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Message: Re: news drilling started McTavish Cedar

Jan 29, 2010 06:19AM

The dashed lines in the figures represent the conductor axis trends determined from the ground EM surveys. Kodiak has their own ground EM data which has never been posted on their website and I assume was used to locate the first well collar shown in the CanAlaska press release. I hope both companies have had discussions regarding the issues CanAlaska encountered at Cree East. It's not clear whether they encountered the graphitic pelite zone in the basement rock at Cree East , which is usually found associated with the known deposits and exists in the Kodiak WM-09-04 well. A second issue is the drillling problems encountered with the highly altered rock that resulted in very poor core recovery and problems keeping the hole open for logging with the gamma ray tool. CanAlaska had to use a bigger diameter drill pipe to help with the problem which caused delays in the program last year. We'll pretty much know where we're at after the first well. If they encounter a significant hydrothermal zone and little Uranium then the geophysics hasn't reduced the risk enough to easily find the sweet spot, so you just keep drilling to earn in on the property with a sufficient drill spacing to eliminate the possibility of a large deposit. If the first well hits the upside is huge. We should know by next Friday or early the following week since it takes about 7 days to drill a well to TD here. Good news spreads like wildfire while bad news always takes the slow train.

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