The Grease River Project
The Grease River Project is situated along the Northern rim of Canada's Athabasca Basin in the Province of Saskatchewan and initially comprised twelve claim blocks totaling 68,250 hectares.
CanAlaska Uranium Ltd, Yellowcake Plc and Uranium Prospects Plc have entered into an Option Agreement whereby Yellowcake may acquire a 9% and Uranium Prospects a 51% ownership interest in the Grease River Project by
making payments to CanAlaska totaling Cdn$300,000 in cash and 2.5 million Yellowcake shares or equivalent Uranium Prospects shares, and funding exploration expenditures of Cdn$5.0 million over a four year period.
Upon the fulfilling exploration commitments under the Option Agreement, the parties will form a joint venture to be owned 9% by Yellowcake, 51% by Uranium Prospects and 40% by CanAlaska. CanAlaska will act as Operator for the project and will be responsible for carrying out all exploration activities.
The Athabasca Basin is widely considered as being the richest and one of the largest uranium producing regions in the world. The Grease River Project covers large and strong lake sediment and radiometric anomalies as identified from Geological Survey of Canada surveys performed in the 1970's.
The lake sediment anomalies reach uranium (U) values of several hundred ppm and the radiometric anomalies show high equivalent uranium combined with elevated eU/eTh (uranium/thorium) ratios.
The area is underlain by Archean and Paleoproterozoic intrusives and metasediments and metavolcanic rocks. Some of the claims cover a north-south trending tectonic flexure and others straddle the Grease River Shear Zone, a
regional structure that was active during the formation of the Athabasca Basin. The Fond du Lac unconformity uranium deposit is located along this major lineament.
Work done by several companies in the late 1970's confirmed these anomalies and located lakes with even higher uranium values (up to 1,870 ppm uranium). In addition to these very high lake sediment anomalies, surface prospecting produced soil anomalies reaching 1.3% uranium, and showings with up to 1.6% U3O8 in grab samples. To date, the source of most of the geochemical anomalies has not been found.
The pending 2007 summer exploration program will include airborne geophysics, lake sediment and soil geochemistry, prospecting, and mapping. The objective is to locate the geochemical anomalies and showings described in the historical work, put them in the framework of present-day knowledge of Athabasca uranium
deposits, and define drill targets using prospecting, mapping of bedrock and surficial geology, geochemistry, and geophysics.
