Kirrin Resources Inc.
TSX VENTURE : KYM

Kirrin Resources Inc.

April 05, 2010 08:00 ET

Kirrin Resources Reports 2009 Results

CALGARY, ALBERTA--(Marketwire - April 5, 2010) - Kirrin Resources Inc. (TSX VENTURE:KYM) reported today its financial results and operational highlights for 2009. Summary financial data is set out in tabular form below. 

Kirrin recorded a net loss for the year of $924,908 (2008: profit $190,500) of which $552,833 was the write-down of mineral interests (2008: $20,135) and a credit of $362,000 represented the gain on the disposal of the diamond division (2008: $904,915) following the receipt of escrowed proceeds. The balance sheet strengthened during 2009, the year ending with positive working capital of $303,164 (2008: deficit $57,808) and liabilities decreasing by $273,670 to $690,763. General and administrative costs reduced substantially to $537,646 (2008: $857,101).

  2009 $ 2008 $ 2007 $
Working capital (deficit) 303,164 (57,808) 1,869,979
Mineral interests 1,428,943 1,696,373 125,777
Total assets 2,312,870 2,492,998 2,338,933
Total long term financial liabilities 110,000 110,000 441,785
Shareholders' equity 1,622,107 1,528,565 1,553,971
Net income (loss) for the year (924,908) 190,500 (2,189,395)
Loss per share (0.07) 0.00 (0.03)
Shares outstanding (1) (2) 20,599,673 12,347,002 12,197,002

(1) All figures in Canadian dollars except for shares outstanding.
(2) 2008 and 2007 have been revised to reflect the 1 for 10 share consolidation approved May 1, 2009.

Operational Highlights

Financing the year's exploration program proved challenging. With the spot market for uranium subdued for the whole year, Kirrin raised just short of $1 million, albeit at the end of the year when flow-through offerings were in demand. This capital was supplemented by a $100,000 grant from the Department of Natural Resources of the Province of Newfoundland & Labrador under its Minerals Incentive Program. Aggregate exploration expenditures were $0.4 million, largely on the Lost Pond rare earth elements (REE) project, subsequently renamed Bottom Brook, and the Boxey Point uranium project.

The prospecting and sampling program carried out in October-November, 2009 on the Bottom Brook REE property, located near Stephenville in western Newfoundland, produced results that exceeded expectations. There are now nine REE targets at Bottom Brook and a follow-up program of ground magnetics and geochemistry is planned, to be followed by trenching and/or drilling on the discrete magnetic targets. 

The 2009 exploration program resulted in the identification of two new areas of rare earth mineralization:

  • Bottom Brook B Zone: Assay results of 1.69% and 6.80% TREO were obtained from two grab samples collected from angular boulders containing abundant magnetite and hematite mineralization. The highest grade sample (6.80% TREO) includes individual assays of 2.87% Ce2O3, 1.48% La2O3 and 1.21% Nd2O3. This mineralization is proximal to a discrete isolated magnetic high anomaly, which is located approximately 1 km northeast of the Bottom Brook A Zone 
  • Bottom Brook C Zone: This area was also identified for follow-up because of the presence of a discrete isolated magnetic high. A total of five samples were taken from magnetite-hematite bearing granite float proximal to the target, all with similar radioactivity and mineralogy to the Bottom Brook A Zone. Sampling results ranged from 1.50 % to 10.04% TREO. The highest grade sample (10.04% TREO) includes individual assays of 4.13% Ce2O3, 2.22% La2O3 and 1.88% Nd2O3.

Kirrin completed a diamond drill program on the Boxey Point uranium property in western Newfoundland in November 2009. A total of 1,323 m was drilled in nine holes. Low grade radioactive intercepts occurred in five holes and the best assay is 0.164% U3O8 across 0.5 m near the top of hole Boxey 03. Although the drilling program was a technical success in that several radioactive intercepts were found eastward from the radioactive outcrops that occur along the west side of the Boxey Point promontory, the results did not sufficiently improve the project's prospects. Accordingly, the Company determined to terminate the option and write off its $553,000 carrying cost for Boxey Point.

Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Kirrin on the Bottom Brook and Boxey Point projects. 

Annual General and Special Meeting

Kirrin also announced that its annual general and special meeting of shareholders will be held on Monday, May 3, 2010 in Calgary. Business will comprise the consideration of the audited financial statements for the year ended December 31, 2009 and the report of the auditors thereon; fixing the board of directors at five members and electing the board of directors; appointing KPMG LLP as auditors and authorizing the board of directors to fix the auditors' remuneration; and considering, approving and adopting Kirrin's stock option plan.

The Annual Report, Proxy and Information Circular are being mailed to shareholders on or about April 6, 2010. The complete Annual Report, including financial statements and Management's Discussion and Analysis, will be available on www.kirrinresources.com. These documents will also be available at www.sedar.com.

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 engaged in rare earth element and uranium exploration in Newfoundland & Labrador, Quebec and Saskatchewan and in the expansion of its portfolio through 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.

To receive company news releases via e-mail, please advise chelsea@chfir.com and specify "Kirrin News" in the subject line.

Forward-looking information: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. 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. Risks include delays in obtaining or failure to obtain regulatory approval. 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.

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.

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