Kivalliq Drilling at the Lac Cinquante Uranium Deposit
May 4, 2010
Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced commencement of Phase 1 of its 10,000 metre 2010 diamond drill program on the high-grade Lac Cinquante Uranium Deposit situated within the 225,000 acre Angilak Property in Nunavut Territory, Canada.
Drilling at Lac Cinquante in 2009 confirmed high-grade uranium mineralization in a near vertical vein style zone over 900 metres of strike length and down to 125 metres vertical depth. Mineralized zones are hosted within Archean basement rocks and are associated with a hematite-carbonate-chlorite-graphite altered tuff unit containing pitchblende veins and sulphides. The mineralization at Lac Cinquante remains open along strike and to depth.
The main objectives for the two phased 2010 program are to establish a 43-101 compliant resource at Lac Cinquante and to conduct additional exploratory drilling to demonstrate the deposit’s expansion potential. In addition, prospecting, sampling, and drilling will test high-priority targets along the length of the 9 km Lac Cinquante geophysical trend and elsewhere within the Angilak Project area. The company has also initiated a program of metallurgical and environmental baseline studies.
The Phase 1 spring program will consist of approximately 3,000 meters of diamond drilling as part of the planned 10,000 metre 2010 drill program and will be focussed on confirmation and infill drilling within the historic resource area.
Phase 2 of the program will consist of drilling, prospecting, sampling and summer field studies with the fourth quarter of 2010 dedicated to technical and engineering analysis and the goal of establishing a 43-101 compliant mineral resource by early 2011.
The Lac Cinquante Deposit is Canada’s highest grade uranium deposit outside of the Athabasca Basin. Kivalliq’s core asset, the 225,000 acre Angilak Project is comprised of the historic Lac Cinquante uranium deposit, reported to contain 20.4 million pounds of uranium oxide with grades in excess of 1% U3O8 (not National Instrument 43-101 compliant)** and over 150 other uranium occurrences. Since acquiring the project in 2008 the company has spent approximately $4.2 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping /sampling and 1,745 meters of drilling in 2009.
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 Rob Carpenter, Ph.D., P.Geo (Chairman of Kivalliq) who are Qualified Persons 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.
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.