New Discovery Expands Resource Potential;
Western Extension Zone Identified 850 Metres From Lac Cinquante Deposit
July 21, 2011
Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today provided an update on diamond drilling at the 225,000 acre Angilak Property in Nunavut, Canada. Recent drilling has identified a highly radioactive zone, the “Lac Cinquante Western Extension”, located 850 metres to the west and along strike from the Lac Cinquante Uranium Deposit. Drilling to date of 2707 metres in 17 drill holes has begun to delineate this previously untested area, which remains open along strike and to depth.
- Two core rigs are currently drilling at Lac Cinquante Western Extension
- 16 of 17 holes drilled at Lac Cinquante Western Extension have intersected highly radioactive shear zone
- Zone drilled over 200 metres strike length and down to 250 metres
- Target remains open along strike and to depth
- Assays are pending
Lac Cinquante Western Extension
To date, 2707 metres of drilling in 17 diamond drill core holes have tested the Lac Cinquante Western Extension Zone. The Kivalliq team considers the Lac Cinquante Western Extension to be part of the same geological structure which hosts the high grade Lac Cinquante uranium resource. Drilling is targeting a northwest trending VLF EM conductor, similar to the Lac Cinquante, along fences spaced at 50 metres and to depths of up to 250 metres. All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 88 degrees. This work has identified a highly radioactive shear zone up to 4.7 metres wide and dipping 65 degrees to the southwest.
The mineralized zone is similar to that found at Lac Cinquante, but in altered basalt rather than tuff host rock. Radioactive intervals are associated with sheared, chlorite-carbonate altered basalt with minor brecciation and sulphides. Hematized quartz-carbonate veining is common.
Sixteen of 17 holes drilled at the Lac Cinquante western extension have intersected this radiaoactive zone between 28 and 250 metres vertical depth and over a strike length of 200 metres. (See drill plan www.kivalliqenergy.com ) Assays are pending.
2011 Angilak Property Exploration Program
As announced on February 15, Kivalliq’s board of directors approved a two-phased, $17 million exploration program at Angilak. This commenced in March 2011 with the mobilization of crews and equipment to the existing Nutaaq camp.
The following points summarize both the first and second phase of the proposed 2011 exploration campaign:
- Up to 35,000 metres, with two diamond drill core rigs and one reverse circulation (“RC”) rig, focused on expanding the high grade Lac Cinquante resource and testing new target areas across the property
- Combination of airborne (4,000 line kilometres) and ground geophysical surveys (1250 line kilometres)
- Continued prospecting
- Ongoing modeling, geological and environmental studies
- Continued emphasis on community consultation
- Infrastructure expansion for improved logistics and to handle additional staff and equipment
- Revision and upgrade of current inferred NI 43-101 resource by Q2 2012
The continuing 2011 drill program at Angilak now totals approximately 10,885 metres in 72 diamond drill core holes and an additional 3,323 metres in 46 exploratory holes with the RC rig. The diamond drilling has been largely focused on drilling at the Blaze Zone (See news release dated June 20, 2011) and resource expansion drilling along strike to the east and west of the high grade Lac Cinquante deposit. Additional assays are pending from the results of this diamond drilling.
Airborne and ground geophysical crews, as well as a prospecting crew, have been mobilized to the project to advance target areas defined by the 2010 program and generate new targets across the Angilak Property.
Core samples from 11 holes at the Lac Cinquante Western Extension, with maximum radioactivity levels up to 44,000 CPS, have been sent to Saskatchewan Research Council Geoanalytical Laboratories (SRC) for analysis. 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 Kivalliq’s president, Jeff Ward, P.Geo. Mr. Ward 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.
With an NI 43-101 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 lbs U3O8/tonne) at a 0.2% U3O8 cut-off grade, the Lac Cinquante Deposit is Canada’s highest grade uranium deposit, outside of the Athabasca Basin. Kivalliq’s flagship project, the 225,000 acre Angilak Property in Nunavut, hosts the high-grade Lac Cinquante deposit, along with nine additional high priority target areas. Since acquiring the Angilak Property in 2008, the Company has invested approximately $12 million conducting systematic exploration.
On behalf of the Board of Directors
James Paterson, 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 Investor Relations at 1.888.331.2269 toll free, directly at 604.646.4527 or by email at [email protected].
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.
Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to 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. 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.