CanAlaska Starts Drilling at West McArthur Uranium Project

High-grade uranium zone extended in latest drill holes 

Uranium and base metal halos extend 750 metres above unconformity 

Program to focus new drill holes across centre of C10 conductor target

Vancouver, Canada, January 30, 2020 CanAlaska Uranium Ltd. (TSX-V: CVV; OTCQB: CVVUF; Frankfurt: DH7N) (“CanAlaska” or the “Company”) is pleased to report that crews have resumed drilling at the West McArthur uranium project. The project is a joint venture with Cameco, controlled and operated by CanAlaska. The 2019 drill program successfully extended the discovery footprint of holes drilled by Cameco during their recent work programs on the property. The mineralization, containing high-grade uranium as well as base metal mineralization, is similar in character to the nearby high-grade Fox Lake uranium deposit of Cameco and Orano. Drilling in the winter will focus on a 300 metre length of the C10 conductor where current drilling has indicated the presence of a strong hydrothermal system and a well mineralized target.

The unconformity-related uranium mineralization intersected in Cameco’s discovery holes, WMA042 and WMA042-2, has been extended 50 metres to the south and at least 200 metres to the west.

The C10 conductor horizon hosts Cameco and Orano’s Fox Lake deposit of 68,000,000 pounds at an average grade of 7.99% U3O8 located only a few kilometres to the northeast. Two previous drill holes on Grid 5, WMA042 and WMA042-2, intersected high-grade uranium (up to 5% U3O8) approximately 50 metres north of last summer’s drill hole WMA055-2 which intersected 0.70 metres @ 6.8% U3O8 within 2.1 metres averaging 2.3% U3O8. The host of this mineralized intersection is massive clay. In addition to this high-grade intersection, the summer drill program progressively tracked the mineralization and alteration of the lower sandstone to the south and west of drill holes WMA042 and WMA042-2. Structural and geophysical data place the C10 conductor horizon, a key target area for winter drilling, at 40 to 60 metres south of the 2019 drilling area.

Drill hole WMA-054 located 250 metres southwest of WMA-055-2 hosts a 1.3 metre long uranium mineralized intersection (incl. 0.30 metres @ 0.08% U3O8) 370 metres above the unconformity. The structure related to this mineralization can be projected back to the unconformity and matches the interpreted trace of the C10 conductor indicating potential for a large mineralized structure.

Drilling completed to date is north of the C10 target horizon and the interpreted controlling basement structure of this high-grade mineralization has yet to be intersected, however, the combination of high-grade uranium mineralization, multi-element geochemical signature, strong faulting, core loss and intense clay alteration above the unconformity suggest the presence of additional uranium-bearing structures. Intersection of these structures at or near the unconformity will be the focus of winter drilling program. Its inferred location is shown in figure 2, based on geophysics and geological data, and interpretation.

The scale and intensity of the alteration halo associated with the Grid 5 discovery zone continue to reinforce the magnitude and importance of this mineralizing system. The lower sandstone column is altered, at times strongly, within and adjacent to the identified faults and fault-strands.

Cameco’s ten holes drilled along a 1.6 kilometre (one mile) long section of the C10 conductor of Grid 5 included three significant uranium-mineralized drill holes, two of which are closely associated with the drill holes completed by CanAlaska in 2019. The widely spaced drilling also mapped an extensive zone of intense hydrothermal alteration extending 750 metres into the sandstone above the unconformity with the basement rocks. The alteration above the unconformity is marked by broad halos of uranium, boron, arsenic and accompanying base metal enrichment, typical of major uranium deposits in the Athabasca Basin. The alteration and geochemical enrichments are associated with steep faults within the sandstone intersected by drilling. The recently completed summer 2019 drill program confirmed and expanded on this targeting and intersected additional high-grade uranium mineralization.

CanAlaska President, Peter Dasler, comments; “We have refined the geological context of the C10 conductor target at Grid 5. The summer drilling significantly increased our confidence for intersection of more uranium mineralization to the west and south of the current high-grade intercepts in drill holes.  To our team, the strong uranium and base metal mineralization appear to be “bleed” along the unconformity and across strike of the key structures anticipated with the C10 target horizon.  To see such extensive lateral and vertical mineralizing fluid flow at distance from the key graphite horizon is extremely encouraging and opens the possibility for more extensively mineralized intervals in the centre of the target (see figures 1 and 2). We are already aware that multiple other targets exist to the northeast and southwest along this corridor, but plan to focus winter activity within a limited extent of the main target. Additional drilling has already been planned for summer 2020.”

About CanAlaska Uranium

CanAlaska Uranium Ltd. (TSX-V: CVV; OTCQB: CVVUF; Frankfurt: DH7N) ) holds interests in approximately 152,000 hectares (375,000 acres), in Canada’s Athabasca Basin – the “Saudi Arabia of Uranium.”  CanAlaska’s strategic holdings have attracted major international mining companies. CanAlaska is currently working with Cameco and Denison at two of the Company’s properties in the Eastern Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the world’s richest uranium district. The Company also holds properties prospective for nickel, copper, gold and diamonds. For further information visit www.canalaska.com.

The qualified technical person for this news release is Dr Karl Schimann, P. Geo, CanAlaska director and VP Exploration.

On behalf of the Board of Directors

“Peter Dasler”
Peter Dasler, M.Sc., P.Geo.
President & CEO
CanAlaska Uranium Ltd.

Contacts:

Peter Dasler, President
Tel: +1.604.688.3211 x 138
Email: [email protected]

Cory Belyk, COO
Tel: +1.604.688.3211 x 138
Email: [email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.