CanAlaska Uranium Ltd. - Uranium Projects - Black Lake

Black Lake

Black Lake May 2008

Location and Access

The Black Lake lands are located on the northern rim of the Athabasca Basin in Saskatchewan, Canada and cover 40,845 hectares, 100 kilometres north west of the community of Wollaston Lake. The project area is accessible by road from the south. There are two local communities, Stony Rapids, and Black Lake, which are well connected by all weather road. There is regular air service to Stony Rapids.

The Black Lake project is the result of an Agreement with the Black Lake First Nation. This option signed in December 2006, provides for CanAlaska to explore the reserve lands of the Black Lake First Nation, and to work with the community to develop any defined uranium deposit. The Reserve covers two large areas on the east and west side of Black Lake.

Geology

The project area straddles the boundary between the Athabasca basin and the underlying metamorphic domains. The domains are split by a major structure, the Black Lake - Virgin River trend (also know as the Snowbird tectonic zone).To the east of the trend is the Mudjatik domain, a block heavily metamorphosed, Early Proterozoic felsic gneisses, and amphibolite grade metavolcanics and metasediments. To the west of the trend the Tanato domain a heavily metamophosed Archean domain. The Black Lake - Virgin River trend itself is a 10 to 100 kilometre wide zone of intensely deformed rocks, which represents a crustal scale fault zone. Overlying this are the Athabasca Basin sandstones, conglomerates and (minor) shale horizons.

Past Exploration and Development

There are two small historic uranium deposits known on the Reserve Lands. The Nisto Mine, and the Middle lake deposits uranium deposits were active in the 1950's. The area was explored by Eldorado Nuclear in the 1960's and 1970's on both the regional and detailed level, but no other deposits are known from this time.

In the Black Lake area, there is known potential for "Unconformity Style" uranium mineralization, however this was not identified until after the discovery of the Cigar Lake deposit in 1981. One historical uranium vein deposit was mined in the past (Nisto Mine, 1952). This deposit was located from outcrop mineralization, located just outside the edge of the Athabasca unconformity.

NEWS SUMMARY

Aug 05, 2009 : CanAlaska drills 140 ppm Uranium and elevated Nickel in first holes at Black Lake (more...)

Jun 05, 2009 : Drilling Resumes at Black Lake Uranium project (more...)

Mar 23, 2009 : Drill Program Update -- Drilling at Black Lake Commences (more...)

Jan 23, 2009 : CanAlaska Uranium Commences $4.6 Million Winter Exploration Program With 13,600 Metres of Drilling Planned (more...)

Sep 29, 2008 : $10 Million Exploration Update from CanAlaska's AGM (more...)

Jun 25, 2008 : CanAlaska Uranium Mobilizes Summer 2008 Exploration (more...)

Jan 04, 2007 : CanAlaska Uranium Undertakes Airborne Surveys on New Projects (more...)

Recent exploration in the area has focused on unconformity style uranium discoveries along the Platt Creek fault zone which parallels the regional Black Lake fault system. The western area of the Reserve lands cover approximately 5km of the Platt Creek-Black Lake fault system, and the recent discoveries are within 10's of metres of the edge of the Black lake First Nations Reserve.

The Reserve areas also straddle the edge of the Athabasca basin for over 30 km from East to West, providing a series of prospective environments from near-surface up to approximately 200 metres of sandstone depth.

CanAlaska's Exploration

CanAlaska's mandate under the exploration option agreement is to commence modern surveys across all of the Reserve lands, and to progressively focus on known and newly-identified mineralized trends. CanAlaska started exploration in January 2007 with the first VTEM airborne survey, as well as a compilation of previous work. This compilation will lead to target definition, ground geophysics and eventual drilling. Exploration in the summer of 2008 concentrated on identifying surface alteration and uranium mineralization that could reach surface or could be outcropping along the unconformity.

In winter 2009 initial drilling was carried out on the Platt Creek fault zone. This drilling identified zones of hydrothermal alteration within two target areas. Further geophysics and drilling is required to test these targets A joint venture partnership is envisioned for the development of any potential discoveries, with CanAlaska acting as Project Operator.

Commentary

Peter Dasler, President and CEO of CanAlaska states, "Our agreement with Black Lake Denesuline First Nation represents another important step forward in CanAlaska's objective to develop the mineral resources of the North in partnership with First Nation communities. The Black Lake Lands are within an area of high uranium exploration potential and we are very excited to work hand-in-hand with the local community towards realizing this potential. CanAlaska is one of the most aggressive uranium explorers across the Athabasca Basin and we warmly welcome the participation of local First Nation businesses and individuals in support of our exploration efforts."

On signing the agreement, Chief Freddie Throassie, Chief of the Black Lake Band and principal representative of the Black Lake Denesuline First Nation stated, "We are most pleased to be working with CanAlaska in exploring for uranium. Developing the mineral wealth of our lands for future generations represents one of our highest priorities. If we are successful in finding and developing an economical uranium deposit, the potential exists to improve the economic and social infrastructure of our community significantly. CanAlaska possesses an impressive exploration track record and we look forward to providing our infrastructure and human resources towards ensuring mutual success."

May 2008