Mining Company News Reviews

Nunavut Uranium Explorer Killaq turns to Higher Grade Potential of Athabasca

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.

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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.

Kivalliq Energy Corporation is a junior exploration company that has been actively exploring uranium projects in Nunavut, Canada since 2008. The company currently holds three properties its flagship the Angilak (Nunavut), the Baker Basin (Nunavut) and the Genesis property (Saskatchewan). In January, Kivalliq staked the Genesis property in the prolific uranium-district known as the Athabasca Basin.

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.

Regional property map of the Genesis property with respect to the Athabasca Basin, Saskatchewan, Canada
Regional property map of the Genesis property with respect to the Athabasca Basin, Saskatchewan, Canada

“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.

In May, RoughRider Exploration offered to option up to an 85% interest in the Genesis Property. Generally when we read about option agreements, the optioning party will take over as operator for a project. In this agreement RoughRider is footing the bill in exchange for their stake, but Kivalliq will continue to operate the exploration program on the Genesis property for the first two years.  

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.

This first phase includes a helicopter based geophysical survey, lake sediment sampling along with surficial sampling such as mapping and soil sampling. Electromagnetic and magnetic surveys are useful for identifying underlying structures associated with uranium mineralization. Radiometric surveys can identify radioactive elements (such as potassium, thorium and uranium) emitted near the earth’s surface. This type of program is right out of the uranium exploration play-book and fairly typical of programs in Athabasca Basin. This early-stage sampling and geophysics program will help the company identify potential drill targets for the next phase.

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.

QA/QC

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

Killaq Energy Corp is currently trading at $0.198 close to it’s 52-week low of $0.175. The company was riding a 52-week high of $0.28 back in April before uranium prices took yet another tumble. Uranium is currently trading around USD $28/lb.

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.

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Staff @ Geology for Investors

Geology for Investors seeks to demystify mineral exploration and mining projects for mining company investors. All of our writers and contributors are experienced and educated in geology and the geosciences.

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