CALGARY, ALBERTA--(Marketwire - June 17, 2009)
- Kirrin Resources Inc. (TSX VENTURE:KYM) today announced that it has
entered into an option agreement with Kodiak Exploration Ltd.
("Kodiak") allowing it to earn up to a 70% interest in
Kodiak's Otish Basin uranium property portfolio located in Quebec,
Canada. The transaction is subject to contract and to regulatory
approval.
Kirrin President and CEO Derek Moran commented: "In October 2008,
Kodiak announced two exciting discoveries in Quebec's Otish Basin. The
geological setting is similar to that associated with Strateco's
Matoush uranium deposit. This agreement doubles Kirrin's uranium
exploration program and is the first acquisition resulting from
Kirrin's extensive review of development opportunities in Canada."
Kodiak has an extensive land package covering 428.7 square kilometres
of the Otish Basin that includes a wide range of geological settings,
target types, showings and geochemical anomalies. Much of the ground
formerly belonged to Uranerz, a large European uranium company that
explored here in the 1970s, but allowed its claims to lapse after
uranium prices collapsed in the early 1980s. On October 23, 2008,
Kodiak announced two discoveries of outcropping uranium on its 100%
controlled properties located in the Otish Basin. On the UR East
property, the newly discovered Big Bang radioactive zone returned
multiple readings of 65,500+ counts per second (cps) from an
extensively overburden covered uranium-rich shear at least three metres
wide that occurs near the intersection of several major regional
structures. These readings of 65,500+ cps are the maximum levels
detectable by the RS-125 spectrometer used for the prospecting program.
A grab sample from the Big Bang zone assayed 8,130 ppm uranium (0.96%
U3O8). As well, five other radioactive outcrops were found in the
vicinity, including one that is about 1.1 km along strike to the
east-northeast of the Big Bang discovery. The second discovery,
Kodiak's Big Yellow outcrop, is located on the 100% controlled 308 West
property, also located in Quebec's Otish Basin. The Big Yellow is a
radioactive 30 m x 30 m outcrop of flat-lying, rusty conglomeratic
sandstone that gave scintillometer readings up to 10,000 cps. This
outcrop is located close to the intersection of two magnetic
structures. These structures strike NE and NNW, and are approximately 7
and 8.5 km long respectively. A NE-trending gabbro dyke was found near
the discovery outcrop, confirming the magnetic interpretation, and
indicating a geologic setting very similar to Matoush. Kodiak also
reported in its October 23, 2008 news release that its airborne
geophysical surveys and 2008 exploration had identified 15 other
targets for follow-up at the UR East property and that there are over
90 km of prospective magnetic structures that remain to be explored on
the 308 West property.
Kirrin may earn an initial 51% interest in the Otish Basin portfolio by
spending $2.8 million on exploration by December 31, 2012, and may earn
a further 19% interest by spending a further $1.5 million by December
31, 2015, making an aggregate commitment for a 70% interest of $4.3
million. Kirrin will be the operator of the project. Upon Kirrin
fulfilling its earn-in obligations, the parties will form a 70: 30
joint venture with each partner contributing its pro-rata share of
future expenditures. If either party dilutes its interest to less than
10% in the joint venture, its interest will be converted to a 1% net
smelter royalty. At March 31, 2009, Kodiak had recorded $2.5 million
expenditures on the Otish Basin portfolio.
Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for
Kirrin on the projects mentioned herein. As the Qualified Person, he
has prepared or reviewed the technical information for this release.
Additional information relating to Kirrin is available on Kirrin's web
site at www.kirrinresources.com and
on SEDAR at www.sedar.com.
Additional information relating to Kodiak's Otish Basin portfolio is
available at Kodiak's web site www.kodiakexp.com.
Kirrin is engaged in uranium exploration in Newfoundland & Labrador
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 catarina@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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