Kirrin and Ucore Agree Revised Terms at Bottom Brook REE Project
CALGARY, ALBERTA, Oct 03, 2011 (MARKETWIRE via COMTEX News Network) --
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.
