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Friday, Feb 14, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.

Uranium

CanAlaska Uranium latest drill program expands in Pike Zone uranium discovery

CanAlaska has mobilized three drills to the West McArthur project site and drilling has begun on the Pike Zone

CanAlaska Uranium latest drill program expands in Pike Zone uranium discovery
The three drills moved to the Pike Zone. Image via CanAlaska Uranium.

CanAlaska Uranium Ltd. (CVE: CVV) (OTCMKTS: CVVUF) has started drilling as part of its CAD$12.5 million 2025 exploration program on the West McArthur Joint Venture project in the eastern Athabasca Basin.

The company said on Thursday that the 2025 West McArthur winter program will focus on the expansion of its high-grade Pike Zone uranium discovery.

The company has mobilized three drills to the West McArthur project site and drilling has begun on the Pike Zone. All three drills are currently focused on delineating the high-grade zone, both within and along strike of the known area.

CanAlaska is the operator of the joint venture with Cameco Corporation (TSE: CCO) (NYSE: CCJ). It also holds approximately 85.79 per cent ownership in the project. CanAlaska is also sole-funding the 2025 West McArthur program, which will further increase its majority ownership in the project.

Recent drilling indicates the Pike Zone has a 200 metres of strike length of uranium along the unconformity target area. It also remains open in all directions. Multiple drill fences within the area define a high-grade core extending for at least 100 metres. It also remains open.

“The start of the 2025 exploration program at West McArthur is an exciting milestone to reach and the CanAlaska team is looking forward to building on the incredible success achieved for our shareholders in 2024 at the Pike Zone discovery,” said Cory Belyk, CanAlaska CEO.

“As the three drills start turning, the need for new high-grade uranium discoveries to fuel growing western world clean energy demand has never been more clearly understood.”

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The company started a ground-based electromagnetic survey

As the winter season progresses, the company plans to continue stepping out along the C10S corridor from the Pike Zone to evaluate additional zones of high-grade uranium mineralization. To the west of the Pike Zone, the company has yet to test the C10S corridor for approximately 1,000 metres.

The company has started a ground-based electromagnetic survey to investigate the extension of the C10S corridor to the southwestern property boundary.

The company will replace historical EM coverage with modern Stepwise Moving Loop Time Domain Electromagnetics. It will also use the same survey design that led to the discovery of the Pike Zone. To the northeast along trend, the C10 corridor hosts CanAlaska’s 42 Zone discovery, as well as Cameco and Orano’s high-grade Fox Lake uranium deposit, which contains 68.1 million pounds of uranium at an average grade of 7.99 per cent U3O8.

The company expects to complete the winter portion of the 2025 approved exploration program in April.

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Geopolitics offers opportunity for Canadian companies

Uranium geopolitics center on Kazakhstan and Russia, both significant players in global nuclear fuel supply.

Kazakhstan is home to some of the world’s largest uranium reserves, and it relies heavily on Russian cooperation, especially with Russia’s state-owned nuclear giant, Rosatom. This relationship has raised concerns in the West, where fears of over-dependence on Russian-controlled resources have grown, particularly amid Russia’s geopolitical actions in Ukraine and other regions.

The United States has taken steps to refuse uranium from Russian sources. The idea is to reduce reliance on Russia for its nuclear fuel supply. As tensions between Russia and the West escalate, the U.S. seeks to diversify its uranium sources and Kazakhstan’s role complicates global nuclear energy security.

This spells considerable benefit and opportunity for Canadian companies like CanAlaska.

“The ongoing geopolitical risk in Kazakhstan and many other uranium production centers elsewhere in the world, and depleting reserve base at tier 1 deposits like Cigar Lake and McArthur River, is challenging the concept of existing and future stable clean energy fuel supply,” said Belyk.

“The discovery of Pike Zone in the worlds best and most stable uranium producing district is well timed to counter this increasing supply risk dynamic.”

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