CanAlaska Uranium Ltd. (CVE:CVV) (PINK:CVVUF) share price continues to consolidate at the levels imposed by an ongoing nuclear crisis in Japan, negating even the company’s efforts to strengthen its fundamental structure.On Wednesday the company commenced diamond drilling at Fond Du Lac project to test one newly identified target. The project is under the ownership of a joint venture between the company and Fond Du Lac Denesuline First Nation. Earlier RC drilling has identified a number of strong hematization above and below the nonconformity. The diamond drilling will carry out testing program on near surface targets until March 25 before it is mobilized to a nearby project.
CanAlaska is in the exploration stage with no ongoing production yet. Because it is not yet manufacturing uranium ore for sale, the current crisis should not have much impact on the company. It has no inventories that could change in value or burden the business, so the only effect can be the change in the general valuation of its property. However, if uranium prices are bound to rise following the crisis, this can prove to be a positive turn of events for CanAlaska.
The company is well funded with over $13 million in cash and roughly $3 million in annual exploration expenditures.
