|August 25, 2011|
Kirrin Progresses Uranium and Rare Earth Element Explorationand Files Q2 2011 Results and Operating Highlights.
|Calgary, Alberta: Kirrin Resources Inc. today reported its financial results and operational highlights for the second quarter of 2011. The quarter was marked by busy exploration programs and progress at the Key Lake SW uranium project and the Grevet REE project. Summary financial data is set out below.|
The second quarter 2011 financial results are prepared in accordance with International Financial Reporting Standards ('IFRS') and, in compiling the comparative information for the three months ended June 30, 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 second quarter Condensed Consolidated Interim Financial Statements filed on its web site and on SEDAR.
Kirrin recorded a net loss of $176,007 (2010: loss $115,459) during the period. Working capital at the period end was $349,084 (2010: $4,150). Mineral interests advanced by 21% to $2,176,428; no exploration costs of significance were expensed during the period in either 2011 or 2010 although project development costs expensed amounted to $22,373 (2010: $763). As foreshadowed in the 2010 MD&A, general and administration expenses increased 30% to $154,214 (2010: $119,076). Summary financial data is set out in tabular form below.
Kirrin completed a number of milestones at its Key Lake Southwest ('KLSW') uranium property located on the southeastern margin of the Athabasca Basin in Saskatchewan. Two features of note from the interpretation report by Savaria Geophysics Inc. of its integration of 2011 and 2010 airborne geophysical survey data are (a) the identification of 35 airborne electromagnetic targets, over 50% of which are rated as High to Moderate priority for exploration follow-up for basement-hosted unconformity-type uranium deposits and (b) evidence that the Wollaston Domain may underlie the eastern portion of the KLSW property. Ground follow-up fieldwork is planned by Kirrin to start in August 2011.
The first phase of a three phase program at Kirrin's Grevet REE (rare earth elements) project in northwestern Quebec commenced in early May with prospecting and further geological examinations, plus systematic rock sampling, on priority target areas. This work was followed in late June by the collection of 90 geochemical soil samples and in early July by the commencement of a gravity survey comprising about 3.4 line kilometres with readings at 25--metre station intervals. The geochemical soil sampling and gravity survey covered selected parts of the Grevet project area that are postulated to be underlain by a large carbonatite body. Prior sampling results of carbonatite dykes and dykelets have demonstrated the presence of encouraging amounts of rare earth elements and include 14.19% TREO (total rare earth oxide) in a grab sample from a narrow carbonatite dykelet and 1.61% LREO across 2.2 metres from a wider carbonatite dyke. Results from 2011 rock sampling have recently been received, and are now being compiled and interpreted, as are the results from the geochemical soil sampling and gravity survey over the inferred carbonatite.
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 is a Canadian green energy company that 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 by utilising its management's broad industry and international experience in the identification of suitable rare earth elements and uranium companies and green energy assets for 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 (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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