Kivalliq Energy Corporation
TSX VENTURE : KIV

Kivalliq Energy Corporation

April 04, 2012 17:00 ET

Kivalliq Commences 35,000 Metre Drill Program at Angilak Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 4, 2012) - Kivalliq Energy Corporation (TSX VENTURE:KIV) ("Kivalliq") today announced the commencement of drilling, as part of a two-phased, $20 million exploration program at the 252,830 acre Angilak Property in Nunavut Territory, Canada. The aggressive plans for 2012 will investigate multiple uranium targets discovered or advanced by the Company's 2010 and 2011 prospecting and geophysical surveying programs, and build on the recently announced Lac Cinquante inferred resource of 27.13 million pounds U3O8.

Kivalliq intends to drill 26,000 metres of NQ core on advanced targets with three diamond drill rigs and 9,000 metres of reverse circulation ("RC") drilling on exploration targets with a light weight RC fly rig. Extensive ground based geophysical surveying, prospecting and soil sampling campaigns are also planned.

"After nearly doubling the Lac Cinquante mineral resource in 2011, we are excited to return to Angilak to execute our 2012 exploration goals," stated Jeff Ward, Kivalliq's President. "Drilling is intended to expand Lac Cinquante along strike and to depth; test targets on parallel conductors; and demonstrate potential for multiple uranium deposits elsewhere on the Angilak Property."

The first phase of 2012 exploration commenced with the mobilization of crews and equipment to the Nutaaq camp in mid-March, with one diamond drill rig now operating. Kivalliq is fully funded to drill from March to June with two diamond drill rigs and one RC rig starting in May, and to carry out ground geophysical surveys until break-up in June. The second phase of the proposed exploration program at Angilak will begin in July, pending results and market conditions, and will include a third diamond drill rig, continued RC drilling and geophysical, geological and geochemical surveys in the field.

The following summarizes both the first and second phase of the proposed 2012 exploration campaign:

  • 26,000 metres of core drilling focused on expanding the Lac Cinquante resource and testing new zones discovered in the immediate vicinity of this deposit
  • 9,000 metres of RC drilling to test multiple target areas property-wide and untested conductors within close proximity of the Lac Cinquante deposit
  • Ground geophysical surveys consisting of gravity, magnetics and electro-magnetics
  • Continued prospecting to advance high-priority target areas defined by the 2011 program and identify new targets on a property wide scale
  • Ongoing modeling, geological, metallurgical, environmental and archeological studies
  • Continued emphasis on community consultation
  • Engineering studies focused on expanding infrastructure to support future programs
  • Update to the current Lac Cinquante Inferred Resource by Q2 2013.

Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for the Company, has reviewed and approved the information contained in this release. For disclosure related to the inferred resource for the Lac Cinquante uranium deposit, please refer to Kivalliq news release of January 17, 2012.

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 to explore for uranium on Inuit Owned Lands in Nunavut.

Kivalliq's 252,830 acre Angilak Property hosts the high-grade Lac Cinquante deposit, along with multiple highly-mineralized target areas. With an NI 43-101 Inferred Mineral Resource of 1,779,000 tonnes grading 0.69% U3O8, totalling 27.13 million pounds U3O8, (15.2 pounds U3O8/tonne) at a 0.2% U3O8 cut-off grade, the Lac Cinquante Deposit is Canada's highest grade uranium deposit outside of the Athabasca Basin.

Since acquiring the Angilak Property in 2008, Kivalliq has invested approximately $30 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and approximately 48,000 metres of RC and diamond drilling.

On behalf of the Board of Directors

James R. 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).

Kivalliq Energy Corporation is a member of the Aurora Resource Group of companies. For more information please visit www.auroraresource.com.

Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to use of proceeds, future exploration programs and the completion of financings, 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. Other than as required by applicable securities legislation, 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.

Contact Information