Corporate Update – March 30, 2020
Strategy & Outlook
2019 has been transformative for ValOre Metals Corp. (TSX-V: VO). We have successfully restructured the Company and recently bolstered our high value resource holdings with the addition of an exciting platinum group metals property, Pedra Branca, in Brazil, alongside our existing Angilak and Genesis/Hatchet uranium and Baffin gold projects (all in Canada).
On January 15, 2019, ValOre completed a rights offering raising C$2.45M, which gave shareholders the opportunity to finance the Company as we pivoted to take advantage of our group’s ability to raise capital and execute accretive transactions in a challenging financing environment for the global mining sector.
As you may already be aware, ValOre is a proud member of Discovery Group, which was founded by John Robins in 2005, and then successfully relaunched and rebranded by John and I in 2016. Being a part of this unique group with such recent major successes as Kaminak (Yukon gold project acquired by Goldcorp for $520M), Northern Empire (Nevada gold project acquired for Coeur Mining for $117M), and Great Bear (gold discovery in Red Lake with a current market cap in excess of $375M) gives ValOre incredible access to first class professionals, high quality deal flow, and capital to finance our activities.
On August 14, ValOre announced the closing of a transaction to acquire 100% ownership of the Pedra Branca PGM District in north-eastern Brazil. The landholdings total 38,940 hectares and host five distinct PGM+Au (Ni+Cu+Co+Cr) deposit areas. Along with the acquisition, ValOre filed an independent NI 43-101 inferred resource estimate of showing that Pedra Branca hosts 1,067,000 ounces PGM+Au in 27.2 million tonnes grading 1.22 grams PGM+Au per tonne. Mineralization outcrops at surface, making all of the inferred resources legitimate open pit targets, and excellent opportunities exist for resource expansion and conversion at all five deposits.
Pedra Branca has seen over US$35M of historic exploration expenditures by Anglo American Platinum and other companies, including over 30,000 m of drilling, extensive geochemistry and geological mapping, and high-quality airborne and ground geophysics.
Our efforts to leverage this tremendous database have already begun and our excitement around the potential of the project grows by the day. By the end of January 2020, we’ll announce an initial exploration program for 2020 with the benefit of the knowledge from the activities currently underway or recently completed:
- WorldView: acquisition of enhanced and modeled digital satellite imagery from the highest resolution commercial satellite in the world, focused on supporting exploration fieldwork with alteration mineral modeling and high-spatial resolution true-color imagery for the project area.
- Geophysics: re-processing the district-scale, detailed (50 m line-spacing) 2013 aeromag survey collected by Anglo by means of a 3D magnetic-susceptibility model to help define the geometry, dip and approximate the thickness of the target ultramafic intrusions.
- HIVE: consultancy performing a full drillhole database verification program and supporting ValOre in the development and refinement of an accurate, organized and synthesized exploration database.
- Data compilation: upon completion of the above-mentioned database verification and organization, authenticated historical data will be synchronized with newly acquired exploration data to facilitate and accelerate the path to discovery and resource expansion.
This area of Brazil is an exploration- and mining-friendly jurisdiction, and the project is supported by the local and state governments. One of ValOre’s newest directors, Brazilian resident Luis Azevedo, has already played a key role in connecting us with the people and groups we will need to successfully advance the project, and was recently named Vice President of the newly formed Mining Council of the National Confederation of Industry (“CNI”) in Brazil. Access is excellent year-round via two paved highways from Fortaleza (a coastal city with a port and over 3 million people), and infrastructure is in place, including electricity, water, housing, office space, core storage and logging facilities, telephone and internet.
The exploration potential of the Pedra Branca Project from both a resource expansion and greenfields perspective is highly compelling, with numerous property-wide surface to near-surface PGM targets. This acquisition meets ValOre’s criteria in three key areas: high-value metal mineralization on a large scale; substantial project investments by previous operators; and obvious exploration strategies and process improvements which can be implemented by ValOre to add significant value to the project.
ValOre’s technical team has made tremendous progress in organizing, reviewing, and understanding the literal ‘treasure trove’ of data generated at Pedra Branca by previous exploration groups. In the case of our newest target “C04”, we have an exploration methodology that works efficiently and effectively in the target-rich environment which hosts a ‘discovery pipeline’ with the potential to add significant value for our shareholders.
As reported in our press release on December 4, 2019, four grab samples collected in October were submitted to SGS Canada for analysis, and all returned compelling PGM plus gold results of up to 7.945 grams per tonne. Assay results for all submitted samples are summarized in the accompanying table.
