Minera Irl Limited · CSE:MIRL
Minera Irl — Mines & Money 2013
34 slides from Minera Irl's conference presentation, Nov 18, 2013
Slide 1: A Opportunity in Latin America
A Opportunity in Latin America TSX: IRL AIM: MIRL BVL: MIRL Mines & Money 2013 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation is for informational purposes only and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. This presentation does not constitute an admission document, listing particulars, prospectus, offering memo
Slide 3: A Portfolio of Golden Opportunities
A Portfolio of Golden Opportunities Production Developing Mines Exploration Corihuarmi Mine Ollachea Project Don Nicolas JV Portfolio 2012A: 27k oz Au Estimate 100k oz pa over Estimate 26k oz Au pa (net) Escondido 2013E: 24k oz Au first 9 years of production Open pit mining Michelle Open pit mining
Slide 4: An Experienced Management Team
An Experienced Management Team Courtney Chamberlain* Diego Benavides* Brad Boland Executive Chairman President Minera IRL SA Chief Financial Officer Metallurgical Engineer Corporate lawyer with More than 16 years of with more than 45 years Peruvian mining experience international financial of worldw
Slide 5: Increasing Reserves & Resources
Increasing Reserves & Resources 2.0 1.5 Ounces of Gold (millions) 1.0 0.5 2008 2009 2010 2011 2012 = Proven + Probable Reserves = Measured + Indicated Resources1 = Inferred Resources 1 - Mineral reserves are included in measured and indicated mineral resources. 5
Slide 6: Latin American Countries with a History of Mining
Latin American Countries with a History of Mining Corihuarmi Gold Mine (100%) Ollachea Development Project (95%) (Definitive Feasibility Study complete) Don Nicolas Development Project (51%) (“construction ready” and 100% financed) 6
Slide 7: Peru: Corihuarmi Gold Mine (100%)
Peru: Corihuarmi Gold Mine (100%) Open pit, heap leach gold operation More than five years of profitable operations History of extending mine life Initial reserves 145k oz, >180k oz produced 2013 production forecast of 24,000 oz YTD Q3-2013: 18,777 oz produced 2014 production guidance of
Slide 8: Corihuarmi: Production and Exploration Areas
Corihuarmi: Production and Exploration Areas N CAYHUA ELY DIANA PIT SUSAN LAURA NORTH PIT CAYHUA CAYHUA DIANA DIANA PIT EAST SCREE SOUTH EXTENSION SLOPE 2012 Exploration Areas 2013 Exploration Areas Current Production Areas 8
Slide 9: Corihuarmi: Classic High Sulphidation Epithermal System
Corihuarmi: Classic High Sulphidation Epithermal System Current production Production Expansion Exploration 9
Slide 10: Peru: Ollachea Gold Project
Peru: Ollachea Gold Project The Company’s flagship project and next mine in Peru Government approval of ESIA received in Q3 2013 Definitive Feasibility Study for underground mine completed in late 2012 Construction Permit expected near the end of Q1 2014 Robust Project Economics Average an
Slide 11: Ollachea: Key Infrastructure in Place
Ollachea: Key Infrastructure in Place Interoceanic Highway Grid power ($0.067 kW/h) Abundant water supply Skilled local workforce Modern telecommunications Comfortable altitude Established camp Matarani deep water port Lima’s Callao Bay deep water port Juliaca’s domestic airport
Slide 12: Ollachea: Infrastructure in Place
Ollachea: Infrastructure in Place Existing 138 kV power line Future plant location behind ridge Minapampa ore body outcrop View overlooking the Minapampa outcrop and the location of future upper mine facilities 12
Slide 13: Ollachea: Excellent Facilities
Ollachea: Excellent Facilities 13
