Kria Resources Ltd.
TSX VENTURE : KIA

Kria Resources Ltd.

September 17, 2010 15:01 ET

Kria Resources Begins Traditional Knowledge Study for Halfmile Lake Project With Mi'gmag First Nations; Appoints Dr. Mark Cruise to Board

TORONTO, ONTARIO--(Marketwire - Sept. 17, 2010) - Kria Resources Ltd. (TSX VENTURE:KIA) ("Kria" or the "Company") is pleased to announce that it has entered into an agreement with the Mi'gmag First Nations through an agreement with the North Shore Micmac District Council Inc. ("NSMDC") to undertake a Traditional Knowledge Study ("TKS") on the lands impacted by the Company's Halfmile Lake Project, located in the Bathurst mining district of New Brunswick.

The TKS is being conducted as part of Kria's Environmental Impact Assessment ("EIA") process that commenced earlier this year in order to obtain the governmental permits required to proceed with development of the Halfmile Lake Project.

The Mi'gmag First Nations of: Amlamgog (Fort Folly), Elsipogtog (Big Cove), Esgenoôpetitj (Burnt Church), L'nui Menikuk (Indian Island), Metepenagiag, Natoaganeg (Eel Ground), Oinpegitjoig (Pabineau), Tjipõgtõtjg (Bouctouche) and Ugpi'ganjig (Eel River Bar) will be involved in the TKS for the Halfmile Lake Project.

The TKS is expected to be conducted in the third and fourth quarter of 2010 and will include the preparation of a final report to be jointly submitted by Kria and NSMDC to the Province of New Brunswick.

Kria expects a final decision shortly with regards to permitting from the New Brunswick government.

In addition, Kria is pleased to announce the appointment of Dr. Mark Cruise to its Board of Directors. 

Dr. Cruise is currently the President and CEO of Trevali Resources Corp. and the Vice-President, Business Development of Cardero Resource Corp. A base metal specialist, Dr. Cruise completed his Ph.D. on the Irish Zinc-Lead orefield and has extensive global base metal experience from grass-roots exploration through resource definition to production in Europe and the America's on behalf of Pasminco Limited and Anglo American plc. He was a member of Anglo's Lisheen Zinc-Lead Mine feasibility/technical team in Ireland that developed the 4,000 tpd Lisheen Mine. In 2001, Dr. Cruise transferred to Anglo's Vancouver office, where he held the position of Senior Geologist with responsibility for Anglo's copper and zinc portfolio, including project generation and implementation in Canada, USA, and Mexico. In 2004, Dr. Cruise joined Cardero as Vice-President, Exploration with responsibility for Cardero's Peruvian, Argentinean and Mexican portfolio including the approximately 850Mt Pampa de Pongo Iron deposit, Peru. In 2008, Dr. Cruise joined Trevali, and has been instrumental in the ongoing fast track redevelopment and planned resumption of production with partners Glencore International AG, from three new recently discovered deposits at the Santander polymetallic mine project in west-central Peru.

In conjunction with his appointment, Dr. Cruise was granted 200,000 stock options of the Company at a price of $0.195. The options shall vest immediately and shall expire on September 16, 2015, in accordance with the stock option plan of the Company and remain subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

Kria's President and CEO, Mike Hoffman commented, "On behalf of the Board of Directors, I would like to welcome Mark to Kria. His appointment follows Cardero's recent investment in Kria and we are confident his expertise in base metals will be a valuable asset as Kria continues the development of its Halfmile Lake project."

Halfmile/Stratmat Near Term Development Plans

The Stratmat and Halfmile Lake Properties are located in northeast New Brunswick, Canada, approximately 48 kilometers southwest of Bathurst, and only 24 kilometers from the world class Brunswick 12 deposit. The Stratmat property borders the past-producing Heath Steele operations. Kria believes that the Halfmile Lake and Stratmat properties represent the largest and highest grade undeveloped deposits in the Bathurst Mining Camp and have been explored by Xstrata Zinc and its predecessor companies since the 1960s and extensively during the 1980s and 1990s when the Heath Steele and Stratmat Mines were in production. 

Kria is in discussions with Xstrata Zinc to utilize Xstrata's Brunswick 12 mill to toll process ore from Kria's Halfmile Lake property and advance Halfmile to production. Kria intends, upon receipt of governmental permits, to begin underground exploration and development activities at the Halfmile Lake site in order to begin supplying ore to Xstrata's Brunswick 12 processing facility by early 2011, assuming an agreement with Xstrata is successfully negotiated. The toll processing of ore would continue until the Brunswick 12 mill closes.

Quality Control

The scientific and technical contents of this press release have been supervised, reviewed and approved 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.

About Kria Resources Ltd.

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 and Stratmat projects are optioned by Kria from Xstrata, which is currently the largest shareholder of Kria.

Kria completed a preliminary economic assessment ("PEA") on its Halfmile Lake project in September 2010 that indicated the project's economics improve if the mineral resource from Kria's nearby Stratmat property is combined with the mineral resource from Halfmile Lake. The combined Halfmile/Stratmat PEA estimated a pre-tax NPV of C$253 million (8% discount) and IRR of over 20% based on metal prices of US$1.03/lb Zn, US$3.03/lb Cu, US$0.92/lb Pb and US$15.08/oz Ag.

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. Prices and other assumptions mentioned in this press release are Kria's internal assumptions and estimates. Additional information is available at www.kriaresources.com.

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 TKS and its estimates, anticipated timing with respect to the finalization of the TKS, anticipated timing with respect to the potential agreement with Xstrata Zinc, exploration prospects, the timing with respect to implementation of the permitting approval process, and timing with respect to all regulatory approvals and shareholder approvals, if required. 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". 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.

NEITHER THE 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.

Contact Information

  • Kria Resources Ltd.
    Heather Colpitts
    Manager, Investor and Public Relations
    416-861-5803
    info@kriaresources.com
    or
    Steve Davies
    COO
    204-679-5584