Kria Resources

Kria Resources

March 31, 2010 08:00 ET

Kria Resources Commences Preliminary Economic Assessment for Its Stratmat Project

TORONTO, ONTARIO--(Marketwire - March 31, 2010) - Kria Resources (TSX VENTURE:KIA) ("Kria" or the "Company") today announces that it has commenced work on a Preliminary Economic Assessment (PEA) study for the combined Halfmile Lake and Stratmat deposits, located in the Bathurst mining district of New Brunswick, to determine the economics of combining production from the two deposits. 

Kria completed a PEA on its Halfmile Lake project in July 2009 that indicated there is potential to create a combined Halfmile Lake/Stratmat project that would improve the project's economics if the mineral resource from Kria's nearby Stratmat property is combined with the mineral resource from Halfmile Lake. A National Instrument (NI) 43-101 technical report estimates that the Stratmat Deposit has an Inferred Mineral resource of 5.52 million tonnes grading 6.11% zinc, 2.59% lead, 0.40% copper and 54.21 g/tonne silver (8.16% Zn equivalent) using a 5.0% zinc equivalent cut-off grade (see press release dated March 2, 2009 for details of the resource estimate). The Halfmile Lake project PEA estimates a pre-tax NPV of C$587 million and IRR of over 16%, using conservative metal prices well below the current prices* (see press release dated July 29, 2009 for details of the Halfmile Lake valuation).

Kria has engaged Wardrop Engineering, a Tetra Tech Company (Wardrop) to complete the combined Halfmile Lake/Stratmat PEA. Wardrop previously completed the Halfmile Lake PEA and the mining schedule from Halfmile Lake, as determined by this previous PEA, will be merged with the mine plan from Stratmat to develop a comprehensive plan which will include both deposits.

Kria expects the combined Stratmat/Halfmile Lake PEA to be complete by summer 2010.

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 potentially utilize Xstrata's Brunswick 12 mill to toll process ore from Kria's Halfmile Lake property if it is advanced to production. Kria intends, upon receipt of governmental permits, to begin 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. 

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.

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 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.

*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 results forecast in the PEA will be realized.

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 PEA, the results of the PEA, the development and production at the Halfmile Lake property, and timing with respect to a potential agreement with Xstrata. 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.

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