Kivalliq Energy Corporation
TSX VENTURE : KIV

Kivalliq Energy Corporation

June 20, 2011 07:00 ET

Kivalliq High Grade U-Cu-Ag-Mo Intercept Extends Blaze Zone; Assays Received From Initial 10 Holes at Blaze Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2011) - Kivalliq Energy Corporation (TSX VENTURE:KIV) (the "Company" or "Kivalliq") today provided an update on exploratory diamond drilling at the Blaze Zone, located approximately two kilometres west of the high grade Lac Cinquante uranium deposit, within Kivalliq's 225,000 acre Angilak Property in Nunavut, Canada.

  • Early exploratory drilling at Blaze has outlined a mineralized system that warrants further drilling, demonstrating the potential for additional uranium discoveries on Kivalliq's 225,000 acre Angilak Property.
  • Assays from the first ten of 19 holes drilled at Blaze have identified significant U-Cu-Ag-Mo mineralization over 100 metres strike length and down to a depth 160 metres, remaining open along strike and to depth.
  • Hole 11 BZ-010, with 1.01% U3O8 over 25.4 metres, is a significant interval that includes impressive Cu, Ag and Mo values. Subsequent holes (assays pending) suggest true width of this interval to be roughly 4 metres.
  • Blaze is defined by several fracture zones with veining, breccia and associated hematite alteration that crosscuts metavolcanic host rock.
  • Assays are pending from the nine remaining holes drilled at Blaze Zone.

"The initial results from our exploratory drilling at the Blaze Zone have been highly encouraging," stated CEO Jim Paterson. "We are fully funded to continue with our planned 35,000 metres of resource building at Lac Cinquante and discovery drilling at targets like Blaze."

Assay results reported in Table 1 of this release are from the first ten of 19 diamond drill holes that have tested the Blaze Zone in 2011. The intervals reported herein build on the success of hole 10-NE-001 drilled at the Blaze Zone at the end of the 2010 season. Updated 2011 drill plans, sections and tables can be found on the Company's website at www.kivalliqenergy.com.

Table 1: 2011 Phase 1 Assay Results from Blaze Zone

2011 Blaze Zone Drilling Program - Assay Results
HoleFromToInter-
val (m)
%U3O8%CuAg
g/t
%MoNote
11-BZ-00144.045.61.60.420.034.60.35Upper
49.950.50.60.690.031.50.00Upper
53.453.70.30.290.013.20.03Upper
62.763.10.30.720.035.00.06Upper
96.9102.65.60.080.151.20.03Lower
11-BZ-00247.448.00.70.100.020.00.00Upper
56.957.20.30.120.091.60.04Upper
81.581.90.40.250.119.10.11Lower
88.088.50.50.180.0610.70.07Lower
95.497.01.60.420.1752.70.34Lower
101.3101.70.40.140.0610.70.07Lower
11-BZ-00378.679.00.40.230.1210.20.08Lower
92.793.71.00.500.0445.90.37Lower
99.4100.51.10.220.021.40.00Lower
119.6120.00.40.111.078.30.02Lower
11-BZ-00464.967.62.70.031.3319.10.00N/A
11-BZ-00526.927.20.30.220.4925.00.07Upper
34.034.50.50.170.125.00.03Upper
38.138.40.30.310.0224.70.16Upper
48.454.86.40.370.089.30.13Upper
58.959.20.40.120.043.80.16Upper
89.489.90.50.170.021.60.02Lower
95.595.80.32.250.0519.30.02Lower
98.1100.01.90.340.022.70.04Lower
101.2101.60.40.120.030.90.02Lower
104.5104.80.31.540.024.70.03Lower
11-BZ-00675.375.60.30.150.010.00.03Upper
11-BZ-00723.225.52.30.081.127.20.00Upper
67.267.90.70.370.027.90.07Lower
11-BZ-008129.7131.21.50.160.002.00.00N/A
11-BZ-00916.618.01.40.020.528.20.01Upper
82.182.60.50.100.021.30.00Lower
103.4104.00.60.070.021.80.00Lower
11-BZ-01042.868.225.41.011.4883.00.28Upper
includes42.852.39.51.301.44123.90.38Upper
includes58.668.29.61.331.9389.60.35Upper
110.5112.82.30.170.144.70.02Lower
124.6125.50.80.190.072.70.01Lower
10-NE-001*33.935.31.40.830.078.40.16Upper
72.374.72.40.660.026.90.03Lower
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 Ag, Mo and Cu are reported by SRC in parts per million (ppm). 1 ppm = 1 gm/t, 10000 ppm = 1%.
Intervals include ICP U analysis in ppm converted to U3O8%. Conversion to U3O8% = ppm x 0.01179%.
Intervals reported down-hole and true width of zones or intervals are not known at this time.
*Hole 10-NE-011 was drilled as part of the 2010 exploration program and previously reported on December 13, 2010.

Blaze Zone Summary

"Multiple intervals of anomalous uranium in a number of holes at the Blaze Zone have already added considerable excitement to this year's program." Jeff Ward, Kivalliq's President, stated. "We will return to drill the Blaze Zone upon receipt of further assay results."

The Blaze Zone is located approximately two kilometers west of the Lac Cinquante uranium deposit. Mineralization occurs as pitchblende rich, quartz-carbonate veins and breccia, occasionally with disseminated and patches of sulphide. It is commonly two separate zones (upper and lower), occurring as clusters of veins or fracturing, crosscutting the southwest dipping sequence of host metabasalt, metagabbro and metatuff units. In holes 11-BZ-001 through 010, upper and lower zones of varying widths are separated by 24 to 64 metres of unaltered metavolcanics. Mineralization is also associated with moderate to strong, hematite alteration within the host units, primarily around fractures and breccia.

Most notable is hole 11-BZ-010, which intersected 1.01% U3O8, 1.48% Cu, 83 grams/tonne Ag and 0.28% Mo over 25.4 metres. The intercept is a series of semi-stockworked quartz-carbonate stringers and veinlets in brecciated carbonate-hematite altered host basalt. Based on subsequent drilling, this particular intercept has an estimated true width of 4.0 meters, although the actual geometry is still unclear at this time.

The Blaze Zone has been drilled across a strike length of 100 meters to a depth of 160 meters below surface. A total of 2,692 meters of NQ drill core from 19 drill holes have investigated mineralization at Blaze, with assays from the first ten reported herein. Holes 11-BZ-001 through to 11-BZ-015 were drilled at azimuth 035 degrees from five locations at 25 meter drill section intervals across the 100 meter strike length targeted. Core logging suggests initial setups may have drilled sub-parallel to some of the mineralized trends. Therefore, two additional setups drilling azimuth 180 degrees for holes 11-BZ-016 and 11-BZ-017, and at azimuth 130 degrees for holes 11-BZ-018 and 11-BZ-019 respectively were drilled oblique and perpendicular to earlier holes in order to determine structural controls and estimate true widths of mineralization. Results for holes 11-BZ-011 through 11-BZ-019 are pending.

QA/QC

Samples from the 2011 Phase 1 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 into the sample inventory at the project site prior to shipment in sealed containers. All blank 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 $12 million conducting systematic exploration.

On behalf of the Board of Directors

Jim 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 listings of securities, use of proceeds, future exploration programs and the completion of the 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