|May 30, 2011|
Kirrin Resources Reports Q1 2011 Results
|Calgary, Canada: Kirrin Resources Inc. today reported its financial results and operational highlights for the first quarter of 2011. The latter included detailed planning of summer field programs at Kirrin's Grevet and Bottom Brook REE properties and the completion of a 1,531 line-km helicopter-borne time-domain electromagnetic geophysical survey at the Key Lake SW uranium property in the SE Athabasca Basin.|
The first quarter 2011 financial results are Kirrin's first prepared in accordance with International Financial Reporting Standards ('IFRS') and, in compiling the comparative information for the three months ended March 31, 2010, the financial statements for the year ended December 31, 2010 and the opening IFRS consolidated statement of financial position, Kirrin has adjusted amounts previously reported in its financial statements prepared in accordance with CAGAAP. The transition from CAGAAP to IFRS has had no material affect on the Company's financial position although the application of IFRS has produced significant changes to some individual reporting lines. Readers are referred to Kirrin's first quarter Condensed Consolidated Interim Financial Statements filed on its web site and on SEDAR.
Kirrin recorded a net loss of $139,684 (2010: loss $140,767) during the period which included an increased tax credit of $45,934 against $6,822 in 2010. Working capital at the period end was $675,544 (2010: $233,324). Mineral interests advanced by 32% to $1,998,035; no exploration costs were expensed during the period (2010: $12,948). As foreshadowed in the 2010 MD&A, general and administration expenses increased 27% to $155,446 (2010: $122,468) although aggregate cash expenses increased by a lesser 14% to $155,285 (2010: $136,573). Summary financial data is set out in tabular form below.
(1) All figures in Canadian dollars except for shares outstanding.
Kirrin completed detailed planning for its Grevet REE project in northwestern Quebec where a grab sample from a ~2.5 cm wide carbonatite dyke assayed 14.08% LREO and also had elevated HREO of 0.14%. A three phase 2011 exploration season commenced in early May. The first phase will complete prospecting on priority areas, including the collection of samples and assessment of exploration potential. The second phase will primarily identify drill targets and is scheduled to commence in July. The third phase, scheduled to commence in September-October, will be determined by the compilation and interpretation of the results obtained from the earlier 2011 phases and will likely comprise a 1,500 to 2,500 m drill program in 15 to 25 holes.
Detailed planning was also underway for Kirrin's Bottom Brook REE project in western Newfoundland & Labrador where drilling results point to high grade REE mineralization - 15.04% total REO over 0.3 m core length, 4.47% total REO over 5.64 m core length, 4.32% total REO over 2.0 m core length, and 1.16% total REO over 15.3 m core length. Kirrin has nine targets to evaluate at Bottom Brook with a program of ground magnetics and detailed litho-geochemical follow-up, followed by trenching and/or drilling on the discrete magnetic targets.
In February 2011, Kirrin flew a 1,531 line-km helicopter-borne time-domain electromagnetic geophysical survey over many of the priority targets identified in the Fugro 2010 survey. The survey was flown using Geotech Ltd's Versatile Time-Domain Electromagnetic (VTEM Plus) geophysical system. Geophysical-geological interpretation of the survey results in the context of all prior exploration data is underway and should assist identification of selected targets for ground follow-up work during 2011. It is anticipated the follow-up 2011 program will include one or more of physical gridding, ground geophysical surveys, prospecting, local geochemical surveys and detailed geological mapping. Finally, it is anticipated this work will result in the selection of drill targets for a multi-site drill program at the Key Lake SW property during 2011 or 2012.
Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Kirrin who has reviewed the technical information in this news release.
Additional information relating to Kirrin is available on Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.
Kirrin explores for rare earth elements and uranium. In addition to its exploration activities, Kirrin seeks to enhance its capitalization and the quality of its portfolio through options and corporate development activity. 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 the 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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