TSX.V:REL $0.07


Target Areas and Summary

The Genesis property is largely situated within the same lithostructural corridor that hosts the Collins Bay, Eagle Point, Rabbit Lake, and Raven-Horseshoe deposits. As such, it holds considerable potential for undiscovered basement-hosted uranium mineralization. Through examination of historical assessment reports and compilation of available data, eight priority areas of interest were selected as having strong potential for structurally-hosted uranium mineralization. Selection was based on historic mineralization, geology, geochemistry and structural settings, as well as available data and targets untested by previous explorers. Currently, the most attractive targets areas are Gillies Island, Jurgen Lake, Burrill Bay, Kingston Lake, and Johnston Lake. Sava Lake, Waspison Lake, and Melnick Lake areas are considered lower-priority at this time, nonetheless display attractive features such as high uranium in lake-sediment values or favourable structures that are worthy of follow-up investigation. Before initiating the first season of field work, Kivalliq will continue desktop analysis over the entire property to determine which trends (geochemical, structural etc) are most likely associated with subsurface uranium mineralization. Proposed field work for the 2014 season includes airborne geophysics (Mag/EM, Radiometrics), ground geophysics where warranted (Mag/EM, IP, Resistivity), soil and lake-sediment geochemical sampling, geological mapping, and prospecting. Due to the large number of potential targets on the Genesis property, the emphasis will be to advance drill targets in priority areas first. These targets will be ranked using a combination of new geophysical data, plus favourable lithologies and fault orientations, high soil and lake-sediment geochemical values, and any U-bearing metasedimentary boulder trains. Those targets displaying two or more of these features will be considered as strong candidates for future drilling.

The maps below show results of an integrated analysis of fixed-wing Falcon Airborne Gravity Gradiometer (AGG) and total field magnetic surveys undertaken over select areas of interest at the Genesis Property uranium project in northeast Saskatchewan. The analysis work was undertaken by Condor Consulting Inc. ("Condor"), recognized experts in the field of integrated exploration.

A total of twenty gravity targets were identified and prioritized based on the integration of the 2016 AGG data with results from a 2015 compilation by Condor of electromagnetic, magnetic, radiometric, geochemical, biogeochemical and geological data sets. The majority of the gravity targets were identified in the Jurgen and Johnston areas, with nine and seven targets respectively.

Gravity targets, including the two highest priority targets, are spatially associated with the Jurgen 1 and Jurgen 2 target zone corridor where previous work has identified anomalous uranium soil geochemistry, biogeochemistry, boulder samples and radiometrics coincident with multiple electromagnetic conductor trends.

Johnston Lake

Johnston Lake Johnston Lake is located approximately 24 km SE of Kingston Lake on the Manitoba border. The area comprises strongly folded pelitic gneiss, psammite/arkose, and calc-silicate rocks, all intruded by leucogranite that is most likely derived from partial melt. Some of the more extensive leucogranite intrusions may have acted as rigid bodies during younger brittle deformation, creating favourable sites along their margins for uranium mineralization.

Conductors in the area are likely associated with graphitic horizons in the pelite-arkose unit. Numerous anomalous lake-sediment geochemical anomalies (up to 31 ppm U) are present in the area which may indicate the presence of subsurface uranium mineralization. These anomalies seem to extend consistently NE-SW along interpreted faults, suggesting the intersection of structures with preferred host lithologies are favourable for uranium mineralization.

Examination of historic assessment reports from the Johnston Lake area determined that a number of uranium-bearing metasedimentary boulders were uncovered during early exploration activities, but it is unclear if these boulder trains were ever examined recently or followed-up in detail to source areas.

Gillies Island

Gillies IslandGillies Island is located approximately 25 km NE of Eagle Point mine, along the NE extension of the Collins Bay-Eagle Point structural corridor (see 1st vertical derivative magnetics). The bedrock geology and structural setting of Gillies Island are virtually identical to Collins Bay and Eagle Point mines. Bedrock on the island comprises graphitic pelite, psammite-quartzite, and nearby calc-silicate rocks, located SE of a granitic dome on Fife Island to the north. Strong electromagnetic (EM) conductors trend NE in the channel between Gillies and Cleveland Islands, likely dipping SE below Cleveland Island.

