Angilak Property, Nunavut

ANGILAK PROPERTY
Kivalliq's flagship project, the 227,000 acre Angilak Property in Nunavut, hosts numerous high priority zones including the promising high-grade Lac Cinquante uranium deposit. Since acquiring the Angilak Property in 2008, the Company has invested approximately $30 million conducting systematic exploration, including: ground and airborne geophysics, geological mapping; prospecting, and approximately 48,000 meters of diamond and reverse circulation (“RC”) drilling.

Please click on the specific links below to read comprehensive zone descriptions, or spend some time using our interactive property map.

Lac Cinquante Trend Main Zone Western Extension Eastern Extension

Proximal Targets Blaze Pulse Spark Joule

Property-Wide Potential 2011 Program Overview 2011 Prospecting Results 2010 Prospecting Results

 

With an NI 43-101 Inferred Resource of 27.13 million pounds in 1,779,000 tonnes averaging 0.69% U₃O₈ (at 0.2% cut off), the Lac Cinquante Deposit is Canada's highest grade uranium deposit outside of the Athabasca Basin.  Kivalliq's flagship project, the 227,000 acre Angilak Property in Nunavut, hosts the high-grade Lac Cinquante deposit, in addition to several  high priority zones including the Blaze, Pulse and Spark that were advanced  through a combination of Kivalliq's exploration efforts in 2011.

2011 Exploration Program Overview

In 2011 Kivalliq completed a highly successful, $17 million exploration program at Angilak. The exploration season commenced in March 2011 with the mobilization of crews and equipment to the existing Nutaaq camp and was completed by October 2011.

The key components of the 2011 exploration campaign were:

• Revised Inferred NI 43-101 resource of 27.13 m lbs at 0.69% U₃O₈ - announced January 17, 2012
• 23,849 metres of diamond drilling in 153 holes focused on expanding the Lac Cinquante resource and testing new mineralized target areas
• 6,411 metres in reverse circulation (“RC”) drilling in 88 holes, testing 25 target areas and identifying new areas for follow-up in 2012
• 5,470 line kilometres of airborne magnetic, electromagnetic and radiometric surveying
• 1,640 line kilometres of ground magnetic, VLF electromagnetic and gravity surveys
• Prospecting, mapping and soil geochemical surveys to advance known and new target areas
• Ongoing modeling, geological and environmental studies

The 2011 drill program totaled 23,849 metres in 153 diamond drill holes and an additional 6,411 metres in 88 exploratory holes using a reverse circulation (RC) drill rig.  Of the 88 RC holes drilled this year, 45 holes generated anomalous radioactivity greater than 500 cps. Diamond drilling largely focused on resource expansion east and west of the high grade Lac Cinquante deposit and exploratory drilling at the Blaze Zone. The Kivalliq team considers both the Western Extension and Eastern Extension zones to be part of the same northwest-southeast trending geological structure which hosts the high grade Lac Cinquante uranium resource.

The Company also undertook an aggressive targeting campaign this season, with results and interpretation pending from: 5,470 line kilometres of DIGHEM airborne magnetic, electromagnetic and radiometric surveying; 1,640 line kilometres of ground magnetic, VLF electromagnetic and gravity surveys; and a prospecting program which entailed the collection of 273 rock grab samples and 342 soil geochemical samples.

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Lac Cinquante Trend

Main Zone

The updated Mineral Resource estimate for Lac Cinquante was prepared under the direction of Robert Sim, P.Geo., of SIM Geological Inc.  A resource model was generated using core sample assay results and interpretation of a geological model relating to spatial distribution of uranium at the Lac Cinquante Main, Eastern Extension and Western Extension Zones.  All assay and geological information was derived from work conducted by Kivalliq as part of the 2009, 2010 and 2011 exploration programs and available at December 31, 2011. At a base case cut-off grade of 0.2% U₃O₈, an Inferred Mineral Resource is estimated at 1,779,000 tonnes averaging 0.69% U₃O₈, containing 27.13 million pounds U₃O₈.  For evaluation purposes, three additional metals:  silver (g/t), molybdenum (%) and copper (%) have also been estimated within the resource model.

