Uranium markets have shrugged off their excessive inventories and depressed prices. The outlook for the industry looks brighter as the demand for nuclear energy increases.
The sector is also likely to benefit from increasing demand from emerging markets such as China and India. In the sector, there are several companies which have shown strong potential. CanAlaska Uranium Ltd. (TSX-Venture:CVV) is one such company which has built a solid foundation and thus is able to resist minor sector hiccups.
CanAlaska Uranium announced that it has been served a notice by De Beers for the discontinuation of the West Athabasca project option. De Beers had deployed an exploration team for 85 large magnetic anomalies around the project.
It was believed that the anomalies may contain magnetic minerals within organic material in the overburden.
Five sites showed the signs of magnetic material within the organic overburden, unconsolidated sand and boulders, followed by sandstone. Other drilling areas showed mixed results, including prospecting magnetic material in organic overburden. De Beers provided results for seven out of a total of 85 anomaly areas found in the project area.
The samples were tested at the Saskatchewan Research Council (SRC) and McMaster University. While the Western Athabasca Basin showed promising geological and structural settings for the presence of diamondiferous kimberlite, however, De Beers decided not to pursue further excavation and returned 100% of the project to CanAlaska.
While the news may be a little disappointing for the company, CanAlaska Uranium plans to engage with other parties for testing out the remaining 78 targets. The company claimed that the remaining 78 targets are not likely to be related to magnetic organic material.
The company has many other strong projects as well. It is currently trying to collaborate with third parties for its Alberta property. The project is related to the exploration of diamonds at the site. It is also working with Cameco Corporation for its West McArthur uranium project.
Cameco is likely to provide a 2017 exploration program and budget by January 31, 2017. The results will help the company in designing its future strategy.
CanAlaska Uranium also prospected its Moon South claim in the Athabasca Basin, Saskatchewan. Through Denison Mines Corp., the first drill hole showed moderately altered sandstone. The collaboration grants $200,000 worth of exploration work and allows Denison to acquire 51% interest.
CanAlaska Uranium has shown strong movement this year as its stock grew over 472% in 2016. However, it gave up a chunk of its gains during the past three months as its value declined 27% as commodities experienced a late year pull-back. This pull-back may prove beneficial for value-oriented investors.
