has been drilled in more than 148 diamond drillholes.

A significant gold discovery was announced in early 2009 and a Scoping Study for the central Minapampa Zone was completed by Coffey Mining in November 2009.   The Scoping Study was based upon a NI43-101 compliant Inferred Resource of 9 million tonnes grading 4.5 grams per ton containing 1.3 million ounces.

The Scoping Study indicates the potential for a viable underground mine with an average annual production rate of 117,000 ounces at a cash operating cost of below US$400 per ounce.  The project was moved into the pre-feasibility study stage in early 2010 and this is expected to be completed in mid-2011.  The objective is to commission a new mine during 2014.

Ollachea remains highly prospective. The Minapampa Zone, with a strike length of 700 meters, has been extended another 200 meters to the east. This area is known as Minapampa East where in-fill drilling is expected to lead to an upgrade resource in mid-2011. During 2010 a new discovery was announced at the Concurayoc Zone, an approximately 500m long prospective corridor located some 500m directly west from the Minapampa Zone.  Drilling in this zone is expected to lead to an Inferred Resource in the third quarter of 2011.  In addition, exploration drilling has intersected significant widths of potentially ore grade mineralization elsewhere within areas located near to the Minapampa resource.

NI 43-101 Report
  Ollachea NI 43-101 Technical Report dated 6 April 2010

In June 2011 an updated NI43-101 compliant resource was announced in which 1.4 million ounces was reported in the Indicated category plus another 0.3 million ounces was contained in the Inferred category.

Indicated Mineral Resource applying a 2.0g/t gold cut-off