Slide 14: Ollachea: Strong Community Support
Ollachea: Strong Community Support Community of Ollachea is our partner: Strong community support 30-year surface rights agreement 5% participating interest in the mine upon commercial production Ollachea is the only community within the “area of direct influence” : Streamlines the permitt
Slide 15: A Large Open-ended Orogenic Gold System
Ollachea: A Large Open-ended Orogenic Gold System Historical and recent exploration results continue to demonstrate on-strike and down-dip potential Future Plant Facilities ? Community of Ollachea ? LEGEND Mineralized Trend Mineral Resources Ore-grade Intercepts Regional Fault trace 1.2 km Explorati
Slide 16: Drilling Demonstrates Exploration Upside
Ollachea: Drilling Demonstrates Exploration Upside S N 1.2km “exploration” tunnel 4.48 g/t Au over 20m 5.47 g/t Au over Concurayoc 11m Zone Minapampa 5.45 g/t Au over 9m Zone 320 m step out 16
Slide 17: Definitive Feasibility Study Highlights
Ollachea: Definitive Feasibility Study Highlights Completed in November 2012 by AMEC and Coffey Mining Total gold production: 920,800 ounces Average annual production over 100,000 ounces for first 9 years Significant mine life extension potential identified Average total cash operating cost o
Slide 18: Annual Gold Production
Ollachea: First 9 Years Production Profile 140koz Gold Production (oz Au, 000) $1,400/oz Total Cash Costs ($/oz Au) Sustaining Total Cash Costs ($/oz Au) 120koz $1,200/oz 100koz $1,000/oz Annual Gold Production 80koz $800/oz Per Ounce Costs 60koz $600/oz 40koz $400/oz 20koz $200/oz koz $0/oz 1 2 3 4
Slide 19: A Highly Profitable Operation
Ollachea: A Highly Profitable Operation $1,500 Total Profit Profit 106% Gold Sustaining Margi Margi $1,000 Profit Price Cash Costs n n Margin ($/oz) ($/oz) ($/oz) (%) $1,200 $617 $583 95% $1,300 $632 $668 106% $500 Cash costs at $1,400 $649 $751 116% Ollachea $1,500 $666 $834 125% to produce an ounc
Slide 20: Ollachea: After-Tax NPV
Ollachea: After-Tax NPV1 (millions) Discount Gold Price ($/oz) Rate $1,200 $1,300 $1,400 $1,500 $1,600 $2,000 0% $271 $325 $379 $433 $486 $696 5% $154 $193 $233 $271 $310 $462 7% $120 $155 $189 $224 $258 $392 .10% $78.3 $108 $137 $166 $194 $308 IRR 19% 22% 25% 28% 30% 40% 1 – Based upon the November
Slide 21: Ollachea: Expected Timeline to Production
Ollachea: Expected Timeline to Production 2010 2011 2012 2013 2014 2015 ✓ In-fill & Extension Drilling ✓ Pre-Feasibility Study ✓ 30-year Surface Agreement ✓ Definitive Feasibility Study ✓ “Exploration” Drive (1.2km) ✓ ESIA Report Preparation ✓ Final Public Review of ESIA ✓ ESIA Review Period ✓ ESIA
Slide 22: Argentina: Don Nicolas Gold Project (51% ownership)
Argentina: Don Nicolas Gold Project (51% ownership) Santa Cruz has always been a mining-friendly jurisdiction Several precious metals mines in operation, others under development The project is “construction ready” Definitive Feasibility Study completed in February 2012 Major permits for con
Slide 23: Deseado Massif map
PERU LAS HERAS . ® PICO \ TRUNCADO LOS ANTIGUOS © Cerro Cuadrado @ Suramina @ El Bagual Suramina ®/ puerto <, “ DESEADO Minera IRL Patagonia SA Oo Mineral cones S_ Gold-Silver Mine ry Development Exploration GOBERNADOR Au/Ag Project ey - - GREGORES ~4S @ Exploration Au/Ag Project Manantia' e | LLL D
Slide 24: Las Calandrias
Las Calandrias Mariana Resources 519,000 oz AuEq Escondido La Paloma Paula Andrea Goleta ALBERTO DON NICOLAS Proposed PROJECT PROJECT AREA Plant Facility Location Pinguino Microondas Martinetas Argentex MANHATTAN Cerro Morro PROJECT Cecilia Yamana Gold 2 M oz AuEq TRES CERROS MICHELLE PROJECT LEGEND
