|December 06, 2010|
Kirrin Resources Initiates Drill Program At Lost Pond Uranium Project
|Calgary, Canada: Kirrin Resources Inc. (TSX Venture: KYM) today announced that it has initiated a 1,500 metre drill program at its Lost Pond uranium project in Western Newfoundland. The program, budgeted at $400,000, is scheduled to be completed by year end. Drilling will test the continuation of the uranium bearing Cataclastic Zone at depth and down plunge. The program is expected to consist of five holes of BQ-TK sized core, with each hole ranging between approximately 170 to 380 metres in length.|
Kirrin acknowledges the support of The Department of Natural Resources of the Province of Newfoundland & Labrador for funding assistance under the JCEAP program, which will subsidize up to 50% of the proposed program to a maximum of $100,000.
Exploration to date at Lost Pond has proven the existence of a number of salient factors favourable to the presence of uranium deposits. For example, the local geology, in particular the characteristics of the U2 uranium alteration zone, demonstrates a uranium enriched source rock in the Hare Hill Granite and related dyke systems, excellent plumbing systems as demonstrated in the U2 structural controls, a favourable host rock and, finally, extensive alteration illustrated by an intermixing of intense hematite and chlorite altered units, often as alternating layers or as a hematite breccia. Uranium enrichment has been demonstrated to be widespread, and the U2 alteration zone indicates a large and intense uranium hydrothermal system. Uranium, as well as thorium and REE in places, appears to be mobile at different levels within various parts of the Lost Pond property, resulting in variations in the relative abundance of the three elements in different deposits.
The U2 area uranium showing at Lost Pond was discovered by Shell Minerals in 1981. Exploration since 2006 has resulted in the definition of the U2 mineralization as a 200 metre wide structural/alteration corridor hosting the Cataclastic Zone (0.045% U3O8 over 12.3 metres and 0.038% U3O8 over 20.1 metres) and parallel higher grade fracture controlled mineralization (0.752% U3O8 over 0.5 metres). A total of 3,100 metres of diamond drilling has been completed to date and results have demonstrated the Cataclastic Zone extends to depth. It is now defined as a steeply plunging zone that is increasing in width and grade in the down plunge direction. The deepest hole drilled to date assayed 0.038 %U3O8 over 20.1 metres including 0.061 %U3O8 over 3 metres. An additional five holes are planned at 50 to 75 metre spacing to explore the potential that the width and grade of the zone continues to increase in the down plunge direction.
The Lost Pond property is subject to a farm-in agreement with Ucore Rare Metals Inc. whereby Kirrin can earn up to a 50% interest in the property by completing a schedule of annual exploration expenditures and share payments to Ucore.
Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Kirrin on the Lost Pond project.
Kirrin also announced that its Board of Directors has granted options over 75,000 common shares at an exercise price of $0.10 per share to an IR consultant. Kirrin now has 1,191,000 options outstanding under its Option Plan, at an average exercise price of $0.12 per share.
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 uranium and rare earth element exploration in Newfoundland & Labrador, Quebec and Saskatchewan and in the expansion of its portfolio through acquisition, merger, strategic partnership and 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 including, without limitation, future plans and objectives of the Company are forward-looking statements which involve risks and uncertainties. Specifically, this press release contains forward-looking statements concerning the cost, details and timing of the drilling program at Lost Pond. 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 and undue reliance should not be placed on it. The completion of the drilling program assumes that drilling results and weather conditions prove no more challenging than anticipated and budgeted for by the Company. The risk factors that could cause actual results to vary from results expressed or implied by the forward-looking statements contained in this press release are primarily events beyond Kirrin's control and may preclude Kirrin from satisfying all applicable pre-conditions. These forward-looking statements are made as of the date hereof and 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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