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SOURCE: Kivalliq Energy Corporation
News Room
May 08, 2017 07:00 ET
Kivalliq Acquires Prospective Gold District on Baffin
Island, Nunavut
VANCOUVER, BC--(Marketwired - May 08, 2017) - Kivalliq Energy Corporation (TSX
VENTURE: KIV) ("Kivalliq") today announced the acquisition of a dominant land position in
one of the largest undeveloped greenstone-iron formation gold belts in Nunavut, Canada.
This land package, totalling 408,981.6 hectares and covering 160 kilometres of the Foxe Fold
Belt on central Baffin Island, comprises a Mineral Exploration Agreement (MEA) with Nunavut
Tunngavik Inc. (NTI); the acquisition of 15 prospecting permits; and a transaction with
Commander Resources Ltd. (Commander).
Baffin Gold Acquisition Highlights:
Large land position with exclusive control of one of the largest undeveloped greenstone
belts in Canada
Covers a strongly mineralized gold system hosting known high-grade gold occurrences
in multiple geological settings: iron formation, shear zones, quartz veins, metasediments
and metavolcanics
Over $25 million* of exploration data and extensive geoscience databases from BHP-
Billiton, Falconbridge, Commander Resources and AngloGold Ashanti exploration
programs performed between 2001 and 2011 (*based on publicly disclosed reports)
An existing camp, tidewater access and two 1,200 m DEW Line airstrips will help to
accelerate future work programs and potential development
Only 158 drill holes to date (<150 m depth) along entire belt, focused mostly on four
prospects
61% of historic drill holes returned weighted assay intervals of > 1.0 g/t Au over 1.0
metre;
Best three drill intercepts to date:
21.3 g/t Au over 4.2 m,
10.2 g/t Au over 4.5 m, and
9.2 g/t Au over 6.0 m
22.3% of historic surface rock samples taken were > 0.5 g/t Au, including 1388 g/t Au;
Best three channel samples to date:
373.9 g/t Au over 0.49 m,
241.3 g/t Au over 0.25 m, and
173.0 g/t Au over 0.46 m
Low acquisition costs (Prospecting permits and IOL Agreements)
"With the acquisition of the Baffin Gold project in Nunavut Territory, we have strengthened
our relationship with NTI and we now hold an entire district with proven gold potential,"
stated Kivalliq Energy CEO Jim Paterson. "Our team will benefit greatly from the significant
exploration expenditures from previous operators, which generated extremely high-grade
gold numbers at exploration targets that also exhibited potential for significant size and
scale. We feel the combination of the Baffin Gold project's key attributes, including: low entry
cost; high potential for discovery and expansion of known gold zones; in a mining friendly
jurisdiction, make this a highly valuable acquisition for the shareholders of Kivalliq. Our group
has multi-decades of experience running successful northern projects and the Baffin Gold
Property is a great addition to the Kivalliq portfolio."
HIGHLIGHTED LINKS
Kivalliq Energy Corporation
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The Baffin Gold Property is a district-scale land package covering an entire Proterozoic gold
belt having geological and structural similarities to multi-million ounce gold mines in the
north (i.e. Meadowbank, Lupin) as well as the prolific Homestake Mine in South Dakota.
Previous exploration has identified numerous prospects along 140 kilometres of strike length,
with high-grade gold occurring in multiple settings: silicate and sulphide iron formation; shear
zones and quartz veins hosted in granodiorite, metavolcanics and metasediments.
The Baffin Gold Property is comprised of consolidated mineral tenure located approximately
230 kilometres southwest of the community of Clyde River on Baffin Island, in the Qikiqtani
region of Nunavut. This property comprises fifteen prospecting permits, six crown mineral
claims and three Inuit Owned Land parcels subject to MEA's with NTI.
Previous Exploration
Prior to 2001, exploration and mapping in central Baffin Island focused on base metals.
Between 2000 and 2003, the Geological Survey of Canada mapped the western half of the
Piling Group and, while no new mineral occurrences were documented, they recognized the
area was prospective for several types of mineralization including: zinc-lead in platform
carbonates; nickel, copper, cobalt and platinum in layered mafic-ultramafic sills; tin in
pegmatitic rocks; and gold in close association with the Bravo Lake ("BLF") and Longstaff
Bluff ("LBF") Formations.
