CANALASKA URANIUM ANALYSIS TWO
Favorable fundamentals support aggressive uranium exploration
Led by power-hungry countries such as China and India, the number of nuclear power plants worldwide is expected to increase from 436 units today to over 550 within the next two decades. As the world’s existing sources of mined uranium supply presently meets only 2/3 of outstanding demand, significant new sources of uranium need to be discovered to fill this growing deficit. Correspondingly, the long-term price of uranium has increased from US$9 per pound in 2003 to approx. US$60 per pound present-day.
Company Highlights
?? The Athabasca Basin contains the world’s most potent supply of uranium The large high-grade uranium deposits in the Athabasca Basin produce the richest uranium mines in the world. The Cigar Lake and McArthur River mines of Cameco and AREVA each hold resources exceeding 200 million pounds, grading between 17-25% U3O8 (uranium oxide). These deposits possess gross realizable values in excess of $20 billion. Uranium ore mined from McArthur River or Cigar Lake is worth in excess of $30,000 per tonne as compared with approx. $25 - $150 per tonne from other major uranium production regions around the world. CanAlaska has positioned itself well for the discovery of one or more of these “mega” uranium deposits.
?? Aggressive Exploration CanAlaska’s exploration team comprises seasoned geologists and geophysicists with considerable uranium exploration experience. It is headed by Mr. Peter Dasler, P.Geo., President, and Dr. Karl Schimann, P.Geo., V.P. Exploration. Dr. Schimann spent 20 years with uranium-giant Cogema/AREVA, where he participated as a member of the exploration team that discovered and developed the giant Cigar Lake uranium mine. CanAlaska ranks among the most active uranium exploration companies operating in the Athabasca Basin. Since 2004, CanAlaska has expended over Cdn$70 million in the exploration of its projects and is poised for discovery success.
?? Global Strategic Partnerships Led by Mr. Emil Fung, V.P. Corp. Development, CanAlaska has built long-term relationships with international strategic partners to provide exploration funding. Japan’s Mitsubishi Corporation has funded C$12.5 million towards exploration on the West McArthur Project as a 50% joint venture partner. Similarly, a Korean consortium led by Hanwha, and comprising KEPCO, KORES and SK Energy, has invested C$14.3 mil. in the Cree East Project under a C$19 mil. option to earn a 50% ownership interest. Canadian miner Kodiak Exploration is working on the Company’s McTavish Project under a C$4 mil option to earn a 50% interest. As a result of these global funding partnerships, the Company is able to maintain an aggressive exploration profile despite the depressed state of the global financial markets.
CONCLUSION: Canada indisputably has the richest Uranium deposits in the world and CanAlaska has been quietly laying claims to a large part of it. This company will be the best pick of the junior Canadian companies once Uranium takes off again in price and that is not far off. With the current price for oil at $92 per barrel and coal shortages world wide the eyes of industry will again be looking at Uranium. This stock will be the best percentage gainer of all the juniors.
