In October 2013, Kivalliq made a strategic addition to the Company’s project portfolio through a transaction with Pacific Ridge Exploration Ltd. (“Pacific Ridge”, TSX-V: PEX) to acquire the Baker Basin Property in Nunavut Territory.
Kivalliq acquired 100% of Pacific Ridge’s ownership interest in the Baker Basin Uranium Property:
- 232,262 acres on the southern boundary of the highly prospective Baker Lake Basin of Nunavut Territory
- Multiple target zones based on results from work by previous exploration groups; public disclosure states aggregate expenditures in excess of CDN$7.1 million since 2006
- Highlight down hole intervals from publicly disclosed drill assay data from previous exploration groups includes:
- 0.56% U3O8 over 5.5m (within a broader interval of 0.31% U3O8 over 11.5m) and 0.27% U3O8 over 5.8m at the KZ Zone (PEX press release Oct. 18, 2006)
- 0.51% U3O8 over 9.0m (within a broader interval of 0.30% U3O8 over 17.3m) and 0.35% U3O8 over 10.0m at the Lucky 7 Zone (PEX press release Oct. 2, 2007)
- Summary of terms for Kivalliq to acquire 100% of Pacific Ridge’s Baker Basin Property interest:
- 600,000 shares KIV; $55,000 cash payment; $70,000 private placement purchase of PEX units
The Baker Basin Property is made up of 95 claims totalling 232,262 acres, located 60 kilometres south of the hamlet of Baker Lake, Nunavut Territory, Canada. Areva's Kiggavik uranium project (133 Mlb mineral resource at 0.55% U3O8 , Areva, Fourth IPGC, Vancouver January 24, 2012) is located approximately 80 kilometres west of Baker Lake and Agnico Eagle's Meadowbank gold mine (358,000 oz Au/year production: http://www.agnicoeagle.com) is located 70 kilometres north of Baker Lake.
Baker Lake is an important regional centre for mineral exploration and development in Nunavut; providing access to ocean shipping lanes, year-round airport facilities, and local capacity to provide all needed operational support services and supplies.
Prior groups exploring the Baker Basin property completed airborne radiometric surveys in 1969 and 1974 that defined a trend of uranium targets along the 60 kilometre length of the prospective southern boundary area of the Baker Lake Basin. Follow-up programs by New Continental Oil, Pan Ocean, Cominco and Noranda from 1969 to 1981 outlined multiple anomalous targets. Uranium exploration programs were based primarily on the Athabasca Basin Unconformity Hosted Uranium model and later focused on Kiggavik style mineralization. No significant uranium exploration occurred after the early 1980s until Pacific Ridge initiated a comprehensive program in 2006.
Recent exploration, from 2006 to 2008 by Pacific Ridge and project joint venture partner Aurora Energy Resources Inc., also focused on the “Kazan Type Model”, where uranium mineralization is found peripheral to lamprophyre dykes hosted by high angle structural shears within the Proterozoic Kazan Formation sandstone.
Pacific Ridge, and joint venture partner Aurora Energy Resources Inc., spent over CDN$7.1 million evaluating and advancing near-surface structurally controlled uranium targets and made several significant discoveries (Lucky 7 Zone, TK Zone, Niner Zone and 7-One Zone) which have not been fully evaluated. From existing datasets, the property offers a number of compelling uranium targets, including two zones which Kivalliq considers drill ready. “Pacific Ridge’s success in making new and important uranium discoveries, which were not advanced by the subsequent operator, makes the entire Baker Basin Property ripe for a systematic and targeted exploration campaign,” stated Jeff Ward, Kivalliq’s President.
Kivalliq Exploration Priorities
Priorities for Kivalliq include immediate compilation of all available data to rank uranium occurrences and targets for future drilling. Plans and budgets for the Baker Basin Property will be disclosed after a review of existing data has been completed.