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Kivalliq Announces 14.15 Million Pound U3O8 Inferred Mineral
Resource Estimate for Lac Cinquante; 810,000 Tonnes Averaging 0.79% U3O8 at a
0.2% U3O8 Cut-off Grade
� Kivalliq Energy Corporation (KIV: TSX-V) (the �Company�
or �Kivalliq�) is pleased to announce the release of
the first NI 43-101 compliant Mineral Resource estimate for the Lac Cinquante uranium deposit, located within Kivalliq�s 225,000 acre Angilak
Property in Nunavut, Canada. The Company has received a summary report from
Robert Sim of SIM Geological Inc. that describes an
Inferred Mineral Resource Estimate of 810,000 tonnes
grading 0.79% U3O8 , totalling
14.15 million lbs U3O8 (17.5 lbs U3O8/tonne)
at a 0.2%U3O8 cut-off grade.
�The release of the first
43-101 compliant mineral resource estimate for the Lac Cinquante
uranium deposit is a major milestone for the Company. It provides Kivalliq with a strong base from which to build
additional uranium resources in 2011, through further drilling at Lac Cinquante and at other high-priority target zones within
the Angilak Property,� stated Kivalliq
CEO Jim Paterson. �With a grade of 0.79% U3O8, Lac Cinquante is the highest grade compliant uranium resource
in Canada, outside of the Athabasca Basin. In addition to uranium, Lac Cinquante contains significant quantities of silver,
molybdenum and copper as outlined in the resource estimate. These additional
metals, and a uranium spot price now exceeding US$70 per pound, are
contributing factors to the potential economics of this project.�
Mineral Resource
Estimate
The Mineral Resource
estimate for Lac Cinquante was prepared under the
direction of Robert Sim P.Geo.,
of SIM Geological Inc. A resource model was generated using drill
sample assay results from Kivalliq�s 2009 and 2010
field seasons (up to October 31, 2010), and interpretation of a geological
model relating to spatial distribution of uranium. At a base case cut-off
grade of 0.2% U3O8, an Inferred Mineral Resource is
estimated at 810,000 tonnes averaging 0.79% U3O8,
containing 14.15 million pounds U3O8. For evaluation
purposes, three additional metals: silver (g/t), molybdenum (%) and
copper (%) have also been estimated within the resource model.
The Mineral Resources
contained within the Lac Cinquante uranium deposit
is presented with a series of U3O8 cut-off thresholds
for comparison purposes in Table 1 below; the base case cut-off grade of
0.2%U3O8 is highlighted in this table. Kivalliq feels that this is a conservative but
appropriate approach at this stage of the project�s development.
Conference Call
Kivalliq Energy Corp. will host a web-
based conference at 1:15 pm PST on Monday, February 7, 2011.
Please use the following link: http://www.investorcalendar.com/IC/CEPage.asp?ID=163374 .
Participant
dial-in number(s): 416-340-2216 / 866-226-1792 Please mention �Kivalliq�
Instant replay dial-in number(s):
905-694-9451 / 800-408-3053 Pass code: 5840426
Table 1 �
Inferred Mineral Resource Estimate for the Lac Cinquante
Deposit (February 2011)
|
Cut-off
U3O8 (%)
|
Tonnage
(T x 1000)
|
U3O8
(%)
|
Ag (g/t)
|
Mo (%)
|
Cu (%)
|
U3O8
(Mlbs)
|
Ag
(oz x 1000)
|
Mo
(Mlbs)
|
Cu
(Mlbs)
|
|
0.05
|
1,119
|
0.61
|
10.4
|
0.18
|
0.15
|
15.03
|
374.5
|
4.54
|
3.60
|
|
0.1
|
1,029
|
0.66
|
10.7
|
0.19
|
0.13
|
14.89
|
355.4
|
4.37
|
2.90
|
|
0.15
|
926
|
0.71
|
11.3
|
0.21
|
0.12
|
14.59
|
336.0
|
4.20
|
2.37
|
|
*0.2
|
810
|
0.79
|
12.3
|
0.23
|
0.11
|
14.15
|
319.3
|
4.05
|
1.98
|
|
0.25
|
747
|
0.84
|
12.8
|
0.24
|
0.11
|
13.84
|
306.3
|
3.90
|
1.73
|
|
0.3
|
687
|
0.89
|
13.0
|
0.25
|
0.10
|
13.48
|
288.2
|
3.72
|
1.56
|
|
0.35
|
625
|
0.95
|
13.2
|
0.25
|
0.10
|
13.03
|
265.4
|
3.48
|
1.41
|
|
0.4
|
577
|
0.99
|
13.3
|
0.26
|
0.10
|
12.63
|
246.1
|
3.25
|
1.28
|
|
0.45
|
527
|
1.05
|
13.4
|
0.26
|
0.10
|
12.17
|
227.6
|
3.06
|
1.17
|
|
0.5
|
493
|
1.09
|
13.5
|
0.27
|
0.10
|
11.81
|
213.7
|
2.92
|
1.09
|
Notes
*Base case cut-off of 0.2%U3O8 is highlighted in
the table.
