2010 Prospecting Program at Angilak Identifies 9
High Priority Target Areas;
Assay Highlights Include Multiple Grab Samples In Excess of 25% U3O8
� Kivalliq Energy
Corporation (KIV: TSX-V) (the �Company� or �Kivalliq�) today announced assay results
from the 2010 summer prospecting program at the 225,000 acre Angilak Property
in Nunavut, Canada. Nine priority areas were identified based upon results,
including assays from 290 grab samples collected from in-situ rock sources
and glacial float material, over an eight week period from July through September
2010. Of the samples collected, 17% returned values in excess of 1%
U308. In addition, several samples returned high grade values in
silver, molybdenum, copper and gold.
�The 2010 prospecting
program continued to demonstrate the potential of the Angilak Property,�
stated Kivalliq�s President, Jeff Ward, P. Geo. �This year�s prospecting
program has already led to the discovery of Lac Ciquante style mineralization
in drill hole 10-NE001 and will provide us with the basis for an aggressive
2011 exploration program.�
Prospecting Program Highlights
- 9 new priority areas
identified
- 51 samples assayed
over 1% U308
- High
grade silver, molybdenum, copper and gold mineralization identified in
several showings
High-Grade Sample
Highlights
Sample ID # -
Grades by Metal
- Sample
14968 - 47.8% U3O8, 1.58% Mo, 1.74% Cu, 16.5% Pb, and
740 g/t Ag
- Sample
14639 - 42.1% U3O8, 0.431% Cu, 11.8% Pb and 197 g/t Ag
- Sample
14568 - 35.4% U3O8 and 683 g/t Ag
- Sample
14876 - 30.7% U308 and 690 g/t Ag
- Sample
14771 - 30.1% U308 and 341 g/t Ag
For geological maps
identifying key samples and areas from Kivalliq�s 2010 prospecting program
and a table of key results , please visit www.kivalliqenergy.com/projects/index.php?&content_id=79#section120
Background
The 225,000 acre Angilak
Property hosts more than 150 historic mineralized showings discovered in the
late 1970�s and early 1980�s by several companies formerly active in the
region, including Pan Ocean Oil, Noranda Resources Inc. and Urangesellschaft
of Canada Ltd. For the 2010 prospecting campaign, historic occurrences were
ranked and prioritized based on geological setting and past results. Of
these, 38 areas were selected for follow-up. These areas were then used as
focal points for initial follow-up, expanding exploration to cover favourable
trends and geology.
2010 Prospecting
Program
A helicopter supported
four man prospecting crew explored the Angilak property for approximately
eight weeks during July, August and September. In addition to expanding
historic areas of interest identified by previous operators, several new
radioactive showings were identified in 2010.
Prospecting and mapping
identified 9 high priority areas based upon results from a total of 290 grab
samples. Of these samples, 151 are considered to represent insitu source
rocks, including samples collected from historic trenches, mineralized
outcrops and subcropping exposures. The remaining 139 samples represent
glacial float material, such as cobbles and boulders,
frost heaved clasts and glacial till.
A high proportion of
these samples collected during the program returned high grade uranium,
copper, molybdenum, lead , silver and gold values. Results to date have
identified at least 9 areas that display significant potential for uranium
and other mineralization in bedrock. These are considered high priority
areas, with 51 samples returning U3O8 results in excess of 1%, as shown on
the prospecting map that accompanies this release and also summarized below.
Joule Trend
The Joule trend is a 1.75
kilometre long, southeast striking area scoured by glacial outwash, hosting
sheared and faulted volcanics, with vein controlled mineralization. The trend
coincides with a 4.5 kilometre long geophysical conductor, analogous to the
Lac Cinquante Main Zone which is located five kilometres west. Historic work
includes the discovery of a 12 pound pitchblende boulder four short drill
holes within the trend. Most of the 2010 work encountered narrow widths of
very radioactive mineralization (<50 cm), however mineralization styles
and grades show similarities to Lac Cinquante. The trend is also situated
just 2.5 kilometres west of Kivalliq�s main �Nutaaq Camp� site.
Highlight samples from
the Joule Trend:
- Sample
14968 - 47.8% U3O8, 1.58% Mo, 1.74% Cu, 16.5% Pb, and
740 g/t Ag from float material collected near the western extent of the
anomalous trend
- Sample
14795 - 22.6% U3O8, 0.45% Mo, 0.616% Cu, 7.90% Pb and
314 g/t Ag from a strongly altered hematitic brittle fracture set in a
gabbro outcrop, 140m along strike to the southeast from 14968
- Sample
# 14771 - 35.4% U3O8 and 683 g/t Ag; Sample # 14773 - 30.1%
U308 and 341 g/t Ag; Sample #14568 - 25.3% U308
and 280 g/t Ag from cobbles collected centrally within the Joule trend
- Sample
14639 - 42.1% U3O8, 0.431% Cu, 11.8% Pb and 197 g/t Ag
from a narrow 5 cm wide pitchblende/limonite vein, 1.4 kilometres
southeast of the high counts returned by sample 14968 and 14795 on the
eastern end of the Joule trend
- Sample
14561 - 6.65% U3O8, 1.23% Mo, 3.2% Pb and 315 g/t Ag
from an outcrop on a parallel southeast trending linear, located 800m
north
Numerous additional
outcrop and float samples within the Joule trend returned strongly anomalous
values that corroborate high grade values shown above and demonstrate the
prevalence of uranium along the entire trend. The Company has identified
multiple high-priority targets to test in this area during the 2011
exploration program.
