Kria Resources Commences Environmental Impact Assessment for Its Halfmile Lake Project
Kria Resources (TSX VENTURE: KIA)(“Kria” or the “Company”) today announces that is has begun work on an Environmental Impact Assessment report (EIA) for its Halfmile Lake property located near Bathurst, New Brunswick.
The EIA report is necessary to obtain the governmental permits required before proceeding with the project. Once complete, the EIA report will be filed for regulatory and public review. Kria expects to have the EIA complete for submission during the month of February.
As announced in November 2009, Kria has been in discussions with Xstrata Zinc to examine the potential of utilizing Xstrata’s Brunswick 12 mill to toll process ore from Kria’s Halfmile Lake property once it is advanced to production. Xstrata Zinc’s Brunswick mill, located outside Bathurst, New Brunswick, is approximately 40 kilometres from Kria’s Halfmile Lake property. Supplying supplemental ore from Kria’s Halfmile Lake property to the Xstrata mill would allow Kria to expedite its timeline to commencing production and allow for a phased approach to further development of the mine and processing facilities.
Kria intends, upon receipt of governmental permits, to begin development activities at the Halfmile site in order to begin supplying ore to Xstrata’s Brunswick processing facility by early 2011. The timing of the commencement of shipping of the ore is subject to timely completion of environmental and other permitting. The Company anticipates that ore could begin being delivered to the Brunswick operation for treatment in 2011.
Kria has engaged Wardrop Engineering Inc, a Tetra Tech Company (“Wardrop”) to conduct the EIA. Wardrop completed the Preliminary Economic Assessment of Kria’s Halfmile Lake property in July 2009 and is therefore familiar with the property. There has been considerable environmental baseline work completed by the prior owners and this work is now being supplemented by Kria to form the basis of the current EIA.
In addition, Kria announces that it has granted 100,000 stock options to a consultant of the Company. The options shall vest immediately with a statutory four month hold period, have an exercise price of $0.25 and shall expire 5 years from the date of the grant. The grant of options is subject to receipt of all regulatory approvals.
About Kria Resources
Kria Resources is a base metal exploration and development company focused on high-quality, advanced-stage base metal assets. Kria’s primary asset is the Halfmile Lake and Stratmat properties near Bathurst, New Brunswick. The Halfmile Lake property has a NI 43-101 compliant Indicated mineral resource estimate of 6.26 million tonnes grading 8.13% zinc, 2.58% lead, 0.22% copper and 30.78 g/t silver using a 5.0% capped zinc equivalent cut-off grade and an Inferred resource estimate of 6.08 million tonnes grading 6.69% zinc, 1.83% lead, 0.14% copper and 20.51 g/t silver using a 5.0% capped zinc equivalent cut-off grade. A recently completed Preliminary Economic Assessment of the Halfmile Lake project (the “PEA”) estimates a pre-tax NPV of C$587 million and IRR of over 16%. The PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the PEA will be realized. The Stratmat property has an Inferred Mineral Resource estimate of 5.52 million tonnes grading 6.11% zinc, 2.59% lead, 0.40% copper and 54.21 g/t silver using a 5.0% zinc equivalent cut-off grade.
Kria also has the Ruttan copper-zinc sulphide project near Leaf Rapids, Manitoba that has an NI 43-101 compliant mineral inferred resource estimate of 19.75 million tonnes grading 1.17% copper and 1.47% zinc using a 1.0% capped copper equivalent cut-off grade. Please refer to the Company’s technical reports filed on SEDAR for details regarding the NI 43-101 compliant resource estimates on Halfmile, Stratmat and Ruttan.
www.kriaresources.com
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