April 16, 2007 CanAlaska Undertakes Uranium Exploration with Yellowcake plc
CanAlaska News Release - April 16, 2007
Canada, and London, UK, April 16th,
2007--CanAlaska Uranium Ltd. (CVV --
and the UK-based uranium investment company Yellowcake
("Yellowcake") are pleased to report
that they have entered into an agreement to undertake uranium
exploration on CanAlaska's 100%-owned Grease River Project.The Grease River Project is situated along the Northern rim
of Canada's Athabasca Basin in the Province of Saskatchewan and
comprises twelve claim blocks totalling 68,250 hectares.
Yellowcake have entered into an Option Agreement whereby
Yellowcake may acquire a 60% ownership interest in the Grease
River Project by making payments to CanAlaska totalling
Cdn$300,000 in cash and 2.5 million Yellowcake shares, and funding
exploration expenditures of Cdn$5.0 million over a four year
Yellowcake fulfilling its exploration commitments under the Option
Agreement, the parties will form a joint venture to be owned 60%
by Yellowcake and 40% by CanAlaska.CanAlaska will act as Operator for the project and will be
responsible for carrying out all exploration activities.
Basin is widely considered as being the richest and one of the
largest uranium producing regions in the world.The Grease River Project covers large and strong lake
sediment and radiometric anomalies as identified from Geological
Survey of Canada surveys performed in the 1970's.
The lake sediment
anomalies reach uranium (U) values of several hundred ppm and the
radiometric anomalies show high equivalent uranium combined with
elevated eU/eTh (uranium/thorium) ratios.
The area is
underlain by Archean and Paleoproterozoic intrusives and
metasediments and metavolcanic rocks.Some
of the claims cover a north-south trending
tectonic flexure and others straddle the Grease
River Shear Zone, a regional structure that was
active during the formation of the Athabasca
Fond du Lac unconformity uranium deposit is
located along this major lineament.
done by several companies in the late 1970's
confirmed these anomalies and located lakes with
even higher uranium values (up to 1,870 ppm
addition to these very high lake sediment
anomalies, surface prospecting produced soil
anomalies reaching 1.3 % uranium, and showings
with up to 1.6% U3O8
in grab samples.To date, the source of most of the geochemical anomalies has
not been found.
pending 2007 summer exploration program will
include airborne geophysics, lake sediment and
soil geochemistry, prospecting, and mapping.The objective is to locate the geochemical
anomalies and showings described in the historical
work, put them in the framework of present-day
knowledge of Athabasca uranium deposits, and
define drill targets using prospecting, mapping of
bedrock and surficial geology, geochemistry, and
President & CEO of CanAlaska Uranium stated, "We are
extremely pleased to welcome Yellowcake as our exploration partner
on the Grease River project.The Grease River region is geologically prospective for
uranium and has received scant exploration attention in the past.Along with Yellowcake, we believe that renewed efforts with
modern exploration techniques will serve to provide us with better
definition of the historical uranium anomalies".
Wallace, Chief Executive of Yellowcake plc stated, "In
accordance with its strategy, Yellowcake plc has examined possible
investments in uranium projects all over the world.We have selected Grease River because of its location in
the Athabasca district in mining-friendly Saskatchewan, its
history of significant uranium showings at surface and its
potential as a shallow, low-cost exploration and production
delighted to have secured this agreement with CanAlaska which will
be providing a top-class exploration team under the direction of
its Chief Geologist Dr. Karl Schimann, one of the discoverers of
the Cigar Lake uranium deposit".
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.
plc (PLUS:YEL) is the world's first portfolio company specialising
wholly in investing in uranium explorers, developers and
February 2005, it floated on London's PLUS Markets in July 2005.Yellowcake commenced investing in quoted and unquoted
uranium companies in late September 2005 and currently its
portfolio includes 32 companies, with operations in Africa,
Australia, Canada, Kazakhstan, Mongolia, Paraguay and the United
began investing, its portfolio value has risen over fourfold with
a gain of 312% at 12 April 2007.Its strategy includes investing directly in uranium
projects and Grease River represents the first such investment.
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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