VANCOUVER, May 4, 2013 /CNW/ -
Dear Stakeholder,
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.
Communication
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
Email: info@kivalliqenergy.com
SOURCE Kivalliq Energy Corporation