Table 2 - Inferred Mineral Resource Estimate for the Lac Cinquante Deposit by Zone - 0.2% U₃O₈ Cut-off (January 2012)

Click here to view a 3-D  image of the 2012 resource model

The Resource Model

Kivalliq has drilled 275 core holes totalling 42,109 metres on the Angilak Property over the past three years: 16 in 2009, 106 holes in 2010 and another 153 holes were completed during the 2011 field season.  Of these, 240 NQ holes totalling 37,394 metres were dedicated to delineating the Lac Cinquante deposit (Main, East and Western Extension Zones) which have been used in the generation of the mineral resource estimate. 

The resource model is constrained within a 3-dimensional domain representing the mineralized portion of the host mafic tuff and shear zone.  Drill hole samples are composited to the full width of the zone and true thicknesses are determined for each drill hole intercept.  Blocks in the model measure 5x5x5 metres in size. Only the portion of those model blocks within the mineralized domain are included in the final resource estimate.  The method used for the estimation of U₃O₈ grade is ordinary kriging using length-weighted composited drill hole intervals.  Estimates for Ag, Mo and Cu utilize the inverse distance weighting interpolation method. Resource tonnages are calculated using bulk density data that originates from individual drill hole samples.  Composited to the full width of the mineralized domain, bulk densities range from 2.35t/m3 to 3.77 t/m3 with a mean of 2.85 t/m3.  All resources are considered inferred which is based on an analysis of continuity and confidence. It is determined that the deposit is very well defined and relatively continuous. In addition, based on detailed analysis, the maximum distance from block to composite of 50 metres is adhered to.

The Geology

Lac Cinquante is a basement hosted, vein-hydrothermal type, unconformity associated uranium deposit. The emplacement of uranium is structurally controlled, often associated with a graphite-chlorite tuffaceous metasediment interlayered in Archean metavolcanics.  Mineralization consists of disseminated and patchy pitchblende with sulphides within fracture controlled, brecciated, hematite-quartz-carbonate veins that can occur in either the host shear or tuff unit. The deposit is comprised of three distinct mineralized sections occurring over 3.8 kilometres of strike length and interpreted to be off-set by faults.  The central “Main” Lac Cinquante zone is the largest, measuring 1.4 kilometres in drilled length, striking at an azimuth of 115 degrees and dips to the SSW at roughly -65 degrees. The “Western Extension” is a 120 metre left-lateral displacement of the Main zone.  The Western Extension has a drilled strike length of approximately 550 metre, is oriented at 125 degrees azimuth and dips to the SSW at -70 degrees.  The “Eastern Extension” is interpreted as a 250 metre left-lateral displacement of the Main zone with a strike of 122 degrees azimuth, a -78 degree SSW dip and an overall drilled strike length of approximately 550 metre.  The true thickness of the mineralized domain varies from 5 centimetres to a maximum of 13.5 metres with an average thickness of 2.2 metres.    

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Western Extension

Kivalliq announced initial assays from 17 diamond drill holes at the Western Extension on August 25, 2011 followed by assays from an additional 30 holes on October 25, 2011, and the final 7 of 54 holes drilled at this zone were reported on December 15, 2011.

The Western Extension has a drilled strike length of 550 metres and starts 450 metres to the west, and along strike, of the Lac Cinquante main zone resource area.9,468 metres in 54 diamond drill holes tested a northwest trending VLF EM conductor which exhibited a response similar to that of the Lac Cinquante deposit. Drilling from 17 set-ups spaced on 50 metre drill sections intersected radioactive intervals down to depths of 250 metres vertically. Two additional set-ups, spaced 100 metres apart, targeted below the original fences, intersected mineralization down to 327 metres (see October 5, 2011 release).

Mineralization is similar to that found at Lac Cinquante, but is structurally hosted in altered basalt rather than a tuffaceous unit.  Radioactive intervals are associated with sheared, chlorite-carbonate altered basalt with minor brecciation and sulphides. Hematized quartz-carbonate veining is common in this zone.

All core holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees. 43 of 54 holes drilled at the Western Extension have now intersected anomalous radioactivity between 30 and 327 metres vertical depth, in a zone dipping roughly 65 degrees to the southwest.

