Kivalliq Reports Additional High-Grade Intercepts from Blaze Zone: Hole 11 BZ-016 intersections include 4.1 metres of 0.84% U3O8, 1.62% Cu, 99.14 g/t Ag and 0.47% Mo
August 11, 2011
Vancouver, B.C. - Kivalliq Energy Corporation (KIV: TSX-V(the “Company” or “Kivalliq”) today provided an update on exploratory diamond drilling at the Blaze Zone, located approximately two kilometres west of the high grade Lac Cinquante uranium deposit, within Kivalliq's 225,000 acre Angilak Property in Nunavut, Canada.
- Assays from holes 11- BZ-011 through 019 returned significant U-Cu-Ag-Mo mineralization
- Holes 11-BZ-016, 017 and 019 intersected, 0.63% U3O8 over 5.6 metres, 0.45% U3O8 over 8.4 metres, and 0.60% U3O8 over 6.3 metres respectively.
- Blaze Zone drilled over 100 metres strike length with mineralization intersected down to 126 metres
- Zone remains open along strike and to depth
“The Blaze zone discovery clearly demonstrates the exploration potential at the Angilak Property, especially within close proximity of the high grade Lac Cinquante deposit,” stated CEO Jim Paterson. “Continued drilling at Blaze will be needed to better delineate this occurrence, and for possible inclusion in future resource calculations.”
Assay results reported in Table 1 of this release are from holes 11-BZ-011 through 019 of 19 diamond drill holes that have tested the Blaze Zone in 2011. The intervals reported herein build on the success of hole 10-NE-001 drilled at the Blaze Zone at the end of the 2010 season. Updated 2011 drill plans, sections and tables can be found on the Company's website at www.kivalliqenergy.com.
Table 1: 2011 Phase 2 Assay Results from Blaze Zone
|2011 Blaze Zone Drilling Program - Assay Results Holes 11-BZ-011 to 019|
|Hole||From||To||Interval (m)||%U3O8||% Cu||Ag g/t||% Mo||Note|
All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm U are subject to SRC U3O8 Assay
ICP1 results for Ag, Mo and Cu, are reported by SRC in parts per million (ppm). 1 ppm = 1gm/t, 10000 ppm = 1%
Intervals include ICP U analysis in ppm converted to U3O8%. Conversion to U3O8% = ppm x 0.01179%
Intervals reported down-hole and true width of zones or intervals are not known at this time
Blaze Zone Summary
The Blaze Zone is located approximately 2.0 kilometers west of the Lac Cinquante uranium deposit. Mineralization occurs as pitchblende with occasional disseminated and patches of sulphide in quartz-carbonate veins and breccia, often with moderate hematite alteration, primarily around fractures. There appear to be two separate zones (upper and lower), occurring as clusters of semi-stockworked quartz-carbonate stringers and veins in brecciated carbonate-hematite altered host rock, crosscutting the southwest dipping sequence of metabasalt, metagabbro and metatuff. In holes 11-BZ-011 through 019, these upper and lower zones of varying mineralized widths are separated by 27 to 40 metres of unaltered metavolcanics.
Most notable is hole11-BZ-016, which intersected 0.63% U3O8, 1.31% Cu, 74.3 grams/tonne Ag and 0.35% Mo over 5.6 metres. This hole crosscuts hole 11-BZ-010 assaying 1.01% U3O8 over 25.4 metres (reported June 20), and suggests the true width of this intercept to be roughly 4 metres. In addition, hole 11-BZ-017 intersected 0.45% U3O8, 0.30% Cu, 73.3 grams/tonne Ag and 0.31% Mo over 8.4 metres; and hole 11-BZ-019 returned 0.60% U3O8 over 6.3 metres. The relationship of these holes to other high grade intercepts in unknown at this time.
The Blaze Zone has been drilled across a strike length of 100 meters, with significant mineralization intersected between 30 and 126 metres depth below surface. A total of 2,694 metres of NQ drill core from 19 drill holes have investigated mineralization at Blaze, with assays from all of the 19 holes drilled to-date now reported. Holes 11-BZ-001 through to 11-BZ-015 were drilled at azimuth 035 degrees from five locations at 25 metre drill section intervals across the 100 metre strike length targeted. Core logging suggests initial setups may have drilled sub-parallel to some of the mineralized trends. Therefore, two additional setups drilling azimuth 180 degrees for holes 11-BZ-016 and 11-BZ-017, and at azimuth 130 degrees for holes 11-BZ-018 and 11-BZ-019 respectively were drilled oblique and perpendicular to earlier holes in order to determine structural controls and estimate true widths of mineralization.
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 elements of the proposed 2011 exploration campaign:
- Up to 35,000 metres of drilling, 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 (5,400 line kilometres) and ground geophysical surveys (1250 line kilometres)
- Prospecting and mapping
- 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 update of current inferred NI 43-101 resource by Q2 2012
The continuing 2011 drill program at Angilak now totals 14,795 metres in 99 diamond drill holes and an additional 4,422 metres in 62 exploratory holes with the RC rig. Diamond drilling to date has largely focused on the Blaze Zone and resource expansion 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, including from the recently discovered Western Extension zone announced by Kivalliq on July 21, 2011.
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.
Samples from the 2011 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 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 $17 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].
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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.