CanAlaska shares advance on uranium project update

CanAlaska Uranium Ltd. [CVV-TSXV, CVVUF-OTCQB, DH7N-Frankfurt] said Monday it has launched a high-resolution helicopter-borne aeromagnetics and radiometrics survey on its Key Extension project near Saskatchewan’s Athabasca Basin.

CanAlaska shares advanced on the news, rising 4.7% or $0.015 to 33 cents on volume of 130,770. The shares are currently trading in a 52-week range of 84 cents and 26.5 cents.

The company said the survey will be used in conjunction with the recently completed ground gravity survey and previous compilation work to prioritize a ground-based summer prospecting program.

In addition, CanAlaska said it has received approved exploration work permits to conduct diamond drilling and additional ground-based geophysical surveys on the project.

CanAlaska Uranium holds interests in approximately 300,000 hectares in Saskatchewan’s Athabasca Basin, a region that hosts some of the highest grade and lowest cost uranium deposits in the world, including the Cigar Lake, McArthur River and more recently discovered Arrow and Triple R. The company is a project generator that is positioning itself for discovery success in the region.

The Key Extension project is located approximately 10 kilometres south of the Athabasca Basin, with basement rocks of the Wollaston-Mudjatik transition zone in northern Saskatchewan. The Key Lake deposits and associated showings are located approximately 10 kilometres from the northeastern project boundary.

The Key Lake deposits consisted of a series of east-northeast striking pods of high-grade unconformity associated uranium mineralization, which have historically produced over 150 million pounds of U308 from the Gaertner and Deilmann open pits.

CanAlaska is completing work on the Key Extension project under a property option agreement with Durama Enterprises Ltd., a private company which has granted CanAlaska the right to earn up to 100% interest in the project.

“This new geophysics survey will add valuable information to help guide the next steps in target definition at the Key Extension project in advance of the first prospecting and drilling programs,” said CanAlaska CEO Cory Belyk.

“The size and coincidence of the anomalies identified to date are very encouraging signs the CanAlaska team is on the right path to discovery within kilometres of Cameco Corp. [CCO-TSX, CCJ-NYSE] and Orano Canada Inc.’s Key Lake milling complex,” he said. “I am very pleased with how this project is responding to our shareholders investment in this strategic property.

Late last year, CanAlaska raised $11.5 million from a non-brokered private placement financing, with proceeds earmarked for its exploration properties.

CanAlaska is currently working with Cameco and Denison Mines Corp. [DML-TSX] and Cameco at two of the company’s properties on the Eastern Athabasca.