January 12, 2012

Vancouver, B.C. - Kivalliq Energy Corporation (KIV: TSX-V)  (the "Company" or "Kivalliq") today announced results from the 2011 summer prospecting program at the 225,000 acre Angilak Property in Nunavut, Canada. 273 prospecting samples were collected in priority areas across the property with highlights and a summary of results disclosed herein.

"The number of new, high-grade mineral showings identified by Kivalliq's prospecting team in 2011 highlight the polymetallic nature of mineralization on the Angilak Property," stated Kivalliq's President, Jeff Ward, P. Geo. "The 2011 prospecting program has increased our confidence in the district scale  potential of Angilak, and has provided us with excellent drill targets for 2012."

2011 Prospecting Program Highlights

  • 273 rock samples collected, with 10% (27 samples) exceeding 1% U3O8, along with multiple samples containing significantly anomalous  silver (Ag), copper (Cu), and (Pb) lead values
  • "BIF" Zone - High-grade U-Cu-Mo-Ag veins sampled along a 3 km shear zone and geophysical trend
  • "AG" Showing - 21,600 g/t Ag (626.4 oz/ton) assay from a native silver occurrence discovered in subcrop
  • "Taluaq" - New claims staked to secure a prominent 2 km by 10 km ovoid magnetic feature with initial samples showing polymetallic potential
  • VGR mineralized geophysical trend was extended to 4 km in strike length

Highlights from Assays

  • 20.00% U3O8, 107.0 g/t Ag, 12.70% Cu, 5.02% Pb - (Sample 1828) Force
  • 23.80% U3O8, 114.0 g/t Ag, 0.81% Cu, 5.90% Pb, 0.58% Mo - (Sample 1839) BIF Zone
  • 16.00% U3O8, 321.0 g/t Ag, 5.38% Pb, 0.76% Mo - (Sample 1860) BIF Zone
  • 30.30% U3O8, 163.0 g/t Ag, 5.16% Cu, 22.90% Pb - (Sample 1983) BIF Zone
  • 21,600 g/t Ag; 301.0 g/t Ag, 1.16% Cu - (Samples 1801 and 1802) AG Showing

For maps of priority areas from Kivalliq's prospecting programs and a table of key results, please visit   

2011 Prospecting Program

A prospecting crew was active for 3 months between June and September, mapping and collecting grab samples from outcrop, subcrop and glacial float across the Angilak property. This work was able to advance existing high priority areas and identify several new mineralized zones on the property. Of the 273 grab samples collected, 163 are considered to represent in-situ bedrock sources, with the remaining 110 samples taken from cobbles and boulders found in glacial till. In addition, 10% (27 samples) returned assays in excess of 1% U3O8, with many having significant silver, copper, molybdenum, lead and zinc values.

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. A map of the BIF zone is available at
Highlight samples from the BIF Zone:

  • 30.30% U3O8, 163.0 g/t Ag, 5.16% Cu, 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

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