VANCOUVER, Oct. 15, 2013 /CNW/ - Kivalliq Energy Corporation
("Kivalliq", TSX-V: KIV) has made a strategic addition to the
Company's project portfolio through a transaction with Pacific
Ridge Exploration Ltd. ("Pacific Ridge", TSX-V: PEX) to acquire a
uranium exploration property in the prospective Baker Lake Basin of Nunavut Territory,
Canada.
Kivalliq will, subject to all necessary approvals, acquire 100%
of Pacific Ridge's ownership interest in the Baker Basin Uranium
Property:
- 232,262 acres on the southern boundary of the
highly-prospective Baker Lake
Basin of Nunavut Territory
- Multiple target zones based on results from work by previous
exploration groups; public disclosure states aggregate expenditures
in excess of CDN$7.1 million since
2006
- Highlight down hole intervals from publicly disclosed drill
assay data from previous exploration groups includes:
-
- 0.56% U3O8 over 5.5m (within a
broader interval of 0.31% U3O8 over
11.5m) and 0.27% U3O8 over 5.8m at the
KZ Zone (PEX press release Oct. 18,
2006)
- 0.51% U3O8 over 9.0m (within a
broader interval of 0.30% U3O8 over 17.3m)
and 0.35% U3O8 over 10.0m at the Lucky
7 Zone (PEX press release Oct. 2,
2007)
- Summary of terms for Kivalliq to acquire 100% of Pacific
Ridge's Baker Basin Property interest:
-
- 600,000 shares KIV; $55,000 cash
payment; $70,000 private placement
purchase of PEX units
"Kivalliq continually evaluates projects worldwide to increase
our exposure to high-quality uranium assets. We believe that the
current value proposition of the Baker Basin Property was too great
an opportunity to pass up," stated Jim
Paterson, Kivalliq's CEO. "Our extensive northern
exploration experience, as well as our relationships and award
winning environmental track record in Nunavut Territory, give
Kivalliq a competitive advantage to rapidly advance the Baker Basin
Property."
For Baker Basin Property information:
http://www.kivalliqenergy.com/angilak/baker_basin/
The Baker Basin Property is made up of 95 claims totalling
232,262 acres, located 60 kilometres south of the hamlet of
Baker Lake, Nunavut Territory,
Canada. Areva's Kiggavik uranium
project (133 million lb mineral resource at 0.55%
U3O8 , Areva, Fourth IPGC, Vancouver January 24,
2012) is located approximately 80 kilometres west of
Baker Lake and Agnico Eagle's
Meadowbank gold mine(358,000 oz Au/year production:
http://www.agnicoeagle.com) is located 70 kilometres north of
Baker Lake.
The hamlet of Baker Lake is an
important regional centre for mineral exploration and development
in Nunavut; providing access to
ocean shipping lanes, year-round airport facilities, and local
capacity to provide all needed operational support services and
supplies.
Previous Exploration
Prior groups exploring the Baker Basin property completed airborne
radiometric surveys in 1969 and 1974 that defined a trend of
uranium targets along the 60 kilometre length of the prospective
southern boundary area of the Baker
Lake Basin. Follow-up programs by New Continental Oil, Pan
Ocean, Cominco and Noranda from 1969 to 1981 outlined multiple
anomalous targets. Uranium exploration programs were based
primarily on the Athabasca Basin
Unconformity Hosted Uranium model and later focused on Kiggavik
style mineralization. No significant uranium exploration occurred
after the early 1980s until Pacific Ridge initiated a comprehensive
program in 2006.
Recent Exploration
Recent exploration, from 2006 to 2008 by Pacific Ridge and project
joint venture partner Aurora Energy Resources Inc., also focused on
the "Kazan Type Model", where uranium mineralization is found
peripheral to lamprophyre dykes hosted by high angle structural
shears within the Proterozoic Kazan Formation sandstone.
