Canadian Mining Journal


CanAlaska’s diamond play attracts $20M option from De Beers

VANCOUVER — Prospect generator CanAlaska Uranium (TSXV: CVV; US-OTC: CVVUF) is not commonly associated with diamonds, but on May 18 it announced a $20.4-million option agreement with De Beers Canada on 75 “kimberlite-style” targets staked in Saskatchewan’s northwestern Athabasca basin.

The company acquired the claims after its vice-president exploration, Dr. Karl Schimann, reviewed a high resolution airborne geophysical survey carried out by the Saskatchewan Geological Survey in 2011. The results revealed a series of discrete magnetic anomalies with a shallow signature northeast of the Carswell structure and close to a large crustal structure, the Grease River Shear Zone.

… The multi-stage option agreement could allow De Beers to earn up to 90% in the project within seven years.

The diamond producer can earn 51% by spending $1.4 million in year one, and then has two years to invest another $2 million to bump its interest to 70%. Once the agreement hits that threshold, CanAlaska maintains participation rights to prevent further dilution of its interest.

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