Kria Resources Ltd.
TSX VENTURE : KIA

Kria Resources Ltd.

September 01, 2010 07:29 ET

Kria Resources' Metallurgical Test Results Indicate Halfmile Lake Project Ore Is Compatible With Xstrata Zinc's Brunswick 12 Milling Facility

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2010) - Kria Resources (TSX VENTURE:KIA) ("Kria" or the "Company") today announced results from metallurgical bench test work for its Halfmile Lake project located near Bathurst, New Brunswick. Overall, the results indicate the Halfmile Lake ore is similar to the ore at Xstrata's Brunswick 12 mill and it is compatible with the Brunswick 12 milling facility process.

As previously announced, Kria completed a drill program at the Halfmile Lake project (see Press Release dated May 26, 2010) in part to obtain fresh core samples for the purpose of conducting metallurgical bench test work to simulate Xstrata's Brunswick 12 milling facility. These bench tests were used to determine recoveries and concentrate grades and to confirm amenability to the Brunswick 12 processing facility owned by Xstrata Zinc when the ore from Halfmile Lake is toll processed from the Halfmile Lake property.

Composites from Halfmile Lake and Brunswick ores were tested separately following the process flow sheet and reagent dosages and consumption supplied by Xstrata Zinc and used at Brunswick 12. The test results show that copper flotation kinetics is the same for the two composites from Halfmile Lake and Brunswick 12, while Halfmile composite lead and zinc flotation kinetics is generally faster compared to the Brunswick composite. In addition, two blended tests of Brunswick and Halfmile composites in the following manner 80:20, and 90:10 have been completed, which indicate that Halfmile Lake ore is amenable to the Brunswick 12 process. A further two blend tests, representing current Brunswick 12 reagent consumptions, will be conducted. These additional blended composite tests will be complete in early September, 2010, which should confirm that the blends in the above ratios are compatible with the Brunswick 12 milling facility process and further validate that Halfmile Lake ore is amenable to Xstrata's Brunswick 12 process.

Kria announced in November 2009 that it was in discussions with Xstrata Zinc to potentially utilize Xstrata's Brunswick 12 mill to toll process ore from Kria's Halfmile Lake property once 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.

Discussions with Xstrata with regards to the terms of toll processing ore at the Brunswick 12 mill have progressed and Kria expects to finalize an agreement in the next month.

The metallurgical bench testing was conducted at SGS Lakefield laboratories and was lead by Wardrop, a Tetra Tech Company ("Wardrop"), under the supervision of Georgi Doundarov, P. Eng., PMP, CCE, who is an independent "Qualified Person" and employee of Wardrop.

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

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 July 2009 that estimated a pre-tax NPV of C$587 million (0% discount) and IRR of over 16% based on metal prices of US$0.80/lb Zn, US$1.91/lb Cu, US$0.56/lb Pb and US$10.59/oz Ag. The PEA 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.

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 exploration prospects, statements made regarding the metallurgical similarities between the Halfmile Lake and the Brunswick ores, statements made regarding the results of metallurgical testing and any inferences drawn by the Company with respect to such results, the completion of the proposed agreement with Xstrata Zinc, and timing with respect to all regulatory and permitting approvals. 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.

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