Boxey Point was selected because of its history of elevated uranium results and two 2007 rock samples that tested 738 ppm and 1,498 ppm uranium (0.09 to 0.18% U3O8) respectively. There is also remarkable alteration of the sedimentary strata on the property. Kirrin's fieldwork in 2008 demonstrated that elevated uranium is apparent across 1.4 km of the Boxey Point promontory. The expected deposit type could be similar to some of the sediment-hosted, structurally controlled tabular uranium deposits that exist in parts of the Colorado Plateau, U.S.A.
Location
The Boxey Point property is located in southern Newfoundland, on the Connaigre Peninsula, 600 km by road from St. John's. The Connaigre Peninsula lies between Hermitage Bay to the west and Fortune Bay to the east and is accessible via Highway 360 that exits Highway 1 just east of Bishop's Falls, to Highways 362 and 363. Highway 363 is within 2.5 km of the northern boundary of the property and within 5.5 km of the main showing area. The Property is accessible on foot from the highway or the community of Boxey and by boat from Boxey or Coomb's Cove.
History
The area has been the subject of a number of academic theses (Taylor 1940, Widmer 1950) and mapping (Greene 1975). The first record of exploration is the 358 sample soil geochemical program by Tibbo in 1980. The maximum uranium in soils was 23.5 ppm and there were subtle concentrations of elevated uranium values. This work appeared to define one or possibly two parallel discontinuous, northeasterly trending anomalous zones, some 730 metres in length. In 2006 and 2007, Altius Resources Inc (Altius) carried out minor rock grab sampling; two samples returned 738 and 1,498 ppm uranium (0.087% and 0.177% U3O8 respectively).
Purchase Agreement
Kirrin may earn a 60% interest in the Boxey Point property from Altius over four years by spending $1,000,000 on exploration, including a minimum first year commitment of $135,000, and issuing 200,000 common shares to Altius, including 40,000 common shares on signing and 160,000 common shares divided equally over four years to be issued on each anniversary of the agreement. Kirrin is current in its earn-in obligations.
Upon Kirrin fulfilling its earn-in obligations, Kirrin and Altius will form a 60: 40 joint venture, with each partner contributing its pro-rata share of future expenditures. If either party dilutes its interest to less than 10% in the joint venture, its interest shall be converted to a royalty of 1% of gross uranium sales.
Land
The Boxey Point property consists of thirty six claims in two map-staked licences totalling 900 ha. held by Altius.
Geology
The Boxey Property is located within Avalon Zone rocks which predominantly comprise late Neoproterozoic to Cambrian volcanic, plutonic and sedimentary rocks, but also contains rocks as young as Devonian in age. The Boxey claims cover almost the entire Boxey Point Peninsula and are largely underlain by Devonian sandstones and conglomerates of the Great Bay de L'Eau Formation. The Great Bay de L'Eau rocks are cut by basaltic dykes and sills and a series of east trending and north-northeast trending faults. The property contains a uranium-bearing radioactive zone along the west side of the peninsula, associated with carbon "trash" within conglomeratic sandstone adjacent to a basalt dyke emplaced along a fault zone.
Based on the soil sampling results, this mineralized radioactive zone is one of a series of possible parallel zones extending easterly across the Boxey Peninsula.
A full description of the geology can be found in the Boxey 2008 Technical Report.
Exploration Programs and Results
A 2007 sampling program at Boxey Point yielded elevated uranium results and two rock samples tested 738 ppm and 1,498 ppm uranium (0.087 to 0.177% U3O8) respectively.
Kirrin's Spring 2008 exploration program, sub-contracted to Altius, was carried out between May and June. The fieldwork included reconnaissance prospecting using scintillometers and the collection of 24 rock grab samples, 14 till and till concentrate samples, as well as 572 soil samples, with the bulk of the work completed at the west-central part of the Boxey Point promontory. All samples were forwarded to Eastern Analytical Limited in Springdale, NL, with additional analysis performed at Actlabs for INAA/ICP analyses for uranium and additional elements. The soil sample results reveal elevated uranium, ranging from a high of 45 ppm to less than 0.5 ppm, with an average of 4.2 ppm. The preliminary geochemical results indicate there are anomalous uranium trends in soils extending east-southeasterly and northeasterly away from the radioactive zone along the west shore of Boxey Point.
The Fall 2008 exploration program, sub-contracted to Discovery Consultants, was carried out in October and included geological mapping at scales ranging locally from 1:1,000 to 1:10,000+ more regionally; radiometric prospecting; collection of 34 rock chip and grab samples; a detailed radiometric survey along a mineralized zone exposed over about 80 m in a sea cliff; and collection of 29 soil samples to complement the Spring program soil sampling. Rock samples collected during the Fall program contain up to 0.06% U3O8, plus elevated concentrations of some other elements.
The 2008 geological mapping indicates that the Boxey Point promontory is geologically favourable for uranium because: (a) there are numerous intrusives present into the Great Bay de L'Eau Formation and these intrusive may have acted as either sources of uraniferous fluids or heat-pumps to drive circulating hydrothermal fluids, or both; (b) there are numerous faults present, and these may have acted as conduits for any circulating hydrothermal fluids enriched in uranium or other metals; and finally, (c) the clastic sediments of Great Bay de L'Eau Formation locally contain plant and other organic debris, which may have acted as favourable reductant zones for percolating uranium bearing solutions.
Kirrin considers that further exploration is warranted at Boxey Point and an additional $750,000 work program has been planned, including:
- An expanded seventy-five line kilometre ground magnetics survey,
- Budget permitting, an expanded geochemical soil sampling program along the northern, eastern and southern margins of the soil sampling completed in 2008; and
- Selected targets drill tested by a series of short inclined holes.
| Expenditures to 12/2008 | $300,000 | |
| 2009 budget: | $400,000 |
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