CEO Update March 2015
March 11, 2015
Kivalliq’s team has been working hard over the past few years to take advantage of the severe cyclical downturn in the mineral exploration and mining sector to increase the Company’s high quality uranium exploration holdings. Click on the following link to view a short update video on Kivalliq’s growing uranium project portfolio (1:39 minutes).
News from the global nuclear power industry, the primary consumer of uranium, has been very positive the past few weeks and we wanted to share some highlights for you in this short update.
According to www.uxc.com, the spot of price of U3O8 recently exceeded US$39/Lb, gaining approximately 40% since the mid-summer 2014 multi-year lows of US$28/Lb.
A highly encouraging interview by Russian news agency RIA Novosti was conducted recently with Leonid Bolshov, director of the Nuclear Safety Institute of the Russian Academy of Sciences (IBRAE RAN). Mr. Bolshov stated:
“Experts agree that the global nuclear power industry has returned to its "pre-Fukushima state" and pessimistic forecasts of a slowdown in its development have not materialized…According to the International Atomic Energy Agency, there are 440 nuclear power units in operation and a further 68 are under construction… The process of building new nuclear power plants in the world has been resumed and is growing.”
A recent visit to the World Nuclear News website, New Nuclear section, shows the following headlines from the past two weeks alone:
10 March 2015 - China resumes new reactor approvals
The Chinese government has approved construction of two more units at the Hongyanhe nuclear power plant in Liaoning province, marking the first approval for new reactors in four years.
10 March 2015 - Third generator arrives for Tianwan 3
The third of four Russian-produced steam generators has now been delivered to the construction site of unit 3 of the Tianwan nuclear power plant in China's Jiangsu province.
09 March 2015 - Sanmen 2 steam generators on site
The second steam generator for the second AP1000 unit under construction at Sanmen in China's Zhejiang province has been delivered to the construction site ahead of installation.
04 March 2015 - Saudi Arabia teams up with Korea on SMART
At least two South Korean-designed SMART reactors could be built in Saudi Arabia following the signing of a memorandum of understanding between the two countries yesterday. Korea and Saudi are to jointly promote the reactor in the global market.
04 March 2015 - Russia offers nuclear desalination bundle
Rusatom Overseas is aiming to sell desalination facilities integrated with large capacity nuclear power plants to Russia's export markets.
26 February 2015 - Grid connection for South Korean reactor
The second unit of the Shin Wolsong plant was connected to the power grid today following the successful completion of commissioning tests, plant owner Korea Hydro and Nuclear Power announced.
A typical 1000 Mwe nuclear reactor runs safely and consistently for many decades (in excess of 40 years) and consumes approximately 400,000 lbs U3O8 annually. When you look the steady growth in the global reactor build and the renewed industry strength led by countries such as those mentioned in the World Nuclear News articles noted above, the future for the nuclear sector looks very bright.
We are striving to position Kivalliq stakeholders to take advantage of an improving uranium pricing environment driven by demand, such as noted above, and exacerbated by the fragile nature of uranium supply from global mine production.
All the best,
Jim Paterson, CEO
Kivalliq Energy Corporation
Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the scientific and technical information contained in this release. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposit, please refer to Kivalliq’s news release of March 1, 2013.
About Kivalliq Energy Corporation
Kivalliq Energy Corporation (TSX-V:KIV) is a Vancouver-based company exploring for uranium on the 495,883 acre Genesis Property and 33,880 acre Hatchet Lake Property both located northeast of Saskatchewan’s Athabasca Basin. In addition, Kivalliq holds Canada’s highest-grade uranium resource outside of Saskatchewan. Its flagship project, the 275,469 acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. Kivalliq’s comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the “District Scale” potential of the Angilak Property.
Kivalliq holds a 100% interest in the Genesis Property, with Roughrider funding the current exploration program. This highly prospective project is located along the Wollaston-Mudjatik trend extending northeast from Saskatchewan’s highly prolific Athabasca Basin. In accordance with the previously disclosed terms of the Option Agreement between Roughrider and Kivalliq, Roughrider has the option to acquire up to an 85% interest in the Genesis Property.
Kivalliq’s team of northern exploration specialists has also forged strong relationships with sophisticated resource sector investors and Angilak Property partner Nunavut Tunngavik Inc. (NTI). Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.
For further information about, Kivalliq Energy Corporation, please visit our website at www.kivalliqenergy.com or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at email@example.com.
Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies. For more information please visitwww.auroraresource.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain disclosures in this release constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposit, please refer to Kivalliq’s news release of March 1, 2013. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.