Minera IRL suspends Ollachea gold project

With the local community withdrawing its support of the Ollachea gold project in Carabaya, Peru, Minera IRL Limited recently suspended its 16,404-foot exploration drilling project, and has put final engineering, procurement and construction management contract negotiations on hold.

The company recently received a letter from Ollachea Community President Juan Luis Valeriano Gutierrez regarding concerns over Minera IRL’s recent management restructuring.

"We understand that the loss of Courtney Chamberlain and the transformation of the Ollachea project from exploration to a significant mine development project has created uncertainty with the community,” Minera IRL Executive Chairman Daryl Hodges said. “I would like to emphasize my previous message that the company and board of directors are committed to a long-lasting and positive relationship with the community as we move together as partners into the next phase."

Minera IRL already has invested more than $100 million in laying the groundwork for the success of the Ollachea gold project, with the local community receiving $25 million from Minera IRL and an offer of 5-percent carried interest in Minera IRL’s subsidiary, which owns the rights to the project.

Minera IRL wants to address the concerns raised, but is waiting for any announcements stemming from community meetings held on Saturday and Sunday.