CanAlaska rises on 21.6 metres of 3.44% eU3O8 at Pike zone

CanAlaska’s West McArthur joint venture project. Credit: CanAlaska Uranium

CanAlaska Uranium (TSXV: CVV; US-OTC) stock jumped more than 10% on a rich hit of 21.6 metres grading 3.44% uranium oxide equivalent (eU3O8) at its West McArthur project in Saskatchewan.

The intercept in drill hole WMA082-7 at the Pike zone, included a 5.4 metre section at the unconformity grading 10.9% eU3O8. This discovery marks a continuation of high-grade uranium mineralization and underscores the potential for further expansion at the Pike zone, CanAlaska said.

The stock traded 6¢ higher at 64¢ in Toronto at mid-afternoon, giving the company a market cap of $99.4 million. The shares have traded in a 52-week range of 29¢ and 79¢.

“The continuation of ultra high-grade uranium mineralization at the unconformity and over significant width in the first drill hole of the summer program is a very encouraging indication that the Pike zone discovery will incrementally grow as drilling continues through the summer,” CanAlaska CEO Cory Belyk said in a release.

CanAlaska holds an 83.4% interest in McArthur West, a joint venture with Cameco (TSX: CCO; NYSE: CCJ) located in the eastern Athabasca Basin. 

In February, hole WMA082-4 returned even stronger mineralization from the Pike zone. It cut 16.8 metres of 13.8% eU3O8, including 4.7 metres of 40.3% and 2.4 metres of 13.5% eU3O8.

The summer drill program, using two diamond drills, will target 9,000 metres at multiple unconformity intersections. Future drilling at the Pike zone will assess the lateral extent of the high-grade mineralization, which currently remains open in all directions. Drilling is planned on adjacent sections as well.

CanAlaska Uranium holds about 5,000 sq. km of ground in the Athabasca Basin. The company has the Moon Lake South joint venture in the eastern Athabasca Basin with Denison Mines (TSX: DML; NYSE: DNN). 

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