Kivalliq Mobilizes Second Drill Rig to Lac Cinquante
August 10, 2010
Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) announced today the mobilization of a second drill rig as part of Phase 2 of the ongoing 10,000 metre 2010 diamond drill program on the high-grade historic Lac Cinquante Uranium Deposit. Phase 2 follows on the highly successful 2,375m Phase 1 spring drill program, and will focus on establishing a NI 43-101 compliant uranium resource. Lac Cinquante is situated within the 225,000 acre Angilak Property in Nunavut Territory, Canada.
Phase 2 of the program will consist of drilling, prospecting, sampling and field baseline studies, with the fourth quarter of 2010 dedicated to technical and resource modeling analysis and the goal of establishing a NI 43-101 compliant mineral resource by early 2011.
The Phase 1 spring drill program consisted of 2,375 metres in 13 holes (see release dated June 24, 2010). This included a step-out hole that intersected uranium mineralization (0.21% over 1.96 metres) 500 metres along trend and west of the historic uranium deposit. In addition, the Company continues to receive assay results from core found in re-logged historic drill holes. Assays from historic re-logged core are being used as a guide for the current drill program, and to help identify new areas for follow-up.
Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo., Kivalliq’s Vice President Exploration, 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.
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 $6.7 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping /sampling and 4,120 meters of drilling since 2009.
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.