- CanAlaska (CVV) has signed a letter of intent to option the Key Extension uranium project from Durama Enterprises
- It will issue cash payments of C$50,000, issue 300 thousand common shares and complete work totaling $850,000 for the option
- The nearby Key Lake deposits have historically produced over 150 million lbs. U3O8 from the Gaertner and Deilmann open pits
- CanAlaska Uranium holds interests in 214,000 hectares in Canada's Athabasca Basin - the "Saudi Arabia of Uranium"
- CanAlaska (CVV) is up by 7.14 per cent and is currently trading at $0.75 per share
CanAlaska (CVV) has signed a letter of intent to option the Key Extension uranium project from Durama Enterprises.
CanAlaska may earn up to a 100-per-cent interest in the project under the conditions of a four year earn-in. These include cash payments of C$50,000, issuing 300,000 common shares, and completing work totaling $850,000.
Durama will retain a 1.5 per cent NSR royalty.
The Key Extension Project is a 17,665 hectare land package in Saskatchewan's Athabasca Basin covering the highly prospective Wollaston-Mudjatik transition zone.
Regional geophysical surveys map linear magnetic low features with corresponding electromagnetic conductors on the eastern-most claim. On the western claims, the conductors are generally shorter strike length discontinuous features, typical of the Mudjatik Domain.
Focused airborne magnetics and VTEM surveys outline a prominent 10 km northeast-trending conductor corridor coincident with a magnetic lineament that trends toward the historically producing Key Lake uranium deposits, Deilmann and Gaertner, and swings to the south along the Wollaston-Mudjatik boundary.
Extensive drilling has been completed in and around the Key Lake deposits and associated showings, located approximately 10 km from the northeastern project boundary.
The Key Lake deposits consist of east-northeast striking pods of unconformity-associated uranium mineralization, which have historically produced over 150 million lbs. U3O8 from the Gaertner and Deilmann open pits.
The deposit-controlling Key Lake structure and stratigraphy are interpreted to trend onto the project lands based on the magnetic lineaments and conductor patterns in the geophysical data.
Cory Belyk, CanAlaska's CEO, stated,"CanAlaska is very pleased to acquire this option on the Key Extension Project. An opportunity to acquire a vastly under-explored 10 km section of the Key Lake structure and stratigraphy ahead of a sustained uranium market up-turn which we believe is coming is a significant achievement for our shareholders."
"Newly-defined exploration criteria and methods for discovery of basement-hosted Athabasca Basin uranium deposits has yet to be applied on this project. The CanAlaska team is looking forward to the next phase of exploration on Key Extension," added Belyk.
CanAlaska Uranium holds interests in 214-thousand hectares in Canada's Athabasca Basin - the "Saudi Arabia of Uranium".
CanAlaska (CVV) is up by 7.14 per cent and is currently trading at $0.75 as of 12:51 pm ET.