Kivalliq Updates on Lac Cinquante Phase 2 Drilling
September 7, 2010
Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced the first batch of results for its 2010 Phase 2 drill program at the Lac Cinquante Uranium Deposit located in Nunavut, Canada. Ten of 13 holes intersected significant uranium mineralization across 700 metres of strike length and down to 160 metres depth. The 2010 program is designed to infill known areas of mineralization with in excess of 10,000 metres of drilling, at a density sufficient for establishing a compliant mineral resource at Lac Cinquante.
Phase 2 Drilling Highlights*
Drill Hole 10-LC-024 - 2.2 metres grading 0.83% U3O8
Drill Hole 10-LC-018 - 1.8 metres grading 1.60% U3O8
Drill Hole 10-LC-022 - 1.8 metres grading 0.43% U3O8
Drill Hole 10-LC-015 - 1.0 metres grading 2.87% U3O8
- Drill Hole 10-LC-016 - 0.5 metres grading 2.59% U3O8
*Estimated true widths
“With two rigs now on site, we’ve completed 9,000 metres of drilling to date in 2010 and the program is on budget and on track to exceed the planned 10,000 metres of drilling by October.” stated John Robins, President & CEO. “The results continue to affirm our sentiment that Lac Cinquante is one of the most exciting and promising uranium exploration projects in Canada.”
Phase 2 Overview
The Lac Cinquante “main zone” is a vein-breccia type uranium deposit occurring within a near vertical alteration/structural zone, over a strike length of one kilometre and extending from surface to a depth of 250 metres, open along strike and to depth. All Phase 2 holes were inclined to the northeast with an azimuth of 26 degrees, intersecting the Lac Cinquante main zone between 40 and 175 metres depth. Phase 2 is focused on determining continuity of mineralization and geological controls at Lac Cinquante through infill drilling on 25 to 50 metre centres.
Assay results for 10 of the 13 Phase 2 drill holes are presented in the Table 1 below. These are best reviewed with the accompanying drill collar information, plan map and drill sections posted at: www.kivalliqenergy.com
Table 1: 2010 Phase 2 Assay Results – Lac Cinquante Drill Program
|2010 Phase 2 Lac Cinquante Drilling Program - Assay Results*|
|Drill Hole||From (m)||To (m)||Interval (m)||Est True Width**||U3O8||Description|
|10-LC-020||139.5||143.0||3.5||3.4||0.24||Upper Main Zone|
|149.5||153.0||3.5||3.4||0.27||Lower Main Zone|
|10-LC-021||56.9||57.7||0.8||0.6||0.47||Qtz/cb bx vein|
|175.7||176.8||1.1||0.8||0.10||Upper Main Zone|
|183.0||184.7||1.7||1.3||0.06||Lower Main Zone|
|10-LC-023||116.0||117.1||1.1||1.0||0.75||Qtz/cb bx vein|
|*All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm Uranium subject to SRC U3O8 Assay |
Full mineralized intervals may include ICP U analysis in ppm converted to U3O8%. Conversion to U3O8% = ppm x 0.01179%
** Estimates for true widths of mineralized zones based on the attitude of Main Zone geology and the angle of hole intercepts
Hole 10-LC-026 was lost due to bad ground. Holes 10-LC-017, 10-LC-021, 10-LC-023 and 10-LC-025 intersected the Lac Cinquante altered tuff host unit with weak or no uranium mineralization. Holes 10-LC-021 and 10-LC-023 did intersect significant uranium in quartz-carbonate veining adjacent to the main zone, but their relationship to the deposit is not known at this time. Hole 10-LC-014 was drilled 500 metres west of Lac Cinquante from the same set up as 10-LC-013 reported earlier. The hole intersected Lac Cinquante-style host geology 25 metres down dip of hole 10-LC-013 and was weakly mineralized (0.10% U3O8 over 0.4 metres). More drilling is warranted and will be carried out in this new step-out area.
Samples from the 2010 Phase 2 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. The SRC facility 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. The samples are first analyzed by SRC’s ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC’s ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq’s QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.
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 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 $6.7 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.
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** 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.