De Beers and CanAlaska enter into $20.4 million Option-Participation Agreement

CanAlaska Uranium Ltd. has entered into a $20.4 million worth of Option-Participation Agreement with De Beers Canada Inc. on kimberlite-style targets staked by CanAlaska in the Northwestern Athabasca basin, Saskatchewan.

The claims staked by CanAlaska and optioned to De Beers cover 75 kimberlite-style targets developed from a recent high resolution airborne geophysical survey carried out on behalf of the Saskatchewan Geological Survey.

The 2011 airborne magnetic survey revealed a series of discrete magnetic anomalies northeast of the Carswell structure and close to the large crustal suture related to the Grease River Fault zone.

According to CanAlaska, in the Fort McMurray area of Alberta, the sampling for KIM shows a grouping of KIM dominated by chromite, with some pyrope and eclogitic garnets. These appear to be down-ice from the kimberlite-style targets identified within the Athabasca Sandstone in the northwestern Athabasca.

De Beers is required to progress through the options within the time periods or return the property to CanAlaska, however the sequential options are subject to CanAlaska’s right to participate in the exploration as a Joint Venture partner. CanAlaska’s participation rights (to prevent further dilution of its interest) start once De Beers has earned its 70 per cent interest. The work programs will be operated by De Beers, but with assistance from CanAlaska. The priority work will include a detailed airborne survey, diamond indicator sampling in the vicinity of the targets, followed by drill testing prioritized targets.

Peter Dasler, President, CanAlaska, said: “These 75 circular targets fit all the geological and geophysical criteria of kimberlites. The location of the targets within a thick sequence of crustal rocks and their clustering around major structural features, provides a compelling target for CanAlaska and De Beers. We are very pleased to have joined forces with the world’s premier diamond explorer to evaluate this 17,400 hectare (43,000 acre) claim package, which hosts numerous targets. Our alliance with De Beers will allow rapid first pass evaluation, and we look forward to the ability to participate with De Beers as a partner as the project grows.”