Slide 25: Don Nicolas: Definitive Feasibility Study Highlights
Don Nicolas: Definitive Feasibility Study Highlights Completed in February 2012 by Tetra Tech Total gold production: 181,000 ounces (90,500 net) Average gold production of 52,400 ounces (26,200 net ounces to Minera IRL) After-tax IRR of 23% and NPV1 of $22 million Initial mine life of 3.6 ye
Slide 26: Don Nicolas: Expected Timeline to Production
Don Nicolas: Expected Timeline to Production Milestones 2010 2011 2012 2013 2014 2015 ✓ Definitive Feasibility Study ✓ EIA Preparation ✓ Brownfield Drilling ✓ EIA Approval Period ✓ In-fill & Extension Drilling ✓ Social License Agreement ✓ EIA Approval ✓ Mine Development Permit ✓ Updated Resource Sta
Slide 27: Financial Position and Capital Structure
Financial Position and Capital Structure Shares Outstanding1 182,824,225 Stock Option Plan2 12,360,000 Debt Facility Options3 18,786,525 Fully Diluted 213,970,750 Recent Share Price C$0.21 Market Capitalization C$38 million Cash & Equivalents4 ~US$5 million Undrawn Portion of Debt Facility4,5 US$5 m
Slide 28: Appendix: Equity Research and Major Shareholders
Appendix: Equity Research and Major Shareholders Dmitry Kalachev Adam Melnyk Martin Potts Peter Rose Humberto León Cailey Barker Stephen Walker Miton Asset Management 10.9% Fratelli Investments 7.4% JP Morgan Asset Management 4.7% Black Rock Investment Management 4.5% RBC Global Asset Management 3.8
Slide 29: A Portfolio of Golden Opportunities
A Portfolio of Golden Opportunities Production Developing Mines Exploration Corihuarmi Mine Ollachea Project Don Nicolas JV Portfolio 2012A: 27k oz Au Estimate 100k oz pa over Estimate 26k oz Au pa (net) Escondido 2013E: 24k oz Au first 9 years of production Open pit mining Michelle Open pit mining
Slide 30: Corporate Strategy
Corporate Strategy Permit and finance the Ollachea Mine ESIA is approved, Construction Permit expected in Q1 2014 Goal of arranging project debt facility by the end of Q1 2014 Start development activities for the Don Nicolas Mine joint venture $80 million of construction financing in place
Slide 31: Appendix: Ollachea DFS Breakdown ($1,300 Au)
Appendix: Ollachea DFS Breakdown ($1,300 Au) Capital Cost Breakdown Operating Cost Breakdown Item $M1 Item $/t Ore1 $/oz1,2 Mining 55.4 Mining $23.4/t Site Development 3.9 Processing $21.5/t Process Plant 58.4 Site G&A $4.3/t Ancillary Buildings 3.9 Site Cash Operating Costs $49.2/t $499/oz Tailings
Slide 32: Ollachea: Permitting Process and Progress
Ollachea: Permitting Process and Progress Complete ESIA Document Components ✓ Baseline Studies Final ✓ Feasibility Study 2nd Official Community ✓ Impact Analysis & Community Workshop Workshop Construction Permit Management Plan (November 2012) (May 2013) Expected in Q1-2014 ✓ ✓ ✓ ✓ ✓✓ 1st Official S
Slide 33: Mineral Reserves & Resources Statement
Mineral Reserves & Resources Statement Total Proven + Probable Total Measured + Indicated Inferred Resources Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (millions (g/t (millions (millions (millions (g/t (millions ) Au) ) ) (g/t Au) (millions) ) Au) ) Minapampa 9.3 3.4 1.0 10.6 4.0 1.
Slide 34: For additional information, please contact:
For additional information, please contact: Brad Boland Trish Kent Jeremy Link Chief Financial Officer VP, Corporate Relations Business Development Tel: +1 (416) 907-7363 Tel: +51 1 418-1230 Tel: +1 (416) 907-7363 brad.boland@irl.com.pe trish.kent@irl.com.pe jeremy.link@irl.com.pe 34