2011 Prospecting Results Demonstrate Polymetallic Potential at Angilak
January 12, 2012
Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced results from the 2011 summer prospecting program at the 225,000 acre Angilak Property in Nunavut, Canada. 273 prospecting samples were collected in priority areas across the property with highlights and a summary of results disclosed herein.
“The number of new, high-grade mineral showings identified by Kivalliq’s prospecting team in 2011 highlight the polymetallic nature of mineralization on the Angilak Property,” stated Kivalliq’s President, Jeff Ward, P. Geo. “The 2011 prospecting program has increased our confidence in the district scale potential of Angilak, and has provided us with excellent drill targets for 2012.”
2011 Prospecting Program Highlights
- 273 rock samples collected, with 10% (27 samples) exceeding 1% U3O8, along with multiple samples containing significantly anomalous silver (Ag), copper (Cu), and (Pb) lead values
- “BIF” Zone - High-grade U-Cu-Mo-Ag veins sampled along a 3 km shear zone and geophysical trend
- “AG” Showing - 21,600 g/t Ag (626.4 oz/ton) assay from a native silver occurrence discovered in subcrop
- “Taluaq” – New claims staked to secure a prominent 2 km by 10 km ovoid magnetic feature with initial samples showing polymetallic potential
- VGR mineralized geophysical trend was extended to 4 km in strike length
Highlights from Assays
- 20.00% U3O8, 107.0 g/t Ag, 12.70% Cu, 5.02% Pb - (Sample 1828) Force
- 23.80% U3O8, 114.0 g/t Ag, 0.81% Cu, 5.90% Pb, 0.58% Mo - (Sample 1839) BIF Zone
- 16.00% U3O8, 321.0 g/t Ag, 5.38% Pb, 0.76% Mo - (Sample 1860) BIF Zone
- 30.30% U3O8, 163.0 g/t Ag, 5.16% Cu, 22.90% Pb - (Sample 1983) BIF Zone
- 21,600 g/t Ag; 301.0 g/t Ag, 1.16% Cu - (Samples 1801 and 1802) AG Showing
For maps of priority areas from Kivalliq’s prospecting programs and a table of key results, please visit http://kivalliqenergy.com/projects/angilak/
2011 Prospecting Program
A prospecting crew was active for 3 months between June and September, mapping and collecting grab samples from outcrop, subcrop and glacial float across the Angilak property. This work was able to advance existing high priority areas and identify several new mineralized zones on the property. Of the 273 grab samples collected, 163 are considered to represent in-situ bedrock sources, with the remaining 110 samples taken from cobbles and boulders found in glacial till. In addition, 10% (27 samples) returned assays in excess of 1% U3O8, with many having significant silver, copper, molybdenum, lead and zinc values.
High-grade U-Cu-Mo-Ag assays in samples from multiple veins (1 to 3 cm wide) and boulders were identified at the new “BIF” zone, located approximately 10 km from Lac Cinquante. Results include 13 of 25 grab samples exceeding 1% U3O8 and 5 samples with over 15% U3O8 taken along the strike length of a geophysical anomaly and related mineralized structure. The BIF uranium occurrence is associated with a 3 km long reactivated shear zone on the margin of the Yathkyed Greenstone Belt, and within a package of mylonitized iron formation and tuffaceous volcano-sedimentary rock. A ground VLF and magnetic survey carried out in the area of highly anomalous samples will be the focus of future work and drilling in 2012. A map of the BIF zone is available at http://kivalliqenergy.com/projects/angilak/
Highlight samples from the BIF Zone:
- 30.30% U3O8, 163.0 g/t Ag, 5.16% Cu, Cu, 22.90% Pb - (Sample 1983) outcrop
- 23.80% U3O8, 114.0 g/t Ag, 0.81% Cu, 5.90% Pb, 0.58% Mo - (Sample 1839) outcrop
- 17.90% U3O8, 38.3 g/t Ag, 0.15% Cu, 6.00% Pb, 0.45% Mo - (Sample 1833) outcrop
- 16.60% U3O8, 51.3 g/t Ag, 0.05% Cu, 3.67% Pb, 0.95% Mo - (Sample 1836) float
- 16.00% U3O8, 321.0 g/t Ag, 5.38% Pb, 0.76% Mo - (Sample 1860) outcrop
Of note is a new native silver occurrence discovered approximately 7.5 km east of the Lac Cinquante uranium deposit. Carbonate and quartz veins in a sheared tuff unit contain significant Ag values ranging from 10 to 301 g/t in 14 of 21 grab samples, with 21,600 g/t in one grab. The veins appear to be barren of uranium, but can contain significant concentrations of Cu, Pb, and Zn. Mineralization and veins are exposed over 65 m strike length, with a width of approximately one metre. To date, only one discontinuous high-grade Ag vein has been identified, but it is situated at the end of a 1 km long VLF-EM conductor which could host additional Ag and polymetallic veins. A single 80 m long inclined drill hole (11-AG-001) tested the western end of the VLF-EM conductor with no significant results.
