Cameco to Drill West McArthur Project under Option from CanAlaska

CanAlaska Uranium (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) (“CanAlaska” or the “Company”) is pleased to announce receipt of a budget from Cameco (“Cameco”) for drilling at the West McArthur uranium project (“Project”). Geophysics and drilling, estimated to cost $1.9 million, will be carried out this summer on both the Grid 1 and Grid 5 targets using a helicopter supported team based at Cameco’s nearby majority-owned McArthur River mine.
Drill Program Details:

The Grid 5 program will include a geophysical program which will consist of approximately 17 kilometres of grid establishment in advance of 42.2 kilometres of Time Domain Electromagnetics (TDEM), focused on defining and characterizing potential graphitic conductors located within the ZTEM conductivity high between L12450E and L13250E. The primary objective of the proposed drilling program is to utilize up to three drill-holes and one offcut (3,400 metres) along Grid 5 to follow-up the results of the TDEM survey.
The second target to be tested this summer is located at Grid 1. This target is a linear magnetic low that correlates with high conductivity in the ZTEM survey in the vicinity of CanAlaska’s historical drill hole WMA002. It is planned that at least two new drill holes will be carried out to test for mineralization at and below the unconformity for a total of approximately 1,900 metres of drilling. In this area CanAlaska and its former partner MC Resources Canada Ltd (Mitsubishi) carried out 16,900 metres of drill testing, and identified basement offsets clay alteration and anomalous uranium mineralization in the sandstone and basement, typical of near known unconformity uranium deposits.

Cameco is carrying out the current work as part of an option to earn a 60% interest in the West McArthur project. Cameco has paid CanAlaska an initial $725,000 and has the right to earn a first stage 30% interest for a $5 million exploration program within 3 years ($1.1 million to date) on two separate target areas: Grid 1 and Grid 5. Cameco will then have the right, after a $500,000 payment, to carry out a further $6.275 million of work on the Project over the following 3 years to earn a further 30% interest and form a Joint Venture (JV) with CanAlaska.
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