Canalaska Uranium Ltd (CVE:CVV) has once again been featured by Brien Lundin in the Gold Newsletter, which he rates a 'strong hold' pending drill results.
Last month, the mining group reached a significant moment - as partner Cameco Corporation (TSX: CCO; NYSE: CCJ) started summer drilling at the West McArthur uranium project.
There are well defined targets in two highly prospective areas of the property - a project, which Lundin particularly likes.
"The major can earn a 30-per-cent interest in the project by paying Canalaska $725,000 (already paid) and spending $3-million on exploration (in progress)," he notes.
After completing these earn-in commitments, Cameco can double its interest to 60% by paying $500,000 to Canalaska and spending a further $6.27mln on exploration.
For now, Cameco is focusing on the first phase of the earn-in, and is currently conducting a summer drill program in the Grid 1 and Grid 5 areas of the project.
Lundin acknowledges that uranium markets are out of favour at the moment, but he says "there's nothing like a big discovery to make a company's share price pop".
CanAlaska Uranium shares were unchanged in Toronto at C$0.375 each.