Minera IRL (LON:MIRL) has raised next year’s production target for its Corihuarmi gold mine in Peru for after recent success with the drillbit.
The projected end of the mine’s life has also been pushed back to the second half of 2016 (from late 2015), while the 2015 production forecast has risen to 20,000 ounces gold from 15,000.
Minera is keeping Courihma going to provide cashflow until its flagship Ollachea mine, also in Peru, is up and running.
A construction permit for Ollachea came through in June and Minera is focusing now on the project’s financing.
Initial capital costs are $177mln, including a 12% contingency and sales tax.
Minera expects to complete financing negotiations by the end of this third quarter and has extended its debt financing mandate with Macquarie Bank.
On that basis, first production from Ollachea will now be in the second quarter of 2016.
Losses for the second quarter totalled US$33mln, which included a US$30mln write-down following the sale of the Don Nicolas mine in Argentina.
Corihuarmi produced 5,863 ounces of gold at a cash cost of US$914 per ounce. Minera also reduced its forward cost guidance to US$885 per ounce from US$820 per ounce gold.
Shares rose 6% to 9.68p.