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CanAlaska: De Beers to Start Drilling at West Athabasca; Canterra to Explore West Carswell

Aug 19, 2016

CanAlaska Uranium Ltd has announced two new developments in exploration for new sources of diamonds at its properties in the western Athabasca Basin, Saskatchewan, Canada – the commencement of drilling in its partnership with De Beers and the signing of a new exploration agreement with Canterra Minerals Corporation.

In an announcement released yesterday, CanAlaska has said that De Beers’ exploration team is preparing to start drilling kimberlite targets at the Company’s West Athabasca diamond project following the confirmation, through airborne surveys of several near surface magnetic anomalies in the area.

The detailed low level airborne survey confirmed some of the earlier identified targets and “provided significantly better definition of anomaly outlines and identified the presence of various lobes in the case of complex anomalies”, the Company said.

It may be recalled that earlier this year, CanAlaska and De Beers entered into a staged $20.4 million Option-Participation Agreement for a series of escalating exploration programmes in the West Athabasca diamond project.

The identified anomalies or clusters of anomalies are up to 10 hectares (25 acres) in size, and though the majority of the magnetic anomalies coincide with lakes, or are in swamps, some areas of the trend appear to be drillable before winter, CanAlaska reported.

A drill programme in a selection of the accessible land targets will continue from end-August to mid-October, while the remaining targets that are located under lakes are planned for winter 2017. All drillcore will be shipped to De Beers' facilities for detailed logging, sampling, and mineral processing.

CanAlaska President Peter Dasler commented, “We now have indications from the survey of a large kimberlite field in the western Athabasca. We are particularly excited that De Beers’ team will be able to produce the first drill core in September.”

De Beers Canada CEO Kim Truter commented: ”We would like to congratulate our De Beers Exploration team for carrying out the first field program in an efficient and safe manner in this new area over the last two months. We look forward to executing the upcoming drill program with the same responsible approach as our team works through the fall and into the winter season to obtain the next level of information on these very interesting targets.”

A day earlier, CanAlaska had announced that it had entered into a property option agreement with Canterra Minerals Corporation for Canterra to acquire up to a 70% interest in the West Carswell property located in the western Athabasca Basin, Saskatchewan.

This covers an area of approximately 4,800 hectares within the west Athabasca Kimberlite trend and is 20 km southwest of the area being explored in association with De Beers. The Property encompasses six discrete magnetic anomalies derived from a survey flown in 2010 for the Saskatchewan Geological Survey.

Under the agreement, Canterra will commission a high resolution airborne magnetic survey in the area.

Pursuant to the agreement, Canterra can acquire a 50% interest in the Property by making staged cash payments totaling $100,000 ($30,000 upon closing), the issuance of 2,000,000 million shares upon closing and work commitments of $1,000,000 by the third anniversary of the closing. Upon completion of the 50% earn-in, Canterra and CanAlaska will form a Joint Venture with each party maintaining a 50% ownership. Canterra will have the option to acquire an additional 20% ownership for additional cash payment of $100,000, an additional issuance of 1,000,000 shares and incurring a further $4,000,000 within the third anniversary of completion of the initial 50% earn-in.

Pic Caption: An area in West Athabasca with potential kimberlite targets
(Courtesy CanAlaska)

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