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CALGARY, ALBERTA--(Marketwire - May 30, 2011) - Kirrin
Resources Inc. (TSX VENTURE:KYM) today
reported its financial results and operational highlights for the first
quarter of 2011. The latter included detailed planning of summer field
programs at Kirrin's Grevet
and Bottom Brook REE properties and the completion of a 1,531 line-km
helicopter-borne time-domain electromagnetic geophysical survey at the
Key Lake SW uranium property in the SE Athabasca Basin.
The first quarter 2011 financial results are Kirrin's
first prepared in accordance with International Financial Reporting
Standards ('IFRS') and, in compiling the comparative information for
the three months ended March 31, 2010, the financial statements for the
year ended December 31, 2010 and the opening IFRS consolidated
statement of financial position, Kirrin has
adjusted amounts previously reported in its financial statements
prepared in accordance with CAGAAP. The transition from CAGAAP to IFRS
has had no material affect on the Company's
financial position although the application of IFRS has produced
significant changes to some individual reporting lines. Readers are
referred to Kirrin's first quarter Condensed
Consolidated Interim Financial Statements filed on its web site and on
SEDAR.
Kirrin recorded a net loss of $139,684 (2010:
loss $140,767) during the period which included an increased tax credit
of $45,934 against $6,822 in 2010. Working capital at the period end
was $675,544 (2010: $233,324). Mineral interests advanced by 32% to
$1,998,035; no exploration costs were expensed during the period (2010:
$12,948). As foreshadowed in the 2010 MD&A, general and
administration expenses increased 27% to $155,446 (2010: $122,468)
although aggregate cash expenses increased by a lesser 14% to $155,285
(2010: $136,573). Summary financial data is set out in tabular form
below.
---------------------------------------------------------------------- 2011 2010 $ $ ---------------------------------------------------------------------- Working capital 675,544 233,324 ---------------------------------------------------------------------- Mineral interests 1,998,035 1,509,701 ---------------------------------------------------------------------- Total assets 3,289,035 2,066,044 ---------------------------------------------------------------------- Total long-term financial liabilities 110,000 110,000 ---------------------------------------------------------------------- Shareholders' equity 2,563,579 1,633,025 ---------------------------------------------------------------------- Net loss for the quarter 139,684 140,767 ---------------------------------------------------------------------- Earnings per share 0.00 0.00 ---------------------------------------------------------------------- Shares outstanding (1) 46,268,263 22,393,263 ---------------------------------------------------------------------- (1) All figures in Canadian dollars except for shares outstanding.
Operational Highlights
Kirrin completed detailed planning for its Grevet REE project in northwestern Quebec where a
grab sample from a approx.2.5 cm wide carbonatite dyke assayed 14.08% LREO and also had
elevated HREO of 0.14%. A three phase 2011 exploration season commenced
in early May. The first phase will complete prospecting on priority
areas, including the collection of samples and assessment of
exploration potential. The second phase will primarily identify drill
targets and is scheduled to commence in July. The third phase,
scheduled to commence in September-October, will be determined by the
compilation and interpretation of the results obtained from the earlier
2011 phases and will likely comprise a 1,500 to 2,500 m drill program
in 15 to 25 holes.
Detailed planning was also underway for Kirrin's
Bottom Brook REE project in western Newfoundland & Labrador where
drilling results point to high grade REE mineralization - 15.04% total
REO over 0.3 m core length, 4.47% total REO over 5.64 m core length,
4.32% total REO over 2.0 m core length, and 1.16% total REO over 15.3 m
core length. Kirrin has nine targets to
evaluate at Bottom Brook with a program of ground magnetics
and detailed litho-geochemical follow-up, followed by trenching and/or
drilling on the discrete magnetic targets.
In February 2011, Kirrin flew a 1,531 line-km
helicopter-borne time-domain electromagnetic geophysical survey over
many of the priority targets identified in the Fugro
2010 survey. The survey was flown using Geotech
Ltd's Versatile Time-Domain Electromagnetic (VTEM Plus) geophysical
system. Geophysical-geological interpretation of the survey results in
the context of all prior exploration data is underway and should assist
identification of selected targets for ground follow-up work during
2011. It is anticipated the follow-up 2011 program will include one or
more of physical gridding, ground geophysical surveys, prospecting,
local geochemical surveys and detailed geological mapping. Finally, it
is anticipated this work will result in the selection of drill targets
for a multi-site drill program at the Key Lake SW property during 2011
or 2012.
Reg A. Olson, Ph.D., P. Geol. is the
designated Qualified Person for Kirrin who
has reviewed the technical information in this news release.
Additional information relating to Kirrin is
available on Kirrin's web site at www.kirrinresources.com and
on SEDAR at www.sedar.com.
Kirrin explores for rare earth elements and
uranium. In addition to its exploration activities, Kirrin
seeks to enhance its capitalization and the quality of its portfolio
through options and corporate development activity. 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 lauren@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 including, without limitation,
future plans and objectives of the Company are forward-looking
statements which involve risks and uncertainties. Specifically, this
press release contains forward-looking statements concerning the timing
and constituents of expected exploration programs. 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 and undue reliance
should not be placed on it. The anticipated 2011 time frame for the
planned exploration programs assumes that the Company will continue to
allocate sufficient priority to this work relative to its finite cash
resources for its overall exploration activity. In each case the risk
factors that could cause actual results to vary from results expressed
or implied by the forward-looking statements contained in this press
release are primarily events beyond Kirrin's
control. These forward-looking statements are made as of the date
hereof and 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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