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Eastern Extension

The discovery of the Eastern Extension was initially made by testing a northwest trending linear VLF EM conductor similar to Lac Cinquante, using six reverse circulation (RC) holes drilled from three set-ups. Two diamond drills were then deployed to delineate the Eastern Extension, with 6,143 metres drilled in 44 holes from 13 set-ups spaced on 50 metre drill sections.

The final set of assays from the 44 holes drilled at the Eastern Extension were reported on December 19, 2011. The Eastern Extension has a drilled strike length of 550 metres and starts approximately 400 metres to the east, and along strike of the Lac Cinquante main zone resource area.

Mineralization is very similar to that found at Lac Cinquante, primarily hosted in the same hematite-carbonate-chlorite-graphite altered tuff unit. Uranium is associated with quartz-carbonate veining, breccia and sulphides within the sheared host rock.

All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees. 37 of 44 holes intersected anomalous radioactivity between 34 and 257 metres vertical depth. Both RC and diamond drilling have confirmed the continuation of the Lac Cinquante structure eastward with uranium mineralization occurring in a zone dipping roughly 72 degrees to the southwest.

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Proximal Targets

Blaze Zone

The Blaze Zone is located approximately 2.0 kilometres west of the Lac Cinquante uranium deposit. The Blaze Zone has been drilled across a strike length of 100 meters, with significant mineralization intersected between 30 and 126 metres depth below surface. A total of 5092 meters of NQ drill core from 23 drill holes have investigated mineralization at Blaze, with assays from all of the 23 holes now reported.

An exceptional intersection grading  1.01% U3O8 over 25.4 metres (reported June 20) was cut by 11-BZ-010 early in the program (announced June 20, 2011). 11-BZ-016was drilled to crosscut the 11-BZ-010 intercept and cut 0.63% U3O8, 1.31% Cu, 74.3 grams/tonne Ag and 0.35% Mo over 5.6 metres suggesting the true width of the 11-BZ-010 intercept to be roughly 4.0 metres. .At the end of the 2011 program  four additional holes were drilled at Blaze to test the down dip continuity of the 11-BZ-010 vein and to investigate the structural controls for mineralization at Blaze. Results from this drilling indicate the 11-BZ-010 vein has an estimated true width of 1.5 metres to 3.8 metres to a vertical depth of at least 85 metres and that other similarly oriented crosscutting mineralized veins are present at Blaze.

Mineralization at Blaze occurs as pitchblende with occasional disseminated and patches of sulphide in quartz-carbonate veins and breccia, often with moderate hematite alteration primarily around fractures. There appear to be  two separate zones (upper and lower), occurring as clusters of semi-stockworked quartz-carbonate stringers and veins in brecciated carbonate-hematite altered host rock, crosscutting the southwest dipping sequence of  metabasalt, metagabbro and metatuff units. In holes 11-BZ-011 through 019, these upper and lower zones of varying mineralized widths are separated by 27 to 40 metres of unaltered metavolcanics.Holes 11-BZ-001 through to 11-BZ-015 were drilled at azimuth 035 degrees from five locations at 25 meter drill section intervals across the 100 meter strike length targeted. Core logging suggests initial setups may have drilled sub-parallel to some of the mineralized trends. Therefore, three additional setups drilling azimuth 180 degrees for holes 11-BZ-016 and 11-BZ-017,  azimuth 130 degrees for holes 11-BZ-018 and 11-BZ-019, and azimuth 125 degrees for holes 11-BZ-020 to 11-BZ-023 respectively were drilled oblique and perpendicular to earlier holes in order to determine structural controls and estimate true widths of mineralization.

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Pulse

Two diamond drill holes tested the Pulse zone, part of a 3.0 kilometre long VLF EM conductive trend situated 650 metres northeast and parallel to the Lac Cinquante uranium deposit. The holes were drilled to follow up on a mineralized zone identified by anomalous radioactivity in 9 out of 10 reverse circulation (“RC”) test holes along 600 metres of strike length. Preliminary interpretations suggest that mineralization occurs within structurally controlled sheared basalt similar to that found at the Lac Cinquante Western Extension and as pitchblende bearing brecciated quartz carbonate veins. Due to its close proximity to Lac Cinquante and the geological similarities noted, Pulse represents a high priority drill target for the upcoming 2012 exploration campaign. Two core holes drilled as subsequent follow-up intersected radioactivity at 47 and 80 metres vertical depth. 

