Vancouver — CanAlaska Uranium (CVV-V, CVVUF-O) has finalized its agreement with Mitsubishi Development to partner on exploration of the West McArthur uranium project in the southeastern Athabasca basin.
Mitsubishi will acquire 50% of the project for cash and exploration spending of $11 million over 3.5 years. As part of the spending commitment Mitsubishi will reimburse CanAlaska almost $2.7 million for exploration conducted on the project since last summer.
CanAlaska will continue as operator on the West McArthur project, which is located about 10 km west of the McArthur River mine owned 69.8% by Cameco (CCO-T, CCJ-N) and 30.2% by Areva (ARVCF-O) subsidiary Areva Resources Canada. The McArthur River mine produced about 18.7 million lbs. of U3O8 in 2006 and hosts the world’s largest and highest-grade uranium deposit with proven and probable reserves of 727,000 tonnes grading 24.28% U3O8, about 389 million contained pounds U3O8.
Airborne geophysics (electromagnetic and gravity gradient) by CanAlaska has identified a number of uranium targets on the project. In follow-up, a couple of targets were drilled and intersected the unconformity at depths of 810 to 830 metres with favourable alteration and some stringer uranium mineralization encountered.
Another round of drilling was recently launched with about 3,600 metres planned in a stepout program designed to test targets delineated from last year’s results. The program is continuing along a zone of very high conductivity and alteration.
CanAlaska shares have recently traded around the 75-level, giving the uranium junior a market capitalization of $79 million based on its 106 million shares outstanding. The stock has a 52-week trading range of 38-97.
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