The Project, with an area of 53,080 hectares, is underlain by Wollaston
Group metasedimentary rocks and granitic rocks. Rare Earth Elements
("REE") mineralization was discovered by CanAlaska exploration
teams during the reconnaissance sampling program in the search for uranium
mineralization. On March 11, 2008, CanAlaska reported REE assay results up
to 10.4% REE from samples collected during this program. Most of the
samples are from outcrop over an area of one square kilometre and are
dominantly described as granite, with some samples described as
metasedimentary rocks.
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The samples lie within and along the margins of a
magnetic high which CanAlaska believes is related to this very high grade
rare earth mineralization. Under the terms of the agreement, GWMG will pay to CanAlaska a total cash
payment of $100,000 with $10,000 payable on execution date of the
agreement, $10,000 on each of the first four anniversary dates, and
$50,000 payable on the fifth anniversary of the execution date. In
addition to the cash payments, GWMG will issue to CanAlaska a total of
200,000 shares of GWMG with 100,000 to be issued on the execution date of
the agreement and the remaining 100,000 shares to be issued on the first
anniversary.
During the course of the agreement period, GWMG will be required to
perform a total of $6,000,000 of exploration work, with a total of
$450,000 during the first four years of the agreement, a further
$2,550,000 on or prior to the fifth anniversary date, and a further
$3,000,000 on or before the 6th anniversary date. |
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Upon completion of the
required payments and exploration expenditures, GWG will have earned a 51%
interest in the property.
Upon receipt of the necessary permits and approvals, GWMG will begin its
preliminary exploration activities on this project, including geological
mapping, prospecting, and ground geophysics, to establish drill targets
for further exploration. As part of its community awareness program, GWMG
will also meet with the First Nations communities in the region to
introduce the Company and present its exploration program for the area.
Jim Engdahl, President and CEO of Great Western Minerals Group said
"This is another great opportunity for Great Western Minerals as well
as for CanAlaska. The preliminary data that we have reviewed is very
encouraging. As well, the property is easily accessible with good winter
road access to Lac Brochet from the railhead at Lynn Lake, Manitoba. Lac
Brochet has an airport with daily scheduled flights from a number of other
communities. Engdahl adds, "This JV opportunity reinforces our long
term strategy of becoming one of the leading, fully integrated rare earth
companies outside of China. Properties with this potential may very well
be the solution to help the world deal with the impending shortage of
these critical elements."
Peter Dasler, P.Geo, President and CEO of CanAlaska Uranium Ltd. said
"Our exploration efforts for uranium have identified REE
mineralization in many areas never previously explored. The Misty Project
contains some of the highest rare earth values we have identified in our
exploration work. This new zone of REE is well outside the uranium
mineralized zones, but is strongly associated with thorium mineralization.
We are pleased to be able to work with Great Western Minerals to
understand further the nature and importance of this target area, and to
understand more about rare earth mineral deposits for our mutual
benefit."
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