Historical drilling has intersected thick graphite seams in metasedimentary rocks SW of Gillies, but to date no significant subsurface uranium mineralization has been discovered in the area. Historical prospecting in the area uncovered several metasedimentary- and pegmatite-hosted uranium occurrences, and several trenches were blasted on both Gillies and Cleveland Islands. The area is crossed by at least three north-trending Tabbernor faults, and historical lake sediment geochemistry has identified moderately elevated uranium values in lake-bottom sediments in the area. Though the area has experienced sporadic exploration activity over the years, the main SE-dipping conductors beneath the island do not appear to have been thoroughly drill-tested.

Due to the geological similarity between Gillies Island and Collins Bay-Eagle Point mines, this area is considered to be a high-priority exploration target at this time

Jurgen Lake

Jurgen LakeJurgen Lake
The Jurgen Lake area is located approximately 40 km NE of Gillies Island along the far NE extension of the Collins Bay-Eagle Point lithostructural corridor. Structurally, the area comprises a synformal metasedimentary keel sandwiched between granitic domes to the NW & SE, crosscut by several N-trending Tabbernor faults. Bedrock geology consists of graphitic pelite, arkose, and calc-silicate rock fl anked to the NE & SW by two parallel MacKenzie diabase dykes, adding structural complexity to the area.

The area contains a number of anomalous lake sediment geochemical anomalies, some of which directly overlie EM conductors that likely represent graphitic horizons in pelitic rocks. The area hosts a corridor of historic (1969) and recent (2008) airborne EM conductors and detailed ground work will be needed to resolve those conductors which occur in favourable structural orientations, near contacts and with cross cutting features.

Enzyme or selective leach soil geochemistry in the Jurgen area may prove instrumental in prioritizing EM conductors for drill testing, as will lake sediment and radiometric follow-up to the 2008 work. A rigorous structural analysis is also recommended to help determine fault geometry and narrow down potential targets for drilling.

Burrill Bay

Burrill BayBurrill Bay
Burrill Bay is located approximately 15 km NW of Jurgen Lake, just SE of the Wollaston-Mudjatik transition. The area is characterized by very tight synformal metasedimentary units sandwiched between granitic domes to the NW & SE. At least one Tabbernor fault cuts through Burrill Bay target area, and others may yet be identified though further analysis of existing geological and geophysical data. Bedrock consists of pelitic gneiss and psammite-arkose, and a dismembered calc-silicate unit occurs just south of Kivalliq's claims.

Strong EM conductors identified in 1969 and 2007 airborne surveys occur in favourable NE to ENE trends, and underlie an 8 km long linear trend of strong lake sediment geochemical anomalies up to 66.1 ppm U. Several historical uranium showings in the conductive trend are described as "felsic intrusion-hosted U", but need ground checks to determine if metasedimentary-hosted U mineralization is present. Currently, the strong EM conductors on the NW side of the Burrill Bay syncline appear most attractive for significant subsurface mineralization, as they occur in a similar geological setting to the Eagle Point and Collins Bay deposits.

The strength of anomalous lake-sediment geochemical anomalies in the area suggests that significant subsurface mineralization could be associated with one or more conductors on the flanks of the fold structures and intrusive margins.

Soil and lake sediment geochemistry plus detailed airborne geophysics will prove instrumental in prioritizing EM conductors for drill testing

Kingston Lake

Kingston LakeKingston Lake
The Kingston Lake area is located approximately 40 km NE of Burrill Bay and is likewise situated just SE of the Wollaston-Mudjatik transition. The area is structurally complex, with metasedimentary units folded and pinched between granite-amphibolite domes on all sides. Pelitic to psammitic metasedimentary units and calc-silicate horizons wrap around the domes, and structural orientation changes direction from NE-SW to E-W around the main dome. It is interpreted that both compressional and extensional structural regimes exist in the area, with lineament analysis identifying a number of faults occurring in favourable N-NE to E-ENE orientations.

A 10 km long cluster of very anomalous recent lake sediment anomalies (up to 81 ppm U) occur in an area bounded by the north trending faults and along the contact between granitic domes and overlying metasedimentary units, suggesting that the contact zones are structurally and lithologically favourable for uranium mineralization. At least three or 4fourTabbernor faults trend N-S through the area.

Several conductors in the area are most likely associated with graphitic pelite, but recent EM coverage (Triex 2005) is incomplete and there is a need to expand and resurvey existing EM coverage to target the most prospective parts of the metasedimentary belt (e.g. the NE to E trending parts of the belt).

