Kirrin and Ucore Agree Revised Terms at Bottom Brook REE Project
03 October 2011 - 11:30PM
Marketwired
Kirrin Resources Inc. (TSX VENTURE:KYM) is pleased to announce that
agreement has been reached with Ucore Rare Metals Inc. (TSX
VENTURE:UCU) on revised terms for Kirrin's acquisition of an
interest in the Bottom Brook Rare Earth Element (REE) property in
Western Newfoundland. The agreement aligns Kirrin's expenditure
obligations with the proposed prospecting and drilling programs to
advance exploration which has already defined a substantial Heavy
REO component to mineralization on the property.
The Bottom Brook property hosts a number of excellent REE
targets characterized by high grade samples associated with
discrete isolated magnetic high anomalies. One of these targets was
drill tested in 2007 and 2008 and resulted in a number of drill
intersections including 4.47% TREO over 5.64 meters with a HREO to
TREO ratio of 9.2%. Another drill intersection of note was a 0.3
meter intersection assaying 15.71% TREO, which had a HREO/TREO of
7.8%. Individual oxides from this 0.3 meter sample included 3.87%
La2O3, 7.42% Ce2O3, 2.10% Nd2O3 and 0.67% Y2O3. Subsequent to the
drilling a prospecting program was carried out, in 2009, focusing
on other isolated magnetic anomalies. High grade mineralization was
found to be associated with two of these targets and sampling was
limited on another three targets due to overburden cover. Values of
1.69% and 6.8% TREO were obtained from Bottom Brook B anomaly and
values between 0.89% and 10.04% TREO were obtained from Bottom
Brook C. The HREO to TREO ratios of these samples are between 8.76%
and 15.95% (Kirrin news release February 8, 2010). Work to date
indicates that the REE mineralization is occurring within a cluster
of isolated magnetic anomalies in the 0.5 km to 2.0 km size range
and sampling in proximity to the magnetic targets has shown good
indications of high grade TREO with a substantial Heavy REE
component.
A recently completed re-evaluation of the airborne data and the
prospect sampling data base has defined a total of nine target
areas for follow-up including those described above. Additional
compilation of the previous analytical results from the drilling
and prospecting has defined a substantial Heavy REO component to
the Bottom Brook mineralization which consistently gives a
HREO/TREO of between 8% and 15%. The proposed REE exploration
program comprises one or more of detailed prospecting, rock
sampling, geological mapping, a soil geochemical survey, and a
ground based magnetics survey followed by magnetic data modelling
and trenching. Dependent upon results, a drill program will
follow.
Kirrin may earn a 50% interest in the Bottom Brook property by
spending $2,045,000 on exploration by December 31, 2014 and making
share payments to Ucore of 300,000 Kirrin shares. Kirrin is in good
standing on the option agreement having expended approximately
$960,000 on exploration and issued 150,000 Kirrin shares. Upon
Kirrin fulfilling its earn-in obligations, the parties will form a
50: 50 joint venture, with each partner contributing its pro rata
share of future expenditures, or Ucore may elect to convert to a
35% interest, which will be carried through to completion of a
pre-feasibility study. If either party dilutes its interest to less
than 10% in the joint venture, its interest shall be converted to a
royalty of 1% or 1.5% of gross sales, depending on underlying
royalties, of which 0.5% may be bought-out for $500,000.
REE assays are reported as Total Rare Earth Oxides (TREO). TREO
includes all the Rare Earth Oxides plus Yttrium Oxide. As per
industry standard, TREO are broken down into Light Rare Earth
Oxides (LREO) and Heavy Rare Earth Oxides (HREO). LREO consists of
Ce2O3, La2O3, Nd2O3, Pr2O3 and Sm2O3 and HREO consists of Eu2O3,
Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3.
Percentage HREO is calculated by dividing HREO by TREO. The most
abundant REE from the analysis described above are Cerium,
Lanthanum and Neodymium.
The Qualified Person (QP) who has prepared or reviewed the
technical information for this release is Wayne Reid, P.Geo.
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 Ucore is
available on Ucore's web site at Ucore.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 news release contains forward-looking statements
concerning exploration expenditures and share issues as part of the
acquisition of an interest in a minerals property. 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 time frame of
the planned expenditures assumes the availability of personnel and
equipment from third parties and 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 news 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.
Contacts: Kirrin Resources Inc. Derek J Moran President 27 82
440 3426www.kirrinresources.com CHF Investor Relations Robin Cook
Account Manager (416) 868-1079robin@chfir.com
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