In Canada’s Athabasca Basin, home to the world’s highest-grade uranium mines, leading developers NexGen Energy, Fission Uranium and Denison Mines are duking it out for the top market-cap spot. Meanwhile, tiny prospect generator CanAlaska Uranium (CVV-V) keeps making moves of its own.
This morning, CanAlaska announced that Denison plans to poke a hole (MS-16-01) into CanAlaska’s Moon South project before the end of February. Moon South is adjacent to Denison’s Crawford Lake Project, where a drill program is also in progress. The drilling will test the same trend mapped by a DC resistivity survey that is being drilled next door. Depending on the results, Denison may decide to complete a second hole.
In today’s news release, CanAlaska commented on the target:
The proposed drill site is located within a prominent magnetic low, which is thought to represent the location of major cross structures. Such cross structures may be regional fault zones, many of which are associated with basement fluid flow and associated uranium mineralized zones.
The target is on strike with a basement EM conductor on the adjacent Crawford Lake property mapped by Denison in 2007. As shown in figure 2, the trace of the conductor diminishes as it approaches the northwest trending magnetic low. A series of regional EM conductors located to the northeast of the target have been intensively drilled in the past, and they too are shown to diminish across the postulated structural break, indicating the potential for a much larger areas of fluid flow associated with the target.
Moon South is near the Key Lake uranium mine complex and Denison’s Phoenix and Gryphon deposits at Wheeler River. CanAlaska will retain a 100% in the northern part of the Moon project. Denison paid a $62,405 assessment deposit to CanAlaska and will carry out $200,000 worth of exploration work on Moon South over 2 years to acquire a 51% interest. Denison can earn up to 75% for further $500,000 in expenditures.
Last week, CanAlaska announced it is buying back Mitsubishi’s 50% interest in the West McArthur project, adjacent to Cameco’s McArthur River mine and Reed Lake discovery for a fraction of the capital invested in the project. The company is also waiting on results from the drill program at NW Manitoba, under option to Northern Uranium Corp, and the drill program at Patterson Lake West, under option to Makena Resources Inc.
Read more: CanAlaska adds to excellent uranium targets
Author has no conflicts of interest with CanAlaska at the time of writing. This is not investment or professional advice of any kind. Always due your own due diligence and talk to a licensed investment advisor prior to buying or selling any security. Read CanAlaska's SEDARprofile for important risk disclosures.