SUMMARY OF ASSAY RESULTS FROM FOUR SUBMITTED GRAB SAMPLES AT THE C04 EXPLORATION TARGET, PEDRA BRANCA PROJECT (SGS CANADA INC.)
| Sample | Au (ppb) | Pt (ppb) | Pd (ppb) | PGM + Au (ppb) | PGM + Au (g/t) |
| B-C4-11-A | 23 | 7,616 | 306 | 7,945 | 7.945 |
| B-C4-11-B | 13 | 2,039 | 338 | 2,390 | 2.390 |
| B-C4-11-C | 52 | 2,125 | 142 | 2,319 | 2.319 |
| B-C4-11-D | 13 | 2,722 | 301 | 3,036 | 3.036 |
To get a clearer understanding of our approach to project acquisition, exploration and development, please click here. We are confident that our approach is a very sound one, which attempts to protect our investors from downside, while providing significant upside as the project gets advanced and we unlock value.
As we commence fieldwork on the Pedra Branca project in Q1 2020, we’ll keep our shareholders informed of our efforts through news releases and increased road shows and conference attendance.
We thank you for your support and look forward to delivering benefits to all stakeholders.
Happy New Year! We wish you great prosperity, health and happiness in 2020.
Sincerely,
Jim Paterson, Chairman & CEO
ValOre Metals Corp. (TSX-V: VO)
Qualified Person
The technical information provided in this letter has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101 and reviewed and approved by Colin Smith, P.Geo., who oversees New Project Review for ValOre.
QAQC
Grab samples are collected from field sites with coordinate data captured by handheld GPS and subsequently stored in a secure ValOre facility in Capitão Mór, Ceara, Brazil. The samples are thereafter sent with an ensured chain of custody to SGS Canada Inc. in Lakefield, Ontario for analysis, which is accredited mineral analysis laboratory. All samples are analyzed for PGM+Gold (Pd, Pt, Rh, Au) content using standard 50g Fire Assay and ICP-AES techniques. If Pt and/or Pd is over 1%, the sample is analyzed for Rh using NiS Fire Assay-ICP-MS techniques. Cr values that exceed 5% are redirected to ore grade pyrosulfate fusion and XRF techniques. Certified PGM ore reference standards, blanks and field duplicates are inserted as a part of ValOre’s quality control/quality assurance program (QAQC). No QAQC issues were noted with the results reported herein.
Cautionary Statement on Forward-Looking Statements
The information provided in this letter contains “forward-looking statements” within the meaning of applicable securities laws. Although ValOre believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based on factors and assumptions concerning future events that may prove to be inaccurate. These factors and assumptions are based upon currently available information to ValOre. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include the future operations of the Company and economic factors. Readers are cautioned to not place undue reliance on forward-looking statements. The statements made in the information above are made as of the date of this letter and, except as required by applicable law, ValOre does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. ValOre undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of ValOre, or its financial or operating results or (as applicable), their securities.
Kivalliq’s team has been working hard over the past few years to take advantage of the severe cyclical downturn in the mineral exploration and mining sector to increase the Company’s high quality uranium exploration holdings. Click on the following link to view a short update video on Kivalliq’s growing uranium project portfolio (1:39 minutes).
News from the global nuclear power industry, the primary consumer of uranium, has been very positive the past few weeks and we wanted to share some highlights for you in this short update.
According to www.uxc.com, the spot of price of U3O8 recently exceeded US$39/Lb, gaining approximately 40% since the mid-summer 2014 multi-year lows of US$28/Lb.
A highly encouraging interview by Russian news agency RIA Novosti was conducted recently with Leonid Bolshov, director of the Nuclear Safety Institute of the Russian Academy of Sciences (IBRAE RAN). Mr. Bolshov stated:
“Experts agree that the global nuclear power industry has returned to its "pre-Fukushima state" and pessimistic forecasts of a slowdown in its development have not materialized…According to the International Atomic Energy Agency, there are 440 nuclear power units in operation and a further 68 are under construction… The process of building new nuclear power plants in the world has been resumed and is growing.”
A recent visit to the World Nuclear News website, New Nuclear section, shows the following headlines from the past two weeks alone:
10 March 2015 – China resumes new reactor approvals
The Chinese government has approved construction of two more units at the Hongyanhe nuclear power plant in Liaoning province, marking the first approval for new reactors in four years.
10 March 2015 – Third generator arrives for Tianwan 3
The third of four Russian-produced steam generators has now been delivered to the construction site of unit 3 of the Tianwan nuclear power plant in China's Jiangsu province.
