CanAlaska Uranium Ltd. - Chairman, Thomas Graham (centre)
Chairman, Thomas Graham (centre)
Source: The Belfer Center for Science and International Affairs
  • CanAlaska Uranium (CVV) has signed an agreement to option its Quesnel porphyry copper project in British Columbia to Omineca Mining and Metals
  • Under the terms of the deal, Omineca may acquire up to a 50 per cent stake in the project by issuing 300,000 common shares to CanAlaska and completing a 2,000-metre drill program within 12 months
  • Following completion of the option agreement, the two companies will form a joint venture to progress the project
  • Previous drilling at the project under various operators primarily focused on surface showings, and failed to properly examine the surrounding geophysical anomalies
  • CanAlaska Uranium (CVV) is currently steady at C$0.23 per share

CanAlaska Uranium (CVV) has signed an agreement to option its Quesnel porphyry copper project in British Columbia to Omineca Mining and Metals.

Located 11 kilometres from the town of Quesnel, the wholly owned project covers 291.6 hectares and is centred on Mouse Mountain, which hosts a hydrothermal system with copper-gold mineralisation over an approximate 1.5-kilometre strike length.

Additional smaller copper showings are thought to branch out from this zone, suggesting the potential for a large-scale copper and gold system.

Under the terms of the option agreement, Omineca may acquire up to a 50 per cent interest in the Quesnel Project by issuing to CanAlaska a total of 300,000 common shares.

Omenica will also be required to complete a 2,000-metre diamond drill program within 12 months of transaction approval from the TSX Venture Exchange.

Upon completion of the option agreement, the two companies will form a joint venture to progress the project. Should either party’s holding be diluted to less than 10 per cent, they will relinquish its stake to the other and be granted a two per cent net smelter return royalty

Peter Dasler, President of CanAlaska Uranium, said the company is pleased Omineca’s team will be able to utilise its recent exploration to advance the Quesnel Project.

“There are compelling and untested drill targets, as well as new showings to explore.

“The property lies within the trend of porphyry copper deposits hosted in the Quesnel Trough and is located close to established infrastructure,” he added.

The project has been the subject of drilling by various previous operators. However, exploration work was primarily focused on surface showings and related resistivity targets, and failed to properly examine the surrounding geophysical anomalies.

CanAlaska Uranium (CVV) is currently steady at C$0.23 per share, as of 3:45pm EDT.

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