#8211; CanAlaska Uranium Ltd. (CVV – TSX.V, CVVUF – OTCBB, DH7 – Frankfurt) (the “Company”) Further to the Company’s October 2nd news release, CanAlaska is pleased to report that its exploration crew on the North East Wollaston Project has received additional assays from surface sampling carried out during this summer’s work program. This second set of sample results are from August-September sampling in areas targeted for investigation in response to results from lake sediment and prospecting programs undertaken in 2005, and recent airborne surveys. These results are being published as a matter of record only. Additional samples from the areas detailed are still being processed in the assay labs. Interpretation of the data is on-going, and awaiting further data from each of the areas.
According to Peter Dasler, M.Sc., P. Geo., President & CEO “the Company www.canalaska.com is highly encouraged by the nature and extent of the uranium mineralization now being detailed on the property.” Many of the target zones bear similar signatures to current basement style mineralization within the Athabasca Uranium camp. The Wollaston Domain rocks in the North East project area are the lateral extent of the host rocks of the high grade uranium mines in the Athabasca. Uplift and erosion in the North East project area is thought to have occurred to a greater extent than in the areas further south, hence exposing the current mineralized zones at surface.
The recent assay results for an additional 101 surface samples, 96 of which are mineralized surface boulders, are listed in Table 1 below. Three samples of very high uranium values, each from previously noted Zones “B” “C” and “D” (see NR October 2, 2006), define zones of pitchblende vein style mineralization. These results support the field geologists’ opinion that the uranium mineralization being discovered in the area is, in part, related to hydrothermal mineralizing events.
In the newly-defined area “GR 2”, one series of uranium-rich boulder samples form a tightly defined pattern which is thought to represent near surface mineralization. Of particular interest is the style of mineralization, predominately associated with granite-pegmatite, but also associated with metasediments. Many of the boulders found on surface are large (over 1 metre) in size, and show pervasive uranium mineralization as measured by scintillometer, and many have an extensive covering of uranium oxide mineralization (see picture). At current uranium prices, rocks possessing U3O8 values of 0.1% possess gross mineral value in excess of US $120 per ton. See Maps: http://www.canalaska.com/i/maps/table_110106.jpg
One tightly defined area of surface uranium rich samples within the “GR 2 Area” is worthy of highlight. The area has consistently provided samples in excess of 0.1% uranium from large boulders located in a structural corridor defined by the recent airborne geophysical surveys (Figure 1). The GR 2 boulders appear to represent subcrop over a length of at least 500 metres, and boulders are found across tens of metres perpendicular to the strike of the zone. A detail of the surface sampling in this area is shown in Figure 1.
The mineralized samples occur in a mixed pegmatoid-metasediment assemblage and suggest a Rössing-style bulk tonnage potential. Other mineralized samples occur in a variety of rock-types in areas with indications of shearing/fracturing and/or clay-alteration suggestive of basement-hosted unconformity uranium deposits
In June, 2006, Terraquest Ltd. completed an 8,424 line-km high definition magnetic-radiometric-VLF airborne survey over a major part of the property. A second airborne survey was completed in early October, 2006. This VTEM survey, flown by Geotech Ltd., focused on several key structural areas, including the GR 2 Zone, and was performed to define drill targets in tandem with existing soil geochemistry and radon survey data. See Photos http://www.canalaska.com/i/photos/phot_attachement110106a.jpg and http://www.canalaska.com/i/photos/phot_attachement11010601a.jpg
All of the samples were submitted to qualified Canadian laboratories for analysis. Samples submitted to Saskatchewan Research Laboratories were analysed for multi-element geochemistry, including uranium by tri-acid digestion and ICP. Samples submitted for assay for trace element geochemistry to Acme Laboratories in Vancouver BC were analysed by aqua regia digestion and ICP analysis. The samples were collected by CanAlaska field geologists under the supervision of Dr. Karl Schimann, and were shipped in secure containment to the laboratories noted above. Peter Dasler, M.Sc. P Geo. is the qualified technical person responsible for this news release.
About CanAlaska Uranium Ltd. – www.canalaska.com
CanAlaska Uranium (CVV – TSX.V, CVVUF – OTCBB, DH7 – Frankfurt) holds eighteen, 100%-owned, uranium projects in Canada&#s Athabasca Basin. Since September, 2004, the Company has aggressively acquired one of the largest land positions in the region, now comprising over 2,313,000 acres (9,360 square km). In 2005, CanAlaska expended over Cdn$5 million exploring its properties in the Athabasca Basin and delineated multiple uranium targets. Initial drilling from the West McArthur project revealed uranium mineralization and significant zones of hydrothermal alteration, indicative of a favorable environment for uranium deposition. An aggressive $6.5 million exploration program for 2006 is continuing.
On behalf of the Board of Directors
Peter Dasler, M.Sc., P. Geo.,
President & CEO
CanAlaska Uranium Ltd.
Investor Contact:
Emil Fung
Vice President, Corp. Dev.
Tel: +1.604.685.1870
Toll Free: 1.800.667.1870 (N. America)
The TSX Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release: CUSIP# 13708P 10 2. This news release contains certain Forward-Looking Statements within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company&#s expectations are disclosed in the Company&#s documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.