Gold was first discovered by BHP Billiton and Falconbridge in 2001 during base metal
exploration programs, and by 2003 Commander had optioned or staked a large land
package similar to Kivalliq's current Baffin Gold Property boundaries. Between 2003 and 2009
Commander operated seasonal field exploration programs costing about $18 million that
included: 158 diamond drill holes (19,083 m); two airborne geophysical surveys (GEOTEM
and DIGHEM V); four ground geophysical surveys; 2,700 till and soil samples; 4,623 rock
(channel and grab) samples. Between 2009 and 2011, AngloGold Ashanti optioned the
property and conducted one season of drilling and ground IP surveying.
To date, prospecting, mapping and geophysics, followed by drilling, have been very
successful in discovering new, high-grade gold zones hosted in a variety of geological
settings within the BLF. Most of the drilling completed to date was within 150 metres of
surface and focused on following-up surface gold prospects at Malrok (7,221m in 59 holes),
and Ridge Lake (7,124m in 67 holes) with limited exploratory drilling at Kanosak (1,960m in 13
holes), Durette (1,784m in 11 holes), and Brent (995m in 8 holes). For tables listing highlights
of historic drill hole intercepts and surface sample results, please see:
http://www.kivalliqenergy.com/
Foxe Fold Belt - Bravo Lake Formation
The Foxe Fold Belt (FFB) is a Proterozoic supra-crustal sequence characterized by upper
greenschist to amphibolite facies metamorphism and complex poly-phase deformation. The
Baffin Gold Property is centered on the Bravo Lake Formation (BLF), an east-west trending,
metavolcanic-sedimentary belt located along the southern edge of Piling Group rocks within
the FFB. Prospective gold-bearing zones within the Bravo Lake formation are generally
shallow dipping and extend 140 kilometres inland from tidewater into central Baffin Island.
High-grade gold occurrences have been identified in three separate iron formation units,
within quartz veins in volcanic and sedimentary units of the BLF; and in shear zones within
younger intrusions. At least three structural settings controlling gold mineralization have been
identified to date:
1. Intersections between permissive stratigraphy and secondary structures;
2. Stratabound permeability (fracturing/veining) due to strain partitioning; and,
3. Shear and fault zones.
Gold occurs primarily as free gold, associated with arsenopyrite and disseminated within
quartz veins. Petrographic work indicates a strong, mineralizing system having either two
mineralizing events or a protracted period of gold mineralization.
Kivalliq Exploration Priorities
The Kanosak, Ridge, Malrok, and Durette zones are the most advanced prospects within the
BLF and represent the range of mineralization and structural analogues within the BLF. These
will help guide future exploration programs covering the rest of the property.
Kivalliq exploration efforts will target near surface gold in BLF iron formation, greenstone-
metasediment hosted quartz veins, similar to other gold deposits in the Nunavut and
Northwest Territories, and particularly the prolific Proterozoic aged Homestake Mine in South
Dakota. Exploration priorities include an immediate review, compilation and reinterpretation
of all geological and exploration data, to develop integrated structural, geophysical and
geochemical models targeting the untapped potential of this extremely prospective gold
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belt. Final plans and budgets for the Baffin Gold Property will be disclosed after a review of
existing data has been completed.
Initial field work being planned for the summer of 2017 will systematically explore the BLF
gold belt and ground truth newly developed models. The program will infill earlier datasets
and prioritize un-sourced gold anomalies in till, soil and boulders. Future drilling will further
assess known prospects, new structural targets, untested areas of outcropping mineralization
and blind targets in covered areas based on till geochemistry and geophysics.
Terms of the Commander Baffin Gold Property Option
As part of Kivalliq's consolidation of mineral tenure in the Qikiqtani Region, Kivalliq has,
subject to receipt of all necessary approvals, acquired an option to earn 100% of
Commander's Baffin Gold Property which includes 6 mineral claims (5,948 hectares) and a
recently signed MEA with NTI on two blocks within Inuit Owned Lands (8,105 hectares).
