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Kirrin options Otish basin uranium JV from Kodiak

2009-06-17 07:30 ET - News Release

Mr. Derek Moran reports

KIRRIN RESOURCES ENTERS OPTION AGREEMENT WITH KODIAK FOR OTISH BASIN URANIUMPROPERTY PORTFOLIO

Kirrin Resources Inc. has entered into an option agreement with KodiakExploration Ltd., allowing it to earn up to a 70-per-cent interest inKodiak's Otish basin uranium property portfolio located in Quebec,Canada. The transaction is subject to contract and to regulatoryapproval.

Kirrinpresident and chief executive officer, Derek Moran, commented: "InOctober, 2008, Kodiak announced two exciting discoveries in Quebec'sOtish basin. The geological setting is similar to that associated withStrateco's Matoush uranium deposit. This agreement doubles Kirrin'suranium exploration program and is the first acquisition resulting fromKirrin's extensive review of development opportunities in Canada."

Kodiakhas an extensive land package covering 428.7 square kilometres of theOtish basin that includes a wide range of geological settings, targettypes, showings and geochemical anomalies. Much of the ground formerlybelonged to Uranerz, a large European uranium company that exploredhere in the 1970s, but allowed its claims to lapse after uranium pricescollapsed in the early 1980s. On Oct. 23, 2008, Kodiak announced (seenews issued in Stockwatch) two discoveries of outcropping uranium onits 100-per-cent-controlled properties located in the Otish basin. Onthe UR East property, the newly discovered Big Bang radioactive zonereturned multiple readings of 65,500-plus counts per second (cps) froman extensively overburden covered uranium-rich shear at least threemetres wide that occurs near the intersection of several major regionalstructures. These readings of 65,500-plus cps are the maximum levelsdetectable by the RS-125 spectrometer used for the prospecting program.A grab sample from the Big Bang zone assayed 8,130 parts per millionuranium (0.96 per cent U3O8). As well, five other radioactive outcropswere found in the vicinity, including one that is about 1.1 kilometresalong strike to the east-northeast of the Big Bang discovery. Thesecond discovery, Kodiak's Big Yellow outcrop, is located on the100-per-cent controlled 308 West property, also located in Quebec'sOtish basin. The Big Yellow is a radioactive 30-metre-by-30-metreoutcrop of flat-lying, rusty conglomeratic sandstone that gavescintillometer readings up to 10,000 cps. This outcrop is located closeto the intersection of two magnetic structures. These structures strikenortheast and north-northwest, and are approximately seven and 8.5kilometres long respectively. A northeast-trending gabbro dike wasfound near the discovery outcrop, confirming the magneticinterpretation and indicating a geologic setting very similar toMatoush. Kodiak also reported in its Oct. 23, 2008, news release (seenews issued in Stockwatch) that its airborne geophysical surveys and2008 exploration had identified 15 other targets for follow-up at theUR East property and that there are over 90 kilometres of prospectivemagnetic structures that remain to be explored on the 308 West property.