Results from CanAlaska Uranium‘s (TSXV: CVV; US-OTC: CVVUF) summer drilling program continue to reveal the potential of its Pike zone on the West McArthur project, a joint venture with Cameco (TSX: CCO; NYSE: CCJ) in Saskatchewan’s Athabasca basin.
Highlights include drill hole WMA082-12, which cut 9.3% uranium oxide (U3O8) over 16.2 metres from 797 metres depth, including 13.61% U3O8 over 10.9 metres. Another drill hole, WMA082-11, intersected 4.77% U3O8 over 25.9 metres from 796 metres depth, including 6.3% U3O8 over 16.3 metres. These intersections, combined with previous results confirm the potential for significant high-grade uranium extensions at the Pike zone.
Mineralization remains open along strike and at depth within the basement rocks of the project, located in the basin’s east.
“The results of the summer program clearly indicate the tier 1 potential of the Pike zone along what is fast becoming a very prolific uranium mineralizing corridor which already includes the high-grade Fox Lake uranium deposit,” CanAlaska CEO Cory Belyk said in a release on Tuesday.
CanAlaska’s results come as the uranium spot price, at US$78.50 per lb. on Wednesday, continues to trend slightly downward from a peak of US$107 in February.
Shares in CanAlaska fell 1.4% to 68¢ apiece on Wednesday morning in Toronto, valuing the company at $108.8 million. Its shares traded in a 52-week range of 34¢ to 79¢.
Cormark Securities mining analyst Nicolas Dion said in a note on Wednesday that he’ll look for future results to extend the known high-grade mineralization along strike and at depth.
“Given the ultra-high grades encountered, even small step-outs can add pounds quickly,” he said.
Dion added that CanAlaska’s market capitalization compares well to its peers, especially considering the potential of the Pike zone.
In CanAlaska’s summer drilling program, about 15 intersections are planned at key targets. The aim is to further define and expand the high-grade Pike zone and explore new areas along the C10S corridor.
Geochemical assay results are pending. CanAlaska, which operates the project and holds an 83.35% stake, is sole-funding the 2024 West McArthur program, further increasing its majority ownership in the project.
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