Vancouver — CanAlaska Uranium (CVV-V, CVVLF-O) has landed Mitsubishi Development as an exploration partner on its West McArthur uranium project in the southeastern portion of northern Saskatchewan’s Athabasca basin.
The letter of intent gives Mitsubishi rights to acquire 50% of the project for cash payments and exploration spending totalling $11 million over 3.5 years. The Japanese multinational can acquire a further 10% interest.
CanAlaska will continue as exploration operator on its West McArthur project, which is located about 10 km west of the McArthur River mine owned 70% by Cameco (CCO-T, CCJ-N) and 30% by Areva (ARVCF-O) subsidiary Areva Resources Canada. The McArthur River mine produced 18.7 million lbs. U3O8 in 2005 and hosts the world’s largest and highest-grade uranium deposit with proven and probable reserves of about 389 million contained pounds U3O8 at an average grade of 25%.
Airborne geophysics (electromagnetic and gravity gradient) conducted by CanAlaska in 2005 and 2006 identified a number of uranium targets on its project. Drilling of two targets intersected the unconformity at depths of 810-830 metres with favourable alteration and some stringer uranium mineralization encountered. Further geophysics is planned to delineate targets for follow-up drilling.
Shares of CanAlaska, formerly CanAlaska Ventures, rallied 10% to the 45-level on the partnership news. It trades in a 52-week range of 30-77.
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