MANITOBA — CanAlaska Uranium of Vancouver has entered into a memorandum of understanding with East Nickel Mining (ERI) covering CanAlaska's 100%-owned North East Wollaston uranium project.
ERI may earn a 40% interest by completing at least 100,000 metres of diamond drilling within five years. ERI may boost its interest to 70% by drilling at least another 50,000 metres and completing a feasibility study for a minimum economic reserve of 15 million lb U3O8. If the reserve grows to 35 million lb and ERI finances mine construction, its interest could be 80%. ERI may earn an extra 15% (bringing its cumulative total to 95%) by granting CanAlaska a 5% gross revenue royalty.
CanAlaska has spent $6.5 million over the last three years exploring the NE Wollaston property. The geological targets across the project match the styles of mineralization reported from mineral deposits further south in the Athabasca Basin in Saskatchewan, according to CanAlaska. There is clear observation of late-replacement pitchblende mineralization in vein zones, fractures and as disseminations in host rocks. There is also evidence of more disseminated mineralization across stratigraphic horizons and multitudes of pegmatitic intrusive events, many of them containing primary uranium mineralization, or with brecciation and later uranium mineralization. Preliminary results for these zones are available in a news release dated Feb. 28, 2008, and posted at www.CanAlaska.com.
East Nickel Mining, to be renamed East Resources Inc., is a British Columbia-based company whose principals also own a controlling interest in Allway Minerals and Science Technology based in Xian, China.
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