09 March 2015 – Sanmen 2 steam generators on site
The second steam generator for the second AP1000 unit under construction at Sanmen in China's Zhejiang province has been delivered to the construction site ahead of installation.
04 March 2015 – Saudi Arabia teams up with Korea on SMART
At least two South Korean-designed SMART reactors could be built in Saudi Arabia following the signing of a memorandum of understanding between the two countries yesterday. Korea and Saudi are to jointly promote the reactor in the global market.
04 March 2015 – Russia offers nuclear desalination bundle
Rusatom Overseas is aiming to sell desalination facilities integrated with large capacity nuclear power plants to Russia's export markets.
26 February 2015 – Grid connection for South Korean reactor
The second unit of the Shin Wolsong plant was connected to the power grid today following the successful completion of commissioning tests, plant owner Korea Hydro and Nuclear Power announced.
A typical 1000 Mwe nuclear reactor runs safely and consistently for many decades (in excess of 40 years) and consumes approximately 400,000 lbs U3O8 annually. When you look the steady growth in the global reactor build and the renewed industry strength led by countries such as those mentioned in the World Nuclear News articles noted above, the future for the nuclear sector looks very bright.
We are striving to position Kivalliq stakeholders to take advantage of an improving uranium pricing environment driven by demand, such as noted above, and exacerbated by the fragile nature of uranium supply from global mine production.
All the best,
Jim Paterson, CEO
Kivalliq Energy Corporation
QA/QC
Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the scientific and technical information 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 company exploring for uranium on the 495,883 acre Genesis Property and 33,880 acre Hatchet Lake Property both located northeast of Saskatchewan’s Athabasca Basin. In addition, Kivalliq holds Canada’s highest-grade uranium resource outside of Saskatchewan. Its flagship project, the 275,469 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 holds a 100% interest in the Genesis Property, with Roughrider funding the current exploration program. This highly prospective project is located along the Wollaston-Mudjatik trend extending northeast from Saskatchewan’s highly prolific Athabasca Basin. In accordance with the previously disclosed terms of the Option Agreement between Roughrider and Kivalliq, Roughrider has the option to acquire up to an 85% interest in the Genesis Property.
Kivalliq’s team of northern exploration specialists 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.
For further information about, Kivalliq Energy Corporation, please visit our website at www.kivalliqenergy.com or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at [email protected].
Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies. For more information please visitwww.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 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. 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. 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.
Dear Shareholders,
In the nine months since my last CEO Update, our entire team has been focused on increasing the value of Kivalliq, despite the continued challenging market environment for uranium explorers and TSX-Venture listed companies. We feel our work related to the Angilak Property has continued to reduce project risk, while our acquisitions of the Baker Basin1 (Q4 2013) and Genesis (Q1 2014) Properties have added significant value to our portfolio of high quality uranium assets. In particular, the Genesis Property is an excellent case study of how Kivalliq has provided our shareholders with exposure to exploration, news flow, and potential mineral discoveries, without significant share dilution. A recently closed financing also gives Kivalliq additional capital for strategic exploration activities in Nunavut and Saskatchewan.
Answering Important Questions – On February 27, Kivalliq provided an Angilak Property project update which summarized ongoing results from metallurgical and beneficiation testing performed on Lac 50 Trend uranium mineralization, including locked cycle alkaline leach tests, yellowcake precipitation, and a radiometric ore sorting study.2 We noted that the combination of high uranium recoveries and low reagent consumption will have a positive impact on any future project economics.
Genesis Property – Kivalliq’s New Exploration Project in Saskatchewan, Canada
Low-Cost Acquisition – In January, Kivalliq staked a 100% interest in the 491,154 acre “Genesis Property.”3 Northeast of Saskatchewan’s Athabasca Basin and along the Western Wollaston Tectonic Domain, the Genesis Property boundary commences 25 kilometers northeast of the Eagle Point uranium mine operated by Cameco Corporation and extends 90 kilometers to the northeast along this prospective geological and structural domain to the Manitoba border. In terms of exploration, the surrounding area has become increasingly active since Kivalliq staked Genesis.
Deal Signed – In May, Kivalliq signed a Letter of Intent with a company now named Roughrider Exploration Limited, “Roughrider.”4 The agreement grants Roughrider an option to acquire an 85% interest in the Genesis Property in exchange for 20% of the issued and outstanding shares of Roughrider on a post-transaction/post-financing basis; $1 million in cash payments; and $5 million in exploration expenditures over four years. Upon acquisition of an 85% interest in Genesis by Roughrider, Kivalliq’s remaining 15% interest in Genesis will be carried through to the completion of a bankable feasibility study and a recommendation from Roughrider’s board to proceed to commercial production. Kivalliq will be project operator for at least the first year of the agreement.
