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Overview
Alexis River is located in southeastern Labrador and was selected because of a remarkable lake sediment sample - over 0.1% U3O8 in lake sediment (subsequently increased to 0.28% U3O8 in Kirrin's exploration. The property was drilled by Kirrin in its second season and the best intercepts were 0.754% U3O8 across 0.2 m at 58.9 m depth and 0.188% U3O8 across 0.85m at 197.7 m. One uranium consultant described Alexis River as 'probably one of the best grass-roots properties we know of outside the Athabasca, in an exploration friendly environment and relatively close to infrastructure'. The property is not affected by the Inuit Labrador moratorium.

Alexis River is a high potential project. Exploration results clearly point to a high-grade source of uranium. Kirrin's 2011 program focused on the highly anomalous uranium in lake sediments, with a geophysical review to identify faults, potentially altered zones in bedrock, and radiometric, magnetic and electromagnetic anomalies that may be associated with important uraniferous zones in bedrock, and, in addition, a search for a strong radium anomaly that could indicate a local source for the uranium beneath or near Anomaly Lake.

Kirrin used radioactive isotope studies to advance the project and assist the selection of drilling locations. The results, announced in September 2011, exceeded expectations. Kirrin's consultants concluded from their interpretation of the radium analyses that the most likely explanation for the anomalous uranium is a high grade source exising in the rocks immediately beneath Anomaly Lake, and that both uranium and radium were leached from this source and transported hydromorphically along a structure passing through Anomaly Lake. Interpretation of the analyses points to two narrow radium anomalies, correlating well with uranium values, as drill targets within the confines of Anomaly Lake.

Location
The Alexis River property is located in south eastern Labrador, Canada, approximately 230 km east-south-east of Goose Bay and 65 km west-north-west of Port Hope Simpson. A new Provincial, all-weather, highway passes about 12 km to the north of the property area which is otherwise only accessible via helicopter or float plane.

History
During the 1980s, government funded programs collected over 18,640 lake sediment and water samples in Newfoundland & Labradoe (NL). The most anomalous lake sediment sample site identified was a small lake (Anomaly Lake) on the Alexis River property with 1,030 ppm U (Instrumental Neutron Activation Analysis 'INAA') to 926 ppm U (fluorimetric analysis). Anomaly Lake is 650 m long by 250 m wide and trends south-south easterly, with its long axis possibly controlled by an underlying basement structure.
Land
The Alexis River Property consists of two map-staked licences held by Altius covering 2,750 hectares in southeastern Labrador.

Purchase Agreement
Under an agreement dated July 7, 2007 with Altius Resources Inc. ('Altius'), Kirrin may earn a minimum 60% interest in the Alexis River property over five years by spending $1,250,000 on exploration, including a minimum first year commitment of $175,000, and issuing 250,000 shares to Altius, including 50,000 shares on signing and 200,000 shares divided equally over four years to be paid on each anniversary of the agreement.

Upon Kirrin fulfilling its earn-in obligations, Altius may elect to either (a) form a 60:40 joint venture, with each partner contributing its pro-rata share of future expenditures (Altius retaining the right to dilute to a 10% net profits interest); (b) convert its interest to a sliding scale royalty tied to the uranium price and ranging from 2-3% gross sales royalty on uranium (and 2% net smelter royalty on base and precious metals); or (c) elect to convert to a 30% interest, which will be carried through to the completion of a pre-feasibility study. Upon completion of the pre-feasibility study, Altius may elect to contribute its pro-rata share of future expenditures or convert its interest to a 2% gross sales royalty on uranium (and 2% net smelter royalty on base and precious metals).

Geology
The area of the Alexis River property is underlain by rocks assigned to the Pinware Terrane of the Eastern Grenville Province, which are potential hosts for uranium mineralization. The Grenville Province comprises the majority of Labrador and occupies the entire southern region from an area well north of Groswater Bay south to the Gulf of St. Lawrence. The Pinware Terrane in southeast Labrador belongs to the Grenvillian Interior Magmatic Belt. It is the southernmost and most recently identified tectonic terrane in the Grenville Province. Supracrustal units are the oldest known lithologies and consist of fine- to medium grained, recrystallized quartzofeldspathic rocks, interpreted to have a felsic volcanic and/or arenite protolith. Geochronological work indicates a U-Pb age of c.1640 Ma.

Exploration Programs and Results
During its first exploration season, Kirrin conducted a helicopter borne radiometric and magnetometer survey that revealed several radiometric anomalies at Alexis River and indicated that the property is underlain by a diverse assemblage of lithologies. Follow-up prospecting and sampling provided verification of the existence of exceptionally high uranium and some other metals at Anomaly Lake, including 323 to 2,370 ppm uranium (average is 721 ppm U or 0.085 wt.% U3O8 and 175 to 1,070 ppm molybdenum. Anomalous radioactivity is locally up to 12,000 counts per minute (Exploranium GR-135 differentiating spectrometer) in coarse grained pegmatite. Assays of four rock samples from the radioactive occurrences west of Anomaly Lake range up to 204 ppm U (INAA analysis).

These results were confirmed by further systematic lake sediment sampling conducted in February and June 2008. The results from the three programs in tabular form are:

Sampling date Total samples High ppm U Low ppm U Average ppm U
Fall 2007 15 2,370 323 721
Winter 2008 21 2,290 261 578
Summer 2008 70 1,630 11 (very near shore, most being ≥100) 460
Total 106 2,370 ~100 ~520

These lake sediment sample results for uranium are unusually high, being well over two orders of magnitude higher than the average uranium content of lake sediment samples within Labrador.

