Impact: Very Positive
CanAlaska reported assays for the first drill hole from its 2024 winter drill program (9,000m) at the high-grade Pike zone within its 83.35%-owned West McArthur JV project with Cameco (TSX:CCO, Not Rated), located in the eastern Athabasca Basin. The best result included 3.44% eU3O8 over 21.6m, incl. 10.90% eU3O8 over 5.4m (WMA082-7), assays are pending, and eU3O8 results this year should be more reflective of assays than previous programs. The high-grade mineralization at Pike zone remains open in all directions. In our view, this is another drill hole that has all the hallmarks of a high-grade unconformity uranium deposit. Continuation of this high-grade mineralization already demonstrates the significant width and thickness of the Pike zone, and suggests that this discovery could grow further, especially when drilling along strike begins. We estimate Pike zone at ~30-35m wide (drill limited), averaging ~11m thickness and grading ~7% U3O8 on this single fence. This is in line with Cameco’s nearby 68M lb, 8% U3O8 Fox deposit. CVV is up 75% YTD and we believe investors should appreciate the ongoing high grade results that may extend width and eventually strike.
