CanAlaska reports exceptional uranium grades at Cameco JV

CanAlaska Uranium (TSXV: CVV; US-OTC: CVVUF) says “rare” new drill results help expand the Pike zone at its West McArthur joint venture uranium project with Cameco (TSX: CCO; NYSE: CCJ) in northern Saskatchewan. The shares jumped.

Drill hole WMA082-4 at the eastern Athabasca Basin site intersected 13.8% uranium equivalent (eU₃O₈) over 16.8 metres, including 40.3% over 4.7 metres and 13.5% eU₃O₈ over 2.4 metres at the Pike zone, the company said in a release on Wednesday.

Shares in CanAlaska Uranium rose 34% to 61¢ apiece in Toronto on Wednesday morning, valuing the company at $90.1 million.

"It is extremely rare to intersect uranium mineralization of this grade and width anywhere in the world, including the Athabasca basin,” CanAlaska CEO Cory Belyk said in the release. “Since initial discovery in 2022, the CanAlaska team has believed Pike zone had the potential for Cigar- and McArthur River-like uranium grades and thickness based on prior drilling results.”

Cameco’s Cigar Lake and McArthur River-Key Lake uranium mines in Canada’s globally-important region for the heavy metal to make nuclear fuel are among the highest grade and largest in the country. Interest in uranium projects is accelerating as uranium has more than doubled in price to US$102 per lb. over the last 12 months.