CanAlaska Uranium Letter to Shareholders – August 2019
Dear Fellow Shareholders:
We have recapitalised CanAlaska over the past months, and embarked on a focused exploration program on our West McArthur Uranium project. We are doing this because we see a fundamental change in people’s perceptions to Nuclear Power, because of its ability to produce vast amounts of Carbon Free Energy, and because we believe that we have multiple opportunities to make new uranium discoveries in the Athabasca region of Canada.
Our aim in 2019 and 2020 is to build on our vast uranium and nickel property holdings, and provide a meaningful contribution to clean energy production and storage. We will do this with you, our shareholders, as partners.
The Eastern Athabasca Basin hosts extensive mine and mill infrastructure, and large operating mines. The new uranium discoveries in the Western Athabasca have garnered extensive market attention and built $500 million to $1 billion valuations even during the uranium price downturn. We hope for even higher valuations per pound of uranium for our projects which are near existing infrastructure. Going forward CanAlaska stands to benefit from the property deals that we have with Cameco and Denison, and the exploration programs that are currently underway.
Our large and strategically positioned West McArthur and Cree East uranium properties have 15 to 20 year exploration credits and are not a burden to us as we define the targets that we believe can provide us large exploration success. We have been patiently waiting for opportunities to move forward with exploration and this year with assistance from Sprott Global finance group, and our funding shareholders, we can now see multiple reasons to bring our company to the forefront. One such opportunity exists on the West McArthur project with Cameco as our 30% partner. Recent work by Cameco as part of their 30% earn-in to this project resulted in a
new uranium discovery with up to 5% uranium grades located 2 kilometres (1.2 miles) from Cameco’s new Fox Lake uranium deposit (68,000,000 pounds at 7.99% U3O8) (see image). Located within 12 kilometres of Cameco’s McArthur River mine, and with Cameco as a partner, this new discovery at West McArthur is strategically positioned to take full advantage of existing infrastructure and future production needs.
To place ourselves ahead of the Electric Vehicle (EV) battery market nickel supply shortfall, we have developed three prospective land packages for nickel exploration in the Thompson Nickel Belt in Manitoba. The Strong and Hunter nickel properties are located 25 kilometres north of the Vale’s nickel operations at Thompson. The Manibridge property is 130 kilometres southwest of Thompson and is immediately adjacent to the past-producing Manibridge nickel mine which we purchased in April this year. The Manibridge property has excellent power, road and rail access, and any discoveries will benefit from that local infrastructure. Our first drilling program on
this property in February has shown very high-grade nickel (over 10% Nickel) and compilation work has outlined unmined nickel resources and exploration targets in the historic mine area and claims. We continue to look for cost-efficient opportunities to expand our strategic land position in this nickel belt.
Corporately, we remain committed to our uranium properties in the Athabasca Basin and we have continued to preserve cash and limit financing initiatives to minimize share dilution in the Company. This has been successful as our technical staff continue to develop projects for third-party funding. For properties within our portfolio we will be looking to find parties interested in drill programs so as to expose us to multiple-discovery potential and increase the value of CanAlaska. With outside project funding we protect CanAlaska shareholders from unnecessary financing and dilution, and still participate in new mineral discoveries.
CanAlaska continues to be grateful for the community support from the Fond Du Lac First Nation, the Black Lake First Nation, Hatchet Lake First Nation and English River First Nation in Saskatchewan. In Manitoba, the community of Lac Brochet is a key component to future success. The community of Nelson House has continued to support us for our Ruttan and North Thompson area projects. These communities will be the first to provide labour and support for any new mine development.
I am personally grateful for the long-term support of our larger shareholder groups and individual investors as well as our core staff and contractors. If you have not already done so, please visit our website (www.canalaska.com) and opt-in to receive news releases to stay up to date. You can also follow us on Twitter to learn of developments in the uranium and nickel markets, and nuclear energy: https://twitter.com/CanAlaska
Yours very truly,
Peter G. Dasler, M.Sc., P.Geo
President and CEO