CanAlaska Uranium has entered into an option-participation agreement with De Beers Canada for exploration expenditures of up to C$20.4 million on kimberlite-style targets staked by CanAlaska in the northwestern Athabasca basin, Saskatchewan. The claims cover 75 kimberlite-style targets developed from a 2011 high-resolution airborne geophysical survey carried out on behalf of the Saskatchewan Geological Survey. The survey, flown at 400-m line spacing, revealed a series of discrete magnetic anomalies.

The multistage option agreement allows De Beers to carry out a series of work programs over a period of three years to earn up to a 90% interest in the project. De Beers is required to progress through the options within specified time periods or return the property to CanAlaska. The sequential options are subject to CanAlaska’s right to participate in the exploration as a joint-venture partner. This participation right starts once De Beers has earned a 70% interest.

De Beers will operate the work programs with assistance from CanAlaska. Priority work will include a detailed airborne survey, diamond indicator sampling in the vicinity of the targets, and follow-up drill testing of prioritized targets.

CanAlaska President Peter Dasler said, “These 75 circular targets fit all the geological and geophysical criteria of kimberlites. The location of the targets within a thick sequence of crustal rocks and their clustering around major structural features provide a compelling target for CanAlaska and De Beers.

“We are very pleased to have joined forces with the world’s premier diamond explorer to evaluate this 17,400-ha claim package, which hosts numerous targets. Our alliance with De Beers will allow rapid first-pass evaluation, and we look forward to the ability to participate with De Beers as a partner as the project grows.”

De Beers Canada Inc. is a member of the De Beers Group of companies, which is a member of the Anglo American Group.