Kria Resources

Kria Resources

November 18, 2009 12:11 ET

Kria Resources in Discussions With Xstrata to Utilize the Brunswick Mill for Ore Processing

TORONTO, ONTARIO--(Marketwire - Nov. 18, 2009) - Kria Resources (TSX VENTURE:KIA) ("Kria" or the "Company") today announced that it is 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. Xstrata currently holds 13,916,666, or 24% of the common shares of Kria, and warrants to purchase a further 6,958,333 common shares of Kria and owns the Brunswick 12 Mine and Mill. The mill currently has capabilities of processing tons beyond what is being presently mined at Brunswick Mines, thus having the potential to toll treat ore coming from Halfmile Lake.

Production from Kria's Halfmile Lake property, as examined in the Preliminary Economic Assessment (PEA) completed earlier this year, would require the building of a ramp and surface facilities such as offices and maintenance facilities, along with ore and waste rock storage pads. The proposed initial production access ramp and intended facilities would complement the final design and reduce the project risk by lowering initial capital requirements.

The Halfmile PEA (see Kria press release dated July 29, 2009), which envisaged construction of an underground mine and a standalone processing facility, indicated an internal rate of return of 16.2% or a net present value of CAD$139M before taxes at a discount rate of 8% using metal prices of US$0.80 per pound of zinc, US$0.56 per pound of lead, US$1.91 per pound of copper and US$10.59 per ounce of silver and an exchange rate of 0.846 US to Canadian dollars. The ability to step into the project on a phased approach would allow for the underground mine to be developed first for production in the upper zone area, along with giving access to an underground exploration platform for the lower and deep zones. The ability to generate cash flow earlier will assist Kria in financing the remainder of the project development.

Once a decision to proceed with the Halfmile Lake project is reached by Kria, an Environmental Impact Assessment (EIA) report would then be filed for regulatory and public review. The EIA review is necessary to obtain the permits required before proceeding with the project.

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 Beartooth Platinum and Kria Resources Information Circular of February 26, 2009 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.

Regulatory Footnotes

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 the exploration and development prospects, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations and environmental risks. 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 (and the company resulting from the successful completion of the proposed transaction) 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; delay or failure to receive board or regulatory approvals; 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.


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