June 2015 Investor Presentation Forward Looking Statements This - - PowerPoint PPT Presentation

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June 2015 Investor Presentation Forward Looking Statements This - - PowerPoint PPT Presentation

TSX: IRL AIM: MIRL BVL: MIRL June 2015 Investor Presentation 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


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TSX: IRL AIM: MIRL BVL: MIRL

June 2015 Investor Presentation

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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 memorandum or an offer to sell or a solicitation to buy securities of Minera IRL Limited (the “Company”) and should not be relied on in connection with a decision to purchase or subscribe for any such securities. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company nor advisors including, but not limited to, Canaccord Genuity Limited (“Canaccord Genuity”) nor their respective shareholders, directors, officers or employees nor any other person as to the accuracy or completeness of the information or opinions contained in the presentation. None of the Company or advisors shall be liable for any claims, expenses, damages (including direct, indirect, special or consequential damages), loss of profits, or opportunities arising from the use of or reliance on the information contained in this presentation. The shares of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (“Securities Act”) or state securities laws and may not be offered or sold in the United States or to or for the account

  • r benefit of U.S. persons (as such terms are defined in Regulation S under the Securities Act) except pursuant to certain exemptions.

The distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons into whose possession this presentation comes should inform themselves about and

  • bserve any such restrictions. Any such distribution could result in a violation of the law of such jurisdiction. In particular, this presentation should not be distributed, published, reproduced or
  • therwise made available in whole or in part by recipients to any other person and, in particular, should not be distributed to persons with an address in the United States of America, Australia, the

Republic of South Africa, the Republic of Ireland, Japan or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. Accordingly, subject to certain exceptions, the shares of the Company may not, directly or indirectly, be offered or sold within Australia, Canada, Japan, South Africa or the Republic of Ireland or

  • ffered or sold to a resident of Australia, Japan, South Africa or the Republic of Ireland.

This presentation is distributed in the United Kingdom only to persons who are approved persons or exempted persons within the meaning of the Financial Services and Markets Act 2000, or any Order made there under (including, without limitation, persons falling within either article 19 (Investment Professionals) or article 49 (High Net Worth Companies) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005) and, if permitted by applicable law, for distribution outside the United Kingdom to professionals or institutions whose ordinary business involves them engaging in investment activities. It is not intended to be distributed or passed on, directly or indirectly, to any other class or persons in the United Kingdom and persons of any description other than as described in this paragraph should not rely or act upon this presentation and the accompanying verbal presentation. This presentation and its contents and accompanying verbal presentation are confidential and are being supplied to you solely for your information and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose. This Presentation may contain forward-looking statements relating to the business and financial outlook of the Company which are based on the current expectations, estimates and projections of the Company. When used in this Presentation, the words “anticipate”, “expect”, “will”, “intend”, “estimate”, “forecast”, “planned” and similar expressions are intended to identify forward-looking statements or information. Forward-looking statements include, but are not limited to, the estimate of mineral reserves and resources, the timing and amount of estimated future production, costs and timing of development of new deposits, permitting time lines and expectations regarding metal recovery rates. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the Company to be materially different from its estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. The Company does not intend and does not assume any obligation, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. Canaccord Genuity, which is authorised and regulated by the Financial Services Authority, is advising the Company and will not be responsible to anyone other than the Company for providing the protections afforded to customers of Canaccord Genuity. Any other person should seek their own independent legal, investment and tax advice as they see fit. Canaccord Genuity’s responsibilities as the Company’s Nominated Adviser under the AIM Rules will be owed solely to the London Stock Exchange plc and not to the Company, to any of its directors or any other person in respect of a decision to subscribe for or acquire shares or other securities in the Company. Canaccord Genuity has not authorised the contents of, or any part of, the Presentation and no representation or warranty, express or implied, is made by it as to any of its contents. £

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A Portfolio of Golden Opportunities

Corihuarmi Mine

2014: 24k oz Au 2015E: 22k oz Au Open Pit Mining Heap Leach Exploration Upside

Production The Cash Generator

Drill Program Extended Mine Life to H2-2017

Flagship Project Our Next Mine

Ollachea Project

1 million oz in reserves ~100k oz per year 9-year mine life Underground Mining CIL Definitive Feasibility Optimized ESIA Approved Construction Permit Granted Exploration Upside

Fully Permitted for Construction

Exploration Additional Upside

Portfolio

Corihuarmi (Au) Ollachea (Au) Bethania (Au/Cu) Quilavira (Au/Ag) Frontera JV (Au/Cu/Mo)

£

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Financial Position and Capital Structure