Initial Return on Investment – In July, pursuant to the Mining Option Agreement between Kivalliq and Roughrider, Kivalliq received an initial cash payment of CDN$125,000 and acquired ownership of 1,969,828 common shares of Roughrider (TSX-V: REL).5 The REL shares issued to Kivalliq are subject to a 12-month hold period. As a result of this share acquisition, Kivalliq presently owns 10% of the issued and outstanding shares of Roughrider.
Additional Upside – On August 7, Kivalliq and Roughrider announced the commencement of the 2014 exploration program at the Genesis Property.6 Budgeted at CDN$1 million, the proposed program will be operated by Kivalliq and fully funded by Roughrider, and will consist of the following: 6,000 kilometres of helicopter borne geophysical surveying; lake sediment sampling; and, prospecting, mapping and geochemical soil sampling. 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.
Better Times Ahead
As an industry, we continue to await clarity on the timing of restarts of Japanese nuclear reactors, as this may provide a catalyst for a reversal in the three year trend of pricing weakness in the uranium spot market. Generally, we have found an improving “mood” amongst industry participants and a corresponding increase in staking activity and financings for uranium exploration in Canada. On August 1, Kivalliq closed a private placement of 5,172,728 units at a price of $0.22 per unit for total gross proceeds of $1,138,000.7 Kivalliq will use the net proceeds from this financing to fund mineral exploration in Saskatchewan and the Nunavut Territory, Canada.
We look forward to providing you another CEO update early in the New Year, this time with initial results from our 2014 exploration campaign at the Genesis Property, and our plans for the Company in 2015.
On behalf of the entire Kivalliq Team, thank you for your continued support.
Best regards,
"Jim Paterson"
James R. Paterson, CEO
Kivalliq Energy Corporation
QA/QC
Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the scientific and technical information 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 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.
For further information about, Kivalliq Energy Corporation, please visit our website at www.kivalliqenergy.com or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at [email protected].
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 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. 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. 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.
Related 2014 News Releases
1 October 15, 2013: Kivalliq Acquires Baker Basin Uranium Property in Nunavut Territory, Canada
2 February 27, 2014:Kivalliq Announces Additional Positive Results From Metallurgical Tests and Radiometric Ore Sorting Study
3 January 13, 2014: Kivalliq Acquires Genesis Property in Northeastern Saskatchewan, Canada
4 May 21, 2014: Kivalliq Partners with Westham to Explore Genesis Property in Northeastern Saskatchewan
5July 16, 2014: Kivalliq Acquires Shares of Roughrider Exploration Limited
6 August 7, 2014: Kivalliq and Roughrider Commence Exploration Program at Genesis Property
7 August 1, 2014: Kivalliq Closes Final Tranche of $1.138 Million Non-Brokered Private Placement
2013 has been another productive year for Kivalliq. Much has happened since our last CEO Update in May of this year.1 Despite sustained weakness in the uranium spot price (20% drop since Jan 1, 2013) and mining equity capital markets (27% drop in TSX-V index since Jan 1, 2013); we continued to march our flagship Angilak Property forward. Advancement of Angilak evolved this year to focus on de-risking the project by evaluating potential extraction and processing options for the Lac 50 uranium deposit. Continued exploration success in the summer, as well as positive results from preliminary metallurgical and beneficiation studies, underscore Angilak’s potential as a world-class uranium project.
