|February 24, 2011|
Kirrin Resources Announces Lost Pond Drill Results; 2011 Exploration In Western Newfoundland To Focus On Rare Earth Elements Program
|Calgary, Alberta: Kirrin Resources Inc. (TSX Venture: KYM) today announced the results from its four hole, 1,354 m diamond drill program completed in December 2010 at the Lost Pond uranium project in western Newfoundland. Three of the four holes intersected anomalous uranium values, however the intensity of mineralization varied considerably and the grade did not improve with depth. Kirrin also announced that its exploration program in western Newfoundland in 2011 would focus on rare earth elements, centred on its Bottom Brook REE property. The Lost Pond and Bottom Brook property is under option from Ucore Rare Metals Inc.|
Drilling to date on the Cataclastite Zone at Lost Pond has defined a low grade uranium zone in the 0.01 to 0.07% U3O8 range over widths up to 15 m true thickness. The deposit appears to have a strike length up to 100 m, is steeply dipping and plunges at approximately 65 degrees to the north. December's drilling had targeted an increase in grade below the previous holes and, although the zone was intersected, the uranium grades actually decreased. The deepest hole drilled to date intersected the zone at a vertical depth of approximately 220 m below surface and no additional drilling is warranted below this. Any mineralization found deeper would require underground access, necessitating minimum economic grades of at least 0.15% U3O8. No further work is recommended on the Cataclastite Zone at this time.
Commenting on the results, Kirrin CEO and President Derek Moran said, "These drill results have not met the objectives set for uranium exploration at Lost Pond. Kirrin has a full portfolio of projects and it is unlikely that Lost Pond will compete successfully for future capital. We shall take a write-down of $431,000 in Q4 2010 to reflect the recent results."
The Bottom Brook REE project overlaps the land area of the Lost Pond uranium project and remains of interest to Kirrin. This REE project, as previously disclosed, has generated drilling results which point to high grade REE mineralization, 4.47% TREO over 5.64 m core length, 4.32% TREO over 2.0 m core length, and 1.16% TREO over 15.3 m core length. The Bottom Brook REE project has nine targets which Kirrin plans to evaluate in 2011 with a program of ground magnetics and detailed litho-geochemical follow-up. It is expected that this will be followed by trenching and/or drilling on the discrete magnetic targets. Additional prospecting on other targeted areas is included in the plans. Kirrin is also reviewing additional REE prospective properties in western Newfoundland.
Quality Control: Core samples from this drill program were split using a diamond saw and half of the core was sent to Eastern Analytical in Springdale, NL for sample preparation. Representative pulps were sent to Activation Laboratories in Ancaster, ON for analysis. Uranium concentration was analyzed by Delayed Neutron Count (DNC) along with ICP-MS for select major, minor and trace element compositions. Blank samples were inserted into the sample batch periodically and standards were used at Activation Laboratories to ensure accuracy.
The Qualified Person (QP) who has prepared or reviewed the technical information for this release is Wayne Reid, P.Geo.
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 (416) 868-1079
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 timing and constituents of expected exploration programs. 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 anticipated 2011 time frame for planned exploration programs assumes that the Company will continue to allocate sufficient priority to this work relative to its finite cash resources for its overall exploration activity. In each case 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. 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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