Shares Outstanding1 231,135,028 Stock Option Plan2 Debt Facility Options3 8,690,000 26,000,000 Fully Diluted 265,825,028 Recent Share Price US$0.08 Market Capitalization US$18 million Cash & Equivalents4 US$3 million Debt Facility1,5 US$30 million

1 – As at 31 March 2015 2 – The weighted-average exercise price is £0.62 per share purchase option 3 – Expire 30 June 2016 and have an exercise price is $0.176 per share purchase option 4 – As at 30 and includes a short---term credit facility of $2 million 5 – The Macquarie Debt Facility is currently fully drawn and matures on 30 June 2015

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2014 Corporate Strategy

Obtain Financing to Commence Construction of the Ollachea Gold Mine

 All major permits are in-place to build the mine  Committed Letter of Offer for $100 million from Macquarie Bank Received  Goal of completing project financing negotiations in Q2 2015

Extend the life of the Corihuarmi Gold Mine again

 Recent drilling has extended the mine life into Q2 2017  Other near-mine exploration opportunities to further extend mine life

Maintain financial discipline while pursuing mine financing

 Limit discretionary spending during permitting and financing phases  Asset sales have generated $12.6 million in 2014

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Focused on Peru: A Country With a Long Mining History

Corihuarmi Gold Mine Ollachea Development Project (Arranging Financing)

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Open pit, heap leach gold operation  More than six years of profitable operations  History of extending mine life  Initial reserves 145k oz, >225k oz produced to date 2015 production guidance of 22,000 oz  2016 production outlook of 20,000 oz First Nine Months of 2014  23,654 ounces produced  Site operating cash costs of $705/oz  Total cash costs of $874/oz Mine life extended to Q2 2017  Exploration drilling has defined additional material at the Laura and Cayhua zones  Additional targets to be drilled in 2015

Corihuarmi Gold Mine

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ZONES OF EXPLORATION AND ZONES TO EXPLORE

Corihuarmi: Production and Exploration Areas

CAYHUA RIDGE AREA ELY LAURA SUSAN PIT DIANA PIT DIANA EAST CAYHUA WEST

N

SCREE SLOPE CAYHUA NORTH DIANA & ELY PITS EXTENSION CERRO ROJO

Now Exploration Areas Areas to Explore Current Production Areas

CAYHUA SOUTH

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Ollachea Gold Project - Flagship

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The Company’s flagship project and is fully permitted

 All major permits to commence construction have been granted  Project finance negotiations expected to be completed in Q2 2015

Key Infrastructure In-place

 Paved highways, grid power, ports, airports, motivated local workforce

Strong Community Support

 30-year surface rights agreement in place

Robust Project Economics

 1 million ounces of gold in reserves  Average annual production of more than 100,000 ounces during the first 9 years  First quartile low total cash costs

Open-ended Exploration Upside

 Concurayoc Zone hosts an inferred mineral resource of 0.9 million ounces  Recent 320m drilling step-out drilling confirmed on-strike and down dip potential

Ollachea Gold Project

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Ollachea: Key Infrastructure in Place

 Interoceanic Highway  Grid power ($0.067 kW/h)  Abundant water supply  Motivated local workforce  Modern telecommunications  Comfortable altitude  Established company base  Matarani deep water port  Lima’s Callao Bay deep water port  Juliaca’s domestic airport  Lima’s international airport

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Ollachea: Key Infrastructure in Place

Existing High-Voltage Power Line View overlooking the Minapampa outcrop and the location of future upper mine facilities Future plant location behind ridge Future upper mine infrastructure Minapampa

  • utcrop
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Ollachea: Excellent Facilities

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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

 Health, education and sustainable

development programs in place

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Ollachea: DFS Optimization Highlights

Total gold production: 930,000 ounces

 Average annual production over 100,000 ounces for first 9 years  Significant mine life extension potential identified

Total cash costs of $587 per ounce1

 A low-cost producer  Pay back period of 3.1 years (after tax)

Sustaining total cash operating costs of $646 per ounce1,2

 Sustaining and closure costs of $55 million over life of mine ($59/oz)

Low initial capital cost of $177 million ($190/oz)

 Includes $12 million of recoverable VAT, for net initial capex of $165 million

($177/oz)

 Financeable for a junior producer

Significant exploration upside

 Mineralization remains open ended along strike and down dip  Step out exploration demonstrate s resource expansion potential

1 – As per the 4 June 2014 MIRL press release titled “Minera IRL Reports Positive Ollachea Project Optimization Results”. Also excludes the 1% gross revenue royalty due to Macquarie Bank. 2 – “Sustaining Total Cash Costs” are defined as “Total Cash Costs” plus “Sustaining Capital and Mine Closure Costs” less refundable IGV. See appendix for reconciliation.

