Kirrin Resources Inc. today announced the completion of a 1,076 line-kilometre magnetic-electromagnetic (EM) airborne survey of the Key Lake Southwest (‘Key Lake SW’) uranium property located on the southeastern margin of the Athabasca Basin in Saskatchewan, Canada. Fugro Airborne Surveys Corp. of Ottawa, Ontario (‘Fugro’) was contracted to complete the survey. In addition, a review of the technical disclosures following the January 10, 2010 announcements by Delta Uranium Inc. (‘Delta’) and Denison Mines Corp. (‘Denison’) of the expansion of their Phoenix Discovery, just 60 km from Key Lake SW, has revealed many geological similarities between Phoenix and Key Lake SW.

Kirrin’s airborne magnetic-EM survey at Key Lake SW utilised Fugro’s fixed-wing Tempest(R) Digital Time Domain Electromagnetic (DTDEM) system which provides maximum quantitative discrimination of relatively near surface (upper 200 to 300 m) conductivity variations. Kirrin has appointed Condor Consulting, Inc. of Lakewood, Colorado,  to undertake the processing and analysis of the airborne EM and magnetic data acquired by Kirrin. Condor anticipates submitting its report by July.

On January 10, 2010, Delta and Denison reported that high-grade uranium mineralization continues to be encountered on the Phoenix discovery on the Wheeler River Property located in the Athabasca Basin of northern Saskatchewan, and that the results of the fall 2009 drilling program have confirmed that the Phoenix discovery has the potential to host an economically significant, high-grade uranium deposit.

The Key Lake SW property is at the southwest end of the geologically favourable trend that hosts numerous uranium mines and important deposits, including the Phoenix and Millennium deposits, and the former Key Lake mine. Although the Key Lake SW property is believed to be somewhat southwest of the margin of the current Athabasca Basin, there is evidence (regolith encountered in some old drill holes) that indicates the Athabasca Supergroup-Wollaston Group basement unconformity was not far above the present ground surface within the property. Discovery of several ‘Ingress style’ uranium deposits, such as Phoenix (up to 117 m below unconformity), Millennium (up to 100 m below unconformity), Eagle Point (up to 450 m below the unconformity) and some other deposits within the Athabasca Basin, indicate that important uranium deposits can occur from several tens of metres up to a few hundred metres below the unconformity. Hence, there is potential for important basement-hosted uranium deposits to exist within the Key Lake SW property. Regional aeromagnetic data show the Phoenix discovery is associated with a fault which cross-cuts the P2 Rift Fault.

Important features at the Phoenix basement-hosted uranium discovery which are similar to the geological setting at the Key Lake SW property include the geological composition of the host basement rocks, the spatial association with the projected regional P2 fault, and the localization of the Phoenix uranium prospect on cross-cutting faults. Gracie (2009) has postulated that the Key Lake SW property is along the projected extension of both the P2 fault, which extends southerly from the McArthur River mine, and the Key Lake fault, which extends southwesterly from the former Key Lake mine.

The eastern margin of the Athabasca Basin is home to the most productive uranium mines in the world with roughly 25% of the world’s uranium production coming from this area. Kirrin’s target at Key Lake SW is basement-hosted unconformity-type uranium deposits, similar to Cameco’s basement-hosted Millennium deposit, located about 50 km to the northeast; the Phoenix discovery, located about 60 km northeast; and the former Key Lake mine, located about 35 km east-northeast.

MacDonald Mines Exploration Ltd. anounces that it has recommenced its 2010 exploration drilling program in the Ring of Fire, James Bay Lowlands.

The Company will be utilizing two drills for this phase of drilling and will focus on the results from its successful spring 2010 drilling program.

The spring 2010 drill program on its McNugget Property identified new volcanogenic massive sulfide (VMS) mineralization on four fold limbs.

Targeting Nickel and VMS on McNugget Property

“The McNugget Property has moderate to high potential for both Cu-Zn volcanogenic massive sulfide and Ni-Cu-PGE sulfide deposits.” – Dr. Tucker Barrie, P. Geo.
This phase of drilling will focus on five principal base metal occurrence areas: 1) Campbell (Cu-Zn, to northeast); 2) Campbell West (Cu-Zn, north central); the 3) Fold Nose (Cu-Zn, to northeast); 4) Southern (Cu-Zn and Ni-Cu, to south); and 5) Area 39 (Ni-Cu-PGE, to southeast. (Figures are available on MacDonald’s website at www.macdonaldmines.com). Initial drilling will be concentrated on the four VMS horizons identified through the previous drilling and geophysical investigations.

East Portion of McNugget Property on Same Stratigraphy as Noront’s Eagles Nest

Unlike Noront’s discovery, the EM conductors (2) in the vicinity of MN07-39 are greater than 300m in strike length (based on both VTEM and Crone PEM – surface and borehole) compared to the Eagles Nest 100-200m strike length.  Six DDH holes are targeted in this area to explain the EM anomalies during the current drill program.

Company Provides  Detailed Outline of  Voisey’s Bay-type Target on Hulbert-Salo Property

The Company has staked 14 mining claims covering an area of 3,140 hectares with magnetic and EM (VTEM survey) characteristics of an intact ultramafic-gabbroic intrusion.  Modelling of these data results in a spoon-shaped intrusion with multiple internal structures, similar in size and shape of the Voisey’s Bay complex which hosts numerous Ni-Cu deposits.

The VTEM/Mag conducted over the Property has identified an anomaly approximately 10.9 km long by greater than 3.3km wide at its widest.   Historical prospecting over the area identified both gabbroic and ultramafic rocks. An interpreted “feeder zone/dyke” exists to the west of the main intrusive.  The most prospective EM conductor - the primary nickel target – is located just above the throat of the feeder dyke, similar in position to the Ovoid at Voisey’s Bay. A 3D model of the magnetic data is available on our website.

“It is both unusual and highly prospective to find a system that appears to be so intact with EM anomalies identified in groups within the magnetic network/structures (cycles or influxes)”,  comments Quentin Yarie, P.Geo. Vice President of Exploration.   “The Voisey’s Bay mineralization has been explained in terms of a model calling for repeated influxes of magma and these characteristics are obvious in the Hulbert-Salo data.”

Current short term work plans include a Crone PEM ground survey over the most prospective Nickel targets (identified from the VTEM inversion).  Upon review of this data, a drill program will be defined.  Because the Hulbert-Salo property is in a  new area MacDonald will engage in consultation with both Webequie and Kasabonica First Nations and outline the proposed first phase of drilling.  This is in keeping with MacDonald Mines established protocols regarding exploration on historical lands used by First Nation communities.

The ground geophysical program has been used by MacDonald Mines on its McNugget Property resulting in significant success in identifying targets of interest for drilling.  Based on previous experience, the Company is confident that this process can be completed quickly and with minimal impact on the ground as it requires no line cutting (GPS positioning would be utilized).

MacDonald Mines in presenting this target of opportunity cautions that drilling will be required to confirm the sources of the EM conductors.