Kria Resources Announces Updated Resource Estimate for Ruttan Project
Kria Resources today announces an updated National Instrument 43-101 compliant mineral resource estimate for its Ruttan Project located outside of Leaf Rapids, Manitoba.
The Inferred Mineral Resource at the Ruttan Project is now estimated to be 19.75 million tonnes grading 1.17% copper and 1.47% zinc using a 1.0% capped copper equivalent cut-off grade.
The previous resource estimate announced February 29, 2008 has been updated using drill hole and assay data from Kria’s 2007/2008 exploration programs that targeted both the West Anomaly and Hanging Wall Zinc Zone (HW Zinc). The new estimate is based on 4,875 holes totaling 577,263 meters, which is an additional 30 holes and 9,123 meters compared to the previous resource estimate.
Table 1 shows the resource estimate at various copper-equivalent cut-off grades using an Inverse Distanced Squared (ID2) interpolation technique. The base case is highlighted.
Table 1. Updated CuEQ_C 2007 Tonnes and Grades: ID2 capped values —————————————————————————- Updated Kria Resource Estimate: Inverse Distance Squared (July 2008) —————————————————————————- Solid Names CuEQC_07 Interpolated Tonnage Cu Zn CuEQC_07 Cut-off Density Grades —————————————————————————- % Tonnes per Tonnes % % % cubic metre —————————————————————————- Main, West greater than 2.0 3.670 5,559,521 1.70 2.53 2.67 and HW Zinc ————————————————————– Zones greater than 1.5 3.670 11,977,334 1.38 1.91 2.17 ————————————————————– greater than 1.0 3.639 19,753,864 1.17 1.47 1.81 ————————————————————– greater than 0.5 3.593 23,452,901 1.08 1.31 1.65 —————————————————————————-
The Ruttan Project, located 21 kilometres east of Leaf Rapids, Manitoba, is a copper-zinc massive sulphide deposit that was discovered in 1968. Production from the former mine began in 1973 with continuous operation for 29 years. Historical production from Ruttan has been reported to be approximately 55 million tonnes grading 1.23% copper and 1.41% zinc. Kria has the option to acquire 100% of Ruttan.
Kria’s future plans for the Ruttan Project include initiating a trade-off study on development scenarios.
Mineral Resource Estimate
The Ruttan mineral resource estimate has been reviewed and confirmed by Christopher Moreton, P.Geo Senior Geologist of Wardrop Engineering Inc, a consulting firm retained by Kria to complete the estimate. Pierre Desautels, P.Geo, formerly Lead Geologist at Wardrop, provided on-going technical assistance and peer review. Christopher Moreton, P.Geo is a Qualified Person under NI 43-101 and he visited the Ruttan site from August 7-8, 2007. The resource estimation procedures and classification used are described in a technical report that will be filed on the Kria Resources website, www.kriaresources.com. The mineral resource estimate is as of August 1, 2008.
The dataset used by Wardrop was supplied by Kria and included drill hole collars, surveys, assays and the 3D rings for both the historical and 2007/2008 mineralization outlines. These additional 3D rings were created using a 1% uncapped copper equivalent (CuEQ) cut-off. All of the rings were extruded vertically five metres on either size of the level to generate solids (solids produced by this method are not as precise as the solids produced by 3D wire framing, with rings and tie lines, and it may result in minor imprecision when assigning the grade of composites to the solids).
The updated resource estimate has been created using the following copper-equivalency formula:
CUEQ_C_07 equals (((Copper Price x Copper Recovery x Copper Grade Capped x 22.04622) + (Zinc Price x Zinc Recovery x Zinc Grade Capped x 22.04622)) / (Copper Price)) / 22.04622 Cu Price: $3.01 Cu Recovery: 93.80% Zn Price: $1.27 Zn Recovery: 77.31% Pounds per tonne: 2204.622 CUEQ_C_07: Copper equivalency capped using all data
Other parameters used in estimating the mineral resource are as follows:
Copper values in the formula are capped at 5.9% while the zinc values are capped at 11.75%. The mill recovery values are derived from the five-year estimates (1985 to 1989) shown in a report by Tenney (1985) while the metal prices are three-year moving averages (July 2005 to June 2008) from a database maintained by Wardrop. The densities are interpolated using the available specific gravity values from the database.
Inferred Resources for the area were prepared in accordance with the Canadian Institute of Mining, Metal and Petroleum (CIM) definition standards regarding Minerals Resources and Reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Quality Control
The technical contents of this press release have been supervised and reviewed by Steve Davies, P. Eng., Vice President Operations of Kria and Dayle Rusk, P. Geo., Vice President Exploration of Kria, both of whom are Qualified Persons as defined under National Instrument 43-101.
About Kria Resources
Kria Resources is a private base metal exploration and development company focused on high quality base metal assets including lead, zinc, copper and nickel. Kria’s primary assets include the Ruttan copper-zinc sulphide project near Leaf Rapids, Manitoba and the Halfmile and Stratmat properties near Bathurst, New Brunswick. A recent National Instrument 43-101 compliant mineral resource estimate for the Ruttan Mine Project estimates inferred resources of 19.75 million tonnes grading 1.17% copper and 1.47% zinc using a 1.0% capped copper equivalent cut-off grade. Kria expects that a NI 43-101 compliant resource will be completed for Halfmile and Stratmat during the fall of 2008. Please visit our website at www.kriaresources.com for additional information.
Cautionary Note Regarding Forward-Looking Information: This press release contains “forward looking information” within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future operating performance of the Company and its projects, statements regarding exploration prospects, the identification of mineral resources, realization of mineral resources, environmental liabilities, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, title disputes or claims. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; environmental liabilities and costs of compliance with applicable legislation; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contacts: Kria Resources Mike Hoffman President and CEO (416) 861-2964 Kria Resources Heather Colpitts Manager, Investor and Public Relations (416) 861-5803 Email: info@kriaresources.com Website: www.kriaresources.com
SOURCE: Kria Resources