CanAlaska Uranium Letter to Shareholders – August 2020
Dear Fellow Shareholders:
Our exploration efforts in 2020 were slowed slightly because of pandemic shutdowns, however we were able to complete enough new drill holes at West McArthur in February-March to allow us to significantly constrain the major offsets and structures surrounding the high-grade uranium that we had previously intersected in drill holes. In August our team revisited the property and carried out further detailed interpretation work to guide success for an expected re-start of operations in 2021.
There have been fundamental changes in people’s perceptions to Nuclear Power over the past year, and the industry has become more focussed on the current and growing uranium supply shortfalls. Pandemic response almost instantaneously shuttered all Canadian production, as well as significantly cut Namibian and Kazakhstan production, now and into the future. At the same time there are power outages occurring in the USA, and a much louder voice being given to new small nuclear, (SMR’s) as well as large-scale nuclear power generators. Fifty large scale nuclear plants are under construction around the world, with another 150 planned. If you add this to the current 400+ operating plants, which need all of the current mine supply to operate, then it is clear that new uranium mines are needed. At CanAlaska we believe that we have multiple opportunities to make new uranium discoveries in the Athabasca region of Canada, and provide a profitable return for our shareholders.
In the past year we have also created a significant presence in nickel exploration. The Electric Vehicle (EV) battery market has a nickel supply short-fall, and we are capitalizing on that. We have developed three prospective land packages for nickel exploration in the Thompson Nickel Belt in Manitoba. The Strong and Hunter nickel properties are located 25 kilometres north of the Vale’s nickel operations at Thompson. The Manibridge property is 130 kilometres southwest of Thompson and is immediately adjacent to the past-producing Manibridge nickel mine which we purchased in 2019. The Manibridge property has excellent power, road and rail access, and any discoveries will benefit from that local infrastructure. Our first drilling program on this property in February 2019 intercepted very high-grade nickel (over 10% Nickel) and compilation work has outlined unmined nickel resources and exploration targets in the historic mine area and claims. We continue to look for cost-efficient opportunities to expand our strategic land position in this nickel belt.
We have continued our hybrid “project generator” operating model, with operating Key projects and new partnerships for additional projects, and hope to conclude other deals before year end. I am extremely pleased with the program of work planned for our Thompson nickel project by Fjordland Exploration. Our growing shareholding in Fjordland has opened us up to their property interests in the Voisey Bay region, and their association with Robert Friedland and HPX exploration. The nickel sulphide targets at Thompson are well defined by airborne geophysics modeling, are large, and at shallow depths. Our team will be operating the first programs on the property, keeping us fully involved in developments.
In May 2020, following our year end, we were able to add significant new uranium property holdings in the North Eastern Athabasca Basin area. We had been watching key target areas, and were able to competitively stake four new projects on the extension of the structures which host the Eagle Point and Collins Bay uranium deposits. Our knowledge of this area has increased considerably from our prior work in Manitoba and further to the south, and also with the intimate knowledge from our staff. Our focus continues on the Eastern Athabasca, as this area hosts extensive mine and mill infrastructure, and large operating mines. This greatly accelerates the development of projects located in close vicinity. Going forward CanAlaska stands to benefit from new project partners, the property deals that we have with Cameco and Denison, and the exploration programs that are currently underway.
Our existing large, and strategically positioned, West McArthur and Cree East uranium properties have 15 to 20 year exploration credits and are not a burden to us as we define the targets that we believe can provide us large exploration success. We have been patiently waiting for opportunities to move forward with exploration and we can now see multiple reasons to bring our company to the forefront. Our new discovery at West McArthur is strategically positioned to take full advantage of existing infrastructure and future uranium production needs. Cree East is a further large property with a series of new uranium targets found with $20M of Korean Sovereign funding. These targets are ready to be advanced with new partnerships.
Our aim is to build on our vast uranium and nickel property holdings, and provide a meaningful contribution to clean energy production and storage. We will do this with you, our shareholders, as partners. Corporately, we remain committed, first, to our uranium properties in the Athabasca Basin and we have continued to preserve cash and limit financing initiatives to minimize share dilution in the Company. This has been successful as our technical staff continue to develop projects for third-party funding. For properties within our portfolio we will be looking to find parties interested in drill programs so as to expose us to multiple-discovery potential and increase the value of CanAlaska. With outside project funding we protect CanAlaska shareholders from unnecessary financing and dilution, and still participate in new mineral discoveries.
CanAlaska continues to be grateful for the community support from the Fond Du Lac First Nation, the Black Lake First Nation, Hatchet Lake First Nation and English River First Nation in Saskatchewan. In Manitoba, the community of Lac Brochet is a key component to future success. The community of Nelson House has continued to support us for our Ruttan and North Thompson area projects. These communities will be the first to provide labour and support for any new mine development.
Once again, I am personally grateful for the long-term support of our larger shareholder groups and individual investors as well as our core staff and contractors. If you have not already done so, please visit our website (www.canalaska.com) and opt-in to receive news releases to stay up to date. You can also follow us on Twitter to learn of developments in the uranium and nickel markets, and nuclear energy: https://twitter.com/CanAlaska
Yours very truly,
Peter G. Dasler, M.Sc., P.Geo
President and CEO
Please contact us if you desire further information about recent developments.
CanAlaska Uranium Ltd.
Tel: +1.604.688.3211 Extension 138