Kivalliq Announces Aggressive 2010 Exploration Program; Acceleration of Warrants
March 8, 2010
Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced its 2010 exploration plans for the Angilak Project in Nunavut, with a focus on the historic Lac Cinquante Uranium Deposit located in Nunavut, Canada.
“We are planning an aggressive drill program for 2010,” stated John Robins, President & CEO, Kivalliq Energy Corp. “Our main goal for this year’s program will be to establish a 43-101 compliant resource at Lac Cinquante and to conduct additional exploratory drilling to demonstrate the deposit’s expansion potential.”
Exploration Plan 2010
Construction of a fully winterized field camp to support expanded operations will be completed during the months of March and April, 2010. Fuel is currently being mobilized to site and the six month drill program will commence in early April. The fourth quarter of 2010 will be dedicated to technical and engineering analysis, with a goal of establishing a 43-101 compliant mineral resource by early 2011.
Up to 10,000 metres drilling is planned at Lac Cinquante, starting with one on-site rig in early April 2010. Drilling will target historic resource dimensions and the known mineralized envelope using information from historic core on-site and results from Kivalliq’s highly successful 2009 drill campaign. Exploration drilling will focus on demonstrating the expansion potential at Lac Cinquante where mineralization is open along strike and to depth. In addition, drilling will test high-priority targets along the 9 km long Lac Cinquante geophysical trend.
The Company plans to continue an aggressive program of surface exploration on the remainder of the 225,000 acre Angilak property, which has over 150 known uranium occurrences, representing several different model types. This summer program will consist of prospecting, sampling and drill target identification.
Technical Work and Baseline Studies
To aid in the planning of the project’s future exploration and development, the Company is undertaking a series of technical and baseline studies. Preliminary metallurgical work is underway and environmental baseline studies will begin this year. JDS Energy and Mining has also been engaged to perform a conceptual economic and access study for the project. Resource modeling will commence in Q4 2010.
Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo (Vice President Exploration of Kivalliq) and who is a Qualified Person for the purposes of National Instrument 43-101.
Acceleration of Warrants
Kivalliq also announced that pursuant to the terms of the warrants (the “Warrants”) issued as part of Kivalliq’s private placement offerings (“Private Placements”), which closed on May 26, 2009, Kivalliq has elected to exercise its right (the “Acceleration Right”) to reduce the period within which the Warrants may be exercised. The Company will provide written notice of the acceleration to each of the Warrantholders.
The Acceleration Right was triggered when the weighted average trading price of Kivalliq’s common shares on the TSX Venture Exchange (“Exchange”) was at a price equal to, or greater than, $0.40 CDN, being $0.10 CDN above the current exercise price of the Warrants, for a period of 10 consecutive trading days, commencing February 22, 2010 through to Mar 5, 2009. On March 5, 2010 the closing price of the common shares on the Exchange was $0.425 CDN.
Warrantholders will be entitled to exercise the Warrants for a period of 30 days commencing March 9th, 2010 and ending April 7th, 2010. All Warrants not exercised on or before 12:00 p.m. (Pacific time) on April 7th, 2010 will expire and be void and of no further force and effect.
Proceeds from the exercise of warrants will be applied towards Kivalliq's 2010 exploration program.
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.
This landmark partnership with the Inuit gives Kivalliq a unique opportunity to explore and develop the Lac Cinquante Deposit, Canada’s highest grade uranium deposit outside of the Athabasca Basin. Reported to contain 20.4 million pounds of uranium oxide with grades in excess of 1% U3O8 (not National Instrument 43-101 compliant)**, the historic Lac Cinquante uranium deposit and over 160 other uranium occurrences on the property comprise Kivalliq’s core asset, the 270,000 acre Angilak Project.
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 [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.
** 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.