Resource World Magazine

12 www.resourceworld.com A P R I L / M A Y 2 0 1 7 tion strategy to build on previous work. Under an agreement, Senator can earn a 100% interest in the PNE property by making payments of up to $900,000 to an un-named vendor. One industry official said now is a good time to have exposure to uranium. "Junior resource companies should be looking at what commodities are going to be needed in the future and positioning themselves well before the market starts to react,'' explained Peter Dasler, President and CEO of CanAlaska Uranium Ltd. [CVV-TSXV], an uranium exploration company with a very large land position in the Athabasca Basin. Through partnerships with some of the industry's leading players, including Cameco Corp. [CCO-TSX; CCJ-NYSE], French nuclear power giant AREVA and Denison Mines Corp. [DML-TSX; DNN- NYSE MKT], Dasler said the company has been able to identify multiple targets on 13 projects after seeing roughly $85 mil- lion invested in the ground. Some of those properties are located in the vicinity of rich uranium mines, operated by Canadian uranium mining major Cameco. CanAlaska's property portfolio includes three claim groups, totaling 6,687 hect- ares, located in the Patterson Lake area of the western Athabasca Basin, which have been optioned to Makena Resources Inc. [MKNA-TSXV]. The deal allows Makena to earn a 50% interest in the claims. CanAlaska says the Patterson property has the geological environment to support the discovery of uranium deposits similar to the Patterson Lake South (PLS) deposit of Fission Uranium or the new Arrow dis- covery of NexGen Energy. However, its flagship property is the West McArthur Project, which lies on the eastern side of the Athabasca Basin, adja- cent Cameco Corp.'s McArthur River Mine. In an interview, Dasler said he is waiting for Cameco to announce its plans for drill- ing this on the property where several target areas are being evaluated. Canalaska will also see drilling on its Waterbury and Moon properties in 2017. Moon (comprised of Moon South and Moon North) covers about 3,000 hectares and is located west of the McArthur River and Key Lake mines. The current successes by Denison at the nearby Gryphon and Pheonix discoveries (on the Wheeler River property) show the significant potential for high grade uranium discoveries in the area, CanAlaska has said. Under the terms of the option, Denison will carry out $200,000 of explora- tion work on the claim over two years to acquire a 51% interest. Denison can increase its stake to 75% by spending a further $500,000. If either party gets diluted below 10%, they will continue to hold a 2% NSR royalty. As CanAlaska works to fund additional drilling on other projects, Dasler said he remains hopeful that demand from nuclear reactors being built around the world will drive the uranium price higher. That view was recently echoed by investment bank- ing firm Cantor Fitzgerald Canada Corp., which said it foresees "a violent upswing" in the price of uranium towards its long term price forecast of US $40 a pound. The forecast is based on production shutdowns, driven by the expiration of long term contracts, and production costs for certain projects and mines that Cantor Fitzgerald believes would be uneconomic at US $40 a pound. Cantor analyst Rob Chang says that while much attention has focused on reactors shutting down,

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