Kivalliq Energy Corporation
TSX VENTURE : KIV

Kivalliq Energy Corporation

October 27, 2011 06:55 ET

Kivalliq Energy Corporation: First High Grade Assays Reported From New Eastern Extension Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 27, 2011) - Kivalliq Energy Corporation (TSX VENTURE:KIV) (the "Company" or "Kivalliq") today provided assay results from diamond drilling at the Eastern Extension, located 400 metres along strike and east of the high grade Lac Cinquante uranium deposit, located within the 225,000 acre Angilak Property in Nunavut, Canada. Assay results disclosed in this release are from the first 24 of 44 holes drilled in total at the Eastern Extension.

Highlights include:

  • 2.65% U3O8, 134.63 g/t Ag, 0.06% Cu,1.67% Mo over 0.5 metres in 11-LC-094
  • 2.33% U3O8, 61.40 g/t Ag, 0.16% Cu, 0.57% Mo over 0.4 metres in 11-LC-092
  • 1.84% U3O8, 16.63 g/t Ag, 0.55% Cu, 0.07% Mo over 1.0 metres in 11-LC-096
  • 1.00% U3O8, 27.75 g/t Ag, 0.09% Cu, 0.39% Mo over 1.0 metres in 11-LC-093
  • 0.75% U3O8, 31.23 g/t Ag, 0.07% Cu, 0.46% Mo over 1.4 metres in 11-LC-084
  • Eastern Extension strike length is 550 metres; future drilling will test along strike and to depth
  • Assays pending from an additional 20 drill holes at Eastern Extension
    (Estimated true widths - see assay results table below)

"The discovery of the Eastern Extension was the direct result of our RC drilling strategy," stated President Jeff Ward. "These assays underpin the growing importance of the Lac Cinquante trend, and like the Western Extension, will go towards revising the resource estimate for Lac Cinquante by the end of Q1, 2012."

Eastern Extension

The discovery of the Eastern Extension was initially made by testing a northwest trending linear VLF EM conductor similar to Lac Cinquante, using six reverse circulation (RC) holes drilled from three set-ups. Two diamond drills were then deployed to delineate the Eastern Extension, with 6,143 metres in 44 holes drilled from 13 set-ups spaced on 50 metre drill sections.

The results reported herein comprise the first set of assay results from 24 holes drilled at the Eastern Extension. The Eastern Extension has a drilled strike length of 550 metres and starts approximately 400 metres to the east, and along strike, of the Lac Cinquante main zone resource area.

All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees. 39 of 44 holes intersected anomalous radioactivity between 34 and 257 metres vertical depth. Both RC and diamond drilling have confirmed the continuation of the Lac Cinquante structure eastward with uranium mineralization occurring in a zone dipping roughly 72 degrees to the southwest. Additional assays from the Eastern Extension will be released upon receipt and review.

Mineralization is very similar to that found at Lac Cinquante, primarily hosted in the same hematite-carbonate-chlorite-graphite altered tuff unit. Uranium is associated with quartz-carbonate veining, breccia and sulphides within the sheared host rock.

For a summary of the 2011 exploration program at Angilak, please see news release from October 18, 2011. To view related cross sections and drill plan maps, please visit http://kivalliqenergy.com/projects/angilak/program_images/.