Spark

The Spark zone is located approximately 500 metres west of the high-grade Blaze zone. Six of seven RC and a single diamond drill hole intersected anomalous radioactivity at variable depths down to 65 metres vertically.
Mineralization is hosted in altered basalt on the upper contact of a narrow laminated tuff unit. 11-BZ3-001 was drilled to follow up on anomalous radioactivity indicated by 4 out of 8 RC test holes targeting the center of the BZ3 anomaly.  

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Joule (JML anomaly)

Four holes confirmed U₃O₈ values along 25 metres of strike length at the JML anomaly, an east-west trending VLF-EM conductor in the Joule Valley, located 7.0 kilometres southeast of Lac Cinquante. The holes tested anomalous radioactivity identified by 8 RC test holes along 250 metres of strike length.

Also in the Joule area, two core holes tested the J9 anomaly 4.5 kilometres southeast of Lac Cinquante. Drill hole 11-J9-001 intersected a narrow quartz carbonate vein in basalt with anomalous U₃O₈ values. 

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2011 Prospecting Results

BIF Zone

High-grade U-Cu-Mo-Ag assays in samples from multiple veins (1 to 3 cm wide) and boulders were identified at the new “BIF” zone, located approximately 10 km from Lac Cinquante. Results include 13 of 25 grab samples exceeding 1% U₃O₈ and 5 samples with over 15% U₃O₈ taken along the strike length of a geophysical anomaly and related mineralized structure. The BIF uranium occurrence is associated with a 3 km long reactivated shear zone on the margin of the Yathkyed Greenstone Belt, and within a package of mylonitized iron formation and tuffaceous volcano-sedimentary rock.  A ground VLF and magnetic survey carried out in the area of highly anomalous samples will be the focus of future work and drilling in 2012.

Highlight samples from the BIF Zone:

• 30.30% U₃O₈, 163.0 g/t Ag, 5.16% Cu,  22.90% Pb - (Sample 1983) outcrop
•  23.80% U₃O₈, 114.0 g/t Ag, 0.81% Cu, 5.90% Pb, 0.58% Mo - (Sample 1839) outcrop
• 17.90% U₃O₈, 38.3 g/t Ag, 0.15% Cu, 6.00% Pb, 0.45% Mo - (Sample 1833) outcrop
• 16.60% U₃O₈, 51.3 g/t Ag, 0.05% Cu, 3.67% Pb, 0.95% Mo - (Sample 1836) float
• 16.00% U₃O₈, 321.0 g/t Ag, 5.38% Pb, 0.76% Mo - (Sample 1860) outcrop

AG Showing

Of note is a new native silver occurrence discovered approximately 7.5 km east of the Lac Cinquante uranium deposit. Carbonate and quartz veins in a sheared tuff unit contain significant Ag values ranging from 10 to 301 g/t in 14 of 21 grab samples, with 21,600 g/t in one grab. The veins appear to be barren of uranium, but can contain significant concentrations of Cu, Pb, and Zn. Mineralization and veins are exposed over 65 m strike length, with a width of approximately one metre. To date, only one discontinuous high-grade Ag vein has been identified, but it is situated at the end of a 1 km long VLF-EM conductor which could host additional Ag and polymetallic veins. A single 80 m long inclined drill hole (11-AG-001) tested the western end of the VLF-EM conductor with no significant results.

Force

The Force area, located in the central part of the Angilak property, straddles a major northeast trending fault zone which cuts through Archean basement gneisses and Proterozoic ultrapotassic intrusions. Prospecting in 2010 and 2011 has identified U-Cu-Pb-Ag veins in outcrop and subcrop at two main zones 200 m apart along this fault zone. Three additional grab samples collected in 2011 confirm high grades identified in 2010, with the best assaying 20.00% U₃O₈, 12.70% Cu and 107.0 g/t Ag. Due to difficult ground conditions, only two of four RC test holes were completed to depth. No significant radioactivity was intersected in either hole, however favourable geophysics, geology, high grade boulders and significant Quaternary cover suggest further work is warranted.

