Kivalliq Energy Corporation
TSX VENTURE : KIV

Kivalliq Energy Corporation

October 29, 2009 08:30 ET

Kivalliq Reports High-Grade Uranium Assays From Lac Cinquante Drilling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2009) - Kivalliq Energy Corporation (TSX VENTURE:KIV) (the "Corporation" or "Kivalliq") today announced high-grade U3O8 assay results for 13 holes drilled during the 2009 Program on the historic Lac Cinquante Uranium Deposit located in Nunavut, Canada.

Highlights of assays from the 2009 Drill Program include*:

  • Drill Hole 09-LC-002 - 2.88 metres grading 2.06% U3O8
  • Drill Hole 09-LC-006 - 2.45 metres grading 1.20% U3O8
  • Drill Hole 09-LC-012 - 1.78 metres grading 1.87% U3O8
  • Drill Hole 09-LC-015 - 1.47 metres grading 2.13% U3O8
  • Drill Hole 09-LC-001 - 1.36 metres grading 1.49% U3O8

 *Down-hole intercepts

"We are very pleased that almost every hole drilled in 2009 hit high-grade zones that substantiate grades, widths and continuity previously reported for Lac Cinquante," stated John Robins, President & CEO. "The 2009 program achieved our main goal; to verify the significant potential of this historic uranium deposit, while gathering key geological information to refine our model and guide Phase 2 drilling next year."

Key Point Summary

  • The 2009 Drill Program confirmed high-grade U3O8 intervals near surface, over significant widths and along roughly one kilometre of strike length.
  • Two of the best intercepts (Holes 09-LC-012 and 09-LC-015) represent the eastern and western extent of drilling in 2009; demonstrating mineralization is open along strike in both directions.
  • Results from both new and historic drilling show uranium mineralization extends from surface and is open to depth.
  • The deepest hole (09-LC-006) intersected considerable mineralization at 125 metres vertical depth. Assays from historic hole YUA107 verified uranium extends to a depth of at least 240 metres.
  • Assays from the 2009 drilling are corroborated by assays on core recovered from nine historic drill holes. Both sets of data will be used to improve the model for Lac Cinquante, guide drilling in 2010 and develop a NI 43-101 compliant resource for this deposit.
  • Click here for photos, maps and sections www.kivalliqenergy.com/2009

The Lac Cinquante "main zone" was previously described as a vein-type uranium deposit occurring within a near vertical alteration/structural zone, over a strike length of one kilometre and to a depth of 250 metres. The 2009 Drill Program encountered high-grade uranium mineralization in zones 0.6 to 4.7 metres wide, 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.

As reported on October 5, Kivalliq completed 1,745 metres of NQ-sized drilling in 16 holes over the course of the 2009 program. Assay results for 13 of the 16 drill holes are presented in the Table 1 below. These are best reviewed with the accompanying drill collar information, plan map and drill sections posted on the Corporation's website.

Table 1: 2009 Assay Results – Lac Cinquante Drill Program

Drill HoleFromToInterval**U308%Ag g/tMo%Cu%
09-LC-001102.87105.542.670.777.540.110.03
Including102.87104.231.361.4911.470.190.03
09-LC-002126.54129.422.882.0620.250.830.04
09-LC-00347.4049.602.200.657.570.170.02
09-LC-004*46.3850.924.540.239.240.180.04
Including46.3847.320.940.2638.500.540.06
Including50.5450.920.382.119.400.770.02
09-LC-00578.9679.580.621.3565.101.720.07
09-LC-006139.22141.672.451.2022.690.180.24
Including139.22140.000.783.6663.100.450.66
09-LC-007122.88124.751.870.2528.120.180.06
09-LC-008126.26127.751.490.078.740.110.02
Including126.64127.350.710.1115.300.200.01
09-LC-01058.6863.424.740.2521.400.140.14
Including59.6360.671.040.8452.990.490.19
09-LC-01292.3094.081.781.8723.440.080.91
09-LC-01375.7376.360.630.6033.320.102.73
09-LC-014*56.9361.494.560.4010.490.080.08
Including56.9358.501.570.5612.390.010.15
Including60.0061.491.490.6317.730.240.06
09-LC-01468.2969.200.911.0810.400.020.06
09-LC-01549.7051.171.472.1316.790.100.10
 All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results > 1000 ppm Uranium subject to SRC U3O8 Assay
 ICP1 results for Ag, Mo and Cu, are reported by SRC in parts per million (ppm). 1 ppm = 1gm/t, 10000 ppm = 1%
* Full intervals include ICP U analysis in ppm converted to U3O8%. Conversion to U3O8% = ppm x 0.01179%
**Intervals reported down-hole. Estimated true widths for the Lac Cinquante mineralized zone average approximately 80% of the drilled interval widths reported

For the three holes not reported herein: 09-LC-009 intersected altered tuff with no elevated uranium; 09-LC-011 was abandoned due to poor drilling conditions; and exploratory hole 09-775-001 tested a geophysical target 4.5 kilometres east with no anomalous radiation noted in core.

In addition to new holes drilled by Kivalliq, samples were collected from nine historic holes drilled at Lac Cinquante in the early 1980's. Results from these historic holes in-fill the current drilling and corroborate high-grade mineralisation along strike and down dip. In particular, holes YUB54 and YUC2 contain significant uranium intercepts that are off the main trend, and may represent parallel zones that warrant drilling next year.

Collar locations for historic holes were surveyed in the field, azimuths determined using historic data, and dips estimated based on geological evidence and correlation with adjacent holes. New assay results for the nine historic drill holes sampled by Kivalliq are presented in the Table 2 below. These are best viewed with the accompanying drill collar information, plan map and drill sections posted on the Corporation's website.

Table 2: 2009 Assay Results, Historic Drill Core – Lac Cinquante

Drill HoleFromToInterval**U308%Ag g/tMo%Cu%
YUA8241.8431.201.2718.210.110.17
YUA107275.93276.70.771.039.700.160.05
YUC3331321.001.81209.500.033.12
YUC1575.2575.90.650.3911.400.080.02
YUC34120.51210.500.335.300.040.05
YUB26139.3143.133.830.1717.990.090.23
Including139.3142.343.040.2018.870.100.27
YUB27171.45171.820.370.175.000.030.02
YUB5483.9784.670.701.9016.700.120.03
YUC2105.8107.21.401.3811.340.010.05
 All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results > 1000 ppm Uranium subject to SRC U3O8 Assay
 ICP1 results for Ag, Mo and Cu, are reported by SRC in parts per million (ppm). 1 ppm = 1gm/t, 10000 ppm = 1%
**Intervals reported down-hole. Estimated true widths for the Lac Cinquante mineralized zone average approximately 80% of the drilled interval widths reported

Drill equipment remains on-site and Kivalliq plans to continue drilling at Lac Cinquante in 2010. Results from the 2009 Drill Program will be used to guide this Phase 2 drilling, which is intended to test for, and expand, uranium mineralization along strike, down dip and with in-fill holes. Drilling in 2010 may also test parallel zones identified by ground geophysics and significant assays reported from historic core.

QA/QC

Samples from the 2009 drilling program comprised half split NQ drill core. Samples from historic drill holes comprised half and quarter split core well preserved and in labeled core boxes. Historic core was from work conducted in the early 1980's and was found in good order and racked on site.

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. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq's QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. Blanks results were within expectations.

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 new 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, northern Canada's highest grade 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)**, 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

Kivalliq Energy Corporation is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.com.

** 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.

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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