Press release from CNW Group
Kivalliq Energy CEO Update
Saturday, May 04, 2013
Kivalliq Energy CEO Update11:00 EDT Saturday, May 04, 2013
VANCOUVER, May 4, 2013 /CNW/ -
What a year so far!
With three successful years of exploration behind us, we have shown that the Lac 50 Trend hosts one of the highest-grade, undeveloped uranium deposits in the world. We've identified 12 new uranium-mineralized zones, drilled 87,000+ metres to date (454 diamond drill core and 126 reverse circulation "RC" holes), and increased our property holdings to 340,000+ acres.
Increase in Uranium Resource & Discoveries
Drilling along the Lac 50 Trend in 2012 resulted in a 60% increase in the NI 43-101 inferred resource estimate, now totalling 43.3 million pounds U3O8 grading 0.69%. This improves on the previous resource estimate of 27.1 million pounds, and is a 200% increase over our maiden resource estimate announced in early 2011. In addition, Kivalliq's aggressive RC exploration drilling campaign identified numerous new zones, several of which will be further tested by diamond drilling in 2013. Results from geophysical surveys this season also continue to expand and enhance Kivalliq's inventory of exploration targets.
Metallurgical Results: High Uranium Extraction, Low Impurity Yellowcake
Not only have we continued to increase our inferred resource base, we have also demonstrated the potential to extract an attractive final yellowcake product from the deposits within the Lac 50 Trend. Preliminary metallurgical test results received to date indicate that 94.1% of uranium can be extracted in 48 hours and 95.9% of uranium extracted in 72 hours from conventional alkaline leaching. The uranium value attained from the leach solution was 71.9% (U) for a final yellowcake product. This was a low impurity product and certainly a very positive outcome at this early stage.
Financing: $4.5 Million Non-Brokered Deal Closed
To date, Kivalliq has raised approximately $64M in the public markets. In April of 2013, despite very volatile market conditions, Kivalliq closed a private placement financing totalling $4.5 million which will fund the first phase of this year's work program that will include high priority drilling and geophysical surveys in key areas that must be completed before ice break-up sometime in June. Pending results and market conditions, Kivalliq will continue with a second phase of exploration at Angilak in the third quarter of 2013. Despite our remote northern location, we have maintained industry beating discovery costs of $1.32 per lb. U3O8.
A Look Ahead: Exploration & Expansion in 2013
Our technical team continues to deliver exceptional exploration results with low finding costs, as we work toward extending known resources and testing new targets. The season has started on an extremely positive note, with drill confirmation that a prospective new zone exists between the Eastern Extension and J4, two zones that form part of the current Lac 50 Trend inferred resource.
Numerous property wide targets, the rate of new discoveries and three consecutive years of substantial uranium resource growth clearly demonstrate the "District Scale" potential of the Angilak Property. As part of our fully-funded phase one work program which includes drilling 3,000m, we have already released news on five holes this year, all of which have hit radioactive zones.
We expect that this year will continue to provide opportunities for substantial advancement of the Angilak Property.
Kivalliq is committed to maintaining open communication with stakeholders. We encourage you to visit our website to review our latest presentation and sign up to receive Kivalliq news releases at www.kivalliqenergy.com . We also invite you to contact us directly to keep up-to-date on all the latest advancements as they unfold at 604-646-4527.
The entire Kivalliq team would like to thank you for your continued support.
All the best,
Jim Paterson, CEO
Kivalliq Energy Corporation
1020 - 800 W Pender Street Vancouver, BC V6C 2V6
Tel: (604) 646-4521; TF: 1 888 331-2269
Fax: (604) 646-4526
SOURCE: Kivalliq Energy Corporation
For further information: