CanAlaska options McTavish Uranium project

    VANCOUVER, Aug. 10 /CNW/ - CanAlaska Uranium Ltd. (TSX.V - CVV)
("CanAlaska" or the "Company") is pleased to announce that it has entered into
an option agreement with Kodiak Exploration Limited (KXL - TSX.V) ("Kodiak")
with regard to the Company's 100%-owned McTavish uranium project ("Project"),
situated in the prolific Athabasca Basin of northern Saskatchewan.
    Pursuant to the recent execution of an option agreement, Kodiak has been
granted an option to acquire up to a 70% interest in the Project. In order to
earn an initial 50% interest in the Project, Kodiak must complete $4,000,000
in exploration and issue 1,000,000 Kodiak shares to CanAlaska in accordance
with the following schedule: 100,000 Kodiak Shares on or before the Effective
Date; such payment to be made within 10 business days after the date of
acceptance (the "Effective Date") by the TSX Venture Exchange of a filing to
be made in respect of the proposed option;

    (i)    $600,000 Expenditures and 50,000 Kodiak Shares by the first
           anniversary of the Effective Date;
    (ii)   a further $800,000 Expenditures and 50,000 Kodiak Shares on or
           prior to the second anniversary of the Effective Date;
    (iii)  a further $1,200,000 Expenditures and 50,000 Kodiak Shares on or
           prior to the third anniversary of the Effective Date;
    (iv)   a further $1,400,000 Expenditures and 50,000 Kodiak Shares on or
           prior to the fourth anniversary of the Effective Date; and
    (v)    a further 700,000 Kodiak Shares on or prior to the fifth
           anniversary of the Effective Date

    Kodiak may earn a further 10% interest in the Project (60% total), by
expending $3,000,000 in exploration/pre-feasibility work over an additional
three year period, issuing an additional 550,000 Kodiak shares and producing a
43-101 compliant resource estimate containing at least 35 million pounds
U(3)O(8) in the measured and indicated categories. By defining a resource of
50 million pounds U(3)O(8) during the same period, Kodiak's interest may
increase to 70%. The proposed option is subject to acceptance by the TSX
Venture Exchange.

    Figure 1:
    Figure 2:

    The McTavish Project consists of three separate claim groups totaling
16,385 hectares. One claim group is wholly-enclosed by Kodiak's West
Millennium project. The other two parcels are intimately intertwined with West
Millennium. UTEM data show that the conductors successfully drilled by Kodiak
this past winter at West Millennium extend onto the McTavish property and
appear to intensify. Previously announced Kodiak drill hole WM09-04, which
intersected a 69 metre thick fractured graphitic and pyritic pelite unit
containing up to 0.13% U(3)O(8), is located only 400 metres from the McTavish
property and underscores the excellent exploration potential of the Project.
UTEM data also defines two other large scale, high magnitude conductors on the
McTavish property, both of which are untested by drilling. The combined West
Millennium-McTavish property package comprises nearly 380 km(2) in the heart
of the Athabasca Basin, only three kilometres west of Cameco's Millennium
deposit (47M pounds U(3)O(8) with an average grade of 4.5% U(3)O(8)).
    CanAlaska is very pleased to enter into the option agreement with Kodiak.
It will allow for immediate exploration of the significant geophysical
features identified by CanAlaska's VTEM airborne surveys, which are preserved
on the CanAlaska claim blocks.

    About CanAlaska Uranium Ltd. --

is undertaking uranium exploration in twenty 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).
To-date, CanAlaska has expended over Cdn$50 million exploring its properties
and has delineated multiple uranium targets. The Company's geological
expertise and high exploration profile has attracted the attention of major
international strategic partners. Among others, Mitsubishi Development Pty
Ltd, a subsidiary of Japanese conglomerate Mitsubishi Corporation, has
undertaken to provide CanAlaska C$10 mil. in exploration funding for its West
McArthur Project. Exploration of CanAlaska's Cree East Project is also
progressing under a C$19 mil. joint venture with a consortium of Korean
companies led by Hanwha Corporation, and comprising Korea Electric Power
Corp., Korea Resources Corp. and SK Energy Co, Ltd. A Memorandum of
Understanding has also recently been executed with mining partner East
Resources Inc. to commence exploration on the Poplar Project comprising a
potential 100,000 metres of drill testing.

    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: CUSIPNo. 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, Director & V.P. - Corp. Dev., Tel:
(604) 688-3211, Email:

Organization Profile

CanAlaska Uranium Ltd.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890