Pacific Ridge, and joint venture partner Aurora Energy Resources
Inc., spent over CDN$7.1 million
evaluating and advancing near-surface structurally controlled
uranium targets and made several significant discoveries (Lucky 7
Zone, TK Zone, Niner Zone and 7-One
Zone) which have not been fully evaluated. From existing
datasets, the property offers a number of compelling uranium
targets, including two zones which Kivalliq considers drill ready.
"Pacific Ridge's success in making new and important uranium
discoveries, which were not advanced by the subsequent operator,
makes the entire Baker Basin Property ripe for a systematic and
targeted exploration campaign," stated Jeff
Ward, Kivalliq's President.
Kivalliq Exploration Priorities
Priorities for Kivalliq include immediate compilation of all
available data to rank uranium occurrences and targets for future
drilling. Plans and budgets for the Baker Basin Property will be
disclosed after a review of existing data has been completed.
Terms for the Acquisition of the Baker Basin Uranium
Property
Subject to receipt of all necessary approvals, Kivalliq will
acquire 100% of Pacific Ridge's interest, i.e. 100% interest in all
minerals except diamonds, in the Baker Basin Property, by:
- issuing to Pacific Ridge 600,000 common shares of Kivalliq at a
deemed price of $0.25 per share;
- making a cash payment of $55,000
to Pacific Ridge; and
- investing $70,000 in Pacific
Ridge via a purchase of 1,400,000 units, at a price of $0.05 per unit; each unit consisting of one
common share and one-half of one share purchase warrant, with each
whole warrant exercisable into one common share at a price of
$0.10 for 12 months from the date of
issuance.
The securities issued as part of the transaction will be subject
to customary hold periods. The Baker Basin Property is subject to
certain royalties. For disclosure on previous agreements between
Kivalliq and Pacific Ridge related to the Baker Basin Property,
please see Kivalliq's Annual Management Discussion and Analysis of
September 30, 2008 and Kivalliq's
subsequent annual financial statements and MDA.
QA/QC
Jeff Ward, P.Geo, President of
Kivalliq and a Qualified Person for Kivalliq, has reviewed and
approved the publicly available scientific and technical
information by previous exploration groups contained in this
release. For disclosure related to the inferred resource for the
Lac 50 Trend uranium deposit, please refer to Kivalliq's news
release of March 1, 2013.
About Kivalliq Energy Corporation
Kivalliq Energy Corporation (TSX-V: KIV) is a Vancouver-based uranium exploration company
holding Canada's highest-grade
uranium resource outside of Saskatchewan's Athabasca Basin. Its flagship project, the
340,268 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 have forged
strong relationships with sophisticated resource sector investors
and project partner Nunavut Tunngavik Inc. ("NTI") in order to
advance the Angilak Property. 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.
On behalf of the Board of Directors
"Jim Paterson"
James R. Paterson, CEO
Kivalliq Energy Corporation
Kivalliq Energy Corporation is a member of the Aurora Mineral
Resource Group of companies, for more information please visit
www.auroraresource.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Certain disclosures in this release, including the budget and
exploration program proposed for the Angilak Property, constitute
forward-looking statements that are subject to numerous risks,
uncertainties and other factors relating to Kivalliq's operations
as a mineral exploration company that may cause future results to
differ materially from those expressed or implied in such
forward-looking statements, including risks as to the completion of
the plans and projects. Readers are cautioned not to place undue
reliance on forward-looking statements. Other than as required by
applicable securities legislation, Kivalliq expressly disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events,
or otherwise.
Cautionary Note concerning estimates of Inferred Resources:
This news release uses the term "inferred resources". Inferred
resources have a great amount of uncertainty as to their existence,
and great uncertainty as to their economic and legal feasibility.
It cannot be assumed that all or any part of an Inferred Mineral
Resource will ever be upgraded to a higher category. Kivalliq
advises U.S. investors that while this term is recognized and
required by Canadian regulations, the U.S. Securities and Exchange
Commission does not recognize it. U.S. investors are cautioned not
to assume that part or all of an inferred resource exists, or is
economically or legally mineable.
SOURCE Kivalliq Energy Corporation