VANCOUVER, BRITISH COLUMBIA, Jun. 24, 2010 -- Kivalliq Energy Corporation (TSX VENTURE:KIV) (the "Company" or "Kivalliq") today announced final assays for its 2010 Phase 1 drill program, totalling 2,375 metres in 13 holes, at the Lac Cinquante Uranium Deposit located in Nunavut, Canada. Ten of the 13 holes intersected significant uranium mineralization. Hole 10-LC-003 had the widest and highest grade drill intercept to date, assaying 0.70% U3O8 over 13.98 metres (estimated true width of 7.69 metres), including 1.22 metres at 4.68% U3O8. In addition, step out hole 10-LC-013 identified a new zone 500 metres west of the deposit, assaying 0.21% U3O8 over 1.96 metres.
Phase 1 Drilling Highlights(i)
-- Drill Hole 10-LC-003 - 13.98 metres grading 0.70% U3O8
-- including - 1.22 metres grading 4.68% U3O8
-- Drill Hole 10-LC-005 - 2.11 metres grading 2.06% U3O8
-- Drill Hole 10-LC-011 - 2.78 metres grading 0.84% U3O8
-- Drill Hole 10-LC-007 - 1.02 metres grading 2.68% U3O8
-- Drill Hole 10-LC-006 - 0.50 metres grading 2.90% U3O8
(i)Down-hole intercepts
"Since Kivalliq's first drill program in 2009, we have an impressive drilling success rate of over 85%," stated John Robins, President & CEO. "Our team has dramatically increased the potential at Lac Cinquante by intersecting uranium mineralization at a new zone 500 metres west along trend from the historic deposit, and by drilling the highest grades and widest intercepts to date within the historic resource area."
Phase 1 Overview
The Lac Cinquante "main zone" is described as a vein-type uranium deposit occurring within a near vertical alteration/structural zone, over a strike length of one kilometre and extending from surface to a depth of 250 metres. All Phase 1 holes were inclined to the northeast and intersected the Lac Cinquante main zone between 65 and 230 metres depth. To determine geological controls, holes 10-LC-001 through 10-LC-009 focused on 25 metre infill drilling within the eastern portion of the historic resource area. Holes 10-LC-010 through 10-LC-012 were drilled at the western end of the historic resource, along a fence 50 metres west and down plunge of uranium mineralization encountered in holes 09-LC-012 and 09-LC-013 drilled last year.
Step-out hole 10-LC-013 was collared 650 metres west of 10-LC-012. This hole tested a geophysical response along trend and has identified a new zone of Lac Cinquante-style mineralization, approximately 500 metres west of the known historic resource area.
Assay results for 10 of the 13 Phase 1 drill holes, totalling 2,375 metres, are presented in the Table 1 below. These are best reviewed with the accompanying drill collar information, plan map and drill sections posted at: www.kivalliqenergy.com.
Table 1: 2010 Assay Results - Lac Cinquante Drill Program---------------------------------------------------------------------------
2010 Phase 1 Lac Cinquante Drilling Program - Final Results(i)
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Interval
Drill Hole From (m) To (m) (m)(ii) U3O8 % Description
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10-LC-002 118.26 118.56 0.30 0.21 East LC Main Zone
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10-LC_003 134.52 148.50 13.98 0.70 East LC Main Zone
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including 139.78 141.00 1.22 4.68 East LC Main Zone
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10-LC-004 164.83 165.20 0.37 0.44 East LC Main Zone
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180.22 180.52 0.30 0.16 East LC Main Zone
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10-LC-005 180.27 182.38 2.11 2.06 East LC Main Zone
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10-LC-006 207.72 208.22 0.50 2.90 East LC Main Zone
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10-LC-007 169.66 170.68 1.02 2.68 East LC Main Zone
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10-LC-009 242.30 242.60 0.30 0.42 East LC Main Zone
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10-LC-011 170.35 173.23 2.88 0.82 West LC Main Zone
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10-LC-012 153.00 153.37 0.37 0.90 West LC Main Zone
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10-LC-013 104.94 106.90 1.96 0.21 Step out 500m West LC
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(i) All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1
results greater than 1000 ppm uranium subject to SRC U3O8 Assay
Full intervals include ICP U analysis in ppm converted to U3O8%.
Conversion to U3O8% = ppm x 0.01179%
(ii) Drilled interval - true widths are not known. Estimated true widths
for the mineralized zones are approximately 76% of the drilled interval
widths reported, with the exception of hole 10-LC-003 which is
estimated at 55% drilled interval
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