CanAlaska Completes Key Uranium Project Agreement Targets Follow 10km Section of Key Lake Fault Key Lake Mill Nearby with Deposits Host to 150 Million lbs Uranium
CanAlaska Completes Key Uranium Project
Agreement
Targets Follow 10km Section of Key Lake Fault
Key Lake Mill Nearby with Deposits Host to 150 Million lbs Uranium
Vancouver, British Columbia--(Newsfile Corp. - October 6, 2021) -
CanAlaska Uranium Ltd. (TSXV:
CVV) (
OTCQB:
CVVUF) (
FSE:
DH7N
)
("CanAlaska" or the "Company") is pleased to announce it has
signed the Property Option Agreement (the "POA") with Durama Enterprises Limited ("Durama"), a
private company, which allows CanAlaska to earn up to 100% interest in Durama's 17,665 hectare Key
Extension Project in the Southeast Athabasca Basin region, adjacent to the Key Lake mine and uranium
milling complex (the "Project") (Figure 1).
Figure 1
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The Company can earn up to a 100% interest in the Project by undertaking work and payments in a
single stage over a four year period. In order to meet conditions of the four year earn-in, CanAlaska will
make total cash payments of $50,000, issue 300,000 common shares in the Company subject to
approval of the TSX Venture Exchange, and complete work totalling $850,000 as outlined in Table 1. In
addition, a 1.5% Net Smelter Return (NSR) royalty will be granted to Durama to complete the earn-in.
CanAlaska will retain the right to bring in third-party funding and parties to complete the option
requirements.
Table 1: Summary of Option Requirements
Earned Interest (%)
Cash ($)
Shares (#)
Work Commitment ($)
Timeline (mo.)
Year 1
0
$5,000
0
0*
12
Year 2
0
$10,000
50,000
$0
12
Year 3
0
$15,000
100,000
$0
12
Year 4
100
$20,000
150,000
$850,000
12
Total
100
$50,000
300,000
$850,000
48
*Work must cover minimum assessment costs
The Key Extension Project lands cover the highly prospective Wollaston-Mudjatik transition zone (WMTZ)
in the Southeastern Athabasca Basin (Figure 2). The Project lands have been explored with historical
regional and project scale ground and airborne geophysical surveys, with additional focused prospecting
programs targeting lake sediment and boulder anomalies.
Figure 2
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The Project lands have undergone minimal drill testing despite the prolonged regional exploration and
Key Lake deposit discoveries in the area. in the late 1970's consisting of shallow regional tests of
conductors. The Key Lake deposits and associated showings are located approximately 10 km from the
northeastern project boundary. The Key Lake deposits consist of a series of east-northeast striking pods
of unconformity associated uranium mineralization, which have historically produced
over 150 million
lbs U
3
O
8
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.
Planned Work Programs
Work permit applications have been submitted to the Saskatchewan Ministry of Environment for the
2022 field season. Work will consist of a ground gravity survey focused on the Key Lake structure
corridor targeting Eagle Point and Arrow uranium deposit analogues. A regional geological prospecting
program and re-interpretation of a historical VTEM survey are also planned for the Key Extension
project. Diamond drilling is planned for late 2022 targeting results of the ground gravity, VTEM re-
interpretation, and geological prospecting.
CanAlaska CEO, Cory Belyk, comments,
"CanAlaska is very pleased to enter into the purchase option
with Durama. It is a rare opportunity in the eastern Athabasca Basin to gain access to an
underexplored section of the prolific Key Lake structure just 15 kilometres from the operating Key
Lake uranium mill. The application of geological knowledge gained from recent basement-hosted
uranium deposit discoveries at Eagle Point and Arrow have never been applied on this section of the
Key Lake Fault providing incredible discovery opportunity for our shareholders."
About CanAlaska Uranium
CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) holds interests in
approximately 300,000 hectares (750,000 acres), in Canada's Athabasca Basin - the "Saudi Arabia of
Uranium."
CanAlaska's strategic holdings have attracted major international mining companies.
CanAlaska is currently working with Cameco and Denison at two of the Company's properties in the
Eastern Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the
world's richest uranium district. The Company also holds properties prospective for nickel, copper, gold
and diamonds. For further information visit
www.canalaska.com
.
The qualified technical person for this news release is Nathan Bridge, MSc., P.Geo., CanAlaska's Vice
President, Exploration.
On behalf of the Board of Directors
"Peter Dasler"
Peter Dasler, M.Sc., P.Geo.
President
CanAlaska Uranium Ltd.
Contacts:
Cory Belyk, Executive VP and CEO
Tel: +1.604.688.3211 x 306
Email:
Peter Dasler, President
Tel: +1.604.688.3211 x 138
Email:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Forward-looking information
All statements included in this press release that address activities, events or developments that the
Company expects, believes or anticipates will or may occur in the future are forward-looking
statements.
These forward-looking statements involve numerous assumptions made by the Company
based on its experience, perception of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the circumstances. In addition, these
statements involve substantial known and unknown risks and uncertainties that contribute to the
possibility that the predictions, forecasts, projections and other forward-looking statements will prove
inaccurate, certain of which are beyond the Company's control.
Readers should not place undue
reliance on forward-looking statements.
Except as required by law, the Company does not intend to
revise or update these forward-looking statements after the date hereof or revise them to reflect the
occurrence of future unanticipated events.
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