|February 16, 2010|
Kirrin Resources Announces Acquisition Of Grevet Ree Project In Quebec
|Calgary, Canada: Kirrin Resources Inc. announced today that it has entered into an option agreement with Michel Proulx ("MP") allowing Kirrin to earn a 100% interest in the Grevet rare earth elements ("REE") property, which is located in north-western Quebec, Canada. |
Commenting on the acquisition, Kirrin President and CEO Derek Moran said: "The Grevet property fits Kirrin's expansion mode very well. We anticipate early exploration results with a limited budget on an attractive REE prospect".
The geological data for the Grevet REE property has been reviewed by Dr. David Lentz of the University of New Brunswick, who is a consultant to Kirrin. Dr. Lentz suggested that, because of the ferroan carbonatite association with magnetite, the Grevet REE property may have some geological similarities to the large Bayan Obo REE-bearing carbonatitic body in inner Mongolia, China. Bayan Obo is the world's largest REE deposit, containing about 70% of the world's known REE reserves.
Rare earths are used extensively in high-tech industries, predominantly in the manufacture of permanent magnets, metal alloys, batteries catalysts, and glass. Growth in demand over the past four years has exceeded 10% per year and growth is expected to remain strong in the future.
Interest in the REE potential of the Grevet area began in 1988 when the Ministry of Energy and Resources of Quebec identified carbonatite occurrences. Subsequently, Soquem obtained rock samples in trenches that assayed up to 4.0% lanthanum plus cerium (La+Ce), which occurred in magnetite veinlets with associated haematitic alteration (Proulx and Daigenault, 1990). Further work and sampling by MP led to the identification of anomalous REE in hematitic magnetite veinlets and carbonate veins with or without magnetite, in syenite and carbonatite dykes (Proulx, 2000, 2001, 2002). The chemical analysis of the samples revealed the attractive REE chemistry, with results for the rock samples ranging from 0.30% up to 5.89% light rare earth oxides (LREO) and results from the MMI survey producing niobium (Nb), yttrium (Y), cobalt (Co), nickel (Ni) and rubidium (Rb) anomalies. From 2003 to the present, there was little further exploration for REE at the Grevet property, but renewed interest in the property's REE potential was re-kindled as a result of heightened international concern for a world shortfall of REE if China, which currently produces approx. 95% of REE, reduces exports as it has recently indicated.
The Grevet property comprises a group of 14 contiguous mineral claims with a combined total of 662.52 ha (1,636.42 acres) located in Grevet Canton (Township), 30 km north-east of the town of Lebel-sur-Quevillon and approx. 200 km north-east of Val d'Or in north-western Quebec. There is excellent access via provincial road 113 as well as logging roads. A CN railway line bisects the property. The closest airport is at Lebel-sur-Quevillon. Kirrin may earn a 100% interest in the Grevet property by spending $1,850,000 on exploration, including a minimum first year commitment of $200,000, and making payments to MP of $20,000, over four years. In addition, Kirrin will pay $150,000 to MP on the receipt of a positive Feasibility Study and MP will retain a 1.0% Net Smelter Returns ("NSR") royalty on all minerals produced from the property, Kirrin having the right to acquire half of this NSR for payment of $500,000.
Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Kirrin on the Grevet REE project.
Additional information relating to Kirrin is available on Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.
Kirrin is engaged in REE and uranium exploration in Newfoundland & Labrador and Quebec and in the expansion of its portfolio through acquisition, merger, strategic partnership or joint venture. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. Kirrin's shares trade on the TSX Venture Exchange under the symbol KYM.
FOR FURTHER INFORMATION PLEASE CONTACT:
Derek J Moran, President, Kirrin Resources Inc.
27 82 440 3426
Robin Cook, Account Manager, CHF Investor Relations
To receive company news releases via e-mail, please advise [email protected] and specify "Kirrin News" in the subject line.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking information: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those expressed or implied by such forward-looking information. Risks include delays in obtaining or failure to obtain regulatory approval. Except as required by applicable securities legislation, the Company undertakes no obligation to publically update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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