Minera IRL has encountered high grade gold mineralisation at the Ollachea project in Peru, according to a prefeasibility study undertaken at the site by engineering firm AMEC.

The Minapampa and Minapampa East zones of the project have indicated resources of 10.6Mt, grading 4.0g/t gold containing 1.4Moz.

A total of $170m is expected to be invested in the project – owned by Minera IRL’s subsidiary Minera Kuri Kullu – to carry out mining activities at the mine, which has a life of nine years.

The firm is planning to conduct a bankable feasibility study, which is expected to be completed in the second half of 2012.