Sava Lake

Sava Lake
Sava Lake is located approximately 27 km SW of Johnston Lake and is composed of tightly folded metasedimentary units on the NW fl ank of a large granitic dome. The lithostructural setting of the Sava Lake area is similar to that of Collins Bay-Eagle Point, but is located in a separate, parallel NE-trending structural corridor. Metasedimentary bedrock exposures are dominantly psammite with subordinate calc-silicate and pelite, and wrap around the SW end of the granitic dome. Elongate leucogranite intrusions intrude the metasedimentary sequence parallel to the structural trend. Historic assessment reports indicate radioactive pegmatite in the area, likely related to leucogranite intrusions. Pelitic units contain graphitic horizons, which are represented by NE-trending conductors on the fl anks of the granitic dome. Several very strong lake-sediment geochemical anomalies (up to 91 ppm U) occur sparsely along 15 km of the contact between the granitic dome and overlying metasedimentary units, similar to those at Kingston Lake described above. Numerous showings and limited historical drilling (7 DDH) focused on base metals (Denison 1969) intersected graphite- and sulfi de-rich metasedimentary horizons, but no uranium analyses or values were noted in the reporting. Further to the SW, one drill hole at "Szata Lake" intersected 80 cm of radioactive pegmatite which assayed 975 ppm U. New airborne surveys followed by thorough lineament analysis, geological mapping, prospecting, and targeted soil sampling will be required to defi ne drill targets in this area.

Waspison Lake

The Waspison Lake area is located approximately 20 km SE of Sava Lake and 12 km W of the Manitoba border. Current regional geological maps show the Waspison area underlain by a continuous sequence of folded psammite, with minor quartzite and pelite, intruded by radioactive pegmatite bodies. Though the area is located in the central Wollaston Domain and removed from the Collins Bay-Eagle Point structural corridor, rock units at Waspison are interpreted as belonging to the lower to middle sequence of the Wollaston Supergroup, and may contain similar stratigraphic equivalents.

The main area of interest is bounded to the NE & SW by two parallel NW-trending MacKenzie diabase dykes. Research has yet to locate recent surveys on the property since SMDC performed airborne VLF-EM in 1977. Airphoto and regional geophysical lineament analysis have determined that the area contains numerous curvilinear features in favourable N to NE-trending orientations, several which are spatially associated with very strong lake sediment geochemical anomalies.

Of particular interest is a N to NNW-trending fault zone at the SW end of the claim block (lake sediment values up to 103 ppm U) and the ENE-trending fault in the central claim of the Waspison Block (lake sediment values of 166 ppm U). These fault trends cross cut several conductors and will need to be examined on the ground to determine if the areas host favourable rocks, and targeted soil and lake sediment sampling will be required to help generate drill targets. However, the presence of 98th &99th percentile lake-sediment anaomolies is extremely encouraging for future exploration in this area, especially considering their coincidence with interpreted fault zones.

Melnick Lake

Melnick Lake
The Melnick Lake area is located approximately 30 km north of the Waspison block, and 14 km west of the Manitoba border. Bedrock geology in this area comprises a folded sequence of pelitic, psammitc, and calc-silicate rocks intruded by Proterozoic leucogranite and radioactive pegmatite. No Archean granitic domes have been mapped in the area.

Several linear conductors in the area trend NE and could be associated with graphitic pelite on the fl anks of leucogranite intrusions. An 8 km long linear trend of high uranium values (up to 61 ppm U) in lake-bottom sediments extend NE through the area, suggesting an underlying fault or geological control and possibly the presence of subsurface uranium mineralization. Alternatively, high lake-sediment uranium values may simply be related to bands of U-bearing pegmatite and therefore more geological examination is needed.

Historic assessment reports indicate that numerous granite/pegmatite-hosted uranium occurrences were discovered in this area (up to 2.71% U3O8), as well as a number of sediment-hosted base-metal showings unrelated to U mineralization. It is not known if any metasedimentary-hosted U has been described in the Melnick area, so ongoing research and mapping is warranted. Airborne radiometric surveys may be of limited use in this area due to the high proportion of radioactive pegmatite relative to metasedimentary rocks. However, metasedimentary-hosted mineralization is expected to have broader dispersion than the pegmatites, and may show up as anomalies coincident with conductors or lithology/structural trends.