MC Resources Canada Acquires 50% Interest In West McArthur Uranium Project

CanAlaska Uranium (CanAlaska) has revealed that MC Resources Canada, a wholly-owned subsidiary of Mitsubishi, has invested CAD11m under the West McArthur uranium project’s option agreement and earned a 50% ownership interest in the project.

A 50:50 joint venture (JV) has been established between CanAlaska West McArthur Uranium, a wholly-owned subsidiary of CanAlaska, and MC Resources Canada. CanAlaska West McArthur Uranium is the operator of the JV.

To facilitate the long-term planning of the project, Mitsubishi and CanAlaska have outlined a CAD20m five-year program of exploration that will test the target areas and reach across the remainder of the property to evaluate other target areas.

The company has commenced the exploration work for the 2010 winter season. The geophysical crews started fieldwork in preparation for a $3.5m drill program on the West McArthur project. A drill contract for a minimum of 6,500mt of drilling utilizing two drill rigs has now been executed with Cyr Drilling International. Cyr Drilling has worked with the company on drill projects at West McArthur since 2005, and is well-provisioned to complete this winter’s drill program.

The nature of the alteration associated with the drilling, as well as from earlier geophysical surveys, indicated a number of discrete targets A to D in the grid 1-2 area, which have been the subject of intense review, re-testing and prioritization for the past field seasons. At least seven drill holes will be completed over the winter season on these high-priority targets. Prior drilling by the company in this area had intercepted traces of uranium mineralization in three separate drill holes.

Peter Dasler, president and CEO of CanAlaska, said: “We are very pleased to have been able to work with Mitsubishi for the past four years in expanding the knowledge of this very strategic project. We are located in a very mineral-rich area, adjoining one of the largest uranium mines in the world. Our preliminary work and drilling has indicated the style of targets that hold promise for significant uranium discovery. The strength and continued support of Mitsubishi Corporation is allowing us to reach for our goals.”