This project is located in the Athabasca Basin in Saskatchewan and lies between 6 and 30 km west of the producing McArthur River mine (225.5 million pounds U3O8 grading 13.5% U3O8 per tonne produced from 2000 to 2012). Cameco's new Fox Lake deposit (68.1 million lbs at a grade of 7.99% U3O8) is located immediately east of the property which was staked by CanAlaska in 2004 and optioned in April 2007 to Mitsubishi Development Pty Ltd., a subsidiary of Mitsubishi Corporation of Japan. Under the option agreement, Mitsubishi could exercise an option to earn a 50% interest in the property by investing $11.0 million. In February 2010, Mitsubishi exercised their option with a payment to the Company and an unincorporated 50/50 joint venture was formed between the parties to pursue further exploration and development of the property. In January 2016, CanAlaska Uranium Ltd bought Mitsubishi's 50% interest to hold 100% in the West McArthur property. Following the option agreement with Cameco in February 2016, Cameco has become the project operator.
Basement rocks comprising Archean granitoids and Lower Proterozoic (Trans Hudson) Wollaston and Mudjatik group metamorphic rocks. These metamorphic rocks are composed of supracrustal rocks (psammites, pelites and minor greenstones) and associated intrusions. These are overlain by an estimated 600 to 850 metres of flat-lying Athabasca sandstones and conglomerates.
Prior work by Kerr Addison, Cogema, and Cameco includes airborne and ground
geophysics, lithogeochemical surveys and lake sediment surveys covering more
than half of the property which are documented in some 61 assessment reports.
Several EM conductors are present, some of which have been drilled on adjoining
ground. CanAlaska has used GIS in compiling these existing datasets and has
assimilated them to create a powerful exploration tool.
From 2005 to 2012, numerous airborne and ground geophysical surveys were carried out to locate targets for drilling. Eight main target areas have been defined, of which four have been drilled. Alteration zones and mineralization were located in all four. Grid 1 and grid 5 obtained the best results. Grid 5 is located on the East of the project and the grid 5 basement conductor appears to be a continuation of the C10 conductor along which in Cameco's Fox Lake deposit is located. Alteration observed in grid 5 drill holes are similar to those described in these assessment reports. Drilling by Cameco started on grid5 in late March 2016, following the structure hosting the Fox Lake deposit.
The Qualified Person for this overview is Peter Dasler. More detailed exploration information is available in the attached exploration news releases