Upon execution of, and pursuant to the terms of the Baffin Gold Property Option Agreement:
Commander will receive a cash payment of C$10,000;
Commander will receive an aggregate of 500,000 Kivalliq shares within 12 months;
Kivalliq will fulfill Commanders obligations to NTI for Year 1 under the MEA on IOL BI-
35;
Commander will receive 500,000 Kivalliq shares at a Bankable Feasibility Study;
Commander will receive a cash payment up to $6 million upon commencement of
Commercial Production;
Commander will retain a 0.25% to 0.5% NSR royalty on Commander's Baffin Gold
Property optioned lands;
As part of a data purchase agreement, Kivalliq will grant Commander a 0.25% NSR
royalty on Kivalliq's Baffin mineral tenures adjacent to Commander's Baffin Gold
Property optioned lands; and
Terms of the Baffin Gold Property Option Agreement may be adjusted up until the date
of any first royalty payment to reflect the possible impact of any past commercial
agreements or interests.
Terms of MEA's on Inuit Owned Land with Nunavut Tunngavik Inc.
Three parcels within Kivalliq's Baffin Gold Property are subject to Mineral Exploration
Agreements (MEA's) with NTI, granting exclusive rights to explore for, develop and mine
minerals on approximately 72,638 hectares of IOL parcel BI-35 on Baffin Island in the
Qikiqtani Region of Nunavut.
Under terms of the MEA's on IOL RI-35, NTI will receive:
Annual fees and exploration work commitments;
$1 million and $5.5 million cash payments upon demonstrating NI 43-101 compliant
Measured Resources of 1 million and 5 million ounces gold respectively;
$3 million and $5 million cash payments with the commencement of a Feasibility Study
and at Commercial Production respectively;
$50,000 annual advanced royalty payments after both a Measured Resource of 1 million
ounces gold and a positive Feasibility Study is attained; and
At Commercial Production, an underlying 12% net profits royalty payable on exploration
areas (deductions not to exceed 70% of gross revenues)
For Baffin Gold Property maps and tables please visit our website:
http://www.kivalliqenergy.com/
QA/QC
Kivalliq has not performed any exploration on the Baffin Gold Property to date. Exploration
results by Commander and previous explorers reported herein are historic in nature and
although not verified by Kivalliq, this work was carried out by knowledgeable explorers using
acceptable industry practices at the time. 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.
About Kivalliq Energy Corporation
Kivalliq Energy Corporation (TSX VENTURE: KIV) is a Vancouver-based company with a
portfolio of high-quality uranium and precious metal exploration projects in Canada. In
addition to the new Baffin Gold Property, Kivalliq holds Canada's highest-grade uranium
resource outside of Saskatchewan. The Company's flagship project, the 89,852 hectare
Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred
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Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8.
Kivalliq's comprehensive exploration programs continue to demonstrate the "District Scale"
potential of the Angilak Property. For disclosure related to the inferred resource for the Lac
50 Trend uranium deposits, please refer to Kivalliq's news release of March 1, 2013.
In Saskatchewan, Kivalliq holds a 100% interest in the 13,711 hectare Hatchet Lake Property
adjacent to the north-eastern margin of the highly prolific uranium-producing Athabasca
Basin. Compilation of results from previous exploration by Hathor Exploration Limited and
Rio Tinto have identified multiple, priority unconformity-related basement targets at Hatchet
Lake that were followed up in 2015.
Kivalliq also holds a 100% interest in the 131,412 hectare Genesis Property located northeast
of Saskatchewan's Athabasca Basin, with Roughrider Exploration Limited funding the current
exploration program pursuant to an option to acquire up to an 85% interest in the property.
This highly prospective project is located along the Wollaston-Mudjatik trend and extends 90
kilometres northeast from Wollaston Lake to the Manitoba border.
Kivalliq's team of northern exploration specialists has forged strong relationships with
sophisticated resource sector investors and partner Nunavut Tunngavik Inc. (NTI) on both the
Angilak and Baffin Gold Properties. 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.
On behalf of the Board of Directors
"Jim Paterson"
James R. Paterson, CEO
Kivalliq Energy Corporation
For further information about, Kivalliq Energy Corporation or this news release, 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 Discovery Group of Companies, for more
information please visit: www.discoverygroup.ca.
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. 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.
CONTACT INFORMATION
Kivalliq Energy Corporation
www.kivalliqenergy.com
Investor Relations
1.888.331.2269
604.646.4527