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With impressive assay results in hand from both the Western and Eastern Extensions of the Lac Cinquante deposit, in Nunavut, Canada, Kivalliq Energy (TSXV: KIV) should be able to table a much larger uranium resource in its next NI 43-101 update.
Of the 54 holes drilled into the Western Extension this past season, assay results were released from 30 holes. The Western Extension has been drill-tested over a strike length of 550 meters and mineralization is very similar to that found at Lac Cinquante, located 450 meters to the west, and along strike.
Assay results were also released from 24 of 44 holes from the Eastern Extension, located 400 meters along strike and east of the high-grade Lac Cinquante uranium deposit. The Eastern extension has also been tested over a strike length of 550 meters.
Lac Cinquante currently hosts a NI-43-101 compliant resource containing 14.15 million lb of uranium ; it is 1,300 metres long and has been defined by 122 drill holes. The average grade is 0.79% U3O8.
Rio Tinto recently offered an all-cash, $578-million bid for Hathor Exploration (TSX:HAT) and its world-class Roughrider uranium project in Saskatchewan’s Athabasca Basin. The offer values Hathor at $4.15 a share, an 11% improvement over rival bidder Cameco’s unsolicited hostile offer of $3.75 in cash.
Hathor has outlined resources on two zones of mineralization; the West zone and the East zone which together contain about 57 million lb of contained U3O8 averaging between 1.98% U3O8 and 11.58% U3O8. The deposit still remains open for expansion.
The Hathor takeover works out to a valuation of about $10 per lb of U3O8 in the ground. Even though the grades and infrastructure at the Roughrider deposit are much better when compared with Killaviq’s Lac Cinquante resource, this takeover underscores the desire that the Majors have for uranium resources.
It is not unreasonable to speculate that Kivalliq Energy could potentially add significant uranium resources to its balance sheet when it tables its updated resource estimate during the first quarter of 2012. The property also hosts numerous other promising targets that indicate there is still more uranium to be discovered. The Majors are on the hunt for quality resources, hence the recent Hathor takeover. If Kivalliq continues to expand its resource base, it may share a similar fate as Hathor.
Thomas Schuster, Analyst Bio:
With a degree in Geological Sciences from the University of Toronto, Thomas started his career in the 1990s as an exploration geologist in the famous Timmins mining camp in Northern Ontario. He then moved to Vancouver and took a position as staff Journalist at the well-known mining publication, The Northern Miner, reporting the merits and shortcomings of Canadian exploration and mining projects worldwide. This built a foundation for his later work as a Mining Analyst for the Toronto-based institutional investment firm, Fraser Mackenzie. Thomas is currently based in Vancouver working as an independent mining analyst.
Disclosure: No positions at time of writing.
Kivalliq Energy Corporation is a client of Dig Media. Dig Media was paid a fee for the creation and dissemination of this commentary.
Kivalliq Energy Corporation: First High Grade Assays Reported From New Eastern Extension Zone
Kivalliq Energy Corporation (TSX VENTURE:KIV) (the “Company” or “Kivalliq”) today provided assay results from diamond drilling at the Eastern Extension, located 400 metres along strike and east of the high grade Lac Cinquante uranium deposit, located within the 225,000 acre Angilak Property in Nunavut, Canada. Assay results disclosed in this release are from the first 24 of 44 holes drilled in total at the Eastern Extension.
Read the full article: “Kivalliq Energy Corporation: First High Grade Assays…”
Kivalliq Energy Corporation: Additional High Grade Assays Received From Western Extension Drilling
Kivalliq Energy Corporation (TSX VENTURE:KIV) (the “Company” or “Kivalliq”) today provided assay results from diamond drilling at the Western Extension, located 450 metres along strike and west of the high grade Lac Cinquante uranium deposit.
Read the full article: “Kivalliq Energy Corporation: Additional High Grade…”