In January 2014, Kivalliq staked 53 mineral claims totalling 495,883 acres (200,677 hectares), northeast of Saskatchewan's Athabasca Basin and along the prospective Western Wollaston Tectonic Domain. Kivalliq's 100% owned project commences 25 kilometres northeast of the Eagle Point uranium mine operated by Cameco Corporation and extends 90 kilometres to the northeast along this favourable geological and structural domain to the Manitoba border.
Saskatchewan is one of the world’s most prolific uranium districts, having both established infrastructure and a politically supported uranium mining industry. The Genesis Property falls within Western Wollaston Domain and the Wollaston-Mudjatik Transition Zone. These zones host the majority of known Canadian uranium deposits and all of Canada’s operating uranium mines, which currently account for 15% of the world’s annual supply of uranium.
The Western Wollaston and the Wollaston-Mudjatik Transition Domains are high-strain zones within reworked Archean and Paleoproterozoic rocks of the Hearne Subprovince. This lithostuctural trend hosts the majority of basement and unconformity type uranium deposits known in the Athabasca Basin. The trend is marked by a regional magnetic low along the boundary between primarily granitoid rocks of the Mudjatik Domain to the west, and gneissic metasediments of the Wollaston Domain to the east.
Where the Western Wollaston Domain and the Wollaston-Mudjatik Transition Zone extend to the northeast of the Athabasca Basin, Kivalliq identified a highly favourable and relatively underexplored area based on a range of criteria. Specific Genesis Property claim locations were selected based on a compilation of publicly available regional and property-scale geological, geophysical and geochemical data sets from government sources and previous exploration groups. Numerous targets recommended for follow-up by previous explorers remain untested.
In May 2014, Kivalliq signed a Letter of Intent with a company now named Roughrider Exploration Limited, “Roughrider.” The agreement grants Roughrider an option to acquire an 85% interest in the Genesis Property in exchange for 20% of the issued and outstanding shares of Roughrider on a post-transaction/post-financing basis; $1 million in cash payments; and $5 million in exploration expenditures over four years. Upon acquisition of an 85% interest in Genesis by Roughrider, Kivalliq’s remaining 15% interest in Genesis will be carried through to the completion of a bankable feasibility study and a recommendation from Roughrider’s board to proceed to commercial production. Kivalliq will be project operator for at least the first year of the agreement.
Exploration efforts will focus on near surface, basement-hosted, structurally controlled uranium targets analogous to the Millennium, Roughrider and Eagle Point deposits of the nearby Athabasca Basin. While acting as Operator, Kivalliq conducted exploration programs in 2014 and 2015 on behalf of Roughrider. Results from geophysical and geochemical surveys have identified Jurgen 1 and Jurgen 2 as priority target areas. For details on Genesis see news releases and Roughrider Exploration's website http://www.roughriderexploration.com/s/home.asp.