VANCOUVER(Commodity Online):-CanAlaska Uranium Ltd. (TSX.V - CVV) has executed an Option Agreement with Bayswater Uranium Corporation to commence exploration of the Collins Bay Extension uranium project , situated directly adjacent to, and following the North-East strike of the past-producing uranium mines at Rabbit Lake and Collins Bay, and the current producing uranium mine at Eagle Point in the Province of Saskatchewan.
The Project contains a significant number of exploration targets within the Snowbird and Fife Island areas.Under the terms of the Option, CanAlaska shall act as the exploration operator and may earn a 51% participating interest in the Project by undertaking a minimum of Cdn$4 million in exploration expenditures within 5 years and issuing a total of 500,000 Company shares to Bayswater over this period. The Company may increase its participating interest in the Project to a 70% level by successfully undertaking a further Cdn$2 million in exploration expenditures over a period of 3 years.
Collins Bay Extension Project
CanAlaska's prime focus in the current exploration season is to re-visit and drill test the structurally- controlled uranium mineralization intersected in historical (1984) Minatco drillholes MWLD8 to MWLD13. The best of these holes intersected 0.152% U(3)O(8) over 4 metres (over 3 pounds per ton U(3)O(8)), along an offset structure on the northern part of Fife Island, in an area designated as the "VIC" zone.
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The geological trends mapped in the Eagle Point-Collins Bay uranium mines and surrounding areas extend to the north and east onto the Collins Bay Extension property. Historical exploration dating from the late 1960's was controlled by large corporations, such as by Gulf Minerals, E B Explorations, Minatco Ltd (now part of AREVA), SMDC and Cameco. These exploration efforts involved extensive use of then-current geophysical survey techniques and made multiple uranium discoveries, evidenced by uranium mineralization in drill holes in 4 separate areas. Ten areas of the property produced geological and structural targets. However, a total of only 73 diamond drill holes were drilled on this extensive property throughout these years through to 2008. This amounted to less than one drill hole per 5 square kilometres. This minimal quantity of physical drilling of the significant targets from the early exploration provides CanAlaska an excellent opportunity to test prime exploration targets in a highly productive uranium exploration territory.
The historical drill holes on the Project were not evenly distributed, but were concentrated in clusters within the North Fife area in the north part of the property, the Northern Snowshoe Island - Greenway Peninsula area in the west-center of the property, and the Rabbit Lake North area in the south of the property. These areas remain prime targets for further exploration. Similarly, the target containing the source of the Pow Bay uranium mineralized boulder train, north-east of the Rabbit Lake deposit, is thought to be under the lake-covered portion of the southern part of the Collins Bay extension property. In all of these areas, the postulated pre-existing Athabasca sandstone has been removed by erosion, and the uranium exploration will be for Athabasca "basement style" unconformity targets, such as the Eagle Point or Rabbit Lake deposits.
