Kivalliq 500 Metre Step-Out Along Trend Intersects Radioactive Zone at Lac Cinquante
May 27, 2010
Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced the successful completion of Phase 1 drilling at the Angilak Project in Nunavut, Canada, totalling 2,375 metres in 13 holes. The last four holes are now complete, including a step-out hole that intersected radioactivity 500 metres west of the historic Lac Cinquante Uranium Deposit. The Phase 2 drill program is anticipated to commence in the third week of June.
All 13 holes drilled during Phase 1 intersected altered tuff, the host geology at the Lac Cinquante main zone
Eleven of 13 holes drilled during Phase 1 (85%) intersected anomalous radioactivity, down hole widths ranging from 0.3 to 14.8 metres
Step-out hole 10-LC-013 intersected a 2.0 metre wide radioactive zone, 500 metres west and along trend from the historic Lac Cinquante Uranium Deposit
All four final drill holes intersected anomalous radioactivity within the host tuff unit, down hole widths ranging from 0.3 to 2.6 metres
“We are extremely encouraged by the Phase 1 drilling,” stated John Robins, P.Geo, President and CEO. “Intersecting Lac Cinquante–style mineralization more than half a kilometre to the west, clearly demonstrates the potential to expand this historic resource and make new discoveries at Angilak.”
To determine geological controls, the first nine holes focused on 25 metre infill drilling within the eastern portion of the historic resource area. Holes 10-LC-010 through 10-LC-012 were drilled at the western end of the historic resource, along a fence 50 metres west and down plunge of uranium mineralization encountered in holes 09-LC-012 and 09-LC-013 drilled last year. Radioactive widths ranged from 0.3 to 2.6 metres, between 110 and 175 metres vertical depth.
Of significance, is step-out hole 10-LC-013, collared 650 metres west of 10-LC-012. This hole tested a geophysical response along trend and similar to Lac Cinquante, approximately 500 metres west of the known historic resource area. Hole 10-LC-0013 intersected Lac Cinquante-style mineralization with counts up to 10,000 CPS, over 2.0 meters width and at a vertical depth of 95 metres. (See drill plan).
Split core samples from the last four holes, with maximum radioactivity levels up to 30,000 CPS, have been sent to Saskatchewan Research Council Geoanalytical Laboratories (SRC) for analysis. This brings the total number of new drill holes sent for uranium analysis to eleven. SRC operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories, and is accredited by the Standards Council of Canada. Chemical assay results from this drill program will be reported by Kivalliq upon receipt.
Natural gamma radiation in drill core was measured in counts per second (CPS) using a hand-held Radiation Solutions Inc. RS-121 scintillometer. The Company cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material. Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo (Vice President Exploration of Kivalliq) who is the Qualified Person for the purposes of National Instrument 43-101.
About Kivalliq Energy Corporation
Kivalliq Energy Corporation is a uranium exploration and development company, and the first company in Canada to sign a comprehensive agreement with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada.
Kivalliq’s core asset, the 225,000 acre Angilak Project, is comprised of the historic Lac Cinquante uranium deposit (not National Instrument 43-101 compliant)** and over 150 other uranium occurrences. Since acquiring the project in 2008, the Company has spent approximately $4.2 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping and drilling.
On behalf of the Board of Directors
John Robins, P.Geo
President and CEO
Kivalliq Energy Corporation
For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com or contact Tony Reda, Investor Relations, at toll free 1.888.331.2269, directly at 604.646.4534 or by email at firstname.lastname@example.org. Kivalliq Energy Corporation is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.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.
** The quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin Corporation in 1986, and referenced by other subsequent sources. It was prepared prior to the implementation of National Instrument 43-101 (NI 43-101) and should not be relied upon since it does not comply with NI 43-101 Standards of Disclosure for Mineral Projects. A Qualified Person has not classified the historical estimates as current mineral resources or reserves, and therefore, Kivalliq is not treating them as such. Kivalliq has not completed any work to verify these estimates, but ongoing exploration programs are designed to evaluate the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being classified a mineral resource or reserve. However, the historical uranium resource estimate is relevant because: it is indicative of a mineralized zone worthy of follow-up exploration as it is based on drilling and surface exploration carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. Historic estimates were originally classified as “indicated” and “inferred” reserves, plus a third “possible” category; however, the equivalent categories acceptable under NI 43-101 are not known at this time.
Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to listings of securities, use of proceeds and future exploration programs, 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. 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.