Kirrin Resources Inc.  announces the completion of a 1,531 line-kilometre helicopter-borne time-domain electromagnetic geophysical survey of the Key Lake Southwest (‘Key Lake SW’) uranium property located on the southeastern margin of the Athabasca Basin in Saskatchewan, Canada. The survey was flown using Geotech Ltd’s Versatile Time-Domain Electromagnetic (VTEM Plus) geophysical system.

Kirrin has appointed Savaria Geophysics Inc. of Toronto, Ontario, (‘Savaria’) to undertake integration of the prior Fugro airborne Tempest-magnetic survey completed in early 2010 (news release July 6, 2010) and interpretation of the aggregate data acquired by Kirrin. Savaria anticipates submitting its report by end June, following which Kirrin will commence a program of summer fieldwork with the objective of finalizing the selection of drill sites.
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.

Geology

The Key Lake SW property is at the southwest end of the geologically favourable trend that hosts numerous uranium mines and important deposits. Although the property is believed to be somewhat southwest of the margin of the current Athabasca Basin, regolith encountered in old drill holes 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 the unconformity), Millennium (up to 100 m below the unconformity), Eagle Point (up to 450 m below the unconformity) and other deposits within the Athabasca Basin, indicates 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.

The Key Lake SW property is underlain by Aphebian amphibole, pelitic-psammitic gneisses, iron formation and leucogranite. The Aphebian rocks lie on Archean felsic gneisses. The boundary between the Mudjatik and Wollaston Domains passes through the eastern part of the property. Most of the property lies west of this line. Although the sandstone does not cover any of the eight claims now, the assumption that it once did is reasonable. The unconformity uranium deposit model or a derivative should apply to all of the claims in the property. Basement hosted uranium mineralization discovered at Millennium, southwest of the McArthur mine and new zones in the Collins Bay Eagle mine emphasize the potential to discover a similar style of uranium mineralization on the property.

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.

Kirrin Resources Inc.  announces the results of December’s geophysical interpretation program at its Grevet REE project in northwestern Quebec. The program met its objectives in confirming the relationship between magnetic signatures and magnetite-bearing carbonatite showings at Grevet and these interpretative results will assist in focusing the 2011 exploration program.

Commenting on the results, Kirrin President and CEO, Derek J Moran said: “The results of the geophysical interpretation have contributed to our understanding of the geology at Grevet. They have confirmed the relationship between magnetic signatures and the carbonatite and carbonatite-magnetite showings. Importantly, the geophysical interpretation has identified 15 key targets for follow-up during the 2011 Grevet exploration program.”

The geophysical program comprised geophysical interpretation of the ground magnetic data from the 2001, 2002 and 2010 surveys. In particular, the geophysical interpretation included a detailed examination of magnetic profiles in conjunction with known carbonatite and magnetite-carbonatite showings at Grevet. The intent was to define the trends of magnetic carbonatite and other magnetite-bearing rocks, and, especially, search for larger continuous potentially REE-bearing blind carbonatite bodies. In addition, integration of historic exploration and other geological data with the geophysical interpretation of the ground magnetic data has refined target selection and defined the specific follow-up program of work at selected targets in 2011.

The results and conclusions of the geophysical interpretation may be summarized as follows:

--  The merged, edited, then interpreted magnetic data resulted in a more

    coherent magnetic map of the Grevet REE property.

 --  Two major magnetic domains were outlined: Domain A, which is towards the

    northeast of the property and covers the mafic and ultramafic rocks; and

    Domain B, which is immediately adjacent and to the southwest and is over

    the felsic to intermediate composition volcanic rocks.

 --  Based on the magnetic evidence, numerous interpreted, dominantly

    northeast and north-northeast striking shear zones and/or brittle faults

    were outlined.

 --  The interpretation established, in large part, a relationship between

    magnetic signatures and the carbonatite and carbonatite-magnetite

    showings. Specifically, 52% of the carbonatite showings and 67% of the

    carbonatite+magnetite showings are associated with recognizable magnetic

    signatures derived from the ground magnetic survey data.

 --  Lastly, the interpretation identified 15 targets for follow-up during

    the 2011 exploration program.

The geophysical interpretation was prepared by Savaria Geophysics Inc.

Kirrin also announced that its Board of Directors has granted options over 1,755,000 common shares at an exercise price of $0.13 per share to nine directors, employees and consultants (closing price on January 26, 2011 was $0.13 per share). The expiry date is January 27, 2016 and one quarter of the options will vest annually. Included in the option award is a grant over 60,000 common shares at an exercise price of $0.13 per share to an IR consultant. Kirrin now has 3,046,000 options outstanding under its Option Plan, at an average exercise price of $0.13 per share.

Geology

The region about the Grevet property is primarily underlain by volcanic, sedimentary and igneous granitoid rocks of the Superior Geological Province. These are locally intruded by Proterozoic diabase dykes. The Archean rocks regionally have been affected by four regional deformation events, although within the Grevet property only two are readily evident. The Grevet property is mainly underlain by Archean basaltic and andesitic volcanic rocks that are cut, in places, by small northwesterly trending Archean gabbros and by carbonatite intrusions which are of uncertain, but probably Archean, age. The Archean rocks are cut north of the property by the southeast-trending Cameron Deformation Zone, which is a regional structural discontinuity, and to the south by the northeast-trending Wedding-Opawica brittle fault.

The carbonatite is particularly important because in places there are closely spaced magnetite veinlets and carbonatite dykelets, several of which carry highly anomalous concentrations of LREO up to at least 5.9%. Dr. D. Lentz, a consultant to Kirrin Resources, has looked at the existing geological and geochemical data for Grevet, and has suggested that because of the ferroan carbonatite association with magnetite, the Grevet REE property may have some geological similarities to the large Bayan Obo REE-bearing carbonatitic body in inner Mongolia. Bayan Obo is the world’s largest REE deposit, containing about 70% of the world’s known REE reserves.
Additional information relating to Kirrin is available on Kirrin’s web site at www.kirrinresources.com and on SEDAR at www.sedar.com.