Kirrin Resources Initiates Drill Program at Lost PKirrin Resources Inc.
TSX VENTURE:
KYM
Dec 06, 2010 08:00 ET
Kirrin Resources Initiates Drill Program at Lost Pond Uranium Project
CALGARY, ALBERTA--(Marketwire - Dec. 6, 2010) - KirrinResources Inc. (TSX VENTURE:KYM) today announced that it has initiated a1,500 metre drill program at its Lost Pond uranium project in WesternNewfoundland. The program, budgeted at $400,000, is scheduled to becompleted by year end. Drilling will test the continuation of theuranium bearing Cataclastic Zone at depth and down plunge. The programis expected to consist of five holes of BQ-TK sized core, with each holeranging between approximately 170 to 380 metres in length.
Kirrin acknowledges the support of The Department of NaturalResources of the Province of Newfoundland & Labrador for fundingassistance under the JCEAP program, which will subsidize up to 50% ofthe proposed program to a maximum of $100,000.
Exploration to date at Lost Pond has proven the existence of anumber of salient factors favourable to the presence of uraniumdeposits. For example, the local geology, in particular thecharacteristics of the U2 uranium alteration zone, demonstrates auranium enriched source rock in the Hare Hill Granite and related dykesystems, excellent plumbing systems as demonstrated in the U2 structuralcontrols, a favourable host rock and, finally, extensive alterationillustrated by an intermixing of intense hematite and chlorite alteredunits, often as alternating layers or as a hematite breccia. Uraniumenrichment has been demonstrated to be widespread, and the U2 alterationzone indicates a large and intense uranium hydrothermal system.Uranium, as well as thorium and REE in places, appears to be mobile atdifferent levels within various parts of the Lost Pond property,resulting in variations in the relative abundance of the three elementsin different deposits.
The U2 area uranium showing at Lost Pond was discovered byShell Minerals in 1981. Exploration since 2006 has resulted in thedefinition of the U2 mineralization as a 200 metre widestructural/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% U3O8over 0.5 metres). A total of 3,100 metres of diamond drilling has beencompleted to date and results have demonstrated the Cataclastic Zoneextends to depth. It is now defined as a steeply plunging zone that isincreasing in width and grade in the down plunge direction. The deepesthole drilled to date assayed 0.038 %U3O8 over 20.1 metres including 0.061 %U3O8over 3 metres. An additional five holes are planned at 50 to 75 metrespacing to explore the potential that the width and grade of the zonecontinues to increase in the down plunge direction.
The Lost Pond property is subject to a farm-in agreement withUcore Rare Metals Inc. whereby Kirrin can earn up to a 50% interest inthe property by completing a schedule of annual exploration expendituresand 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 grantedoptions over 75,000 common shares at an exercise price of
.10 pershare to an IR consultant. Kirrin now has 1,191,000 options outstandingunder its Option Plan, at an average exercise price of
.12 per share.