Eastern Extension Assay Results

2011 Lac Cinquante Eastern Extension Drilling Program - Weighted Assay Results*
Est.
True
Interval Width Ag
Hole From To (m) (m) U3O8 % Cu % Mo (g/t) Note
11-LC-066 87.6 94.8 7.2 N/A 0.46 0.09 0.05 11.9 Qtz Carb Vein
includes 91.9 94.0 2.1 N/A 1.49 0.15 0.05 25.6 Qtz Carb Vein
11-LC-067 65.7 67.2 1.5 1.2 0.57 3.08 0.18 55.2 Main Zone
11-LC-068 85.1 87.6 2.5 1.6 0.37 0.92 0.07 11.8 Main Zone
11-LC-068 80.3 80.6 0.3 N/A 0.43 0.04 0.11 6.2 Qtz Carb Vein
11-LC-069 130.0 130.4 0.4 0.2 0.22 0.03 0.07 10.4 Main Zone
11-LC-069 114.7 115.3 0.6 N/A 0.13 0.03 0.04 3.2 Qtz Carb Vein
11-LC-070 183.7 186.3 2.6 0.5 0.02 0.02 0.01 0.1 Main Zone
11-LC-071 69.7 73.0 3.3 2.7 0.03 0.88 0.02 40.2 Main Zone
11-LC-072 114.3 117.4 3.1 1.9 0.34 0.18 0.26 28.0 Main Zone
includes 114.6 115.2 0.6 0.4 1.62 0.49 0.63 69.3 Main Zone
11-LC-073 138.9 139.2 0.4 0.2 0.07 0.08 0.03 3.3 Main Zone
11-LC-074 82.9 84.2 1.3 1.3 0.28 0.71 0.32 59.0 Main Zone
11-LC-084 49.0 50.7 1.7 1.4 0.75 0.07 0.46 31.2 Main Zone
11-LC-085 79.5 79.9 0.4 0.2 0.29 0.02 0.17 10.3 Main Zone
11-LC-086 143.0 143.6 0.6 0.1 0.24 0.06 0.23 12.2 Main Zone
11-LC-087 60.2 61.4 1.2 1.0 0.01 0.06 0.01 4.1 Main Zone
11-LC-088 40.7 41.1 0.3 N/A 0.34 0.03 0.02 1.4 Qtz Carb Vein
11-LC-088 97.7 98.7 1.0 0.6 0.41 0.02 0.13 6.5 Main Zone
11-LC-089 136.6 138.5 1.9 0.7 0.76 0.18 0.59 47.4 Main Zone
11-LC-090 256.1 258.6 2.5 0.4 0.60 0.12 0.47 24.6 Main Zone
11-LC-091 70.6 71.0 0.4 0.4 0.74 0.21 0.10 11.8 Main Zone
11-LC-091 98.6 99.7 1.1 N/A 0.09 0.02 0.04 5.8 Qtz Carb Vein
11-LC-092 98.5 99.1 0.6 0.4 2.33 0.16 0.57 61.4 Main Zone
11-LC-093 127.2 129.1 1.9 1.0 1.00 0.09 0.39 27.8 Main Zone
11-LC-094 190.6 192.4 1.8 0.5 2.65 0.06 1.67 134.6 Main Zone
11-LC-095 61.9 62.3 0.4 0.3 0.34 0.04 0.02 3.4 Main Zone
11-LC-096 88.8 90.5 1.7 1.0 1.84 0.55 0.07 16.6 Main Zone
11-LC-097 106.6 107.5 0.9 N/A 1.26 0.18 0.09 7.2 Qtz Carb Vein
11-LC-097 110.5 114.0 3.5 N/A 0.59 0.04 0.03 2.0 Qtz Carb Vein
11-LC-097 133.3 134.0 0.6 0.3 0.47 0.46 0.52 47.6 Main Zone
11-LC-098 147.4 147.7 0.3 N/A 0.53 0.02 0.01 1.4 Qtz Carb Vein
11-LC-098 154.4 155.4 1.0 0.5 0.62 0.45 0.09 12.3 Main Zone
*All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm U are subject to SRC U3O8 Assay; ICP1 results for Cu, Mo and Ag are reported by SRC in parts per million (ppm). 1 ppm = 1gm/t, 10000 ppm = 1%; Intervals include ICP U analysis in ppm converted to U3O8%. Conversion to U3O8% = ppm x 0.01179%. Estimate for true width of mineralization is based on the angle of surveyed drill hole and the apparent orientation of the zone at the intercept.

QA/QC

Samples from the 2011 drilling program comprised half split NQ drill core. 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 and standards into the sample inventory at the project site prior to shipment in sealed containers. All QC results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Kivalliq's President, Jeff Ward, P.Geo. Mr. Ward 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.

With an NI 43-101 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 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 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 $30 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and approximately 48,000 meters of RC and diamond drilling.

On behalf of the Board of Directors

James Paterson, 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.

Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to 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. 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.

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