| April 5, 2011 |
| Kirrin Resources Reports 2010 Results |
CALGARY, ALBERTA--(Marketwire - April 5, 2011) - Kirrin Resources Inc. (TSX VENTURE:KYM) today reported its 2010 financial results, fourth quarter highlights and operational highlights for 2010. Summary financial data is set out in tabular form below.
Kirrin recorded a reduced net loss for the year of $809,543 (2009: loss $924,908) of which $431,347 (2009: $552,833) was the write-down of mineral interests. The balance sheet was strengthened, 2010 ending with positive working capital of $1,335,347 (2009: $303,164), including cash of $1,894,646 (2009: $717,161). General and administrative costs were reduced by 7% to $499,651 from $537,052 in 2009.
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2010 2009 2008
$ $ $
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Working capital (deficit) 1,335,347 303,164 (57,808)
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Mineral interests 1,643,711 1,428,943 1,696,373
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Total assets 3,673,022 2,312,870 2,492,998
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Total long term financial
liabilities 110,000 110,000 110,000
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Shareholders' equity 2,869,058 1,622,107 1,528,565
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Net income (loss) for the year (809,543) (924,908) 190,500
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Loss per share 0.03 0.07 0.00
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Shares outstanding (1)(2) 46,268,263 20,599,673 12,347,002
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(1) All figures in Canadian dollars except for shares outstanding.
(2) 2008 has been revised to reflect the 1 for 10 share consolidation
approved May 1, 2009.
Highlights during the fourth quarter of 2010 include:
Kirrin completed two private placements, the first of 8,425,000 units at a purchase price of $0.08 per unit for proceeds of $674,000, the second of 15,000,000 flow-through units at a purchase price of $0.10 per flow-through unit for proceeds of $1,500,000.
The Company initiated a 1,500 m drill program at its Lost Pond uranium project in western Newfoundland. Drilling tested the continuation of the uranium bearing Cataclastic Zone at depth and down plunge targeting an increase in grade below the existing holes. The program was completed during December 2010 and consisted of 1,358.3 m in four holes of BQ-TK sized core, with each hole ranging between 253 and 390 m in length.
A new geophysical interpretation at the Grevet REE project in northwestern Quebec was undertaken. This was followed by a synthesis of all 2010 and historic results. The results, conclusions and recommendations from these two reports are being evaluated and the recommendations therefrom will form the foundation for the planned 2011 exploration program at Grevet.
2010 highlights include:
Kirrin's exploration activities during 2010 met with considerable success. The two projects added at the start of the year, the Grevet REE property in Quebec and the Key Lake SW uranium project in Saskatchewan, returned encouraging results. Sampling grades at Grevet included 14.08% light rare earth oxides (LREO) in a grab sample from a narrow carbonatite dyke and 1.61% LREO across 2.2 m from a wider carbonatite dyke. These confirm the potential of the Grevet REE property to host REE-bearing carbonatite deposits with LREO grades of definite interest. The interpretation of the airborne electro-magnetic survey at Key Lake SW identified nineteen priority targets that warrant follow-up assessment. Some of these anomalies correlate with geological, geophysical or geochemical anomalies identified from prior exploration whereas others are newly identified. All are prospective for ingress style (that is, basement hosted) uranium deposits along the geologically favourable Wollaston Group basement trend. Drilling at the Lost Pond uranium project in western Newfoundland was less encouraging. Three of the four holes intersected anomalous uranium values, however, the intensity of mineralization varied considerably and the grade did not improve with depth. The uranium program at Lost Pond has accordingly been suspended and its carrying costs in the amount of $431,347 written off.
Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Kirrin on the Bottom Brook, Grevet, KLSW and Lost Pond projects.
Annual General and Special Meeting
Kirrin also announced that its annual general and special meeting of shareholders will be held on Monday, May 2, 2011 in Calgary. Business will comprise the consideration of the audited financial statements for the year ended December 31, 2010 and the report of the auditors thereon; fixing the board of directors at five members and electing the board of directors; appointing KPMG LLP as auditors and authorizing the board of directors to fix the auditors' remuneration; and ratifying and, approving Kirrin's stock option plan.
The Annual Report, Proxy and Information Circular are being mailed to shareholders on or about April 6, 2011. The complete Annual Report, including financial statements and Management's Discussion and Analysis, will be available on www.kirrinresources.com. These documents will also be available at www.sedar.com.
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.
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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. 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. Prevailing risk factors 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 and may preclude Kirrin from satisfying all applicable pre-conditions. 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. | |