A remote low grade uranium project is a difficult sell in this market. A higher grade prospect in an established and producing uranium district is just what they need to buoy interest in their firm – at least until uranium prices recover.
VANCOUVER, BC–(Marketwired – August 07, 2014) – Kivalliq Energy Corporation (TSX VENTURE: KIV) (“Kivalliq”) today announced the commencement of the 2014 exploration program at Kivalliq’s 100% owned Genesis Property. The Genesis Property is a 491,154-acre uranium exploration project, staked by Kivalliq in January 2014, and situated within a structural corridor that hosts the majority of the high grade uranium resources within and adjacent to the current boundaries of the Athabasca Basin in Saskatchewan, Canada.
This release pertains to the first of a two phase exploration project outlined in a 43-101 compliant technical report filed in June 2014. Depending on the results from this phase of geophysical and surficial sampling will determine the amount and type of exploration work needed for the second phase.
“Phase 1” of the 2014 exploration program is budgeted at CDN$1 million and will be executed by Kivalliq, owner and operator of the Genesis Property. The proposed program will be fully funded by Roughrider Exploration Ltd. (“Roughrider”). As previously disclosed, Kivalliq has granted Roughrider an option to acquire up to an 85% interest in the Genesis Property.
The Phase 1 program will consist of about 6,000 kilometres of helicopter-borne geophysical surveying, (magnetics, electromagnetics and radiometrics), focused on eight priority zones within the project area. The airborne survey is now underway, concurrent with a 300-sample lake sediment sampling program to define new uranium anomalies within the target areas. Upon receipt of preliminary results from the airborne geophysical survey, Kivalliq will “ground truth” geophysical anomalies, favorable structures and areas of historic showings. A prospecting, mapping and geochemical soil-sampling program will be conducted to further refine target areas and generate additional new targets. The program is expected to run until late September or early October, with a goal of advancing a number of uranium targets for drill testing.
While following a proven uranium exploration process is certainly not a bad idea, it’s also worth reminding ourselves that it’s no guarantee of success. We’ve reported on several uranium explorers in the last few months who’ve followed the same program. Some have hit mineralized targets and some have not.
Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person under National Instrument 43-101, has reviewed and approved the technical information contained in this release.
About Kivalliq Energy Corporation
By all accounts, the company has a solid management and technical team with lots of experience working on uranium projects in Canada’s north. However, a remote low grade uranium project is a difficult sell in this market. A higher grade prospect in an established and producing uranium district is just what they need to buoy interest in their firm – at least until uranium prices recover.
Kivalliq Energy Corporation (TSX-V: KIV) is a Vancouver-based company exploring for uranium on the 491,154-acre Genesis Property located northeast of Saskatchewan’s Athabasca Basin. In addition, Kivalliq holds Canada’s highest-grade uranium resource outside of Saskatchewan. Its flagship project, the 304,257-acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. Kivalliq’s comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the “District Scale” potential of the Angilak Property.
Kivalliq’s team of northern exploration specialists recently entered into a property option agreement with Roughrider to explore the Genesis uranium property in Saskatchewan. Kivalliq has also forged strong relationships with sophisticated resource sector investors and Angilak Property partner Nunavut Tunngavik Inc. (“NTI”). Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada, and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.