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Ollachea: First 9 Years Production Profile

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Ollachea: After-Tax NPV1 (millions)

Discount Gold Price ($/oz) Rate $1,100 $1,200 $1,300 $1,400 $1,500 0% $231 $289 $344 $399 $453 5% $135 $177 $218 $259 $299 7% $107 $144 $181 $217 $253 10% $72 $104 $135 $166 $197 IRR 20% 24% 28% 32% 35% Payback 4.0 3.4 3.1 2.7 2.4

1 – Based upon the results of an optimization study of the November 29, 2012 Technical Report that was reported on 4 June 2014. Assumes a 100% equity basis and no consideration has been provided for the Community of Ollachea’s 5% equity interest (to be earned upon commercial production), the 1% gross revenue royalty due to Macquarie Bank, the final payment of $14.2 million to Rio Tinto for the purchase of Ollachea that is due in mid-2016, further project optimization opportunities, or for mineral resources outside of the Minapampa Zone.

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Ollachea Financing Opportunities

Senior Project Debt Facility

 Received a Committed Letter of Offer for $100 million from Macquarie Bank  Equates to $70 million of new funds following consolidation of existing debt facility

Asset Sales

 Minera IRL has sold $12.6 million mineral properties in 2014

Mezzanine Debt

 Subordinate to senior debt

Sale of Production Royalty

 Upfront cash payment

Precious Metals Stream

 Upfront cash payment plus ongoing cash payments tied to production

Strategic or Joint Venture Partner

 Up to a 49% interest

Off-take Agreement

 Cash or debt in exchange for a selling gold at a slight discount to spot

Gold Loan

 Credit agreement that is repaid from production

Equity

 Expected to be the last piece of the financing strategy

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Ollachea: A Large Open-ended Orogenic Gold System

Community of Ollachea Future Plant Facilities

Exploration results continue to demonstrate on-strike and down-dip potential

Mineralized Trend Ore-grade Intercepts 1.2 km Exploration Tunnel Mineral Resources LEGEND Regional Fault trace

? ?

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Ollachea: Drilling Demonstrates Exploration Upside

5.45 g/t Au over 9m

N

5.47 g/t Au over 11m

S

4.48 g/t Au over 20m

Minapampa Zone Concurayoc Zone 1.2km “exploration” tunnel

320 m step out

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A Portfolio of Golden Opportunities

Corihuarmi Mine

2014: 24k oz Au 2015E: 22k oz Au Open Pit Mining Heap Leach Exploration Upside

Production The Cash Generator

Drill Program Extended Mine Life to H2-2017

Flagship Project Our Next Mine

Ollachea Project

1 million oz in reserves ~100k oz per year 9-year mine life Underground Mining CIL Definitive Feasibility Optimized ESIA Approved Construction Permit Granted Exploration Upside

Fully Permitted for Production

Exploration Additional Upside

Portfolio

Corihuarmi (Au) Ollachea (Au) Bethania (Au/Cu) Quilavira (Au/Ag) Frontera JV (Au/Cu/Mo)

£

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* Resident of Perú + Resident of South America

Diego Benavides* President Minera IRL SA Corporate lawyer with Peruvian mining experience in legal and business transactions Daryl Hodges Executive Chairman Geologist with more than 25 years in the mining sector. Prior to joining Minera IRL, Mr Hodges was a founding partner

  • f Jennings Capital and served

as CEO until September 2013. Donald McIver* VP Exploration Geologist with 28 years experience in Africa and Latin America Francis O’Kelly+ Internal Consultant Mining engineer with more than 40 years experience in mining and banking in the Americas Bill Hogg VP Project Development Mechanical engineer and project manager with more than 36 years professional experience, specializing in gold leach projects John Velásquez* General Manager Corihuarmi Gold Mine Process engineer, 22 years experience in Peru’s mining industry Stuart Smith Technical Manager Metallurgicalengineer, specializingin gold extractive technologies, with more than 24 years of worldwide experience Brad Boland ChiefFinancial Officer More than 18 years of international financial experiencein resource industries

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An Experienced Management Team

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Equity Research and Major Shareholders

Mineral IRL is formally covered by the equity research analysts listed above. Any opinions, estimates, or forecasts regarding Minera IRL’s performance made by these analysts are theirs alone and do not represent opinions, forecasts, or predictions of Minera IRL or its management. Minera IRL does not by its reference above, or distribution, imply its endorsement of or concurrence with such information, conclusions, or recommendations. Shareholders is based upon public filings and are as of 1 April 2015.

