Peter Dasler, Canalaska president, told investors: "The detailed geophysical survey carried out in June by Cameco's team has now given us well defined targets in two highly prospective areas of the West McArthur property.
"Both of the target areas appear to host large mineralizing systems and it is encouraging to see the priority that Cameco's team has given this project during challenging times.
"We are looking forward to the results of this significant drill program."
Importantly, the property is immediately next to Cameco's Fox Lake uranium discovery, which has reported inferred resources of around 68.1 million pounds based on 387,000 tonnes at 7.99% U3O8 (uranium).
This drilling work will see concurrent drilling on the two target areas and it will be carried out by a helicopter supported team based at Cameco's nearby majority-owned McArthur River mine.
Cameco is carrying out the current work as part of an option to earn a 60% interest in the West McArthur project.
It has paid CanAlaska an initial $725,000 and has the right to earn a first stage 30% interest for a $5mln exploration program within three years (it has spent $1.1 million to date) on two separate target areas: Grid 1 and Grid 5.
Cameco will then have the right, after a $500,000 payment, to carry out a further $6.275mln on the project over the following three years to earn a further 30% interest and form a joint venture (jv) with CanAlaska.
Shares shot up almost 10% in Toronto to C$0.40.