Impact: Very Positive
CanAlaska has discovered a wide zone of strong basement-hosted uranium mineralization at the West McArthur JV in the eastern Athabasca Basin. This new discovery is on a newly defined exploration trend and is located 6km S of the 42 Zone discovery on the C-10 South conductor. We view this news very positively as it represents a 2nd West McArthur discovery, with scintillometer results and core suggesting the presence of a large mineralizing system in the vicinity of Cameco’s (TSX:CCO, Not Rated) Fox Lake deposit and McArthur River mine. This discovery is the culmination of years of ongoing work along this trend to the west. CanAlaska’s management and technical team cut their teeth at Cameco and are intimately familiar with these types of high-grade deposits and how to explore and exploit them. We believe that this discovery, pending assays, could represent another major deposit in the Athabasca Basin, based on observable mineralization within the core, and extent of geophysical (MLEM) anomalies within the immediate area. While we typically reserve the word “discovery” until assays have been received, the obvious visible uranium mineralization helps satisfy our expectations.Focus will shift to trying to understand the controlling structure and find further mineralization as it moves up-dip towards the intersection of this structure and the unconformity, hoping for a blow-out at that location. This discovery still needs to be put into context; is it a high-grade basement deposit or the root of an unconformity deposit. While depths to the zone are considerable, basement rocks tend to be competent.