Kirrin Resources Inc.
TSX VENTURE :
KYM
May 30, 2011 08:00 ET
Kirrin Resources Reports Q1 2011 Results
CALGARY, ALBERTA--(Marketwire - May 30, 2011) -Kirrin Resources Inc. (TSX VENTURE:KYM) today reported its financialresults and operational highlights for the first quarter of 2011. Thelatter included detailed planning of summer field programs at Kirrin'sGrevet and Bottom Brook REE properties and the completion of a 1,531line-km helicopter-borne time-domain electromagnetic geophysical surveyat the Key Lake SW uranium property in the SE Athabasca Basin.
Thefirst quarter 2011 financial results are Kirrin's first prepared inaccordance with International Financial Reporting Standards ('IFRS')and, in compiling the comparative information for the three months endedMarch 31, 2010, the financial statements for the year ended December31, 2010 and the opening IFRS consolidated statement of financialposition, Kirrin has adjusted amounts previously reported in itsfinancial statements prepared in accordance with CAGAAP. The transitionfrom CAGAAP to IFRS has had no material affect on the Company'sfinancial position although the application of IFRS has producedsignificant changes to some individual reporting lines. Readers arereferred to Kirrin's first quarter Condensed Consolidated InterimFinancial Statements filed on its web site and on SEDAR.
Kirrinrecorded a net loss of $139,684 (2010: loss $140,767) during the periodwhich included an increased tax credit of $45,934 against $6,822 in2010. Working capital at the period end was $675,544 (2010: $233,324).Mineral interests advanced by 32% to $1,998,035; no exploration costswere expensed during the period (2010: $12,948). As foreshadowed in the2010 MD&A, general and administration expenses increased 27% to$155,446 (2010: $122,468) although aggregate cash expenses increased by alesser 14% to $155,285 (2010: $136,573). Summary financial data is setout in tabular form below.
|
2011
$ |
2010
$ |
| Working capital |
675,544 |
233,324 |
| Mineral interests |
1,998,035 |
1,509,701 |
| Total assets |
3,289,035 |
2,066,044 |
| Total long-term financial liabilities |
110,000 |
110,000 |
| Shareholders' equity |
2,563,579 |
1,633,025 |
| Net loss for the quarter |
139,684 |
140,767 |
| Earnings per share |
0.00 |
0.00 |
| Shares outstanding (1) |
46,268,263 |
22,393,263 |
(1) All figures in Canadian dollars except for shares outstanding.
Operational Highlights
Kirrincompleted detailed planning for its Grevet REE project in northwesternQuebec where a grab sample from a ~2.5 cm wide carbonatite dyke assayed14.08% LREO and also had elevated HREO of 0.14%. A three phase 2011exploration season commenced in early May. The first phase will completeprospecting on priority areas, including the collection of samples andassessment of exploration potential. The second phase will primarilyidentify drill targets and is scheduled to commence in July. The thirdphase, scheduled to commence in September-October, will be determined bythe compilation and interpretation of the results obtained from theearlier 2011 phases and will likely comprise a 1,500 to 2,500 m drillprogram in 15 to 25 holes.
Detailed planning was also underway forKirrin'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 mcore length, 4.32% total REO over 2.0 m core length, and 1.16% total REOover 15.3 m core length. Kirrin has nine targets to evaluate at BottomBrook with a program of ground magnetics and detailed litho-geochemicalfollow-up, followed by trenching and/or drilling on the discretemagnetic targets.
In February 2011, Kirrin flew a 1,531 line-kmhelicopter-borne time-domain electromagnetic geophysical survey overmany of the priority targets identified in the Fugro 2010 survey. Thesurvey was flown using Geotech Ltd's Versatile Time-DomainElectromagnetic (VTEM Plus) geophysical system. Geophysical-geologicalinterpretation of the survey results in the context of all priorexploration data is underway and should assist identification ofselected targets for ground follow-up work during 2011. It isanticipated the follow-up 2011 program will include one or more ofphysical gridding, ground geophysical surveys, prospecting, localgeochemical surveys and detailed geological mapping. Finally, it isanticipated this work will result in the selection of drill targets for amulti-site drill program at the Key Lake SW property during 2011 or2012.
Reg A. Olson, Ph.D., P. Geol. is the designated QualifiedPerson for Kirrin who has reviewed the technical information in thisnews release.
Additional information relating to Kirrin is available on Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.
Kirrinexplores for rare earth elements and uranium. In addition to itsexploration activities, Kirrin seeks to enhance its capitalization andthe quality of its portfolio through options and corporate developmentactivity. Its strategy is well defined: enhancing shareholder value bycombining technical expertise, corporate development skills andprofessional management. Kirrin's shares trade on the TSX VentureExchange under the symbol KYM.