Corporate Update from MIRL
LIMA, Peru, May 04, 2020 (GLOBE NEWSWIRE) -- Minera IRL Limited ("Minera IRL" or the "Company"), (BVL:MIRL) (CSE:MIRL), a gold mining company of Latin America, is pleased to report that
despite the COVID-19 emergency, it has exceeded its production goals, increased sales, ensured the provision of operating supplies and at the request of its workers, allowed them to remain in the
mine, which remains free of infection, protecting them and their families.
Although advanced negotiations with Corporacion Financiera de Desarrollo (COFIDE) regarding the previously announced Memorandum of Understanding (MOU) were put on hold during Peru’s National Emergency to contain the virus, the Company expects to resume negotiations by the end of this period of quarantine.
Gerardo Perez, Chairman of Minera IRL Limited, stated that, “while waiting to resume negotiations with COFIDE, we are actively seeking financing options for the construction of our Ollachea gold project. The community has reiterated its support for a quick start of the project and the contribution that will make to the economic recovery the country needs in this moment.”
In early March, the Company reinforced the application of its health and safety protocols, which allowed encapsulating the operations of Corihuarmi mine and Ollachea project against COVID-19. In Corihuarmi, no infections have been registered and production has remained steady, and the Company has exceeded April's production goal with 2,060 ounces of gold produced and sold at an average price of US$ 1,700 per ounce.
The Company maintains its annual production budget of 22,500 ounces, and although there is an understandable shortage of supplies and gold transportation difficulties, the stock of mine supplies is guaranteed for the next 90 days and the gold production is being delivered to the Valcambi Refinery in Switzerland via seven different flights with safe stopovers on the way.
The Company's cash flow is sufficient to meet its commitments and generate reserve funds for contingencies in the face of this crisis, and the Company was able to file its audited financial statements and related filings for the year ended December 31, 2019 with the regulators in Canada and Peru before the deadline and without exceptions.
The Company has not made, nor plans to make, any wage or job cuts. The workers currently working remotely at the mine represent 48% of the workforce. The remaining 52% are working from home, a measure that the Company intends to maintain until the end of May. Meanwhile, it is constantly re-evaluating mine worker’s mobilization and demobilization plans, prioritizing their health and safety.