ML and J1 Zones Discoveries
The newly-discovered ML and J1 zones underscore the “District Scale” potential of our Angilak Property. The geological similarity and proximity of the ML and J1 zones to the current Lac 50 Trend* inferred mineral resource supports our belief that we can continue to expand the resource base through drilling. The 2013 ML and J1 discoveries bring the count to 12 new zones drilled within the highly prospective Lac 50 Trend since 2010.2,3
Geochemical Sampling Program Success
One of the many highlights of the 2013 exploration program was the outcome of soil geochemical surveying within the Lac 50 Trend. Using a widely spaced sampling pattern, 387 anomalous uranium (“U”) soil geochemical results (using a 75th percentile threshold) were reported over the entire width and length of the Lac 50 Trend and along the new Nine Iron-KU Trend situated 5.5 kilometres south. Results from this program increase our confidence in the exploration potential of specific geophysical conductors along the entire Lac 50 Trend and will be valuable when prioritizing geophysical conductors and selecting specific drill sites on future programs.4
Continued Positive Metallurgical and Beneficiation Results
Further metallurgical testing continued to show improved recoveries and demonstrated consistency across all Lac 50 deposits. Using optimized parameters, 96.4% of the uranium was extracted from a representative Lac 50 composite in 48 hours from conventional alkaline leaching. Initial beneficiation tests of rock samples from Lac 50 also provided encouraging results due to the amenability to radiometric sorting. Preliminary ore sort characterization using radiometric sorting demonstrated a 56% reduction in mass with 98.1% U3O8 recovery. Results from these on-going tests in 2013 have positive implications for the potential to cost-effectively extract uranium and produce an attractive final yellowcake product from the deposits within the Lac 50 Trend.5
Increasing Kivalliq’s Footprint in Nunavut Territory
Kivalliq added to its project portfolio through the acquisition of the Baker Basin Uranium Property in the geologically prospective Baker Lake Basin of Nunavut Territory, Canada. This property consists of 232,262 acres and has multiple target zones based on results from previous exploration work including promising historic drill assays. Our extensive northern exploration experience, as well as our relationships and award winning environmental track record in Nunavut Territory, give us a competitive advantage to rapidly advance the Baker Basin Property.6
Uranium Supply Fragile
2013 saw several events that emphasize the fragile nature of global primary uranium supply and the need for considerably higher prices. Further delays at planned development projects; reduction of future production guidance from existing mines; and the cessation or severe curtailment of existing operations; have all put considerable pressure on the supply-side. We believe that in this current pricing environment, supply reduction will continue to be a prevailing theme. As supply tightens and demand steadily grows, market observers are forecasting significant supply deficits in the near to mid-term. The advancement of Angilak should coincide well with these favorable uranium market fundamentals.
2014 and Beyond
Despite a significantly reduced exploration budget, our technical team delivered another year of meaningful results in 2013. The discovery of the ML and J1 zones; the targets generated and refined by the geochemical sampling program; and positive initial results from ongoing metallurgical and beneficiation studies; all further demonstrate Angilak’s “District Scale” potential. Looking ahead, we will continue to advance Angliak as aggressively as possible throughout 2014/15, within the context of prevailing market conditions.
Communication
We encourage you to review our latest presentation and sign up to receive Kivalliq news releases at www.kivalliqenergy.com. The Nuclear Energy Institute (NEI) has created an e-book which provides an excellent overview of nuclear energy.
http://www.emagcloud.com/et/Just_the_Facts_2012/index.html#/1/
The entire Kivalliq team would like to thank you for your continued support and wish you a very prosperous, happy, and healthy New Year.
All the best,
Jim Paterson, CEO
Related 2013 News Releases
1 May 4: Kivalliq Energy CEO Update
2 June 4: Kivalliq Drills New ML Zone in Lac 50 Trend; Update on Phase 1 Exploration at Angilak Property
3 June 27: Kivalliq Reports Assay Results from 2013 Drilling at the ML and J1 Zones
4 September 9: 2013 Geochemical Program Prioritizes Lac 50 Trend Drill Targets and Identifies New Zones
5 September 11: Kivalliq Announces Positive Metallurgical Results from J4 Zone and Ore Sorting Studies
6 October 15: Kivalliq Acquires Baker Basin Uranium Property in Nunavut Territory, Canada
*January 15: Kivalliq Announces 60% Increase in Uranium Resource; Lac 50 Trend Deposits Expand to 43.3 million lbs U3O8
DISCLAIMER
Certain disclosures in this communication and related news releases, 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 communication 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.
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) 646-4527; TF: 1 888 331-2269
Fax: (604) 646-4526
Email: [email protected]
Good morning
Please find below three links to news items related to Kivalliq and the nuclear energy sector.
1.) Kivalliq’s CEO Jim Paterson was interviewed by Brian Truscott of www.uraniumblog.com about our recent progress at the Angilak Property:
http://www.uraniumblog.com/2011/11/kivalliqs-energized-lac-cinquante-u3o8-project-.html#more
2.) A summary of a Nuclear Energy Institute (“NEI”)survey confirming ongoing support by the general American public for nuclear power, 6 months after the earthquake in Japan:
http://www.nei.org/newsandevents/newsreleases/americans-support-for-nuclear-energy-holds-at-majority-level-6-months-after-japan-accident/
3.) A white paper by NEI called “Global Nuclear Power Development: Major Expansion Continues”:
http://www.nei.org/resourcesandstats/documentlibrary/newplants/whitepaper/white-paper—global-nuclear-power-development/
All the best
Shannon Coutts, Corporate Communications