April 11, 2007 CanAlaska Finalizes Uranium Exploration Venture with Mitsubishi Development
CanAlaska News Release - April 11, 2007
Canada, April 11th, 2007 -- CanAlaska Uranium Ltd. (CVV
-- TSX.V) (the "Company" or "CanAlaska") is pleased
to report that the Company has finalized an agreement with
Mitsubishi Development Pty Ltd. ("MDP"), an Australian based
mining company wholly owned by Mitsubishi Corporation in Japan, to
undertake uranium exploration on CanAlaska's 100%-owned West
McArthur project as originally reported last year (see CanAlaska
press release dated September 6th, 2006). The West
McArthur Project is situated in Canada's Athabasca Basin in the
Province of Saskatchewan approximately 8km west of the McArthur
River uranium mine (389,100,000 lbs. @ 25% U3O8). The
Project comprises nine large claim blocks across 359 square
kilometres (88,516 acres).
and CanAlaska have entered into an Option Agreement whereby MDP
may acquire a 50% ownership interest in the West McArthur Project
by spending a minimum Cdn$11.0 million in cash and exploration
payments to CanAlaska over a 3½ -year period. Upon MDP
fulfilling its exploration commitments under the Option Agreement,
the parties shall enter into a 50/50 joint venture to be governed
under the terms of a pre-negotiated Joint Venture Agreement.
As a part of its exploration commitments, MDP will
recompense to CanAlaska a total of Cdn$2,655,531 for exploration
undertaken by CanAlaska on the project since June 1st, 2006.
Going forward, CanAlaska will act as Operator for the project and
will be responsible for carrying out all exploration activities.
The terms of the Option and Joint Venture Agreements are subject
to the regulatory approval of the TSX Venture Board.
Athabasca Basin is widely considered as being the richest and one
of the largest uranium producing regions in the world.The West McArthur Project holds significant potential for
uranium discovery.In 2005 and 2006, CanAlaska flew a series of
electromagnetic ("EM") and gravity gradient airborne surveys
which identified multiple uranium targets on the property.Follow-up work in 2006 has included ground IP-Resistivity
surveys, prospecting and initial target definition drilling.Results of drilling in two target zones confirmed the depth
to unconformity at 810 to 830 metres.
Phase Three drilling program of 3,600 metres commenced on the
Project on March 13th, 2007.Two previous phases of drilling identified uranium
mineralization and typical Athabasca unconformity-style uranium
alteration halos in two areas on the northern portion of the claim
two major zones of alteration and interest ("West Zone" and
"East Zone") are located on a regional graphitic conductor
which contains, in detail, various horizontal and vertical offsets
thought to be caused by major structural breaks in the basement
geological environment in the Athabasca Basin is highly favourable
for the hosting of major uranium deposits.
current drill program represents a series of progressive step-outs
from the previous uranium--clay--silica zone intercepted in the
last hole of the 2006 field season.Hole 2006-WMA007 intersected a significant alteration halo
consisting of 20 metres of intense silicification, underlain by
fractured and clay-altered rocks.The alteration halo and mineralized zone, pierced by the
drill hole at approximately 800 metres depth, contained elevated
uranium and trace element geochemistry, as well as stringer
pitchblende (U3O8) mineralization.The first hole of the new drilling season, 2007-WMA008, is
located approximately 850 metres west of hole WMA007 on a target
identified by a recent detailed AudioMagnetoTelluric ("AMT")
drill holes will test targets identified by Moving Loop TDEM / AMT
surveys and structural lineaments derived from magnetic and
gravity gradient surveys in this area.
new drilling is progressively testing the continuation of the zone
of very high conductivity and alteration determined by the early
airborne and ground geophysical surveys, now confirmed by
subsequent AMT / EM ground surveys and drilling.The "West" zone appears to be composed of several
targets along approximately 3 kilometres of a complex conductive
"East" zone is a highly disrupted area of the conductor,
approximately 5 km long.The four previous drill holes in this area will be followed
with further infill test holes.
field personnel have also been working with MDP on additional
areas of the property to localize drill targets within other
strong airborne and surface geophysical conductors. At
least one of these targets is scheduled for drill testing in the
Peter Dasler, President & CEO of CanAlaska Uranium stated,
"We are extremely pleased to welcome Mitsubishi as our
exploration partner on the West McArthur project.Based on initial exploration results, we believe there
exists significant potential for the discovery of a major uranium
deposit and we are most appreciative of the confidence and
resources extended by Mitsubishi to CanAlaska in support of this
Emil Fung, Vice President, Corporate Development of CanAlaska
Uranium stated, "MDP's selection of CanAlaska as an
exploration partner reflects highly upon the skills and experience
of CanAlaska's uranium exploration team.It also affirms the strategic stature of CanAlaska's
large portfolio of uranium land holdings in the Athabasca
Qualified Person for this news release is Peter Dasler, P.Geo.
Uranium (CVV -- TSX.V, CVVUF -- OTCBB, DH7 -- Frankfurt) is
undertaking uranium exploration in seventeen 100%-owned and two
optioned uranium projects in Canada's Athabasca Basin. Since
September, 2004, the Company has aggressively acquired one of the
largest land positions in the region, comprising over 2,500,000
acres (10,117 sq. km or 3,906 sq. miles). In
2005/2006, CanAlaska expended over Cdn$15 million exploring its
properties in the Athabasca Basin and has delineated multiple
uranium targets. Initial
drilling results from the West McArthur Project (now under an
earn-in option to Mitsubishi Development Pty. Ltd.) revealed
uranium mineralization and significant zones of hydrothermal
alteration, indicative of a favorable environment for uranium
drilling and exploration will continue in the winter of 2007 at
West McArthur and at 4 other significant projects.
behalf of the Board of Directors
Dasler, P. Geo.,President & CEO
Contact: Emil Fung, Vice President, Corporate Development
604.685.1870 Toll Free (North America) 1-800-667-1870 Email:
TSX Venture has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release: CUSIP#13708P 10 2.
news release contains certain "Forward-Looking Statements"
within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended. All statements, other than statements
of historical fact, included herein are forward-looking statements that
involve various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in the
Company's documents filed from time to time with the British Columbia
Securities Commission and the United States Securities & Exchange
Commission. Not to be construed as an offer to buy or sell securities of
CanAlaska Uranium Ltd.
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