In 2008, Kirrin, employing Discovery Consultants as sub-contractor, (a) conducted geological mapping of the northern part of the claim block at 1:5,000 scale; b) conducted reconnaissance prospecting of those portions of the claims that were reasonably accessible by foot from the field camp; (c) collected, along lines spaced from about 50 m to 100 m apart, 173 lake sediment samples from Anomaly Lake (70 samples) and from the two large lakes east of Anomaly Lake named North Lake (50 samples) and South Lake (53 samples) for ease of reference; (d) collected three water samples from small rivulets that drain into Anomaly Lake from the northeast, north and west side; and (e) collected 14 rock grab samples from selected radioactive occurrences that were discovered. Synoptic exploration results from the 2008 fieldwork comprise:
  1. Geological mapping shows Anomaly Lake has differing geology along the eastern and western margins of the lake, and this indicates the lake is underlain by a northwesterly trending fault or faults. However, the expression of this fault is poorly seen in outcrops at the north western end of the lake.

  2. Prospecting discovered a number of individual radioactive occurrences within the property. Perhaps the most interesting are: (i) a zone of radioactive pegmatites near the southeastern margin of claim 10493M that produces spot radioactivity locally up to 3,800 cps (Exploranium scintillometer), and (ii) at the northeast end of Anomaly Lake there is a small radioactive bog that produces 600 cps on both the Exploranium and SRAT SPP2N scintillometers.

  3. Lake sediment samples from Anomaly Lake typically contain from >100 up to 1,630 ppm U, whereas North and South Lake contain from <5 up to about 79 ppm, but with most samples containing less than 40 ppm U. These results re-confirm the prior sampling done by Altius and demonstrate the anomalous uranium in lake sediments in Anomaly Lake. As well, whereas North and South Lake generally have flat bottoms and water depths of less than 5 m, Anomaly Lake is over-deepened for its size and has water depths up to 20.5 m, indicating a fault exists beneath Anomaly Lake.

  4. The three water sample results are 0.045, 0.385 and 1.09 g/L (micrograms per litre or parts per billion). The highest result is comparable to the anomalous GSC lake water result from Anomaly Lake and is from a small rivulet northeast of Anomaly Lake. This rivulet drains from the area where the small radioactive bog exists (as referred to above) and into Anomaly Lake.

  5. Rock grab sample results range from 91 to 2,370 ppm uranium, with two samples containing 1,080 and 2,030 ppm U (0.127% and 0.24% U3O8). These two samples are from the zone of radioactive pegmatites discovered near the southeastern edge of claim 10493M.

  6. Finally, it should be noted that Anomaly Lake sits in a small topographic bowl with low highlands to the east, north and west separating Anomaly Lake's catchment basin from all nearby larger drainages, and with water from the lake draining out via a small creek at the southeast end. Hence the only waters coming into the lake are from one or more of the following sources: (a) surface run-off water flowing in from the sides of the lake during rainfalls, (b) water from the few small rivulets that exist on the north and west side of Anomaly Lake, and (c) perhaps groundwater from subterranean sources.
Kirrin commenced drilling at Alexis River in September 2008, drilling 1,294.5 m in five holes intended to test beneath Anomaly Lake. In brief, with respect to drilling highlights:
  1. Anomalous radioactivity ranges from 200 counts per second (cps, SRAT SPP2N scintillometer) up to locally 2,500 cps across narrow core lengths. In most cases anomalous radioactivity is associated with pegmatitic zones in core.

  2. There is a northwesterly trending structure or faulted zone extending along or near the axis of Anomaly Lake, with the north western portion being more 'altered'.

  3. Assay results from core include the following:

    Hole AL0802:

    0.754% U3O8 across 0.20 m from 58.90 to 59.10 m core length;
    0.044 % U3O8 across 5.00 m from 80.00 to 85.00 m core length; including
    0.069% U3O8 across 2.00 m from 83.00 to 85.00 m core length.

    Hole AL0805:

    0.034% U3O8 across 0.40 m from 16.70 to 17.10 m core length;
    0.073% U3O8 across 0.25 m from 20.45 to 20.70 m core length;
    0.041% U3O8 across 0.20 m from 21.00 to 21.20 m core length;
    0.064% U3O8 across 0.30 m from 27.30 to 27.60 m core length;
    0.065% U3O8 across 1.00 m from 76.00 to 77.00 m core length; and
    0.188% U3O8 across 0.85 m from 197.70 to 198.55 m core length.

  4. As a result, these locally high grade, albeit narrow, drill intercepts may or may not explain the anomalous lake sediment results from Anomaly Lake.
The 2011 program focused on the highly anomalous uranium in lake sediments, with a geophysical review to identify faults, potentially altered zones in bedrock, and radiometric, magnetic and electromagnetic anomalies that may be associated with important uraniferous zones in bedrock, and, in addition, a search for a strong radium anomaly that could indicate a local source for the uranium beneath or near Anomaly Lake. Kirrin used radioactive isotope studies to advance the project and assist the selection of drilling locations. The results, announced in September 2011, exceeded expectations. Kirrin's consultants concluded from their interpretation of the radium analyses that the most likely explanation for the anomalous uranium is a high grade source exising in the rocks immediately beneath Anomaly Lake, and that both uranium and radium were leached from this source and transported hydromorphically along a structure passing through Anomaly Lake. Interpretation of the analyses points to two narrow radium anomalies, correlating well with uranium values, as drill targets within the confines of Anomaly Lake.

Expenditures
Kirrin to 12/2010 $821,000  
2011 budget: $100,000  
2012 budget: $900,000  


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