An Overview of CanAlaska
CanAlaska is a junior uranium explorer focused on the Athabasca region of northeastern Saskatchewan Canada.
The company also has significant nickel and copper assets in Manitoba.
The Athabasca region is known as the Saudi Arabia of Uranium with larger resources in the ground than almost anywhere else.
CanAlaska’s land package is over 740,000 acres directly west of Cameco’s McArthur River uranium mine, the largest uranium mine in the world.
The goal of the company is to prove out the resource potential of those acres through the drill bit and likely sell out to a major producer, potentially Cameco, as they see drilling success.
CanAlaska’s motto is “deals that result in drilling are our focus”
The West McArthur Project in Focus
After recent drill success, CanAlaska’s property is the newest high grade uranium resource in the entire Athabasca basin.
West McArthur has a long history with CanAlaska starting exploration of the asset over 10 years ago, during the previous bull market in Uranium.
CEO Cory Belyk, who worked over 10 years for Cameco prior to joining CanAlaska was intrumental in the deal that saw Cameco buy into this property after their success at neighboring Fox Lake.
CanAlaska’s property ends right at the boundary of Cameco’s Fox Lake to the east and management belives the geology looks very similar, meaning large resource and high grades.
Fast forward to today and CanAlaska is using newer geophysical technology to explore the western part of the property with a very recent successful well in what they are calling the Pike Zone.
They followed up the first well at Pike with multiple others last summer with one well encountering a best in class 25% uranium deposit.
CanAlaska isn’t content to wait very long to get back to drilling and will resume the drill program in the second week of January 2023 with 2 drills instead of the previous 1.
Source: CanAlaska Uranium
Resource Exhaustion is an Opportunity for CanAlaska
A key benefit to operating in the Eastern Athabasca is the amount of uranium infrastructure already constructed and in operation.
Operational processing plants equal demand for uranium and CanAlaska is well positioned to be that key supplier.
CEO, Cory Belyk pointed out that Cameco’s Rabbit Lake mill needs more uranium supply TODAY, while Orano’s McClean Lake mill will need additional resources to be found within the next 7 years.
7 years may sound like a long time but uranium deposits in the basin take around 15 years to go from discovery to production. By the time West McArthur comes online, assuming more positive well results, there will be a widespread shortage of tier 1 resource to feed the mills.
CEO Belyk made it clear that the area has adequate tier 2 resources but any explorer that finds tier 1 uranium concentrations has an automatic buyer.
If CanAlaska can prove that West McArthur is a tier 1 project, there is more than enough demand in their backyard.
Given that Cameco already owns 20%+ of West McArthur, they are one the logical acquirer if the property turns out to be as prospective as current drill results are pointing to.
Source: CanAlaska Uranium
Small Scale Reactors are Coming and Could Sway Public Opinion Back Towards Nuclear
CEO Cory Belyk was very excited about the potential of small scale nuclear reactors to expand the potential market size for uranium.
The technology is based on nuclear reactors that have powered warships and submarines successfully and safely for decades and will be rolling out commercially as early as 2028.
Westinghouse in particular is testing its eVinci Micro reactor which can generate 5MW per hour for 8 years before refueling is required and can be moved with standard military transportation vehicles.
Another project, the Darlington Plant in Ontario will generate about half the electricity of a legacy reactor with far less than half the footprint.
The real opportunity for small reactors is the ability to be installed in more diverse geographical areas where large nuclear plants aren’t feasible.
As more members of the public experience the safe generation of nuclear energy in their own backyard, the negative public opinions formed from the Chernobyl, Three Mile Island and Fukushima nuclear accidents may start to shift and with it the public’s embrace of nuclear’s green potential.
Small scale nuclear tests will happen right in CanAlaska’s backyard and the company is well positioned to be a key supplier should uranium demand accelerate.
Source: CanAlaska
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