-Mineral Resources are not Mineral Reserves. Mineral Resources do not have
demonstrated economic viability, and may never be converted into Reserves.
-Contained metal values may not add due to rounding.
The resource model was
generated using a total of 122 diamond core holes, totaling 18,260 metres drilled by Kivalliq on
the Angilak Property since 2009. This drilling is
comprised of 16 NQ core holes totaling 1,748 metres
in 2009, and 106 NQ core holes totaling 16,512 metres
in 2010. The resource model is constrained within a 3-dimensional
domain representing the mineralized portion of the host mafic tuff.
Drill hole samples are composited to the full width
of the zone and true thicknesses are determined for each drill hole
intercept. Blocks in the model measure 5x5x5 metres
in size. Block grade estimates are made through ordinary kriging using length-weighted composited drill hole intervals. Only the portion
of those model blocks within the mineralized tuff domain are included
in the final mineral resource estimate. Tonnages are calculated using a
constant bulk density of 2.8t/m3. Model blocks are included in the
inferred category if they form reasonably continuous zones of mineralization
within a maximum distance of 50 metres from a drill
hole intercept.
The Lac Cinquante is considered to be an early stage project,
therefore little is known about its potential mining or metallurgical
characteristics. However, the resource is considered to exhibit reasonable
prospects for economic extraction, and the base case cut-off threshold of
0.2% U3O8 is considered appropriate based on its
location and other assumptions derived from deposits of similar type and
scale. A technical report will be filed on SEDAR within 45 days.
Potential for
Resource Expansion
Lac Cinquante
remains open along strike to the east, west and at depth, demonstrating
excellent potential to increase the size of the resource at this deposit. In
addition, two holes drilled in 2010 encountered significant uranium, but were
not included in this initial estimate due to their distance from the resource
drilling. Step-out drill hole 10-LC-013, intersected 0.21% U3O8
over 1.96 metres, approximately 500 metres west of the resource drilling. Hole 10-NE-001
tested a target within the �Blaze Zone� 1.8 kilometres
west of Lac Cinquante, yielding two distinct
intervals of 0.83 % U3O8 over 1.4 metres
and 0.66 % U3O8 over 2.4 metres.
Both holes clearly indicate that additional uranium resources may be found
outside the current Lac Cinquante deposit area.
Geology of the
Lac Cinquante Uranium Deposit
The Lac Cinquante uranium deposit is structurally and stratigraphically controlled within a graphite-chlorite tuffaceous metasediment
interlayered in Archean basement metavolcanics. Mineralization consists of
disseminated pitchblende with sulphides and as
fracture controlled, brecciated, hematite- pitchblende-quartz -carbonate
veins within the tuff. Uranium and sulphides occur
in widths up to 7.9 metres within a host unit up to
11.4 metres wide. The deposit strikes
southeast at 110 to 120 degrees and dips south, variably between -45 and -80 degrees. Mineralization occurs as southwest
plunging shoots within the plane of the tuff
unit, which has been traced by drilling to a vertical depth of approximately
270 metres and along a strike length of 1300 metres . Lac Cinquante is
described as a basement hosted, vein-hydrothermal type, unconformity
associated uranium deposit.
QA/QC
The information in this
release related to the mineral resource estimate has been approved by Robert Sim, P.Geo of SIM Geological
Inc., who is an independent Qualified Person as defined under National
Instrument 43-101. Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for the Company has
reviewed and approved the information contained in this release.
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 , totalling
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 compliant
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 $12 million conducting systematic exploration,
including ground and airborne geophysics, geological mapping, prospecting and
18,350 meters of drilling.
On behalf of the Board of
Directors
�Jim Paterson�
Jim Paterson, CEO
Kivalliq Energy Corporation
For further information
about, Kivalliq Energy Corporation or this news
release, please visit our website at www.kivalliqenergy.com (m.kivalliqenergy.com) or contact Investor Relations toll free at
1.888.331.2269, at 604.646.4527, or by email at info@kivalliqenergy.com.
Kivalliq Energy Corporation is a member of
the Discovery Group of companies, for more information on the group visit www.discoveryexp.com (m.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.
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