Blaze Zone
The area referred to as
Blaze returned several strongly anomalous values from float material,
surrounding a sequence of south east trending conductors similar to the
geophysical response seen at Lac Cinquante. A radioactive sulphide-bearing
vein and angular float was uncovered east of the conductors, indicating
uranium mineralization may be present along these conductive sources. One
conductor was successfully drill tested by DDH 10-NE-001 which returned two
high grade U3O8 intersections of 0.83% U3O8 over 1.4 metres
and 0.66% U3O8 over 2.4 metres (released Dec. 13, 2010)
Highlight samples from
the Blaze Zone:
- Sample
14876 � 30.7% U3O8, 0.24% Cu, and 690 g/t Ag from
pitchblende rich chlorite/ carbonate float collected approximately 300m
southeast from drill hole 10-NE-001 along strike of the VLF conductor
tested
- Sample
14951 � 26.3% U3O8, 1.29% Cu, and 240 g/t Ag from
pitchblende rich float material collected approximately 225m northeast
from drill hole 10-NE-001
- Sample
14589 � 10.5%U3O8, and 39 g/t Ag from pitchblende float
material collected adjacentl to a an untested VLF conductor
approximately 550m northeast from drill hole 10-NE-001
Forte
The Forte trend lies 3
kilometres west of the Blaze area near old trenches in radioactive
conglomerate. However, the area to the north was not well explored and hosts
a 500 m fault crosscutting a regional conductor with tuff, basalt,
mineralized sandstone float on surface and a new radioactive boulder train
not previously reported. Sample # 14553 returned assay values of 3.07%
U3O8, 0.94% Cu and 102 g/t Ag.
PWR
The PWR area is located
7.3 kilometres due north of Lac Cinquante in mixed gneissic rocks. Two old
trenches expose high grade pitchblende-Cu sulphide veins at the contact
between mafic and granodioritic gneiss. A zone of highly radioactive veinlets
1 to 5 cm in wide host are surrounded by hematite alteration. Magnetics
suggest PWR may be related to regional deformation along a structure. Sample
# 14593 returned assay values of 14.4% U3O8, 1.29% Mo and
135 g/t Ag.
Force
The Force trend is
underlain by gneissic rock and mafic schist situated central to the property.
Mineralization is found as very radioactive mudboils and subcrop which likely
represent structurally controlled, uranium bearing hematite breccias and
veins just below surface. Sample # 14984 returned assay values of 21.40%
U3O8, 1.12% Cu and 1980 g/t Ag.
Lucky Break
The Lucky Break area is a
new showing discovered in 2010. The area is situated 11.3 kilometres NW of
Lac Cinquante. Outcrop exposure is minimal in the immediate area, but several
highly radioactive polymetallic sulphide and pitchblende in quartz-carbonate
breccia veins were recovered from subcrop beneath 30-60 cm of till cover.
Sample # 14978 returned assay values of 4.53% U3O8, 2.62% Cu
and 78 g/t Ag.
Bog
The Bog trend is located
in sheared and faulted basement gneiss intruded by trachytic dykes of the
Christopher Island Formation, 14.5 kilometres northwest of Lac Cinquante.
Previous operators delineated a SW-trending crustal break, which was not
drill tested. Radioactive outcrop, subcrop, and frost heaved boulders are
found along a 3 kilometres of strike length, in an area largely covered by
till. Uranium and sulphide seems to be controlled by shear/fracture
structures and alteration related to dykes intruding granodioritic gneiss.
Sample # 14830 returned assay values of 1.42% U3O8, 2.12% Cu
and 70 g/t Ag.
VGR
The VGR trend is located
approximately 25 kilometres northwest of Lac Cinquante, just inside the
Yathykyed sub-basin. Previous operators performed geological, geophysical,
and geochemical work between 1977 and 1981, but did not drill test this
target. The trend hosts a 3 to 7 metre-wide, steeply-dipping
carbonate/hematite vein and fracture system hosting radioactivity and
sulphide mineralization. Radioactive boulders and structure can be traced for
over 3000 metres, making the VGR trend an excellent target for
unconformity-type mineralization. Sample # 14766 returned assay values of 3.64%
U3O8 and 2040 g/t Ag.
YAT
The Yat area is located
15.6 kilometres SW of Lac Cinquante near the northern margin of the Angikuni
subasin. The trend comprises a 100 m long string of sulphide-bearing and
radioactive subcrops in clastic rock. A grab sample collected in 2007
returned 39 grams Au, 100 ppm Ag, 1.18% Cu, and 0.24% U3O8
from brecciated quartz �carbonate veined float and trenches. Samples
collected in 2010 confirmed and improved on these values, including sample #
14787 with 1.44% U3O8, 1140 g/t Ag, and 12.90 g/t Au.
Overview of 2010
Exploration Program at Angilak
The 2010 Program at
Angilak operated from April to October and consisted of new camp
construction, property-wide prospecting, environmental baseline studies, and
a total of 16,600 metres of resource definition and exploratory drilling in
107 holes. All results have now been reported from both the 2010 drill
program and prospecting campaign.
The remainder of the year
will be dedicated to technical and resource modeling analysis with the goal
of establishing a NI 43-101 mineral resource by Q1 2011.
QA/QC
Samples collected as part
of the 2010 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 metal s analyzed by ICP were reported in ppm and
subsequently converted to % or grams/tonne. Other metals will be verified by
additional assays. Gold was analyzed using the Au1 and Au3 fire assay
methods. 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 Jeff Ward,
P.Geo. (President, Kivalliq) who 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, 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 Property hosts the historic
Lac Cinquante uranium deposit, and over 150 other uranium occurrences. Since
acquiring the project in 2008 the Company has invested approximately $11.9
million on the property conducting systematic exploration which has included
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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