Nunavut Tunngavik’s uranium partner reports new “radioactive zone”

This map shows the location of the Kivalliq Energy Corp.’s uranium-rich Angilak property.

The Kivalliq Energy Corp. said July 21 that it has identified a highly radioactive zone, the “Lac Cinquante Western Extension,” during diamond drilling at the Angilak property located 350 kilometres west of Rankin Inlet.

The company’s property includes about 250,000 acres of federal and Inuit-owned land consolidated into a single package, known as the “Angilak” property.

And it hosts a known, previously explored uranium deposit called Lac Cinquante, which is believed to contain 11.6 million pounds of uranium ore with a grade of about one per cent uranium.

Kivalliq Energy Corporation’s website notes it was the first company in Canada to sign a comprehensive agreement with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands.

Under the agreement, Nunavut Tunngavik Inc. is able to acquire 25 per cent of the company.

Kivalliq Energy Corp. has already started paying NTI $50,000 a year in advance royalty payments.

Should the project create a money-making mine, the company would pay NTI a 12 per cent royalty on the value of the uranium extracted.

And if the company finds a proven resource of at least 12 million pounds of uranium, they’ll pay one million dollars to NTI.

No royalties from the project will flow to government. That’s because NTI is the legal land-owner.

The company, formed out of a 2008 deal between NTI and the Kaminak Gold Corp., is now conducting an “aggressive” exploration on the Angilak property.

This year Kivalliq’s board of directors approved a two-phased, $17 million exploration program at Angilak.

Since acquiring the Angilak property in 2008, the company has invested approximately $12 million conducting systematic exploration, including, ground and airborne surverys, geological mapping, prospecting and 18,350 metres of drilling.

This year’s exploration activities started in March 2011 with the mobilization of crews and equipment to the existing Nutaaq camp.

To date, this year 2707 metres of drilling in 17 diamond drill core holes have tested the Lac Cinquante Western Extension Zone.

Meanwhile, the Government of Nunavut, which owns no mineral rights and has no direct authority over mining, plans to produce a draft policy in uranium mining this fall.

NTI also announced earlier this year that they will review the organization’s existing uranium policy, which dates back to the fall of 2007 and expresses conditional support for uranium mining on Inuit lands.

Those conditions include guarantees that Nunavut uranium be used for peaceful purposes only and that Inuit gain the maximum benefit from such mining projects.

NTI’s review will take into account its existing legal obligations, which include land lease and other agreements with mineral exploration firms.