CanAlaska to drill Geikie uranium project, plans nickel spinout

CanAlaska Uranium (TSXV: CVV; US-OTC: CVVUF) has begun mobilizing its field team, drill crew and equipment to it’s 60%-owned Geikie uranium project in Saskatchewan’s Athabasca Basin, an area that currently supplies about 20% of the world’s uranium. 

The initial drill program is planned for 2,000 metres, consisting of eight drill holes with proposed depths around 250 metres each.

The company also announced yesterday it intends to spin out five nickel projects it holds into a subsidiary called Core Nickel, which would then be publicly listed. The move would need to be approved by shareholders, and is subject to regulatory approvals as well as financing availability. The nickel projects, consisting of Halfway Lake, Resting Lake, Hunter, Odei River and Mel, are all located in Manitoba’s Thompson nickel belt. 

Uranium focus

The Geikie drill program will be focused on testing shallow, high-priority targets that have been compiled from recent high-resolution airborne radiometric, magnetic, and electromagnetic surveys in combination with prospecting, structural mapping and historical data review. 

“From inception of the project through to this first drilling program, the Company has been diligent with its methodical approach to exploration and developing very high-quality targets for testing,” chief executive officer Cory Belyk said in the statement.

CanAlaska will initially focus on a 15-km-long area with three high-priority targets: Preston Creek, Hourglass Lake and Aero Lake.

The Vancouver-based company holds interests in about 3,000 sq. km located in the eastern Athabasca Basin.  The miner is working with Cameco (TSX: CCO; NYSE: CCJ) and Denison Mines (TSX: DML) at two of the its properties in the Eastern Athabasca Basin.

CanAlaska shares ended the day 2.5¢ or 7% higher at 39¢, for a market cap of $46.4 million. The stock has traded in a 52-week window of 26¢ and 65¢.