Kivalliq Reports Increase in Historic Estimate at Lac Cinquante Uranium Deposit
March 3, 2009
Vancouver, B.C. - Kivalliq Energy Corporation (KIV: TSX-V) today announced that additional historic information regarding the Lac Cinquante uranium deposit has been found, indicating that this historic deposit contains 20.4 million pounds of uranium oxide**. All tonnage and grade estimates reported herein are considered historical estimates only, should not be used for any reserve or resource calculations and are non-compliant with National Instrument 43-101.
Kivalliq previously stated that the Lac Cinquante deposit contains 11.6 million pounds of uranium oxide with grades averaging 1.03% U3O8**. This was based on information provided in a 1982 Aberford Resources Ltd. Annual Report. However, Kivalliq recently recovered documents written by Abermin Corporation (successor to Aberford) in 1985 and 1986 that provide more details on the estimated size and grade of the deposit.
The following quote is a summary on Lac Cinquante (formerly named the LGT project) extracted from an “Initial Report” written by Abermin and dated January 15, 1986: “Some 65,000 feet (19,812 metres) of diamond drilling has outlined a near vertical zone over a strike length of 3,600 feet (1,097 metres) and to a depth of 750 feet (229 metres) which contains indicated and inferred reserves of 11.6 million pounds of uranium oxide grading in excess of 1%. An additional 8.8 million pounds is in the possible category. The deposit is open at depth and to the west.”
Recovered documents also reveal that Abermin and its predecessors conducted metallurgical testing, mine modelling and spent over $13.2 million on the project prior to December 1985. No information was provided on tonnage and grade calculations, or the grade distribution of the additional 8.8 million pounds. However, in an “Information Booklet” dated December 1985, Abermin’s Minerals Division provided the following breakdown of the 11.6 million pounds historic reserve:
Although this historic information does not comply with current standards of disclosure required for reserves and resources, it is significant because it increases the estimated size of the Lac Cinquante uranium deposit by 75% and gives some insight into the scope of work and commitment by previous operators. As reported on January 15, 2009, Kivalliq’s 2008 exploration program was able to substantiate much of this earlier work by combining historic drill information with 106 relocated drill collars and new assays on archived core that yielded 2.24% U3O8 over 1.5 metres. This work enabled Kivalliq to construct a conceptual 3-D model for the Lac Cinquante uranium deposit which can be viewed at www.kivalliqenergy.com. 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 also Qualified Persons for the purposes of National Instrument 43-101.
About Kivalliq Energy
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 historic Lac Cinquante deposit, one of Canada’s most attractive, high-grade, historic uranium deposits. Initially reported to contain 11.6 million pounds of uranium oxide with grades averaging 1.03%, recently recovered documents now show historic estimates totalling 20.4 million pounds of uranium oxide**. The Lac Cinquante Uranium Deposit and 75 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
For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com or contact Tony Reda, Investor Relations, at toll free 1.888.331.2269, directly at 604.646.4534 or by email at email@example.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
** The quoted disclosure for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd, Abermin Corporation and referenced by subsequent sources. It is a historical estimate as defined in National Instrument 43-101, but should not be relied upon since it does not comply with standards of disclosure required for reserves and resources stated therein. However, it 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. A Qualified Person has not classified historical estimates as current mineral resources/reserves, and Kivalliq is not treating them as current mineral resources/reserves since work to date has not verified the historical estimates. Kivalliq has not done any work to confirm these estimates but will be planning exploration programs aimed at evaluating the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being delineated as a mineral resource.
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.
© Copyright 2008 Kivalliq Energy Corp.