CanAlaska Uranium (TSX-V: CVV) - A Discovery That Passes The Sniff Test

CanAlaska Uranium Ltd. is an exploration stage company engaged in the acquisition and exploration of mineral properties in Canada. The company focuses on the exploration of uranium deposits in the Athabasca Basin area of Saskatchewan and the exploration of copper and nickel within the region.

Merlin-Marr Johnson caught up with Corey Belyk, CEO and Executive Vice President, CanAlaska Uranium. Mr. Belyk is a geologist with over 30 years of experience in exploration and mining operations, project evaluation, and business development. His depth of experience is a result of work on a global scale including Asia, Africa, Europe, North America, and Australia. He was previously employed by COGEMA (now Orano), Uranerz Exploration and Mining Ltd, and Cameco Corporation in the Athabasca Basin, Saskatchewan. His recent focus was on global activities related to Cameco’s project evaluation, business development, and international exploration activity with direct oversight and accountability for offices in Mongolia and Australia. He was a member of Cameco’s exploration management team during the recent Fox Lake and West McArthur uranium discoveries. His educational credentials include a Bachelor’s degree in Geology from the University of Saskatchewan and a Certificate of Negotiation from Harvard Law School. Mr. Belyk is a registered member of the Association of Professional Engineers and Geoscientists of Saskatchewan.

Company Overview

CanAlaska Uranium was founded in 1985 and is headquartered in Vancouver, Canada. The company is listed on the Toronto Stock Exchange (TSX-V: CVV), The OTC Markets (OTCQB: CVVUF), and the Frankfurt Stock Exchange (FSE: DH7N). CanAlaska West McArthur Uranium Ltd., Cree East Uranium Project Limited Partnership, Golden Fern Resources Limited, and Rise and Shine Joint Venture are the company’s subsidiaries.

CanAlaska Uranium made a new discovery in Canada’s Athabasca Basin a few months back. The company has plans to initiate drilling in 5 weeks. The company’s representatives are currently on a European tour, getting in touch with old investors and seeking new investors for the project, with a strong emphasis on the recent discovery. In the past few weeks, the company has seen an increased interest in uranium. It has received strong support from the market.

Approaching European investors is different than North American investors as discussions are carried out over multiple meetings. In Europe, the company is seeking between 10-30 quality investors or investor groups that have an in-depth understanding of uranium. The discussions so far have been highly positive, followed by an hour of questions after every meeting. According to the company, the quality of questions posed demonstrates a genuine interest from investors in CanAlaska’s story and the uranium space.

The Market Landscape

There’s a global need to clean up energy production. Nuclear energy will play a major role in the electrification of the world. At the WNA (World Nuclear Association) conference in September, there were discussions around doubling and even quadrupling the current nuclear fleet to meet the 2050 goals.

In order to meet the set targets, actions need to be taken in the present. The conference had a strong emphasis on SMRs (Small Modular Rectors), which have had significant technological advances in the past few years. Canada is looking to generate 300 megawatts of new SMR power production at the Darlington Plant in Ontario by 2028. Going from a decision to power generation in 6 years is almost unheard of in the history of nuclear energy.

As per the company, the awareness around nuclear energy is growing into a new audience. The past non-supports of nuclear energy are now realizing that the 2050 emission goals cannot be met with wind and solar energy alone. Cheap energy will enable societies to do all sorts of good things.

An Experienced Team

Collectively, CanAlaska Uranium’s team and management bring 140 years of experience. The company’s CEO has been involved in multiple discoveries over a 30-year period. The CEO has worked underground at Cameco’s Eagle Point operation for 5 years. The experience provides the team with a better understanding of the mineralizing events around some of the big 200Mlb - 300Mlb deposits in the Athabasca Basin.

The company’s asset is based on a big, mineralized quarter. A few kilometers away from the asset, there is a system that hosts 70Mlb uranium at 8% grade. This land package is owned by Cameco and Orano. CanAlaska Uranium has followed it up with more mineralization and has carried out geophysics in order to change the targeting. Interestingly, the very first hole on the 15km trend hit grades of 9m at 2.4%.

According to the company, some of the best intercepts are found in the Eagle Point deposit, which is a 200Mlb orebody. Notably, the depths of the McArthur River and the Millennium deposit, are similar in grades, width, color, and alteration to the company’s new mineralized zone. So far, it has drilled 5-6 holes and found up to 25% mineralization in some of the veins. This is a classic case of high-grade unconforming mineralization.

High-grade uranium mineralization zones are known for their distinct smell which is comparable to steamed broccoli or brussels sprouts. The company considers these as ‘breathing deposits’ and the characteristic smell usually indicates close proximity to a big deposit.

Ongoing Operations

CanAlaska Uranium’s summer drill results are out, and the company is gearing up for a drill program within the next 5 weeks. The company recently approved a joint venture with Cameco at the West McArthur asset. The $10M program is based on the summer drill results and has doubled year-over-year. Within the next 5 weeks, the company will deploy 2 drill rigs at the McArthur asset. One of these rigs will focus on the unconforming target which is yet to be tested. The region features basement mineralization. The second drill rig will be focused on determining the size of the underlying deposit. The drill program is expected to commence in January 2023.

The summer drilling program was focused on the basement, as the company sought to understand the structural geometry of the mineralization which sits 100m below the unconformity. The drill program pointed back to the unconformity target, and the last hole was drilled 20m-30m away from the target. Here, the company found 25% uranium presence and a wider mineralization zone.

Given the company’s experience working on other deposits in the Athabasca Basin, the McArthur asset has all the right characteristics that make a big, tier-1 deposit that is comparable to Cigar Lake, Millennium, and Eagle Point.

While the company continues to gain a better understanding of the unconformity, the indications so far look promising. Over the past 5 days, the company has had discussions with over 100 different investors. It is looking to keep the market updated on the progress.

CanAlaska Uranium intends to deliver results through drilling and actual intercepts, developing the asset into an economic deposit. The company’s goal is to make a discovery for the shareholders, drive up the value, and exit at some point. The company’s business model is based on making discoveries as opposed to uranium production.

In the past 12 months, the company has built a team that has a strong track record of making significant discoveries in the Athabasca Basin. Through the team’s hard work, a major discovery was made. The team brings a reliable knowledge base from their past experiences working with Orano and Cameco. The company is currently drilling a system that appears to be similar to Cigar Lake and McArthur project. The asset could truly be a game changer for the company. Targeted drilling will commence in the second week of January with 2 drill rigs deployed.

To find out more, go to the CanAlaska website