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CALGARY, ALBERTA--(Marketwire - May 28, 2009)
- Kirrin Resources Inc. (TSX VENTURE:KYM) today reported its 2009 first
quarter financial results and operational highlights.
The Company is in the exploration and development stage of its
operations and recorded a loss before income taxes for the period of
$225,028 (Q1 2008: loss before income taxes $436,249). The reduced loss
is due to the change in the company's business focus and tight cost control.
During the comparable period in 2008, the Company recorded the benefits
conferred upon the subscribers of the flow-through shares issued in
2007 and this gave rise to the recognition of a future income tax
recovery of $410,000. Hence the net losses in Q1 2009 and Q1 2008 were
$225,028 and $26,249 respectively.
General and administration expenses decreased to $157,091 from
$315,922. Further proportionate decreases are expected throughout 2009.
All expense lines decreased, with the major reductions being: salaries
and benefits down by $74,456 (72%), stock compensation expense down by
$48,860 (77%), and general office and miscellaneous down by $54,403
(81%). The principal factors behind these movements were the change in
Kirrin's business focus to uranium exploration in Canada and the
cessation of its overseas operations.
Cash outflows used by operating activities in the first quarter of 2009
amounted to $545,353, against cash outflows in the first quarter of
2008 of $309,346. Cash resources at the end of the period amounted to
$114,822 and mineral interests to $1,739,691.
Operational Highlights:
The Company received the results of its 2,504 m drill program completed
on the Lost Pond property at the 2008 year end (news release April 14,
2009). The final hole of the five hole program, LP08-21, targeted the
down-plunge extent of the Cataclastic Zone and hit the target at 235.4
m, resulting in an intersection of 0.038% U3O8 over 20.1 m, including
0.061% U3O8 over 3.0 m. The Cataclastic Zone is interpreted as a 75
degree dipping zone and the true widths are approx. 75% to 80% of the
down-hole drill intercepts. The zone is apparently open down-plunge. In
addition, the Company completed provincial assessment filings in
respect of the Alexis River and Boxey Point properties, as well as for
the Dunsworth Option at the Lost Pond property. No field exploration
was planned for this quarter.
A major aspect of the Company's strategy is the identification of
suitable uranium companies and assets for acquisition, merger,
strategic partnership or joint venture. During the first quarter, the
Company executed an agreement with First Canadian Securities(R), a
division of Limited Market Dealer Inc., whereby First Canadian
Securities would assist Kirrin to identify and carry out transactions
that add value to Kirrin through the consolidation of uranium assets.
Arising from this agreement, the Company surveyed a large selection of
companies and properties. Discussions have been initiated on several of
these and announcements will be made as developments occur.
The Qualified Person ("QP") managing the exploration program
is Wayne Reid, P.Geo. As the QP, he has prepared or reviewed the
technical information for this release. Wayne Reid is a consulting
geologist working for Kirrin and a Technical Advisor for Ucore Uranium
Inc.
Additional information relating to Kirrin, including Kirrin's quarterly
report, management's discussion and analysis and unaudited financial
statements for the quarter ended March 31, 2009 is available until June
4, 2009, on www.monroeminerals.com and
on SEDAR. Thereafter, please visit www.kirrinresources.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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