The Force area, located in the central part of the Angilak property, straddles a major northeast trending fault zone which cuts through Archean basement gneisses and Proterozoic ultrapotassic intrusions. Prospecting in 2010 and 2011 has identified U-Cu-Pb-Ag veins in outcrop and subcrop at two main zones 200 m apart along this fault zone. Three additional grab samples collected in 2011 confirm high grades identified in 2010, with the best assaying 20.00% U3O8, 12.70% Cu and 107.0 g/t Ag. Due to difficult ground conditions, only two of four RC test holes were completed to depth. No significant radioactivity was intersected in either hole, however favourable geophysics, geology, high grade boulders and significant Quaternary cover suggest further work is warranted.
In late summer, prospectors investigated a prominent 2 km by 10 km magnetic geophysical feature just north of the Angilak property boundary. Ten claims were staked over this ovoid signature which could represent a large, high-level subvolcanic intrusion with associated mineralization. Follow-up work resulted in the discovery of disseminated and stockwork base metal mineralization in syenitic boulders and outcrop, now named the “Taluaq” zone. Assay results from 4 grab samples have elevated concentrations of Cu (0.06%-0.69%), Pb (0.14%- 4.95%), Zn (0.04%-3.3%), and Ag (1.2-110 g/t). Although no uranium was encountered, only a fraction of the magnetic anomaly has been investigated and future work will focus on assessing the uranium and REE potential, as well as polymetallic mineralization in the syenitic intrusion.
Several significant showings discovered along the VGR trend in 2010 were revisited in 2011, including the highly prospective VGR fault system itself. The VGR trend hosts a 3 to 7 m wide, steeply‐dipping carbonate/hematite veins and fractures containing uranium and sulphide mineralization in trachyandesite. Prospecting to the southwest along strike of the main VGR showing identified additional areas of alteration and uranium mineralization with values up to 3.75% U3O8, extending the known mineralized trend to 4 km strike length. Four RC test holes on the main VGR showing returned promising results, with elevated radioactivity (5000 to15000 cps on a Mt. Sopris downhole radiometric probe) in the upper 65 m of one hole. The area remains very prospective for unconformity-style uranium mineralization and is a high priority drill target for 2012.
Samples collected as part of the 2011 prospecting program were comprised of grab samples generally less than 2.5 kilograms in size. 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. ICP results U>1000 parts per million (ppm) are analyzed using SRC’s ISO/IEC 17025:2005-accredited U3O8 Assay method. Other metals analyzed by ICP were reported in ppm and subsequently converted to % or grams/tonne. Other metals will be verified by additional assays. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility.
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 based in Vancouver, Canada and the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada.
With a NI 43-101 Inferred Resource of 14.15 million pounds at 0.79% U3O8, 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 multiple, highly mineralized target areas.
Since acquiring the Angilak Property in 2008, the Company has invested approximately $30 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and 48,000 meters of drilling.
Kivalliq's team of northern exploration specialists has forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. ("NTI") to advance the Angilak Property. The Company is focused on building shareholder value while adhering to a high level of environmental and safety standards and proactive local community engagement.
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].
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.