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Technical Report and Resource Update for the Angilak Property, Kivalliq Region, Nunavut, Canada

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Technical Report and Resource Update for the Angilak Property, Kivalliq Region, Nunavut, Canada Technical Report For The Angilak Property Kivalliq Region, Nunavut, Canada NTS 65 J/06, J/09, J/10, J/11 and J/15 Technical Report And Resource Update For The Angilak Property, Kivalliq Region, Nunavut, Canada Property Location Centre: Latitude 62o 34’ 33”N Longitude 98o 41’ 41” W Kivalliq District, Nunavut Prepared For: Kivalliq Energy Corporation Suite 1020, 800 West Pender Street Vancouver, British Columbia, Canada V6C 2V6 Prepared By: APEX Geoscience Ltd.1 Suite 200, 9797 – 45th Avenue Edmonton, Alberta, Canada T6E 5V8 SIM Geological Inc.2 6810 Cedarbrook Place, Delta, British Columbia, Canada V4E 3C5 BD Resource Consulting Inc.3 4253 Cheyenne Drive, Larkspur, Colorado, USA 80118 March 1st, 2013 Michael Dufresne, M.Sc., P.Geol.1 Edmonton, Alberta, Canada Robert Sim, P.Geo.2 Bruce Davis, Ph.D., FAusIMM3 Technical Report For The Angilak Property Kivalliq Region, Nunavut, Canada TABLE OF CONTENTS 1.0 SUMMARY ........................................................................................................................................ 1 2.0 INTRODUCTION ................................................................................................................................ 6 3.0 RELIANCE ON OTHER EXPERTS ......................................................................................................... 7 4.0 PROPERTY DESCRIPTION AND LOCATION ........................................................................................ 8 5.0 ACCESSIBILITY, LOCAL RESOURCES, INFRASTRUCTURE, CLIMATE AND PHYSIOGRAPHY .............. 14 5.1 INTRODUCTION ........................................................................................................................... 14 5.2 SHORT‐TERM ACCESS AND INFRASTRUCTURE ........................................................................... 14 5.3 LONG‐TERM ACCESS AND INFRASTRUCTURE ............................................................................. 15 5.4 CLIMATE AND PHYSIOGRAPHY .................................................................................................... 15 6.0 HISTORY ......................................................................................................................................... 16 6.1 INTRODUCTION ........................................................................................................................... 16 6.2 HISTORIC DRILLING ..................................................................................................................... 19 6.3 HISTORIC MINERAL RESOURCE ................................................................................................... 19 7.0 GEOLOGICAL SETTING AND MINERALIZATION .............................................................................. 20 7.1 REGIONAL GEOLOGY ................................................................................................................... 20 7.2 LOCAL GEOLOGY ......................................................................................................................... 23 7.3 ANGILAK PROPERTY LITHOLOGIES .............................................................................................. 28 Archean Basement ......................................................................................................................... 28 Hudsonian Granitoid Intrusions ..................................................................................................... 29 Helikian Paleosurface Breccia (Unconformity Surface) ................................................................. 29 Baker Lake Group (Dubawnt Supergroup) ..................................................................................... 29 South Channel Formation (SCF) ..................................................................................................... 30 Kazan Formation (KF) ..................................................................................................................... 30 Christopher Island Formation (CIF) ................................................................................................ 31 Syenite, Lamprophyre, and Carbonatite (CIF) ............................................................................... 32 7.4 MINERALIZATION ........................................................................................................................ 32 8.0 DEPOSIT TYPES ............................................................................................................................... 34 8.1 BEAVERLODGE‐TYPE URANIUM DEPOSITS ................................................................................. 34 8.2 IRON OXIDE COPPER GOLD (IOCG) DEPOSITS ............................................................................. 34 8.3 UNCONFORMITY RELATED URANIUM DEPOSITS ........................................................................ 35 8.4 UNCONFORMITY RELATED BANDED IRON FORMATION URANIUM DEPOSITS .......................... 35 8.5 CARBONATITE‐RELATED DEPOSITS ............................................................................................. 36 8.6 RED BED COPPER DEPOSITS ........................................................................................................ 37 8.7 ARCHEAN MESOTHERMAL GOLD AND VMS DEPOSITS............................................................... 37 APEX Geoscience Ltd. Page i Effective Date: March 1, 2013 Technical Report For The Angilak Property Kivalliq Region, Nunavut, Canada 8.8 DIAMONDS .................................................................................................................................. 38 9.0 SURFACE EXPLORATION ................................................................................................................. 38 9.1 KIVALLIQ SURFACE EXPLORATION 2008 TO 2011 ....................................................................... 38 9.2 KIVALLIQ SURFACE EXPLORATION 2012 ..................................................................................... 40 9.3 2012 CONDOR GEOPHYSICAL REVIEW AND INTERPRETATION .................................................. 40 9.4 2012 GROUND GEOPHYSICAL SURVEYS ...................................................................................... 41 MEG Systems Ltd: Gravity Surveys ................................................................................................ 41 Aurora Geosciences Ltd.: Magnetic, VLF‐EM and Resistivity Surveys ........................................... 43 Frontier Geosciences Inc: Seismic Survey ...................................................................................... 48 Kivalliq Energy Corp: Radiometric Surveys .................................................................................... 49 9.5 GEOLOGICAL MAPPING, PROSPECTING AND ROCK SAMPLING ................................................. 53 Central/Western Gneissic Belt ....................................................................................................... 55 Volcanic Block ................................................................................................................................ 58 Southeastern Compression Zone ................................................................................................... 59 10.0 DRILLING ........................................................................................................................................ 59 10.1 INTRODUCTION .......................................................................................................................... 59 10.2 KIVALLIQ DRILLING 2009 TO 2011 .............................................................................................. 60 10.3 2012 DIAMOND DRILLING ........................................................................................................... 65 10.4 2012 LAC CINQUANTE DEPOSIT DIAMOND DRILLING ............................................................... 66 10.5 2012 RECONNAISSANCE DIAMOND DRILLING ........................................................................... 69 J4 Zone ........................................................................................................................................... 74 Ray Zone ......................................................................................................................................... 75 Pulse Zone ...................................................................................................................................... 75 Nine Iron Trend .............................................................................................................................. 77 Flare Zone ...................................................................................................................................... 77 Spark Zone ..................................................................................................................................... 78 J2E Zone ......................................................................................................................................... 78 OHM Conductor ............................................................................................................................. 78 10.6 2012 RC DRILLING ...................................................................................................................... 78 Lac Cinquante ................................................................................................................................
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