VANCOUVER, June 25 /CNW/ - CanAlaska Uranium Ltd. (TSX-V: CVV) - Further
to the Company's May 7th, 2007 press release regarding the signing of an
Memorandum Of Understanding for uranium exploration of CanAlaska's Cree East
Project in conjunction with a Korean Consortium led by Hanwha Corporation,
CanAlaska is pleased to announce further details regarding the progress of the
Preliminary agreement has been reached between Hanwha and CanAlaska
towards the overall contribution of Cdn$19 million by the Korean Consortium to
effect an earn-in of a 50% ownership interest in the Cree East Project over a
4-year period. Both the structure of the proposed transaction and the
composition of the Korean Consortium are presently being finalized. It is the
intention of the parties to execute a definitive Letter Agreement by no later
than July 26th, 2007, which shall be subject to further approvals by the
Boards and regulatory authorities of the respective parties.
Accordingly, the exclusivity period granted by CanAlaska to Hanwha
Corporation for the commercial undertaking of the proposed transaction has
been extended to July 26th, 2007.
The Cree East project is located in the southeastern Athabasca basin,
approximately 25 km west of the Key Lake uranium mine, and 20 km south west of
the newly announced Millenium uranium deposit of Cameco.
The project was staked by CanAlaska in 2004, and covers 559 sq km of the
Wollaston-Mudjatik domain rocks. Historical drilling tested alteration zones
and targets, generally to the south and east of the property, and current
exploration by other companies is revisiting these areas. The depth to the
unconformity varies from 100 metres in the south to an inferred 800 metres in
the north. From geophysical evidence and past drilling, there appears to be a
number of step structures at the unconformity boundary and in the basement.
CanAlaska carried out airborne surveys across the property area in 2005
and determined priority targets. In 2006, detailed collection of over
2,000 surface rock samples and over 400 lake sediment samples by CanAlaska's
field crews defined three large areas of dravite and clay alteration on
surface, and localised boulder samples containing anomalous uranium (highest
at 13.1 ppm uranium).
It is thought that the dravite and clay alteration, coupled with the
anomalous uranium in the lakes and boulders in this vicinity indicates the
proximity of unconformity and basement style uranium mineralization. The
shallow depth to basement also allows close definition of conductive zones and
geological structures, using the airborne survey data. Initial ground
geophysical data from the first lines of IP-Resistivity surveys have also
provided the Company with evidence of strong alteration in the sandstone
horizons overlying these basement conductors.
About CanAlaska Uranium Ltd. -- www.canalaska.com
CanAlaska Uranium (CVV -- TSX.V, CVVUF -- OTCBB, DH7 -- Frankfurt) is
undertaking uranium exploration in seventeen 100%-owned and two optioned
uranium projects in Canada's Athabasca Basin. Since September, 2004, the
Company has aggressively acquired one of the largest land positions in the
region, comprising over 2,500,000 acres (10,117 sq. km or 3,906 sq. miles). In
2005/2006, CanAlaska expended over Cdn$15 million exploring its properties in
the Athabasca Basin and has delineated multiple uranium targets. Initial
drilling results from the West McArthur Project revealed uranium
mineralization and significant zones of hydrothermal alteration, indicative of
a favourable environment for uranium deposition. Active drilling and
exploration continues in the Summer, 2007 exploration season at West McArthur
and at 4 other significant projects. The Company's high profile in the
prominent Athabasca Basin has attracted the attention of major international
strategic partners. Mitsubishi Development Pty., a subsidiary of Japanese
conglomerate Mitsubishi Corporation, has undertaken to provide CanAlaska
Cdn$11 million in exploration funding to earn 50% of the West McArthur
Project. An MOU has also been executed with Hanwha Corporation, a South Korean
conglomerate, to enter into joint exploration of CanAlaska's Cree East
On behalf of the Board of Directors
Peter Dasler, M.Sc., P.Geo.
President & CEO, CanAlaska Uranium Ltd.
The TSX Venture has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release: CUSIP No. 13708P 10 2. This news
release contains certain "Forward-Looking Statements" within the meaning of
Section 21E of the United States Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical fact, included herein are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in the Company's
documents filed from time to time with the British Columbia Securities
Commission and the United States Securities & Exchange Commission.
For further information:
For further information: Emil Fung, Vice President, Corp. Dev., Tel:
(604) 685-1870, Toll Free (N. America): 1-800-667-1870, Email: