CanAlaska Uranium Ltd (CVE:CVV) says it's encouraged and excited about this summer's drilling at the West McArthur uranium project.
It comes after CanAlaska received a budget from Cameco Corp for geophysics and drilling work, estimated to cost $1.9mln.
Cameco is doing the work at both the Grid 1 and 5 targets as part of an option to earn a 60% interest in the project.
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It has paid CanAlaska an initial $725,000 for the right to earn a first stage 30% interest for a $5 million exploration program within three years.
The main aim of the planned program on Grid 5 is to use up to three drill-holes and one offcut (3,400 metres) along Grid 5 to follow-up the results of an electro-magnetic survey.
The second target at Grid 1 is a linear magnetic low that correlates with high conductivity in a survey near CanAlaska's historical drill hole WMA002 and planned are at least two holes to test for mineralization at and below the unconformity for a total of around 1,900m.
CanAlaska president Peter Dasler said: "In this second year of exploration by Cameco on the West McArthur property, we expect to finally close in on the source of the mineralization that we identified in past programs.
"Both of the target areas appear to host large mineralizing systems and it is encouraging to see the priority that Cameco's team has given this project during challenging times. We are looking forward to the results of this significant drill program."
The West McArthur project covers 35,830 hectares, beginning 15km west of Cameco's majority-owned McArthur River uranium mine.
Most significantly, it is immediately adjacent to Cameco's Fox Lake uranium discovery, which has reported inferred resources of around 68.1 million pounds based on 387,000 tonnes at 7.99% uranium.
The Fox lake discovery is within the Read Lake project, which is operated by Cameco (Cameco 78.2%, Areva 21.8%).