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CALGARY, ALBERTA--(Marketwire - Aug. 25, 2011) - Kirrin
Resources Inc. (TSX VENTURE:KYM) today reported its
financial results and operational highlights for the second quarter of 2011.
The quarter was marked by busy exploration programs and progress at the Key
Lake SW uranium project and the Grevet REE project.
Summary financial data is set out below.
The second quarter 2011 financial results are prepared in accordance with
International Financial Reporting Standards ('IFRS') and, in compiling the
comparative information for the three months ended June 30, 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
second quarter Condensed Consolidated Interim Financial Statements filed on
its web site and on SEDAR.
Kirrin recorded a net loss of $176,007 (2010: loss
$115,459) during the period. Working capital at the period end was $349,084
(2010: $4,150). Mineral interests advanced by 21% to $2,176,428; no
exploration costs of significance were expensed during the period in either
2011 or 2010 although project development costs expensed amounted to $22,373
(2010: $763). As foreshadowed in the 2010 MD&A, general and
administration expenses increased 30% to $154,214 (2010: $119,076). Summary
financial data is set out in tabular form below.
------------------------------------------------------------------------- June 2011 June 2010 $ $ ------------------------------------------------------------------------- Working capital 349,084 4,150 ------------------------------------------------------------------------- Mineral interests 2,176,428 1,796,012 ------------------------------------------------------------------------- Total assets 3,080,427 2,053,325 ------------------------------------------------------------------------- Total long-term financial liabilities 110,000 200,000 ------------------------------------------------------------------------- Shareholders' equity 2,415,512 1,600,162 ------------------------------------------------------------------------- Net loss for the quarter 176,007 115,459 ------------------------------------------------------------------------- Earnings (loss) per share for the quarter (0.01) 0.00 ------------------------------------------------------------------------- Shares outstanding (1) 46,434,930 22,743,263 ------------------------------------------------------------------------- Note 1: All figures in Canadian dollars except for shares outstanding.
Operational
Highlights
Kirrin completed a number of milestones at its Key
Lake Southwest ('KLSW') uranium property located on the southeastern margin
of the Athabasca Basin in Saskatchewan. Two features of note from the
interpretation report by Savaria Geophysics Inc. of
its integration of 2011 and 2010 airborne geophysical survey data are (a) the
identification of 35 airborne electromagnetic targets, over 50% of which are
rated as High to Moderate priority for exploration follow-up for
basement-hosted unconformity-type uranium deposits and (b) evidence that the
Wollaston Domain may underlie the eastern portion of the KLSW property.
Ground follow-up fieldwork is planned by Kirrin to
start in August 2011.
The first phase of a three phase program at Kirrin's
Grevet REE (rare earth elements) project in
northwestern Quebec commenced in early May with prospecting and further
geological examinations, plus systematic rock sampling, on priority target
areas. This work was followed in late June by the collection of 90
geochemical soil samples and in early July by the commencement of a gravity
survey comprising about 3.4 line kilometres with
readings at 25-metre station intervals. The geochemical soil sampling and
gravity survey covered selected parts of the Grevet
project area that are postulated to be underlain by a large carbonatite body. Prior sampling results of carbonatite dykes and dykelets
have demonstrated the presence of encouraging amounts of rare earth elements
and include 14.19% TREO (total rare earth oxide) in a grab sample from a
narrow carbonatite dykelet
and 1.61% LREO across 2.2 metres from a wider carbonatite dyke. Results from 2011 rock sampling have
recently been received, and are now being compiled and interpreted, as are
the results from the geochemical soil sampling and gravity survey over the
inferred carbonatite.
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 is a Canadian green energy company that
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 by utilising
its management's broad industry and international experience in the
identification of suitable rare earth elements and uranium companies and
green energy assets for 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 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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