CanAlaska Uranium Achieves Promising Start to its 2019 Exploration Program

A flurry of activity has been underway in recent months at some of the western Canadian exploration assets controlled by CanAlaska Uranium Ltd. (CA: CVV – $0.32 & US: CVVUF – $0.24 & GER: DH7N – €0.24). In addition to a suite of high profile uranium properties, the Company also controls three attractive holdings in the Thompson Nickel Belt of Manitoba. Of these, the North Manibridge project is located immediately to the north of the past-producing Manibridge nickel mine.

The property also hosts a structural trend of semi-continuous nickel bearing alteration extends for more than a kilometer. Within this prospective structural trend, a section of 400 meters along strike represents a compelling high-grade nickel zone.

After recently completing additional staking to expand on the total property area, CanAlaska committed to a drill program at North Manibridge with the objective to further validate the potential for new resource discovery, and finalize a joint-venture arrangement.

Attractive Nickel Mineralization Successfully Encountered Through Diamond Drilling Program

Earlier this month, a drill program commenced to confirm the extent of mineralization within the defined structural zone, including targets in close proximity to some of the new sections added by staking. This week CanAlaska reported that it has completed the program and preliminary analysis of the drill core revealed wide intervals of attractive nickel mineralization. Four diamond drill holes were completed during the program for a total of 1000 meters of drilling. Nickel mineralization was encountered in all four holes, including multiple sections bearing semi-massive and massive sulphide alteration.

Drill hole MNB19-01 encountered a four meter massive sulphide zone at 102 meters depth, with a wider interval of sulphide alteration extending roughly 8 meters further on either side of the section. In hole 02 a more narrow massive sulphide interval was identified within a twelve meter section of disseminated sulphide alteration, followed by a second mineralized sulphide zone extending another 4.5 meters in width. Drill hole 03 also achieved similar results starting from a depth 115 meters where a 2 meter interval of massive sulphides was encountered within a wider section of disseminated alteration of roughly 12 meters width.

However it was the drill core from hole 04 that was perhaps the most intriguing as it was targeted on a geophysical Electromagnetic (EM) anomaly. It successfully encountered two shallow intervals of disseminated sulphides, but this alteration did not account for the EM conductor. Geologists have interpreted that additional alteration encountered near the lower elevation of the drill core may indicate another band of sulphide alteration that would represent a prime target for follow up drilling work.

It should be noted that a portable XRF unit was used for preliminary analysis of the core samples and this technique has proven surprisingly accurate during fieldwork to confirm the presence of metals. Rather than waiting weeks for lab assay results, geologists were able to scan portions of the drill core and instantly confirm sections where nickel minerals and other alteration were present.

Enhanced Potential Validated for Further Exploration Pending Joint-Venture Partnership Deal

With the successful results achieved to intersect wide zones of nickel alteration within this target zone CanAlaska now has the evidence in hand to warrant a much more intensive exploration program at North Manibridge with the prospect to outline a new deposit. Further analysis will now be completed with samples submitted for lab assays, which are expected to be available in 3-4 weeks.

The drilling work has demonstrated that a high grade nickel zone has been identified near surface, validating the geological interpretation of the structural corridor. In addition, sub-parallel alteration was also encountered below the fold structure and there is evidence to suggest further mineralization may continue at deeper elevations of the zone.

Combined with historic drilling results from years past, which revealed a section of 12.1 meters bearing 1.46% nickel in one hole, and 2.6 meters of 3.05% nickel in another, this latest drilling work has confirmed the potential for attractive nickel resource zones further along strike at the North Manibridge property, similar to the nickel deposit formerly mined at the Manibridge operation located just 2.5 kilometers to the south. These types of nickel deposits provide sulphide ore which is now in demand by battery makers. The huge Electric Vehicle boom and demand for energy storage has brought these projects into the spotlight. Nickel is a key component of storage batteries, comprising up to 80% of the battery content.

The objective to advance the North Manibridge project as a high profile sulphide nickel discovery prospect has been accomplished through this program. Located within the Thompson Nickel Belt, one of the most productive geological trends in the world for sulphide nickel discovery, North Manibridge appears to warrant a much more substantial exploration effort. CanAlaska will now work to close a pending JV deal for the project to enable follow up work to continue while the Company may focus on its uranium discovery aspirations further to the west in Saskatchewan.

Conclusion

CanAlaska has committed to an active program of exploration work this year targeting several projects it controls in Western Canada, in the pursuit to create shareholder value through resource discovery. The rapid pace of work to define targets at North Manibridge and follow through with an immediate drilling program was intended to accelerate the completion of a joint venture deal. Given the successful results encountered, the North Manibridge is certainly an attractive prospect.

The decision to stake additional land holdings prior to drilling, and the successful achievement of multiple mineralized intervals in all four drill holes, further validates the overall discovery model for North Manibridge and the team of geologists involved. Smallcaps Recommendation: BUY.

For important disclosures, please read our disclaimer.