CanAlaska Uranium Ltd (TSX-V:CVV, OTCQB:CVVUF) told investors it has uncovered a "significant" new uranium zone at its West McArthur project in Canada's Athabasca Basin.
The drill hole, at which the discovery was made, was the second regional test of the current summer program and, significantly, sits 6 kilometres (km) along strike to the southwest of the firm's 42 Zone mineralization.
It hit a broad, 6.3 metre (m) long interval of elevated radioactivity, which included several metre-to sub-metre-long intervals of moderate to strong radioactivity, the company noted.
"The CanAlaska team has delivered a new uranium intersection in a new area of the West McArthur project with its second drill hole of the summer program," added CanAlaska CEO Cory Belyk in a statement.
"With multiple recently announced build-outs of small modular reactors ("SMRs") in the Canadian market alone, the need for more uranium discoveries that can lead to increased production has never been more apparent.
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"The West McArthur project, strategically located next to critical mine and mill infrastructure in the eastern Athabasca Basin, continues to respond positively to targets generated by the geological team providing additional opportunities for discovery for our shareholders.
"This is an important and exciting result early in the 2022 drilling program," said the company boss.
The mineralization, starting at 906.3 m depth, is characterized by massive to semi-massive, vein-controlled, and disseminated pitchblende and yellow uranium secondaries that are associated with bleaching, clay, and hematite alteration, the firm added.
CanAlaska is a project generator and holds interests in around 300,000 hectares (750,000 acres) in the Athabasca Basin. The company owns 77.12% of the West McArthur project and is the operator.
The firm is continuing its drilling program at West McArthur, which is part of the approved $5 million 2022 exploration program.
The program is focused on continued expansion of the 42 Zone mineralization, exploration within the 1.8 km 42 Zone extension target area, and testing of multiple new targets generated during the winter geophysical program
In other news, at the company's Manibridge project, partner Metal Energy is actively completing the phase two summer drill program.
The drilling is focused within the shadow of the past-producing Manibridge Nickel Mine which produced 1.3 million tonnes at an average grade of 2.55% nickel and 0.27% copper from 1971 to 1977, in the Thompson Nickel Belt, Manitoba.
The company also holds properties prospective for nickel, copper, gold and diamonds.
Contact the writer at giles@proactiveinvestors.com