Taluaq

In late summer, prospectors investigated a prominent 2 km by 10 km magnetic geophysical feature just north of the Angilak property boundary. Ten claims were staked over this ovoid signature which could represent a large, high-level subvolcanic intrusion with associated mineralization. Follow-up work resulted in the discovery of disseminated and stockwork base metal mineralization in syenitic boulders and outcrop, now named the “Taluaq” zone. Assay results from 4 grab samples have elevated concentrations of Cu (0.06%-0.69%), Pb (0.14%- 4.95%), Zn (0.04%-3.3%), and Ag (1.2-110 g/t). Although no uranium was encountered, only a fraction of the magnetic anomaly has been investigated and future work will focus on assessing the uranium and REE potential, as well as polymetallic mineralization in the syenitic intrusion.

VGR and YAT

The VGR zone is a 5 kilometre long conductive trend along a reactivated basement fault, displaying elevated radioactivity and favourable clay-silica alteration along its length. Several significant showings discovered along the VGR trend in 2010 were revisited in 2011, including the highly prospective VGR fault system itself. The VGR trend hosts a 3 to 7 m wide, steeply‐dipping carbonate/hematite veins and fractures containing uranium and sulphide mineralization in trachyandesite. Prospecting to the southwest along strike of the main VGR showing identified additional areas of alteration and uranium mineralization with values up to 3.75% U₃O₈, extending the known mineralized trend to 4 km strike length. A gravity survey completed in 2011 shows the presence of at least one significant gravity low along the structure, possibly associated with clay alteration of underlying lithologies. Four RC test holes on the main VGR showing returned promising results, with elevated radioactivity (5000 to15000 cps on a Mt. Sopris downhole radiometric probe) in the upper 65 m of one hole. The area remains very prospective for unconformity-style uranium mineralization and is a high priority drill target for 2012

The YAT zone is located 16 kilometres southwest of Lac Cinquante and central to the Angilak property. The VGR zone is situated on the west side of the property approximately 25 kilometres northwest of the resource area. Both zones are of great interest due to similarities with “unconformity related” targets.

YAT is a zone of significant polymetallic carbonate veining on surface, containing Cu, U, Pb, Au, Ag, (See Kaminak Gold Corporation news release November 5, 2007), developed above a strong magnetic low, and interpreted basement faults. A 2011 gravity survey indicates a broad zone of weak low gravity with at least one significant “bullseye” gravity low. Two of four RC drill holes tested the “bullseye” gravity low, suggesting that it is caused by strong clay alteration of underlying lithologies down to at least 50 metres vertical depth.

Based on the encouraging results of RC drilling, the YAT and VGR showings warrant follow-up with diamond drilling in 2012. In both areas, low gravity signatures correspond to areas of strong clay and silica alteration, possibly associated with reactivated basement structures. Mineralized surface showings at YAT and VGR are found in clastic and volcanic rocks of the Kazan and Christopher Island Formations, which overlie Archean basement in an unconformable relationship. The geology and mineral occurrences observed in these areas are comparable to high level alteration associated with unconformity-type mineralization in the Athabasca Basin of Saskatchewan. As such, both are considered highly prospective for uranium mineralization near the basement-cover interface. None of the RC holes completed in 2011 intersected the unconformity contact below these showings, thus these zones warrant further drill-testing in 2012.

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2010 Prospecting Results

Click here to view the News Release from December 16, 2010

Updated News on Angilak Project

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** The quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin Corporation in 1986, and referenced by other subsequent sources. It was prepared prior to the implementation of National Instrument 43-101 (NI 43-101) and should not be relied upon since it does not comply with NI 43-101 Standards of Disclosure for Mineral Projects. A Qualified Person has not classified the historical estimates as current mineral resources or reserves, and therefore, Kivalliq is not treating them as such. Kivalliq has not completed any work to verify these estimates, but ongoing exploration programs are designed to evaluate the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being classified a mineral resource or reserve. However, the historical uranium resource estimate is relevant because: it is indicative of a mineralized zone worthy of follow-up exploration as it is based on drilling and surface exploration carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. Historic estimates were originally classified as “indicated” and “inferred” reserves, plus a third “possible” category; however, the equivalent categories acceptable under NI 43-101 are not known at this time.