VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/15/13 -- Kivalliq Energy Corporation (TSX VENTURE: KIV) ("Kivalliq") announces a significant increase in the NI 43-101 compliant Mineral Resource estimate for the Lac 50 Trend uranium deposits, located within Kivalliq's 340,268 acre Angilak Property in Nunavut, Canada. Kivalliq has received a summary report from Robert Sim, P.Geo. of SIM Geological Inc. that describes an Inferred Mineral Resource Estimate of 2,831,000 tonnes grading 0.69% U3O8 (15.2 lbs U3O8/tonne), totalling 43.3 million lbs U3O8 at a 0.2% U3O8 cut-off grade. This is a 60% increase over the previous Resource Estimate of 27.1 million pounds.
"Since announcing our initial inferred resource for Lac 50 Trend in early 2011, Kivalliq's exploration programs have increased the contained U3O8 in resources by more than 300% and we have one of the largest undeveloped and highest-grade uranium resources in Canada, outside of the Athabasca Basin," stated Kivalliq CEO Jim Paterson. "Our low finding costs, the rate of new discoveries and the third consecutive year of substantial uranium resource growth clearly demonstrate the "District Scale" potential of the Angilak Property."
Table 1: Updated Inferred Mineral Resources Estimate for Lac 50 Trend(0.2% U3O8 cut-off)--------------------------------------------------------------------------- Tonnes U3O8 Ag Mo Cu (t x U3O8 Ag Mo Cu (M (oz x (M (MDeposit 1000) (%) (g/t) (%) (%) lbs) 1000) lbs) lbs)---------------------------------------------------------------------------Lac Cinquante 1,906 0.67 16 0.15 0.25 28 983 6.3 10.4---------------------------------------------------------------------------J4 / Ray 925 0.75 30.1 0.20 0.26 15.3 895 4.1 5.2---------------------------------------------------------------------------Total 2,831 0.69 20.6 0.17 0.25 43.3 1,878 10.4 15.6---------------------------------------------------------------------------Notes: - At Lac Cinquante, high U3O8 grades were cut to 5% and grade limiting was applied to those grades above 3%. At J4/Ray high U3O8 grades were cut to 4% - Mineral Resources are not Mineral Reserves. Mineral Resources do not have demonstrated economic viability, and may never be converted into Mineral Reserves.
Mineral Resource Estimate
The updated Mineral Resource estimate for the Lac 50 Trend was prepared under the direction of Robert Sim, P.Geo. of SIM Geological Inc. Resource models were generated using drill core sample assay results and interpretation of a geological model relating to spatial distribution of uranium deposits within the Lac 50 Trend, i.e. Lac Cinquante (Main, Eastern and Western Extension Zones), J4 and Ray deposits. All assay and geological information was derived from work conducted by Kivalliq as part of exploration programs between 2009 and 2012 and available at December 31, 2012. At a base case cut-off grade of 0.2% U3O8, an Inferred Mineral Resource is estimated at 2,831,000 tonnes grading 0.69% U3O8, containing 43.3 million lbs. U3O8. For evaluation purposes, three additional metals: silver (Ag g/t), molybdenum (Mo %) and copper (Cu %) have also been estimated within the resource model.
