Kria Resources

Kria Resources

January 18, 2010 08:30 ET

Kria Resources Commences Environmental Impact Assessment for Its Halfmile Lake Project in New Brunswick

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2010) - Kria Resources (TSX VENTURE:KIA)("Kria" or the "Company") today announces that is has begun work on an Environmental Impact Assessment report (EIA) for its Halfmile Lake property located near Bathurst, New Brunswick.

The EIA report is necessary to obtain the governmental permits required before proceeding with the project. Once complete, the EIA report will be filed for regulatory and public review. Kria expects to have the EIA complete for submission during the month of February.

As announced in November 2009, Kria has been in discussions with Xstrata Zinc to examine the potential of utilizing Xstrata's Brunswick 12 mill to toll process ore from Kria's Halfmile Lake property once it is advanced to production. Xstrata Zinc's Brunswick mill, located outside Bathurst, New Brunswick, is approximately 40 kilometres from Kria's Halfmile Lake property. Supplying supplemental ore from Kria's Halfmile Lake property to the Xstrata mill would allow Kria to expedite its timeline to commencing production and allow for a phased approach to further development of the mine and processing facilities.

Kria intends, upon receipt of governmental permits, to begin development activities at the Halfmile site in order to begin supplying ore to Xstrata's Brunswick processing facility by early 2011. The timing of the commencement of shipping of the ore is subject to timely completion of environmental and other permitting. The Company anticipates that ore could begin being delivered to the Brunswick operation for treatment in 2011.

Kria has engaged Wardrop Engineering Inc, a Tetra Tech Company ("Wardrop") to conduct the EIA. Wardrop completed the Preliminary Economic Assessment of Kria's Halfmile Lake property in July 2009 and is therefore familiar with the property. There has been considerable environmental baseline work completed by the prior owners and this work is now being supplemented by Kria to form the basis of the current EIA.

In addition, Kria announces that it has granted 100,000 stock options to a consultant of the Company. The options shall vest immediately with a statutory four month hold period, have an exercise price of $0.25 and shall expire 5 years from the date of the grant. The grant of options is subject to receipt of all regulatory approvals.

About Kria Resources

Kria Resources is a base metal exploration and development company focused on high-quality, advanced-stage base metal assets. Kria's primary asset is the Halfmile Lake and Stratmat properties near Bathurst, New Brunswick. The Halfmile Lake property has a NI 43-101 compliant Indicated mineral resource estimate of 6.26 million tonnes grading 8.13% zinc, 2.58% lead, 0.22% copper and 30.78 g/t silver using a 5.0% capped zinc equivalent cut-off grade and an Inferred resource estimate of 6.08 million tonnes grading 6.69% zinc, 1.83% lead, 0.14% copper and 20.51 g/t silver using a 5.0% capped zinc equivalent cut-off grade. A recently completed Preliminary Economic Assessment of the Halfmile Lake project (the "PEA") estimates a pre-tax NPV of C$587 million and IRR of over 16%. The PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the PEA will be realized. The Stratmat property has an Inferred Mineral Resource estimate of 5.52 million tonnes grading 6.11% zinc, 2.59% lead, 0.40% copper and 54.21 g/t silver using a 5.0% zinc equivalent cut-off grade.

Kria also has the Ruttan copper-zinc sulphide project near Leaf Rapids, Manitoba that has an NI 43-101 compliant mineral inferred resource estimate of 19.75 million tonnes grading 1.17% copper and 1.47% zinc using a 1.0% capped copper equivalent cut-off grade. Please refer to the Company's technical reports filed on SEDAR for details regarding the NI 43-101 compliant resource estimates on Halfmile, Stratmat and Ruttan.

Please visit our website at for additional information.

Quality Control

The technical contents of this press release have been supervised and reviewed by Steve Davies, P. Eng., Vice President Operations of Kria and Dayle Rusk, P. Geo., Vice President Exploration of Kria, both of whom are Qualified Persons as defined under NI 43-101 guidelines.

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to exploration prospects, the timing with respect to the completion of the EIA, the results of the EIA and the development and production at the Halfmile Lake property. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Estimates regarding the projected economics of the projects are based on research, experience and analysis of the management of the Company and external advisors, which estimated are set out in detail in the PEA of the Halfmile Lake project that is available under the Company's profile on SEDAR. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


Contact Information