CanAlaska To Explore Extension Uranium Project

 

VANCOUVER - CanAlaska Uranium Ltd. reported that it has executed an Option Agreement with Bayswater Uranium Corporation. to commence exploration of the Collins Bay Extension uranium project, situated directly adjacent to, and following the North-East strike of the past-producing uranium mines at Rabbit Lake and Collins Bay, and the current producing uranium mine at Eagle Point in the Province of Saskatchewan. The Project contains a significant number of exploration targets within the Snowbird and Fife Island areas.

Under the terms of the Option, CanAlaska shall act as the exploration operator and may earn a 51% participating interest in the Project by undertaking a minimum of Cdn$4 million in exploration expenditures within 5 years and issuing a total of 500,000 Company shares to Bayswater over this period. The Company may increase its participating interest in the Project to a 70% level by successfully undertaking a further Cdn$2 million in exploration expenditures over a period of 3 years.

CanAlaska's prime focus in the current exploration season is to re-visit and drill test the structurally- controlled uranium mineralization intersected in historical (1984) Minatco drillholes MWLD8 to MWLD13.

The best of these holes intersected 0.152% U(3)O(8) over 4 metres (over 3 pounds per ton U(3)O(8)), along an offset structure on the northern part of Fife Island, in an area designated as the "VIC" zone.

The company’s address is Suite 1020, 625 Howe Street, Vancouver, BC V6C 2T6, 604.688.3211, fax: 604.688.3217.