Dmitry Kalachev Martin Potts Peter Rose Humberto León Cailey Barker

Rio Tinto 19.1% MIRL Management 3.4% Shairco 2.0% Macquarie Bank 1.9% BlackRock 1.5% CIMINAS 4.0% Hargreaves Lansdown 2.8%

  • Mr. Oscar Inchaustegui

1.9% Earth Resource Group 1.7%

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Ollachea DFS Optimization Summary ($1,300/oz Au)

Item $M1 Mining Site Development Process Plant Ancillary Buildings Tailings System Indirect and Owners Cost Contingency IGV (recoverable sales tax) 43.7 3.9 58.4 3.9 5.7 31.4 17.6 12.0

Initial Pre-Production Capital

176.7

less recovered IGV Sustaining Capital Closure Costs

  • 12.0

51.1 4.2 Total LOM Capital Cost

220.0

Capital Cost Breakdown

Item

$/t Ore1 $/oz1

Mining Processing Site G&A $23.5/t $21.5/t $4.3/t $243/oz $222/oz $44/oz Site Cash Operating Costs2 $49.3/t $509/oz Royalties, Taxes, Selling Costs $78/oz Total Cash Costs3 $587/oz Sustaining and Closure Costs $59/oz Sustaining Total Cash Costs4 $646/oz Initial Project Capital (ex IGV) $177/oz Total Project Costs5 $823/oz

Operating Cost Breakdown

1 – Costs are in Q3 2012 millions of US dollars, except for unit costs which are in US dollars. Assumes US$1,300 per ounce gold price. Per tonne and per ounce amounts are derived by dividing the gross amount for each item by the total number of tonnes and ounces expected to be produced in the Ollachea DFS Optimization Study, respectively. 2 – “Site

  • perating

cash costs” include costs such as mining, processing and administration, but are exclusive

  • f

royalties, workers’ profit participation cost, depreciation, amortization, reclamation, capital, development, exploration and other non-site costs (transport and refining of metals, and community and environmental). 3 – “Total cash costs” includes “site operating cash costs” and reflects the cash operating costs allocated from in-process and dore inventory associated with ounce of gold in the period, plus applicable royalties, workers’ profit participation cost, and other non-site costs (transport and refining of metals, and community and environmental). This measure excludes the 1% gross revenue royalty due to Macquarie Bank. 4 – “Sustaining Total Cash Costs” are defined as “Total Cash Costs” plus “Sustaining Capital and Mine Closure” costs less recovered IGV. 5 – “Total Project Cash Costs” are defined as “Sustaining Total Cash Costs” plus “Initial Project Capital”. This measure excludes all sunk costs.

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Ollachea Mineral Reserves & Resources Statement

Total Proven + Probable Total Measured + Indicated Inferred Resources

Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces

(millions) (g/t Au) (millions) (millions) (g/t Au) (millions) (millions) (g/t Au) (millions)

Minapampa 9.2 3.4 1.0 10.1 4.0 1.3 1.7 4.0 0.2 Concurayoc 10.4 2.8 0.9 Ollachea3,4 9.2 3.4 1.0 10.1 4.0 1.3 12.1 3.0 1.1

Notes on Mineral Reserves and Resources: 1.Total proven and probable mineral reserves are included in total measured and indicated resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral reserves and mineral resources are disclosed on a total project basis (at 100%).

  • 2. Tonnages are metric tonnes and are rounded to the closet million tonnes. Grades are rounded to the closest “0.0” and contained gold is reported as troy ounces.
  • 3. Mineral resources for Ollachea are reported above a cut-off of 2.1 g/t Au. Mineral reserves at Ollachea are based upon a gold price of $1,300 per ounce, LOM project operating costs of

$49.3 per tonne of ore. Mineral reserves for Ollachea were estimated under the supervision of Neil Schunke of Mining Plus Canada Pty Ltd, who is recognized as a Qualified Person for the purposes of NI 43-101. Mineral resources were estimated under the supervision of Doug Corley of GHD Group Pty, whom is recognized as a Qualified Person for the purposes of NI 43-101

  • 4. The Community of Ollachea will earn a 5% free-carry equity interest in the Ollachea Gold Project upon the commencement of commercial production.
  • 5. For additional technical information, please refer to the associated NI 43-101 technical reports, the Company’s most recent AIF, the Ollachea Optimization press release dated 4 June

2014,which are all available on SEDAR.

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For additional information, please contact:

Brad Boland Chief Financial Officer Tel: +1 (416) 907-7363 brad.boland@irl.com.pe