CanAlaska will serve as the majority owner with a 70-percent stake in the venture, and will also take on the role of operator.
CanAlaska will serve as the majority owner with a 70-percent stake in the venture and will also take on the role of operator for the project.
The focus of the newly formed JV will be the West McArthur site, a project located 6 km northwest of Cameco’s McArthur River mine, which temporarily closed earlier this year.
In early December, both companies met to hammer out the details and plan the year ahead.
Both, CanAlaska and Cameco, agreed to focus on extending Grid 5 with a 2019 drill program. The uranium companies also agreed to earmark C$2.4 million for the 2019 exploration budget, which will include the drill program, as well as geophysics testing.
“The program of work will focus on extending the footprint of the three uranium mineralized discovery holes completed in 2017 and 2018,” noted the CanAlaska press release.
“These drill holes define an extensive halo of uranium mineralization in the sandstone, extending over 1300 meters in length and extending over 700 meters in height above the unconformity.”
The previous test work completed at the site in 2017 by Cameco intersected high-grade uranium mineralizations on the northern portion of the five-kilometer long Grid 5 target area.
“The C10 conductor package within the West McArthur property, just four kilometers west of the Fox Lake uranium deposits, is showing strong evidence of multiple zones of uranium mineralization associated with cross trending fault structures,” CanAlaska President Peter Dasler said.
“The current reconnaissance drilling has given us mineralized targets for detailed delineation. We look forward to operating the project and drilling to extend the current mineralized zones.”
The Athabasca Basin region of Saskatchewan, home to the West McArthur project, is well known around the world for its rich uranium deposits. The McArthur River mine, which is operated by Cameco a short 6 km away from the JV site, is considered the largest uranium mine in the world.
A number of most lucrative uranium companies operate in the basin, which has been dubbed the “Saudi Arabia of Uranium.”
CanAlaska shares were down 3.33 percent on Wednesday (December 12), trading at C$0.29. Shares of Cameco were also down 0.25 percent to C$16.01.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.